Municipal leaders gathered in Chicago to continue progress on shared priorities and advance critical LGDF funding after successfully preventing a proposed $60 million statewide cut.
Today, Mayor Brandon Johnson welcomed members of the Metropolitan Mayors Caucus Executive Board to Chicago to continue advancing shared priorities for communities across the region. The Caucus joined the Illinois Municipal League and municipal leaders from across Illinois this spring in successfully stopping a proposed cut to critical Local Government Distributive Fund (LGDF) revenues, and leaders are continuing that work ahead of the fall veto session.
“Mayors came together this spring because we knew what was at stake, and together we made sure the State did not cut critical funding for our communities,” said Mayor Brandon Johnson. “That is a win worth recognizing, and it shows what is possible when municipalities stand together. As we head toward the fall veto session, we will continue building on that momentum, protecting the resources our communities rely on, and advancing shared priorities for municipalities across Illinois.”
In Springfield, Mayor Johnson was joined by mayors from across Illinois to oppose the Governor’s proposed reduction to the Local Government Distributive Fund (LGDF), which would have cut $60 million in revenue statewide, including $12.7 million for Chicago. The proposal would have reduced the municipal share of state income tax collections from 6.47% to 6.28%. The proposed cut was ultimately rejected, but municipalities continue to face significant inflationary pressures and are calling for LGDF to be restored to its historic 10% level.
“Mayors are on the front lines in our communities consistently delivering the services and programs taxpayers rely on every day,” said Romeoville Mayor and Chair of the Metropolitan Mayors Caucus John Noak. “Everyone, including our residents, are seeing an increase in costs. In order to maintain these vital services, it is imperative that residents see a return on the taxes they send to Springfield.”
Since the state reduced LGDF from 10% in 2010, municipalities statewide have lost nearly $13.9 billion in revenue. At the full 10% share, Chicago would have received approximately $250 million more in LGDF revenue in FY2024.
Today’s Executive Board meeting also focused on other shared priorities affecting communities across the region, including the Illinois General Assembly’s fall veto session, statewide housing initiatives, environment and energy policy, and housing and community development.
“We achieved a lot in the spring, but we need to continue to push for a path to full restoration of our local share of state income taxes,” said Palos Hills Mayor and Chair of the Metropolitan Mayors Caucus Legislative Committee Jerry Bennett. “For the state to thrive, our local communities need to thrive, and that requires continued investment.”
“Addressing the shortfall of state funding has been a priority for the Caucus and mayors across the state for many years,” said Fox Lake Mayor Donny Schmit. “As incoming Executive Committee Chair I am committed to carrying this fight forward.”
The Metropolitan Mayors Caucus is a bipartisan organization that brings together mayors and village and town presidents from across the Chicago region to work on issues of regional significance. The Caucus represents 275 municipalities and more than 9 million residents across northeastern Illinois.
