Mayors Demand Fair Funding from State as Federal Support Fades
Chicago Mayor Brandon Johnson, joined by suburban mayors, traveled to Springfield on Wednesday to appeal for increased funding from the Local Government Distributive Fund (LGDF). Their request comes as Governor JB Pritzker's proposed budget for fiscal year 2027 keeps LGDF funding flat at roughly $2.3 billion—achieved by reducing municipalities' share of income tax collections from 6.47% to 6.28%.
Mayors argue that flat funding is insufficient, particularly as federal support continues to decline.
"We cannot balance the state fund or state budget on the backs of local governments at a time when federal support is dwindling."
Mayor Johnson stated that Chicago would receive $12.7 million less under the proposed rate cut compared to maintaining the current rate. He further noted that a 1% increase in LGDF funding would net Chicago an additional $80 million.
Fox Lake Mayor Donny Schmit Jr. said he needs more funds for flood relief, while Broadview Mayor Katrina Thompson cited $700,000 in costs from clashes between protesters and immigration agents.
State Responds, Legislators Weigh In
Governor Pritzker's office responded that the proposed budget "holds local governments harmless" and noted a 71% increase in revenue sharing since 2019.
Democratic Rep. Anthony DeLuca countered that mayors might forfeit other state-funded items for a 10% LGDF rate. Republican Rep. Jennifer Sanalitro warned that funding cuts could lead to property tax increases or service reductions.
Additional Priorities for Chicago
Beyond LGDF funding, Mayor Johnson advocated for state authority to impose several new taxes in Chicago:
- A digital advertising tax
- A $1 delivery tax
- A payroll tax on large businesses
Johnson also urged the state to keep the Chicago Bears in Chicago with a publicly owned stadium, though team leadership has not expressed interest in staying.
Historical Context
The LGDF rate was 10% before 2011, when lawmakers raised income taxes and lowered the local share to keep total funding stable. Since then, the rate has remained below 10%, hovering between 6% and 7% since FY2021. The Illinois Municipal League reports that local governments have received $13 billion less cumulatively than if the 10% rate had been maintained.