Springfield has demonstrated a penchant in the last several years for raiding local government revenue sources to attempt to mitigate the State’s budget problems. Municipal officials are concerned that without the renewal of the temporary income tax increase which was allowed to lapse at the end of 2014, the expansion of existing revenues or creation of new ones, the temptation to tap into the Local Government Distributive Fund (LGDF) and other municipal revenue sources for the new Governor may be great.
The Metropolitan Mayors Caucus, the City of Chicago, the suburban Councils of Governments and the Illinois Municipal League have worked cooperatively over the past few years to fiercely oppose the State’s attempts to pillage local revenue sources. Given the State’s bleak budget projections, they will continue their coordinated efforts in 2015 and beyond to protect and defend all municipal revenues.
Caucus Position
Local governments have their own budget challenges to address in these difficult economic times. The State should not create added burdens by attempting to manage its budget deficit on their backs. The Mayors Caucus working again through a coordinated campaign with other municipal groups will strongly oppose any legislative or administrative proposals which try to erode local revenues whether they are attempts to reduce the local share of the LGDF or the PPRT; efforts to limit tax-increment financing or freeze property taxes; or go after other sources such as the 911 service fee or the local sales tax.
Additionally, the Mayors of the Chicago region suggest that if the Governor and the General Assembly are interested in reducing the tax burden of Illinois property owners, they explore ways to systemically increase the State’s share of the cost of public education. Such a step will provide a permanent solution to reducing the current overreliance on the property tax in Illinois.