SPRINGFIELD – The Illinois Municipal League (IML) released the following statement in response to the State Fiscal Year (SFY) 2027 state budget proposal: Governor JB Pritzker is proposing a reduction in the Local Government Distributive Fund (LGDF) formula, from 6.47 percent to 6.28 percent of individual income taxes, which would eliminate any natural growth in LGDF revenues based on the SFY 2027 budget projections. The Governor’s proposal suggests that the actual dollar amount of LGDF distributions would essentially remain flat; however, this is the same manner in which previous cuts were implemented and that have had decades of negative impact on municipalities. Any such reduction in the LGDF formula rate is unacceptable. Other state shared revenues appear to remain flat. Our LGDF fact sheet is available via this link. “Any reduction in shared revenues results in a direct cost increase to residents – this means property tax increases, sales tax increases or any number of other local tax increases to make up the difference. Any discussion about affordability has to recognize that cuts from the state to local governments actually impact the residents negatively – this doesn’t help affordability on any level. If we want real reform in areas like property taxes, the state has to stop cutting the dollars that go to local government,” said IML Chief Executive Officer Brad Cole. ABOUT THE ILLINOIS MUNICIPAL LEAGUE The Illinois Municipal League is the statewide association representing municipalities throughout Illinois. Founded in 1913, IML has worked continuously for the benefit of all 1,294 cities, villages and towns in Illinois to provide a formal voice on matters involving common interests. The League is managed under the general direction of Chief Executive Officer Brad Cole, former Mayor of the City of Carbondale. | 