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DeLuca introduces bill to increase state distributions to communities, ease need for property tax hikes

State Rep. Anthony DeLuca, D-Chicago Heights, issued a statement Monday in support of his bill to increase the amount of money local governments receive from the Local Government Distributive Fund (LGDF).

“Springfield has taken advantage of local tax revenue to plug gaps in budgets, but this is a process that needs to stop,” DeLuca said. “If we don’t take action, more costs will be passed down to homeowners who are struggling. I’m hearing from too many families across our community who are hurting, it would be irresponsible to ask for more from them.”

DeLuca introduced House Bill 4169 last fall. It has since attracted 35 co-sponsors, including House Speaker Chris Welch and area legislators Will Davis, D-Homewood; Debbie Myers-Martin, D-Olympia Fields; and Thaddeus Jones, D-Calumet City. On Jan. 11, the bill was assigned to the House Revenue and Finance Committee.

DeLuca said if passed, the law would immediately increase the income tax transfer amount into the LGDF. Currently, 6.06% of individual income taxes and 6.85% of corporate income taxes are distributed to local governments. DeLuca’s proposal would raise this distribution to 8% of individual income taxes and 9.11% of corporate income taxes, comparable to state commitments in the past.

The measure would effectively lower financial pressure on local governments, easing the need to rely as much on property taxes and other cost increases. DeLuca said the additional money from the state could better help units of local government combat crime and increase public safety.

“This is money that goes toward critical services, including funding for first responders and road repairs,” DeLuca said. “Particularly as we deal with a rise in crime in our neighborhoods, we need to make sure our police have the resources they need to do their job safely and effectively. Our state has made good progress in recent years getting our fiscal house in order. Let’s give some security and respect to our local governments so they can make financial decisions that help serve families, not hurt them.”

Last year, the legislature briefly considered reducing the portion of LGDF revenue distributed to municipalities but eventually kept the rate the same.

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