SPRINGFIELD – Illinois State Representative Anthony DeLuca, Chairman of the House Cities and Villages Committee, held a subject matter hearing to address the need to restore funding to the Local Government Distributive Fund (LGDF). As part of its 2023 State Legislative Agenda, the Illinois Municipal League (IML) is supporting HB 1116 (Rep. DeLuca, D-Chicago Heights) and SB 180 (Sen. Laura Murphy, D-Des Plaines) that would incrementally increase LGDF from 6.16 percent of state income tax collections beginning in State Fiscal Year (SFY) 2024, to 10 percent in SFY 2027.
Following the enactment of the state income tax in 1969, 10 percent of total income tax collections was dedicated to LGDF for distribution to municipalities and counties. Since 2011, the state has decreased the local share of LGDF so that in State Fiscal Year (SFY) 2023, the local government share is 6.16 percent of individual income tax collections and 6.845 percent of corporate income tax collections.
Mayors from across the state testified during the hearing, advocating for more local funding through LGDF. This funding impacts core services that municipalities provide to their residents. The mayors emphasized how important and beneficial it is for the state to prioritize LGDF so that municipalities are better equipped to deliver critical basic services.
“Every year, state legislators pass unfunded mandates down to municipalities, and we have no way of paying for them without raising taxes,” said IML President, Village President Catherine M. Adduci, Village of River Forest. “By restoring LGDF to 10 percent, Illinois communities will be able to pay for those costs, and it will help reduce property taxes and other local tax burdens.”
Illinois cities have managed LGDF revenue responsibly while receiving just a small portion of total income tax collections. Additional LGDF revenue could be spent in a manner that can be seen and experienced by local taxpayers. Because local government is the level of government closest to the people, municipal taxpayers have more input into how LGDF dollars are spent to benefit their communities.
In addition to Adduci, the mayors who spoke at the hearing were: Mayor Scott Levin, City of Elmhurst; Mayor James Ford, City of Country Club Hills; Mayor Tom McNamara, City of Rockford; Mayor Mark Kownick, Village of Cary; Mayor Kevin Burns, City of Geneva; Village President Jada Curry, Village of Lynwood; Mayor Chris Brown, City of Morris; Mayor Roger Agpawa, City of Markham; Mayor Christopher Clark, City of Harvey; Mayor Mboka Mwilambwe, City of Bloomington; Mayor-elect Nicole Milovich-Walters, Village of Palos Park; Mayor Fred Bilotto, City of Blue Island; Mayor Gerald Bennett, City of Palos Hills; Mayor Mary Alexander-Basta, Village of Bolingbrook.
ABOUT THE ILLINOIS MUNICIPAL LEAGUE
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 1,295 municipalities in Illinois to provide a formal voice on matters involving common interests.