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The State of Illinois has turned down a request from the City of Harvey to classify it as a “financially distressed” city, a designation that would allow for state intervention in its financial affairs.
In a recent special city council meeting held on October 16, Harvey officials discussed the possibility of seeking this designation under Illinois law. The Harvey City Council had previously approved the move in October, hoping for state oversight to help manage the city’s financial issues.
Despite the council’s approval, the Illinois Department of Revenue rejected the request in February, as per a letter acquired by ABC7. Harvey’s city attorney, Keri-Lyn Krafthefer, confirmed the state’s decision, noting that it was expected. Krafthefer suggested that state legislation should be revised to simplify the process for cities seeking financial assistance from the state.
The designation was approved by Harvey City Council in October, and the city requested for the state to take control of the city’s finances. However, the request was denied by the Illinois Department of Revenue in February, according to a letter obtained by ABC7.
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Harvey city attorney Keri-Lyn Krafthefer confirmed the denial to ABC7 Friday, saying it was not a surprise to the city and state law should be changed to make it easier for cities to request help from the state.
Municipalities can’t declare bankruptcy in Illinois.
As of October 2025, Harvey has a 52% property tax collection rate, bringing in less money than it spends, even though it has the third highest property tax rates in Cook County. Also, 35% of state revenue & restricted funds gets diverted by the State Comptroller to fund the fire pension.
Illinois Department of Revenue Director David Harris also confirmed the denial to ABC7 Friday.
“Two criteria city has to meet in order to be considered a financially distressed city. One is being in top 5 of the highest tax rate, other being in the lowest 5 of the tax per capita,” Harris said. “They met one criteria not the other.”
READ MORE | Questions raised as Harvey seeks approval from state to be declared ‘financially distressed’ city
Harvey Mayor Christopher J. Clark died Jan. 30. The Harvey City Council elected Shirley Drewenski as acting mayor in February.
“If we can bring brighter minds to our community to help us to move forward, if we can find ways to deal with such a sizeable amount, then we welcome that,” Clark said in October as the “financially distressed” declaration request was made by the city.
The city had said it needs $51 million to operate and only receives $30 million, and there was a bill in Springfield that would provide immediate relief.
“If the legislature and governor determine law should be changed, we will do what law says to do,” Harris said.
The City of Harvey laid off about 10% of its municipal workers in August amid their financial crisis.
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