Gov J.B. Prizker | Illnois National Guard photo cleared for public use
Gov J.B. Prizker | Illnois National Guard photo cleared for public use
In a move triggering criticism from local communities, Gov. J.B. Pritzker has blocked the restoration of the Local Government Distributive Fund (LGDF) to several towns, citing concerns over the state's financial capacity.
The decision has triggered strong reactions from local officials, including Orland Park Mayor Keith Pekau.
“The governor blocked restoring LGDF to your towns because ‘IL can't afford it’. Towns like Harvey, & Matteson lose ~ $2M a year,” Pekau said of the move on X. “Our tax dollars are spent on migrants by an out of touch governor whose personal spending is more than most IL towns.”
In Orland Park, the loss amounted to $5.6 million in 2022 alone, or $95 per person.
The LGDF, which was established to ensure that local municipalities receive a fair share of state revenue, has been a lifeline for towns across Illinois, providing financial support for essential services such as public safety, infrastructure, and education.
Local governments heavily depend on their share of the LGDF.
The LGDF, which allocates funds to municipalities from income tax collections, has seen its share decrease from 10% to just 6.16% for individual income tax and 6.845% for corporate income tax collections since 2011.
Back in April municipal leaders requested LGDF funds be restored to 10%.
Mayors and municipal leaders from various communities in Illinois converged on Springfield to make a collective plea for changes in the way local governments are funded by the state.
Those requests were not granted.
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