Illinois collected approximately $20.8 billion in state income tax revenue during Municipal Fiscal Year 2014. The amount of revenue deposited into LGDF for this period was only $1.25 billion.
Good management and efficiency at the local level make LGDF dollars the best return on investment that taxpayers will ever get and it’s a direct return of their dollars to their community.
Illinois cities have managed their LGDF revenue responsibly over the years while receiving just a small portion of state income tax collections. Illinois cities will continue to balance their budgets and fund core municipal services while receiving 8 cents of each state income tax dollar during the upcoming municipal
fiscal year. Despite receiving 92 cents of each income tax dollar, the State will continue to be mired in debt and unable to pay its bills in a timely manner for the foreseeable future.
This record of excellent fiscal stewardship by municipal governments, encouraged by accountability to local voters, is a compelling argument to drive additional value for taxpayers by maintaining, and even increasing the municipal share of LGDF revenue. Additional LGDF revenues could be used to help offset the growing costs incurred from unfunded state mandates, the most notable of which includes paying for pension benefits that were increased by the State.