(LGDF) Local Government Distributive Fund
Click the image below for Mayor-elect Nicole Milovich-Walters testimony to the Illinois House Cities and Villages Committee hearing regarding LGDF on April 18, 2023.
For the transcript of the testimony, please click here.
Now is the Time to Invest in Communities
In addition to warmer spring weather, tax season is a common subject of discussion at this time of year. The Village of Palos Park is joining forces with cities, villages, and counties across the state to urge state lawmakers to “Invest In Communities” by returning a greater portion of your income taxes back to where they belong, right here in our community.
What does that mean? When the State income tax was established more than 50 years ago, it was agreed that a portion of it should be returned to each community based on population. In the State budget, this funding is known as the Local Government Distributive Fund, or LGDF.
LGDF is an important revenue source for every local government in the state, not only because it is stable and reliable year after year, but because each community can use it wherever it is most needed to stabilize and improve the community. In Palos Park, LGDF makes up approximately 11% of our annual operating budget.
But here’s the problem: in 2011, the State decreased the portion of income taxes that is returned to our community from LGDF. Rather than 10% of income taxes, Illinois lawmakers have allocated just over 6% to local governments in recent years.
Across the state, municipalities and counties have lost out on more than $8 billion that could be used in lieu of property taxes or other revenues to train police officers, pay down public safety pension obligations, improve or repair infrastructure projects, and more. In Palos Park, the amount of LGDF diverted by the state is almost $3.6 million.
With the State’s financial condition, the healthiest it has been in decades, now is the time for the General Assembly to prioritize funding for infrastructure, public safety, and community services in all Illinois communities by restoring LGDF. In Palos Park, additional funding could mean doing more infrastructure maintenance including roads, stormwater systems, water and sewer mains; and paying for police pensions without needing to raise our local taxes.
As Illinois lawmakers prepare this year’s State Budget, Mayor Mahoney and Mayor-elect Milovich-Walters, along with other local government leaders are urging the General Assembly to “Invest In Communities” and restore the Local Government Distributive Fund to 10%. Visit InvestInCommunities.org to learn more and make your voice heard by contacting your state legislators and posting on social media using #InvestInCommunities.
Illinois Municipal League - Information links regarding LGDF
Illinois Municipal League-LGDF Resources https://www.iml.org/page.cfm?key=27669
LGDF-Local Share of State Income Tax Revenue: FACT SHEET https://www.iml.org/file.cfm?key=15419
Illinois Municipal League-News Release https://www.iml.org/file.cfm?key=25632
CONTACT YOUR LEGISLATORS! CLICK BELOW TO DOWNLOAD A SAMPLE LETTER.
10400 South Western Avenue
Chicago, IL 60643
Room 309 Capitol Building
Springfield, IL 62706
7501 W. Lemont Rd. Ste. 315G
Woodridge, IL 60517
108 Capitol Building
Springfield, IL 62706