The Local Government Distributive Fund (LGDF) is a portion of Illinois income taxes, paid by our local residents and businesses, that are collected by the State and redistributed back to municipalities on a per capita basis.
In Hanover Park, LGDF accounts for 10% of our annual operating budget. LGDF helps fund services that our residents rely on, including police and fire, road repairs and maintenance, garbage collection, etc.
From the inception of Illinois’ income tax in 1969, the General Assembly agreed to allocate 1/12 of income tax revenue back to Illinois municipalities in lieu of a local income tax. In 1993, the General Assembly agreed to increase the allocation to 10 percent to ensure that municipalities have a reliable source of funding to invest in our communities. However, since 2011, the State has reduced the LGDF share from 10 to just 6.06 percent.
Hanover Park should be able to rely on predictable funding levels and consistent distribution of funds each year. State legislators have an opportunity to restore LGDF in 2022, which could help reduce the reliance on property and other taxes without increasing income taxes for our residents and businesses.
You can help by making your voice heard in Springfield! Please contact your State Senator and Representative and let them know that you support restoring promised LGDF funding this year. Contact information for your local representatives can be found at bit.ly/MyILRep.