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Many blame Illinois' smoking ban for depleted tax revenue

10:47 PM CST on Thursday, March 6, 2008

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(KMOV) - It's no longer just bars and restaurants that say they're getting clobbered by Illinois' smoking ban.

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Alton leaders tell News 4 that the ban is part of the reason why city employees are being laid off.

Tax revenue from Alton's Argosy Casino is down 20 percent this year, and it's down more than that at many bars in the city.

Since last year the casino paid Alton $7.5 million in taxes, and this year it's expected to be only $6-million.

Business and taxes collections are also way down at the city's bars and restaurants.

The loss of tax dollars means the police department will lose four of it's 67 police officers, and the fire department will lose four of 62 union firefighters through layoff.

The mayor of Alton says other revenue is down too as the economy teeters near a recession.

The state says Alton should expect to lose about $3.5 million in sales and other tax revenues.

The city's total budget is only about $60-million.