OPPOSE LGDF REVENUE REDUCTIONS TO COUNTIES

During his February 18, 2026, Budget Address, Governor JB Pritzker proposed a reduction in the amount of income tax dollars the state would share with county and municipal governments within the State Fiscal Year (SFY) 2027 State Budget. The proposal called for a reduction in the amount of money transferred to the Local Government Distributive Fund (LGDF) from 6.47 percent to 6.28 percent of state income tax collections. This equates to a statewide $60 million loss to counties and municipalities on a per capita basis compared to SFY 2026 distributions. The purpose of the reduction is to allow the state to capture more of the growth in state income tax collections. 

This diversion of local revenues will harm counties by imposing additional pressures on local budgets at a time when resources are already being stretched to offset rising operational costs and unfunded state mandates.

What is the Local Government Distributive Fund?

State-shared income tax revenue is distributed to local governments through the Local Government Distributive Fund (LGDF). LGDF is a state and local funding partnership instituted as part of the establishment of the State income tax in 1969. LGDF revenue helps local governments fund essential services and programs such as public safety, public health, court and record-keeping services, and basic infrastructure construction and repair. This shared revenue also reduces the amount of revenue local governments must collect through local taxes. ISACo's Policy Brief on LGDF is available via this link.

Recent History of LGDF Distributions to Local Governments

Since its establishment as part of the enactment of the state income tax in 1969, the Local Government Distributive Fund (LGDF) represents a successful and critical state and local partnership for funding essential programs and services relied upon by county residents. The table below shows how much counties and municiplalities have lost since LGDF revenues have been cut beginning in 2011. Click on the table for a printable version.

Local governments have been shorted billions of dollars over the last decade as a result of the LGDF percentage being reduced. These revenues instead went towards offsetting the State's budget deficit.

TAKE ACTION NOW!

On May 19, 2026, ISACo Executive Director Joe McCoy sent a letter to Governor Pritzker and the four Legislative Leaders expressing ISACo's opposition to the proposed cut and urging an incremental restoration of LGDF distributions to pre-2011 levels.

The letter to the Governor is available here.

The SFY 2027 budget is being finalized as the scheduled May 31 adjournment deadline approaches. Time is of the essence! County officials must let their state legislators know that LGDF revenue belongs to counties and municipalities and that the State budget must not be balanced on the backs of local governments. Please call your state legislators immediately! You can find your legislators' contact information using the links below:

Illinois House Members

Illinois Senate Members