Illinois lawmakers consider increasing income tax money returned to local governments

(The Center Square) – Lawmakers from an Illinois House committee hosted mayors from all over the state to discuss a possible increase in the Local Government Distributive Fund.

LGDF is a state and local funding partnership instituted as part of the state income tax.

Rockford Mayor Tom McNamara spoke before the committee and explained what he was seeking.

"I am happy to support [House Bill 1116], which provides to me an approach to restoring LGDF that is measured," McNamara said. "It increases it up to 10%. By incrementally increasing the amount, this bill will allow both the state and municipalities to gradually adjust to these new rates."

According to the Illinois Municipal League, as of 2011, 10% of total income tax collections were dedicated to LGDF for distribution to municipalities and counties. The percentage share of state income tax revenue to local governments was then reduced to 6%.

State Rep. Martin McLaughlin, R-Barrington Hills, said the state owes these townships this funding.

"This was a promise that none of you have received. For the people who defend our public pensions as a promise, you guys have been cut in half. So those who defend our pensions like I do, or 40%, this actually goes directly to funding a lot of your pension obligations," McLaughlin said.

Cary Mayor Mark Kownick said they hope to get the percentage up to 10% to help communities pay for what they need.

"We need these funds to cover rising costs, including mounting public safety pensions, unfunded mandates, infrastructure, stormwater and community improvement are extremely limited," Kownick said.

There was no final decision made by the committee to increase the funding but the measure received little push back.

State Rep. Bob Rita, D-Blue Island, made it clear he will support the increase.

"I understand the needs, and I am in support of it, and I will continue to be in support of it," Rita said.

Region: Springfield,Feeds,News,Prairie,Region: Central,City: Springfield

via WMAY – 92.7 WMAY

April 19, 2023 at 03:16PM

Leave a Reply

Fill in your details below or click an icon to log in: Logo

You are commenting using your account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s