April 15, 2021- The Illinois Municipal League (IML) partnered with municipal leaders from across the state to announce the “Moving Cities Forward” legislative platform, which aims to ensure the long-term success of Illinois’ cities, villages, and towns. The announcement comes as communities continue to endure the economic impact of the COVID-19 pandemic.
The platform calls for initiatives that protect municipal revenues, including the Local Government Distributive Fund (LGDF), which sets aside a percentage of state income tax revenues for local governments. Municipal leaders are also urging state officials to make additional reforms to downstate public safety pension plans and approve a new program that would allow municipalities to provide economic relief for local businesses impacted by the pandemic.
“These initiatives are crucial for local governments across the state to continue providing public services without imposing higher property taxes,” said Brad Cole, IML Executive Director. “Any further cuts to LGDF would exacerbate the current financial challenges communities face, which have only grown during the pandemic. The General Assembly must reverse the cuts already made to LGDF and support initiatives that will aid Illinois communities.”
When created, LGDF was designed to allocate 10% of state income tax collections to help fund programs provided by municipalities and other local governments. However, since 2011, LGDF has been subject to a series of cuts by the state. For State Fiscal Year (SFY) 2021, the local share is only 6.06% of individual tax collections and 6.845% of corporate income tax collections. The Governor’s proposed budget would cut LGDF by an additional 10%, which would result in a $152 million reduction in funds set aside for municipalities and counties statewide when compared to the current year.
Local elected officials are also asking state lawmakers to address the fiscal strain posed by downstate public safety pension funds by extending the amortization schedules, so municipalities are better equipped to meet their obligations to both public safety personnel and taxpayers.
The “Moving Cities Forward” platform also addresses the need for local governments to provide economic relief to local businesses as they work to overcome the challenges presented by the pandemic. IML’s proposal would allow municipalities to provide grants, subsidies or loans to local businesses within Tax Increment Financing (TIF) districts that have experienced business interruption during the pandemic. This targeted form of economic support will aid in the recovery of local economies.
“Illinois municipalities as well as businesses of all sizes and industries have struggled amid the pandemic. Municipal governments best understand the needs of their constituents, however, there are limited means for how they can provide economic support to local businesses during this time. Local officials must be given the tools to effectively address those needs,” said IML First Vice President Julie Moore Wolfe, Mayor of Decatur.
Listen to the Byers and Co Interview with Brad Cole.
