- Chicago Mayor Brandon Johnson and other mayors are asking Illinois lawmakers to increase the share of income tax revenue that goes to local governments.
- Johnson said Gov. JB Pritzker’s proposal to keep the portion for the Local Government Distributive Fund flat would cost the city $12 million next year.
- Johnson also met with legislators to ask them to give the city more power to levy taxes on digital ad revenue, deliveries and payroll at large businesses.
- He also hopes the General Assembly will find some way to keep the Chicago Bears in the city, though lawmakers are not considering such a plan.
This summary was written by the reporters and editors who worked on this story.
SPRINGFIELD, Ill. (Capitol News Illinois) — Chicago Mayor Brandon Johnson and an army of suburban mayors descended on Springfield on Wednesday to call on the General Assembly to boost funding for local governments.
That’s a top priority for Illinois mayors this year as Gov. JB Pritzker’s proposed budget keeps the percentage of funding for the Local Government Distributive Fund flat. The mayors say they’re struggling to close gaps in their budgets and need more funding from the state to provide services to residents.
The governor proposed reducing the share that municipalities get from income tax collections from 6.47% to 6.28%. While a decrease in percentage, the governor’s office says it would keep total funding for LGDF flat at $2.3 billion in fiscal year 2027 due to rising income tax collections. That’s $60 million less than the state would spend otherwise, according to budget documents from Pritzker’s office.
In an ideal world, the mayors want their LGDF cut returned to 10%, a number that it hasn’t come close to since 2011.In that year, lawmakers raised the income tax to 5% from 3%, drastically increasing income tax receipts. In turn, they lowered the percentage of the tax that goes to locals so that overall funding would remain about equal year-after-year.
Since 2011, Illinois Municipal League data shows local governments received $13 billion less than they would have under the 10% rate. The distribution rate has changed over the years, but it has never risen back to 10% and has hovered between 6% and 7% since fiscal year 2021. Despite that, the annual appropriation for LGDF is the highest it has ever been.
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Pritzker’s budget
Pritzker introduced a $56 billion spending plan that represents roughly 0.5% spending growth in most areas compared to the current fiscal year.
Johnson said Pritzker’s proposal means Chicago would receive $12.7 million less from LGDF in FY27 than if the rate remained the same.
“We cannot balance the state fund or state budget on the backs of local governments at a time when federal support is dwindling,” Johnson said at a news conference outside the Capitol. “Our residents pay into this fund through their income taxes, and they most certainly deserve their fair and equitable share in the benefits of their contributions.”
Read more: Illinois mayors call on Pritzker to rethink flat local government funding
Johnson told reporters in Chicago Tuesday that if state lawmakers raised LGDF funding by 1%, it would net the city an additional $80 million.
“These cuts inhibit our ability, our ability to increase accessibility on our public transit system, make the investments we need to build safe communities, and build the affordable housing that we need to continue to do in order to grow our respective cities,” Johnson said.
Fox Lake Mayor Donny Schmit Jr. said he needs more funds to provide flood relief, while Broadview Mayor Katrina Thompson said she wants more from the state after clashes between protesters and immigration agents outside a detention center in the village last year cost the municipality $700,000 plus economic losses.
Pritzker’s office pushed back, saying the proposed budget “holds local governments harmless, maintains the same income tax dollars as last year, and continues record levels of overall support.”
“Since 2019, the Governor has increased revenue sharing with local governments by nearly $1 billion — a 71% increase — and enacted more than $2.5 billion annually in additional ongoing resources through transportation funding, cannabis legalization, video gaming, casino expansion, and other measures,” a spokesperson for Pritzker said in a statement.
Democratic Rep. Anthony DeLuca, a former Chicago Heights mayor, disputed that assessment.
“I can speak confidently for the mayors here that in return for a 10% LGDF, they would forfeit many of those items that were listed in that release,” he said.
The issue has led to a rare alliance between Chicago’s progressive mayor and Republican state lawmakers.
“It’s money every Illinois community uses for police and fire protection, fixing roads and keeping basic essential services running,” Rep. Jennifer Sanalitro, R-Hanover Park, said at a news conference on Tuesday. “When that funding gets cut, local leaders don’t have a lot of options for alternative revenue. They either raise property taxes, increase fees or cut services, none of which are good outcomes for working families or businesses.”
Johnson’s other priorities
Wednesday’s visit marked Johnson’s third trip to Springfield as mayor. He’s visited during the finals weeks of session each time, which has sometimes sparked criticism from lawmakers that he’s showing up too late to have his priorities meaningfully considered.
Johnson also met with lawmakers to advocate for more authority to levy taxes on his own. Specifically, Johnson wants to pursue a digital advertising tax that would tax revenue collected on ads viewed in Illinois, a $1 tax on most deliveries and a payroll tax on large businesses.
Johnson has struggled to gain support for his revenue proposals among City Council members, but some Chicago progressives in the legislature support enacting a digital ad tax statewide.
“These companies generate billions in revenue by engaging Illinois users every single day,” Rep. Norma Hernandez, D-Melrose Park, said at a separate news conference on Wednesday. “They benefit from our infrastructure, our workforce, and it’s reasonable to ask that they contribute back in a way that reflects that reality.”
Republicans said his revenue wishes beyond more LGDF funding would damper economic growth.
“We need more robust job growth and economic investment in Chicago, and some of the mayor’s request would be the opposite,” Senate Republican Leader John Curran, R-Downers Grove, told reporters. “It would further reduce economic investment in Chicago, reduce job growth. It would be a step backwards, not just for Chicago, but for the state of Illinois.”
Chicago Bears
The Bears were also on Johnson’s list, but not the bill state lawmakers are considering for the city’s football team. Johnson is adamant the state should come up with a plan to keep the Bears in Chicago at a publicly owned stadium, though Bears CEO Kevin Warren has said the team is not considering any plans to stay in Chicago. The only plan state lawmakers are considering would help them move to Arlington Heights.
“Do you know why the Bears shifted their focus? It’s because Springfield went silent,” Johnson said. “But we’re here to make sure that we’re calling attention to all of the options that I believe are still available to us to ensure that we’re doing right by the taxpayers.”
The Senate is not expected to consider a bill involving the Bears this week as negotiations continue behind the scenes.
(Reporting by Ben Szalinski, Capitol News Illinois)
Capitol News Illinois is a nonprofit, nonpartisan news service that distributes state government coverage to hundreds of news outlets statewide. It is funded primarily by the Illinois Press Foundation and the Robert R. McCormick Foundation.
This article first appeared on Capitol News Illinois and is republished here under a Creative Commons Attribution-NoDerivatives 4.0 International License.
