Securing Local Government Services

Local Government Revenues

A municipality’s ability to provide services relies on having predictable and stable revenues. Securing the full distribution of state-collected local revenue is critical to maintaining services during this crisis.
Northwest Municipal Conference (NWMC) communities have lost nearly $40 million in state-collected local revenue so far. The losses are not uniformly distributed but include some communities facing sales tax revenue losses of over 30 percent. These catastrophic losses threaten our ability to provide a robust response that protects and supports residents and businesses.
The NWMC acknowledges and appreciates the Illinois General Assembly’s reversal of its most recent five percent cut to the Local Government Distributive Fund (LGDF). As the state faces many of the same fiscal challenges as our local governments, legislators took a significant step to prioritize the critical services that municipalities provide within our communities.
Because the federal government has thus far failed to provide adequate financial assistance to states and local governments, we recognize that state lawmakers are also facing difficult budget decisions.  All too often, the state has called on local governments to absorb repeated cuts to state collected local revenues, which has resulted in millions of diverted local revenues from NWMC communities. At a time when local governments need renewed assistance, we urge state lawmakers to maintain the full distribution of state-collected local revenues.

2019 Capital Bill Implementation

Investing in infrastructure will help Illinois rebuild stronger. Many significant projects listed in the 2019 capital bill legislation have not received funding. With municipalities forced to defer local capital projects in order to balance their budgets during the pandemic, Illinois lawmakers should accelerate bond sales to put Illinoisans back to work, provide necessary capital, and strengthen local infrastructure.