Gov. Bruce Rauner's budget proposal could devastate local governments. The Republican's fiscal plan could mean up to a 20 percent loss for municipal budgets courtesy of a reduction in the Local Government Distributive Fund (LGDF).
Specifically, Rauner's budget calls for the fund to be cut from 8 percent to 4 percent. That means the fund will go down from about $1.2 billion to $643 million, according to the State-Journal Register. The governor said the decrease would only impact about three percent of municipal budgets, but some experts say it really depends on the town's budget.
"If a community doesn't have a very vibrant array of other taxes that they can generate revenue from, then (the Local Government Distributive Fund) becomes that much more important," said Illinois Municipal League legislative director Joe McCoy. "So I think it is a community-by-community issue, and there are a lot of communities that rely much more heavily on LGDF, and those would feel the most impact."