Mayors make their pitch for more state funding, extended pension ramp
SPRINGFIELD, Ill. (NEXSTAR) — Mayors across Illinois returned to the capitol, once again asking for the state to invest more into the Local Government Distributive Fund.
The Illinois Municipal League, which represents local governments in the Capitol, said the state should be sending local governments a 10 percent cut of income tax revenues as a part of the LGDF. But right now, that percentage is at 6.47 percent.
“When we don’t have LGDF money coming in or the full amount, we have nowhere to go except to our taxpayers,” Decatur Mayor Julie Moore Wolfe said.
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The IML consistently advocates for a bigger cut of the income tax revenue the state brings in, but last year was the first time in years the state actually raised their percentage.
A projected deficit and some unexpected costs could lead to a leaner budget this year. Brad Cole, the CEO of IML said that shouldn’t be local governments problem.
“The state has had projected deficits and surpluses and LGDF has suffered either way,” Cole said. “We know that there are resources that are available. We’ve seen millions of dollars of diversions. And we’ve been successful in incrementally getting LGDF up to the 6.47% where it is today, but it should be at 10%.”
Local mayors also want the extend their ramp for paying back police and fire pension costs.
Champaign Mayor Deborah Frank Feinen says extending the deadline by 10 years — from 2040 to 2050 — will give cities more breathing room in their budgets, while also keeping up their end of the deal.
“It gives them the opportunity to have money free for other things,” Frank Feinen said. “So when you think about public safety employees, there is the need to either hire additional employees or, you know, pay for safety equipment, all of the things that municipalities have on their plates that they need to be able to stretch those dollars.”
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The state recently consolidated all police and fire pension accounts into just two separate accounts, cutting down on administrative fees. Moore Wolfe said extending the ramp could leave room for more positive reforms down the line.
“It’s been a success story, but it needs time to evolve and grow,” Moore Wolfe said. “They’re not paying the fees, we’re not paying the fees, and we’re getting more bang for the buck.”
Local governments also want more flexibility in how they can conduct their regular meetings. COVID popularized the idea of remote meetings in all sectors, including local government, but state law only allows virtual board meetings when the governor or public health department issues a state of emergency declaration. One of the new bills introduced would allow meetings to be held virtually if it is deemed necessary. There would still be posting requirements to notify the public of the meetings, and a public comment period would also be required.
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