Local government advocates oppose Pritzker plan to cut distributions

By Jim Talamonti | The Center Square
The Center Square

(The Center Square) – Advocates for Illinois communities are expressing opposition to Gov. J.B. Pritzker’s planned reduction of the state’s revenue distribution rate to local governments.

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.