South Central Reporter

State Rep. Wayne Rosenthal (R-Morrisonville) recently said Illinois has consistently failed to adequately fund local municipalities through the Local Government Distributive Fund.

“Illinois House Republicans have fought to restore The Local Government Distributive Fund (LGDF) for local communities back to the intended 10 percent figure,” Rosenthal said on Facebook. “In the most recent budget that was passed for fiscal year 2024, local governments are receiving just 6.47 percent.” 

The LGDF was established in 1969 to provide revenue sharing from state income taxes, Rosenthal noted on his website. Despite originally promising local governments 10% of income tax revenues, the percentage has been steadily reduced to as low as 5.45% in 2017, with the most recent budget only raising it slightly to 6.47%. Illinois House Republicans have been advocating to restore the funding to the intended 10 percent level, as the current shortfall puts a strain on essential services, infrastructure, and public safety in local communities.

According to the State of Illinois website, the monthly distributions received by local governments typically consist of the tax payments made on current returns, which are filed and paid on time and in full. This includes sales tax returns filed by the 20th of the month following the reporting period, as well as returns for titled and registered property filed within 20 days of possession. Distributions may also include taxes paid on late-filed returns, payments for assessed liabilities, and amended returns with additional tax payments.

Rosenthal is currently serving his third term in the Illinois House of Representatives, having previously held the position from 2011 to 2015. He also served as the director of the Illinois Department of Natural Resources from 2015 to 2019. Representing the 108th district, his jurisdiction spans from Petersburg to just south of Gillespie, encompassing a majority of Western Sangamon County as well as parts of Macoupin and Montgomery counties.