DeLuca Leads Hearing on Importance of LGDF, Urges Increase to Support Communities

SPRINGFIELD, Ill. – In an overflowing committee room at the state Capitol Tuesday, state Rep. Anthony DeLuca, D-Chicago Heights, led a hearing on the importance of the Local Government Distributive Fund (LGDF) featuring testimony from mayors and village presidents from around the state.

“I am appreciative of the expert testimony we heard from numerous officials who understand what’s at stake if we don’t fund LGDF responsibly,” DeLuca said. “Raising the percentage of LGDF dollars that go back into communities would further support critical services – such as first responder units – while helping to keep our local tax burdens lower.”

Tuesday’s House Cities and Villages Committee hearing included testimony from the Illinois Municipal League, as well as 15 mayors and village presidents. Presenters discussed how LGDF impacts the day-to-day operations of their communities, and how the way Springfield handles LGDF distribution moving forward would impact their financial decisions.

LGDF is the designated portion of state income tax revenues that cities and counties receive from the state in lieu of local income taxes. LGDF impacts core municipal services including fire and police, garbage pickup, snow removal, water and other services that people use daily.

Throughout the previous decade, the percentage share of state income tax committed toward LGDF was often reduced – bottoming out at 5.45% of individual income tax collections in 2017 compared to 10% before Jan. 2011. The most recent rate is 6.16% of individual income tax collections and 6.845% of corporate income tax collections.

For more information, please contact RepDeLuca@SBCGlobal.net.