Title
RESOLUTION REQUESTING THE COMPLETE RESTORATION OF LOCAL GOVERNMENT DISTRIBUTIVE FUND (LGDF) REVENUE TO LOCAL GOVERNMENTS AND OPPOSING ANY FURTHER REDUCTION TO LGDF REVENUE
Body
WHEREAS, local governments provide fundamental and important services to their residents including, but not limited to, justice and public safety services, transportation infrastructure, human services, and parks and recreation opportunities; and
WHEREAS, the State of Illinois has a long-standing tradition of helping to support these local services through the collection and distribution of tax revenues on behalf of local governments; and
WHEREAS, local governments rely on these shared revenues in order to invest in services that residents cannot, nor should not, do without; and
WHEREAS, these shared revenues are the result of a good faith historical partnership between the state and local governments in Illinois; and
WHEREAS, when the State Income Tax was adopted in 1969, the state agreed to share 10 percent total income tax collections through the Local Government Distributive Fund (LGDF) with local governments recognizing that local governments are essential service providers for Illinois residents; and
WHEREAS, until January 2011, 10% of total income tax collections was dedicated to LGDF for distribution to local municipalities and counties; and
WHEREAS, local government share of the LGDF has already been reduced over time to 6.06% of individual income tax collections and 6.845% of corporate income tax collections; and
WHEREAS, Governor JB Pritzker has proposed that the State Fiscal Year (SFY) 2022 State Budget include an additional 10% reduction in the amount of LGDF revenue distributed to local governments; and
WHEREAS, this revenue reduction is being proposed at a time when local governments are already expending additional funds on the COVID-19 emergency response; and
WHEREAS, distributions from the LGDF play a part in maintaining a low local tax burden; and
WHERE...
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