Ford Calls for LGDF Formula Change, Wants More Resources Returned to Chicago

SPRINGFIELD, Ill. – State Rep. La Shawn K. Ford, D-Chicago, is encouraging the General Assembly to take action to increase the Local Government Distributive Fund (LGDF) formula rate so that Chicago can have access to an additional $125 million to commit toward emergency services, infrastructure and other essential needs.

“As a Chicago resident and member of the Illinois House of Representatives, it’s my job to strengthen communities by fighting for good public policy,” Ford said. “For too many years, the LGDF has been used to plug budget holes in Springfield, taking away local resources that could go toward public safety efforts, pension funding, and other critical programs and services in need of attention. With the state budget flush with new revenues, now is the time to return a greater portion of those dollars to local governments that desperately need support, work to move remove regressive red light and ticket systems.”

Ford is backing House Bill 4169 as a cosponsor, which would immediately increase the income tax transfer amount into the LGDF. Currently, 6.06% of individual income taxes and 6.85% of corporate income taxes are distributed to local governments. The Ford-backed proposal would raise this distribution to 8% of individual income taxes and 9.11% of corporate income taxes, comparable to state commitments in the past.

For Chicago, annual LGDF revenues are approximately $370 million. An increase from roughly 6% to 8% would generate an additional $125 million, approximately, for the city.

“While the state has seen increased income tax revenues to meet its increased expenses, Chicago and other local governments have seen flat LGDF revenues that cannot keep up with their new costs,” Ford said. “Chicago faces a number of significant challenges, we should make sure we have the resources needed to support our residents as best we can.”