DeLuca Plan would Ramp Up LGDF Money for Communities, Better Support Local Services

CHICAGO HEIGHTS, Ill. – Emphasizing the impact the Local Government Distributive Fund (LGDF) has on essential community services, state Rep. Anthony DeLuca, D-Chicago Heights, has introduced a plan to increase the percentage of tax revenue municipalities receive under LGDF over the next six years.

“Restoring LGDF funding to 10% of returns will secure more resources for communities and help to relieve pressure for property tax increases,” DeLuca said. “This is another step in my efforts to freeze and reduce rates for homeowners as we look to address property taxes comprehensively.”

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 a number of local services, including fire and police departments, flood mitigation, road and sidewalk repair, snow removal, water and other core municipal services that people use daily.

DeLuca’s House Bill 4455 would gradually increase the percentage of state income tax funds returned to municipalities from 7% in fiscal year 2025 to 10% in 2030. Historically, the LGDF percentage rate was 10%, but since fiscal year 2010 the rate has fluctuated between 6% and 8%. In fiscal year 2024, the rate was adjusted to 6.47%.

“After years of uncertainty regarding LGDF, establishing a responsible ramp will help local governments both now and moving forward as they consider funding sources for services and projects,” DeLuca said. “Directing more LGDF money toward local governments is good for taxpayers. It brings spending decisions to a government level closer to residents, has a greater impact on their day-to-day lives and can encourage more responsible stewardship with their tax dollars.”

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