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The governor’s budget proposal cuts the Local Government
Distributive Fund formula from 6.47% to 6.28% of individual
income tax revenues.
Illinois Municipal League CEO Brad Cole said lowering the rate
would keep the expected dollar amounts flat for the next fiscal
year.
“And if the revenue projections don’t come in as an increase
like they are suggesting, then it would see a dollar decrease,
too,” Cole told The Center Square.
Romeoville Mayor and Metropolitan Mayors Caucus Chair John Noak
called the plan a serious concern to communities across the
state.
“We look forward to discussing our concerns regarding LGDF
reductions with our legislative members and leadership,” Noak
said in a statement.
Illinois House Republican Leader Tony McCombie, R-Savanna, told
The Center Square that Pritzker is already failing to fund local
governments the way he should.
“You’re not even at the amount you’re supposed to be already, so
now you’re going to cut $60 million? He cut gaming last year
from local governments, the grocery (tax revenues),” McCombie
said.
From 1993 to 2011, local governments received 10% of state
income tax revenues through the LGDF. At less than 6.5%, the
local share percentage has dropped nearly 40% over the past
decade.
McCombie said reducing the LGDF formula rate is another example
of Pritzker’s nickel-and-diming.
“This is going to only increase property taxes, which does
nothing on his other initiatives for affordable housing,”
McCombie said.
Cole said the governor’s proposal is going the wrong way.
“They should be increasing state shared revenues back to the
historical levels by percentage, a pro-rated percentage that
every community gets equally, instead of lowering it,” said the
IML CEO.
State spending has surged under Pritzker, from a $39 billion
budget in 2019 to a proposed $56 billion spending plan for 2027.
The governor has repeatedly blasted the Trump administration for
cutting federal funding to Illinois.
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