Due to poor public policy, Illinois now has the highest effective property tax rate in the nation. We must reverse course and craft policies that keep families and businesses here in Illinois because our state continues to see people flee to neighboring states to save money.
My colleagues on the other side of the aisle support cutting tax revenues from local governments (LGDF Share Rates) which will likely lead to even higher property taxes. Many of the people affected by historic property tax increases are in lower-income communities, such as Cahokia Heights and East St. Louis.
I’m proud to join my Republican colleagues in support of HB4294, legislation that would increase the percentage of revenue allocated to the LGDF and provide more stability for local governments across Illinois.
State Rep. Kevin Schmidt Says Cutting Funds to Local Municipalities and Counties is a Bad Idea
SPRINGFIELD, IL…State Representative Kevin Schmidt (R-Millstadt) is raising concerns over a proposal from Governor JB Pritzker to keep the Local Government Distributive Fund (LGDF) share rate flat at 6.23% for FY27. Schmidt warns that the move could shift the burden onto local taxpayers and force communities to make difficult financial decisions. Schmidt argues that local governments should not be penalized for years of fiscal mismanagement at the state level, cautioning that stagnant LGDF funding could lead to higher property taxes.
“Our local municipalities and counties deserve a full 10% share of LGDF revenue to ensure they can keep delivering essential services,” said Schmidt. “Capping the share rate at just 6.23% opens the door for higher property taxes and places even more burdens on families and communities that are already struggling to make ends meet.”
The LGDF is a revenue sharing policy established in 1969 that allocates a percentage of state income taxes for investments in essential programs and services such as police departments, roads, and infrastructure.
The Illinois Municipal League (IML) has stated this reduction in shared revenue forces local governments to consider raising property taxes or cutting services to make up for the loss.
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