2021-12 - SUPPORTING RESTORATION OF LDGF REVENUE - 05/17/2021RESOLUTION NO.2021-12
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 storm/wastewater infrastructure 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 can account between 10 and 20% 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 the 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 RESOLVED BY THE PRESIDENT AND BOARD OF TRUSTEES OF THE
VILLAGE OF BUFFALO GROVE, COUNTIES OF COOK AND LAKE, STATE OF ILLINOIS, as follows:
1
That the Village of Buffalo Grove 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.
AYES: 5 — Stein, Ottenheimer, Johnson, Smith, Pike
NAYES: 0 — None
ABSENT: 1— Weidenfeld
PASSED: May 17, 2021
APPROVED: May 17, 2021
ATTEST:
Janet M. bian, Village Clerk
APPROVED:
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Beverly Suss , IVillage President
FA