While state representatives try to close the state’s budget deficit in Springfield before the end of the month, the City of Evanston is concerned about the potential loss of nearly $2 million from its general funding. If passed, the proposal may compel the city to reduce funding for services on which Northwestern students and Evanston residents rely.

State representatives are considering a proposal that would reduce the proportion of income tax revenue the state provides to municipalities from 10 percent to 7 percent. If approved, the proposal would reduce the city’s general funding by more than $1.7 million, said Eric Palmer, community information coordinator for the city.

If state legislators pass the proposal, which could happen as soon as Friday, the city would likely resort to an immediate reduction of public safety and public works services, Palmer said. These services range from street cleaning and traffic light maintenance to emergency preparedness.

Such funding cuts may affect Evanston residents as well as the NU community, especially the portion of the undergraduate student body that lives off campus.

Weinberg senior Anna Kelly, who lives off campus, said NU students use Evanston services, such as police protection and garbage pick-up, even if they don’t realize it. NU students should keep tabs on the state legislature and its decisions, she said.

“Northwestern students should have a general sense of how the funding affects them,” Kelly said.

NU is not directly involved with affairs surrounding the income tax revenue proposal, said University Spokesman Al Cubbage.

However, NU put considerable effort into encouraging students to complete their census forms so they would be counted as Evanston residents and bring more funding to the city, Cubbage said.

Local businesses are concerned about the prospect of reduced municipal funding, said Jonathan Perman, executive director of the Evanston Chamber of Commerce.

To compensate for the reduced funding, the city could cut fees or tax businesses, Perman said.

“The impact, hypothetically, would possibly be some greater tax burden for businesses to bear,” Perman said.

However, if the city loses some of its appropriation, it would probably make up for the loss by making cuts, Palmer said.

The possible reduction in city funding represents less than 1 percent of the city’s general expenditure in its 2010-11 budget of $224 million.

Still, the city is taking the proposal seriously, Palmer said.

The proposal would hit the city hard because it has already balanced its budget for this fiscal year, and it has already made layoffs and cut funding for two branches of the Evanston Public Library to do so.

“We’ve already done the hard work,” Palmer said.

City officials are not sure if the state will pass the proposal, Palmer said. Nevertheless, it is a major concern to local leaders.

“This is a ‘wait and see what Springfield does’ type thing,” Palmer said.[email protected]