State Representative Kevin Schmidt (R-Millstadt) said on April 21 that Governor JB Pritzker’s proposal to keep the Local Government Distributive Fund (LGDF) share rate at 6.23% for fiscal year 2027 could negatively impact local communities and taxpayers.
Schmidt said the decision to maintain the current LGDF share rate may shift financial burdens onto local governments, which could lead to higher property taxes or force municipalities and counties to cut essential services. The LGDF is a revenue sharing policy created in 1969 that allocates a portion of state income tax revenues for local programs such as police departments, roads, and infrastructure.
“Our local municipalities and counties deserve a full 10% share of LGDF revenue to ensure they can keep delivering essential services,” Schmidt said. “Capping the share rate at just 6.23% opens the door for higher property taxes and places even more burdens on families and communities that are already struggling to make ends meet.”
The fiscal year 2027 budget includes a $16 million reduction from the Local Government Distributive Fund. The Illinois Municipal League has stated this decrease in shared revenue may require local governments to consider raising property taxes or cutting services.
Schmidt is a cosponsor of HB4294, legislation intended to increase the percentage of revenue allocated to the LGDF, aiming to provide greater stability for local governments across Illinois. Schmidt was elected as a Republican representative in 2023 for Illinois’ 114th House District, replacing LaToya Greenwood according to Ballotpedia.
The debate over LGDF funding comes as many communities face ongoing financial pressures and must balance service delivery with taxpayer concerns.
