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The original item was published from 5/22/2012 4:51:12 PM to 5/23/2012 10:03:44 AM.

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Posted on: May 22, 2012

[ARCHIVED] State Senate Democratic Caucus Proposes Cuts to Local Government Revenues

The Senate Democratic Caucus has developed a proposal for the State’s FY2013 budget. The proposal includes a Local Government Distributive Fund (LGDF) freeze that would prevent municipalities and counties from capturing any income tax revenue growth during the next fiscal year. Holding back LGDF growth will cost municipalities and counties approximately $20 million to $50 million state-wide. Local governments would lose $21 million if income tax receipts grow 2%, and up to as much as $52 million if income tax receipts grow by 5%. Last year, the Village of Willowbrook collected roughly $700,000 in LGDF revenues. LGDF revenues make up about 8% of Willowbrook’s General Fund revenues.

Municipalities have limited resources and rely on LGDF revenue to provide essential services and programs to residents, including, but not limited to, police and fire protection, water and sewer services, and road maintenance. Communities have been forced to make difficult financial decisions because of the current economic condition. Due to significant reductions in revenue, municipalities have balanced budgets by decreasing spending, cutting jobs, laying off staff, and even increasing taxes. Municipalities need every dollar that LGDF is intended to provide.

By freezing the LGDF, the State would be addressing its budget problems at the expense of local governments. This proposal places a heavy burden on municipal taxpayers and municipal budgets. It is vital that the State refrain from balancing its budget on the backs of municipalities. The State must address its own budgetary issues, and not shift its burdens to other levels of government.

The Village of Willowbrook would like our residents to please join us in opposing any proposal that freezes, diverts, or reduces the municipal share of the Illinois income tax and other shared revenues. Residents can voice their opposition to this proposal to our State Senator and Representative at the addresses listed below:

State Senator Christine Radogno
309A Capitol Building
Springfield, IL 62706
Phone: (217) 782-9407

State Representative Jim Durkin
220-N Stratton Office Building
Springfield, IL 62706
Phone: (217) 782-0494

If you have any questions please contact Village Administrator Tim Halik at (630) 920-2261.

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