HomeMy WebLinkAboutRes 22-21 06/01/2021 Supporting Restoration of LGDF RevenueRESOLUTION NO. 22-21
A RESOLUTION SUPPORTING RESTORATION OF LGDF REVENUE
WHEREAS, municipalities across the State of Illinois provide essential services to their residents
that include public safety support, transportation and infrastructure improvements and community
health services along with many others; and
WHEREAS, the State of Illinois has maintained a long -held agreement with municipalities to support
and invest in these local services through the Local Government Distributive Fund (LGDF), which
includes the collection and distribution of tax revenues on behalf of municipalities; and
WHEREAS, since the state income tax was adopted in 1969, state government has shared a
percentage of total income tax collections through the LGDF with municipalities on a per capita
basis in lieu of a local income tax; and
WHEREAS, these shared revenues have been significantly reduced by the State since 2011
from 10% to now 6.06%; and
WHEREAS, municipalities depend on LGDF dollars, which account between 10 and 20 percent
of a municipality's operating budget, to lessen the burden on taxpayers and reduce the reliance
on property taxes; and
WHEREAS, Governor JB Pritzker has proposed that the Fiscal Year 2022 state budget include
a further 10% reduction in the amount of LGDF revenue distributed to local governments; and
WHEREAS, this revenue reduction has been proposed at a time when municipalities are
continuing to spend additional funds on COVID-19 emergency response; and
WHEREAS, in addition to LGDF cuts over the years, the State has also reduced municipalities'
share of the personal property replacement tax and increased sales tax collection fees while cities
and villages have had to fund skyrocketing pension costs, which account for substantial budget
increases each year; and
WHEREAS, those municipalities with fewer revenue sources, such as retail businesses with
higher equalized assessed values on property, suffer the most and will be forced to explore
increasing property taxes or cutting services amid further LDGF reductions.
NOW THEREFORE BE IT ORDAINED/RESOLVED BY THE MAYOR AND BOARD OF
TRUSTEES OF THE VILLAGE OF MOUNT PROSPECT, COOK COUNTY, ILLINOIS:
SECTION ONE: That the Board of Trustees urges the General Assembly and the Governor to
restore LGDF payments to the promised 10% rate so municipalities across Illinois may provide
basic levels of service and lessen the reliance on property taxes.
SECTION TWO: That this Resolution shall be in full force and effect from and after its passage
and approval in the manner provided by law.
AYES: Filippone, Gens, Matuszak, Pissarreck, Rogers, Saccotelli
NAYS: None
ABSENT: None
PASSED and APPROVED this 1st day of June, 2021.
DIIIHM111
Karen M. Agoranos, 9/illage Clerk