Better Government Association

Party costs: Local leaders make call

April 8, 2007

BY PATRICK FERRELL JANET LUNDQUIST AND KIM SMITH Staff Writers There are no federal or state laws governing the ways our local officials spend our tax dollars when it comes to any types of celebrations. It is simply up to our local officials to decide on what is or is not appropriate.

When such a celebration costs more than $10,000, it does raise a red flag for Jay Stewart, executive director of the Better Government Association.

"Illinois law requires municipalities to go out to bid when purchasing anything over $10,000," Stewart said. "While spending money to recognize individuals for jobs well done is fine, discretion should be used, especially when it comes to spending tax dollars."

It is a fine line on whether or not a community is breaking the law if it is breaking up the bids to purposely keep the amounts under the $10,000 requirement, Stewart said. There could be different billings for the rental of a building, the caterers and the entertainment that add up to more than the $10,000.

Stewart said there is nothing wrong with issuing plaques and having ceremonies to honor government employees who have done good jobs. He added that such practices are good for employee morale.

"There is nothing wrong with spending money on pizza or cake," Stewart said. "While company picnics are not a big deal, there is something wrong when it costs every taxpayer in the community more than $1 for a government celebration."

A Herald News survey of nearly two dozen municipal and educational taxing authorities found parties can range from small get-togethers at a local VFW hall to meals at upscale steak houses.

Frankfort's annual appreciation dinner at CD & Me Banquets cost each resident $1.27, while Elwood's employee dinner at Al's Steakhouse cost each $1.70.

Stewart said private companies -- 79 percent of which had holiday parties last year, according to one survey -- are held to different standards because their celebrations are not paid for by tax dollars.

J. Thomas Johnson, the president of the Taxpayer Federation of Illinois, said there's nothing inherently wrong with spending public money on parties for public employees, so long as the governmental bodies are forthcoming about what the money is being spent on.

"Better judgment would suggest this isn't a prudent expense of taxpayer money," Johnson said. "Elected officials are elected to make the determination on the local level what compensation should be available to employees. The public should be aware of it and should hold the officials accountable to how they spend the public dollar."