Local governments across Illinois are calling on state lawmakers
to invest in communities by returning local funds.
Make your voice heard.
Invest in Communities
Local governments across Illinois are calling on state lawmakers to invest in communities by returning local funds where they are needed most.
Cities, counties, towns and villages across Illinois are banding together to remind state lawmakers to return local funds that allow municipalities and counties to invest in critical priorities like infrastructure, public safety and community services. Since 2011, local governments across the state have been deprived of more than $8 billion that could be used to replace lead service lines, buy police body cameras, pay down public safety pension obligations, and support other local projects.
What is LGDF?
In Illinois, county and municipal governments receive a portion of the income taxes collected by the State on individuals and corporations. This pool of revenue, previously 10% of income taxes, is the Local Government Distributive Fund (LGDF), which is returned to each community on a per capita basis each year. This system was established in 1969 when the state income tax was created instead of local governments collecting their own income taxes.
In 2011, after this system had been in place for more than 50 years, Illinois lawmakers started taking a larger share of the local pie – reducing the agreed-upon 10 percent rate. When state lawmakers increased the state income tax that year, none of that increase was allocated to local communities. As of FY23, the percentage of income tax allocated to LGDF stands at 6.16 percent.
As a result, Illinois municipalities have lost out on more than $8 billion.
How does this impact my taxes?
Investing in Communities will reduce pressure on property taxes and allow municipal and county governments to pay for state mandates and community needs without increasing the income or property taxes or adding new taxes or fees on residents.
We implore our legislators to Invest in Communities to provide needed funding for whatever each municipality needs most. Road and sidewalk repair, stormwater projects, public safety pensions, and essential services like snow removal and code enforcement depend on this investment.
The decade-long disinvestment in municipalities has reached a tipping point. The State must restore the agreement first established more than 50 years ago by directing LGDF to where it is earned and where it belongs – at the city, town and village level.
Illinoisans pay among the highest property taxes in the nation. When LGDF funding is restored, local communities can hold the line on taxes.
With restored LGDF funding, cities and towns across the state can purchase important equipment like police body cameras and firefighting equipment.
LGDF revenues are generated by local residents through their income taxes. We are reaching out to our lawmakers and all residents of the state and urge them to support “Invest in Communities”. LGDF will help pay existing public safety pensions, resulting in less of a burden on our property taxes.
We need to reduce the property tax burden for our residents and stabilize our pension systems. Now is the time to Invest In Communities.
Mental health, social services, and public safety are priorities for both the Governor and local leaders. Investing in Communities means additional funding to support these needs and the wellbeing of all Illinois residents.
LGDF revenue is generated by local residents. It’s time to Invest In Communities and create economic development for communities throughout the state.
With the State’s financial condition the healthiest it has been in decades, now is the time for the General Assembly to Invest In Communities and prioritize funding for infrastructure, public safety, and community services across the state by restoring LGDF.
Share the Message and Make Your Voice Heard
Discover The Issues
Become an engaged citizen by learning about LGDF.
Contact Your Legislators
Reach out to your local lawmakers and urge them to pass legislation that will restore LGDF funding to your community.
Share The Message
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Who Is Supporting This Effort?
Contact Your Legislators
If you're interested in advocating for your community, reaching out to your State Representatives and Senators can be a powerful way to make your voice heard. You can then reach out to them via email, phone, or social media to express your concerns and make your case for the community. Remember, the more engaged citizens are in the political process, the more responsive and effective government can be.