SPRINGFIELD, Ill. (WAND) — The organization representing all 1,295 local governments in the state is concerned with components of Gov. JB Pritzker's Fiscal Year 2027 budget proposal.Â
The Illinois Municipal League told reporters in Springfield Wednesday that Pritzker's budget would reduce the local government share of income tax revenues from 6.47% to 6.28%.
Illinois provided municipalities 10% of the state income tax revenue for decades before the share was cut to 6% in 2011.
"We still think fully funding state shares of revenues is important, which means putting us back at 10%," said IML CEO Brad Cole. "Give us the dime out of every dollar. If that state can't run off 90 cents, I don't think it's the municipalities that are the problem."
The Pritzker administration told WAND News the governor's FY27 budget holds local governments harmless, maintains the same income tax dollars as last year, and continues record levels of overall support at a time when states are facing fiscal uncertainty under the Trump administration.
"Since 2019, the governor has increased revenue sharing with local governments by nearly $1 billion - a 71% increase - and enacted more than $2.5 billion annually in additional ongoing resources through transportation funding, cannabis legalization, video gaming, casino expansion, and other measures," said Pritzker spokesperson Andres Correa. "He has also given local municipalities greater authority to adopt local sales taxes without requiring voter referendums and eliminating certain state administrative fees on collections - giving communities greater flexibility and control over their fiscal future."Â
Municipal leaders also shared frustration over Pritzker's proposal to increase affordable housing across the state. While they agree on concerns with the cost and availability of affordable housing, mayors said their local governments should preserve authority for land use, zoning and implementing housing plans.
IML leaders noted Pritzker's plan could establish minimal lot sizes, increase residential density allowances, legalize accessory dwelling units and create a statewide formula for impact fees.Â
Peoria Mayor and IML Second Vice President Rita Ali said this represents one of the most significant shifts in local zoning authority that Illinois has seen in decades.
"We share the goal of expanding housing opportunities and we appreciate the proposed capital investments for municipal infrastructure and housing development," Ali said. "But these regulatory mandates are a broad preemption of local authority on an issue that is entirely local."
The group is also backing a plan to allow non-home rule governments to implement a motor fuel tax of up to three cents per gallon. Advocates said this could offer an alternative revenue source to fund local projects.
"Local officials know their communities best, and many municipalities across Illinois have limited options to generate revenue to safely maintain roads and build needed projects," said Mount Vernon Mayor and IML First Vice President John Lewis. "This proposal gives every community an additional tool to support local infrastructure."Â
The Municipal League is also renewing calls to pass a plan to give local governments the option to post notices on their website instead of paying to have notices printed in newspapers.
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