As the 2023 Spring Legislative Session draws to a close, legislators have the opportunity to make a big difference in communities throughout the state. With the state’s finances continuing to remain stable, now is the time for the state to restore the Local Government Distributive Fund (LGDF) to its promised level.
LGDF was established to give 10% of the state’s total income tax revenue to Illinois municipalities to pay for services like mandated pension benefits, critical infrastructure repairs, public safety and other important programs. LGDF revenues have been routinely cut in recent years as policy makers cited the state’s budget woes. Our leaders have said that our state is no longer on the edge of the financial abyss, and it is now time to do right by our communities and reverse these cuts.
Currently, local governments receive just 6.16% of individual income tax collections and 6.845% of corporate income tax collections. This lack of funding comes at a time when the state continues to impose unfunded mandates on municipalities, adding to existing budget pressures. By not keeping the promise of 10%, we lose out on much-needed revenue to help keep fees and property taxes down as we strive to provide the best services possible for our community.
In River Forest, the village has lost over $8 million in LGDF revenue since the cuts were put in place in 2011. This money could have been spent on improving alleys, addressing lead service lines, or providing our first responders with the best equipment.
In Broadview, the village has lost over $5.7 million in LGDF revenue since cuts were made in 2011. This funding would have gone to support capital projects, assist with unfunded mandates and improve equipment necessary for our public safety teams.
The village of Oak Park has lost $40 million since 2011, due to LGDF cuts. This funding would have assisted with expanding alley improvements and other capital projects, supporting sustainability, and furthering an economic development plan inclusive of all our business districts, and affordable housing goals.
Lawmakers must make increasing LGDF funding a priority as they finalize the budget. Our community and many others across Illinois are relying on their support.
River Forest Village President
President of Illinois Municipal League
President of West Central Municipal Conference
Oak Park Village President