SPRINGFIELD – State Representative Kevin Schmidt (R-Millstadt) is raising concerns over a proposal from Governor JB Pritzker to keep the Local Government Distributive Fund (LGDF) share rate flat at 6.23% for FY27. Schmidt warns that the move could shift the burden onto local taxpayers and force communities to make difficult financial decisions. Schmidt argues that local governments should not be penalized for years of fiscal mismanagement at the state level, cautioning that stagnant LGDF funding could lead to higher property taxes.
“Our local municipalities and counties deserve a full 10% share of LGDF revenue to ensure they can keep delivering essential services,” said Schmidt. “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 LGDF is a revenue sharing policy established in 1969 that allocates a percentage of state income taxes for investments in essential programs and services such as police departments, roads, and infrastructure.
The FY27 budget includes a $16 million cut from the Local Government Distributive Fund. The Illinois Municipal League (IML) has
