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Itasca is joining communities across the state in urging Springfield to restore local funding for essential services to fulfill the State’s agreement with municipal governments.
The Local Government Distributive Fund (LGDF) is a portion of Illinois income taxes, paid by you, our local residents and businesses, that are collected by the State and redistributed back to municipalities on a per capita basis.
LGDF can account for a significant portion of a municipality’s operating budget, in some communities amounting to millions of dollars annually. LGDF helps fund services that our community relies on, such as police and fire, road repairs and maintenance, garbage collection, and flood prevention. It also helps avoid increases to property taxes.
From the inception of Illinois’ income tax in 1969, the General Assembly agreed to allocate 1/12 of income tax revenue back to Illinois municipalities in lieu of a local income tax. In 1993, the General Assembly agreed to increase the allocation to 10 percent to ensure that municipalities have a reliable source of funding to invest in our communities. However, since 2011, the State has reduced the LGDF share from 10 to just 6.06 percent.
Itasca should be able to rely on predictable funding levels and consistent distribution of funds each year. State legislators have an opportunity to restore LGDF in 2022, which could help reduce the reliance on property and other taxes without increasing income taxes for our residents and businesses.
You can help by making your voice heard in Springfield! Please contact your State Senator and Representative and let them know that you support restoring LGDF funding to municipalities. Contact information for your local representatives can be found at bit.ly/MyILRep.