R-1100 - 05/24/2011 - LEGISLATION - Resolutions Supporting DocumentsAGENDA ITEM
Regular Board of Trustees Meeting
of
May 24, 2011
ITEM 10.1;.1)
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SUBJECT: Resolution Opposing Reduction/Elimination of LGDF Funds
FROM: David Niemeyer, Village Manager
BUDGET SOURCE/BUDGET IMPACT: General Fund
RECOMMENDED MOTION:
Background/History:
Attached is a resolution opposing a reduction or elimination of Local Government Distributive
Funds(LGDF) to local governments. LGDF funds are municipalities' share of the state income
tax. This fund was created in 1969 in exchange for municipalities not imposing a local income
tax.
The state is proposing to divert money from this fund to help solve the state's budget crisis. One
proposal would reduce the distribution by $23 per person, a reduction of about $180,000 per year
for Oak Brook. If the entire amount was diverted, it would cost Oak Brook $684,866 per year
based on current census figures. Additionally, there is concern that if the state cuts these dollars,
they will feel free to look at taking other shared revenues from municipalities, such as sales tax
dollars.
The Village of Oak Brook has already done its share of cutting, reducing its work force by about
15% and reducing expenditures in other areas. The state needs to gets it fiscal house in order but
not do it on the backs of municipalities.
President Lalmalani, two Trustees and I plan on traveling to Springfield next week to meet with
Oak Brook's legislators to voice our strong opposition to this legislation.
Recommendation:
I recommend approval of the attached resolution.
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RESOLUTION 2011 -LG -R -1100
A RESOLUTION OPPOSING REDUCTION OF
LOCAL GOVERNMENT DISTRIBUTIVE FUND IN RELATION
TO STATE COLLECTED REVENUES DUE MUNICIPALITIES
WHEREAS, all Illinois municipalities provide direct frontline services to their citizens; and
WHEREAS these services have an immediate and fundamental reality to those citizens who
depend on local police and fire protection, water and sewer service, snow removal, roads and traffic
safety; and
WHEREAS local citizens pay income taxes to the State for the State budget; and
WHEREAS since the inception of the State income tax in 1969, municipalities have received,
relied upon and provided services with those revenues to their citizens; and
WHEREAS the fiscal reality is that municipalities have already experienced less income tax
revenues from the State; and
WHEREAS the recent income tax increase provided new revenues all of which went to the State
budget— NONE OF THE INCREASE WAS RECEIVED BY MUNICIPALITIES — costing over $2.7 billion in
future lost revenues; and
WHEREAS the State, through its Legislature and Governor, is contemplating further reductions to
municipal revenues;
WHEREAS one proposal under discussion would take an additional $300,000,000.00 of State -
collected income tax from local governmental entities, which would reduce the Village of Oak Brook
revenues by an estimated $23.40 per capita; and
NOW, THEREFORE, BE IT RESOLVED BY THE PRESIDENT AND BOARD OF
TRUSTEES OF THE VILLAGE OF OAK BROOK, DU PAGE AND COOK COUNTIES,
ILLINOIS as follows:
Section 1: That the Village of Oak Brook cannot preserve basic services with this tremendous
loss of income tax revenues.
Section 2: That the Village of Oak Brook strongly opposes further reduction in State collected
revenues and demands that the General Assembly and Governor take since the national economy has
suffered a recession and as a result, the Village of Oak Brook's revenues have already seriously
declined.
Section 3: The Village of Oak Brook calls on the members of the Illinois General Assembly to
reject any budget proposal that shifts State budget problems to local government.
Section 4: The Village Clerk is hereby directed to send copies of this Resolution to Governor
Quinn, the legislative leaders of both chambers of the Illinois General Assembly and members
representing the Village of Oak Brook.
APPROVED THIS 24th day of May, 2011.
PASSED THIS 24th day of May, 2011.
Ayes:
Nays:
Absent:
Gopal G. Lalmalani
Village President
ATTEST:
Charlotte K. Pruss
Village Clerk
RESOLUTION 2011 -LG-R-1 100
OPPOSING REDUCTION OF
LOCAL GOV. DISTRIBUTIVE FUND
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