Illinois Municipal League comments on 0.1 percent increase in local government distributive funds

SPRINGFIELD – The Illinois Municipal League (IML) issued the following statement after the General Assembly approved a State Fiscal Year 2023 budget that includes an increase to the Local Government Distributive Fund, from the current distribution rate of 6.06 percent of individual income tax collections to a rate of 6.16 percent, which will provide additional funding to cities, villages and towns:


“We thank the governor and leaders in the House and Senate for prioritizing this investment in our cities, villages and towns. Years of revenue cuts from the state have placed great pressure on local budgets, forcing many municipalities to consider tax and fee increases, service cuts and even layoffs as they struggle to make ends meet,” said Mayor Julie Moore Wolfe of Decatur, IML President. “This additional funding will help ease some of those burdens so communities can better meet the needs of our residents.”


“It’s important to note that while municipalities received federal COVID relief dollars, their use was restricted to water, sewer and broadband projects and could not be used for purposes such as personnel, pension payments or debt payments. The funds provided through LGDF can be used on a much broader array of items, including public safety,” Brad Cole, IML Executive Director. “While there remains a long way to go before LGDF funding is fully restored, this is a step in the right direction.”



The Illinois Municipal League is the statewide association representing local communities throughout Illinois. Founded in 1913, IML has worked continuously for the benefit of all 1,296 municipalities in Illinois to provide a formal voice on matters involving common interests.