20120522 PR - Revenue diversion theatens Village in FY13 state budget.Contact: David Niemeyer 1200 Oak Brook Road
Phone: (630) 368-5000 Oak Brook, IL 60523
Fax: (630) 368-5045
Revenue Diversion Threatens Village o Oak Brook
Oak Brook, Illinois (May 22, 2012) Late last week the Senate Democratic caucus unveiled their plan
for the FYI budget. In this proposal is a measure that would be harmful to local governments all
over Illinois. The Senate Democrats are considering taking money away from local communities
through a reduction in Local Government Distributive Fund (LGDF) revenue.
Until 2011, cities and counties received 10% of total income tax collections until they were cut out of
any additional revenues collected as a result of the state income tax increase. Now they only receive
6% of total income tax collections after the state reduced the percentage of total income tax dollars
received by cities and counties. The current Senate proposal would prevent cities and counties from
receiving the full 6% of income tax revenue that would result from a growth in income tax receipts.
This is a clear reduction in LGDF revenue to local communities and would trap local governments at
recessionary revenue levels. Meanwhile, the State takes local money to spend on state priorities.
Prior to the recession in calendar year 2008, municipalities and counties received $1.219 billion in
LGDF revenue. LGDF disbursements in calendar year 2011 declined to $1.013 billion, a drop of
$206 million. This is a reduction of 16.9% from the amount received four years earlier by cities and
counties.
The state is benefiting from the income tax increase while communities have lost substantial
amounts of income tax revenue. Prior to the recession in calendar year 2008, the state received
$10.974 billion. In calendar year 2011, the state has seen total income tax revenues increase by
$4.893 billion. This is an increase of 44.6% from the amount received in 2008.
Municipalities have already adopted their budgets and used revenue assumptions that factor in
natural growth in LGDF revenue. Any reductions in LGDF revenue will create budget shortfalls of
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May 22�
2012
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approximately $16,000 - $32,000 per year shortfall to the Village of Oak Brook. These shortfalls
could result in service reductions, personnel reductions, or a combination of both.
"The cost of goods, services, and personnel continues to increase year after year, said Gopal
Lalmalani, President of the Village of Oak Brook. "If the state is going to take away local revenues,
they need to enact laws that offset our lost revenue. We are trying to provide the services our
residents deserve - and under proposals such as these, we simply cannot"
We urge our residents to contact their legislators and demand that the Local Government
Distributive Fund be left alone.
Representative Patti Bellock:
Springfield Office: 47'h District
repapbellock.com
205-N Stratton Office Building
Springfield, IL 62706
(217) 782-1448 (217) 782-2289 FAX
Representative Chris Nybo:
Springfield Office: 415' District
chris a()..chrisnybo.org
226-N Stratton Office Building
Springfield, IL 62706
(217) 782-6578 No Fax listed.
Representative Sandra Pihos:
Springfield Office: 42st District
sandrapihos42(d)amail.com
225-N Stratton Office Building
Springfield, IL 62706
(217) 782-8037 (217) 558-1072 FAX
Senator Kirk Dillard:
Springfield Office: 24th District
senator@kdillard.com
103C Capitol Building
Springfield, IL 62706
(217) 782-8148 (217) 782-4079 FAX
Senator Ron Sandack:
Springfield Office: 21st District,
senatorsandack(cbgmaii.com
105E Capitol Building,
Springfield, IL 62706
(217) 782-8107 (217) 782-0116 FAX
About the Village of Oak Brook:
Founded in 1958, the Village of Oak Brook is located 15 miles west of downtown Chicago and is in
proximity to the junction of Interstates 88, 294, and 290. The Village consists mostly of residential
subdivisions, with the exception of the Oak Brook Center shopping mall, other retail and office properties
along 22nd Street and Interstate 88. Oak Brook is the home of many corporate offices, most notably, the
world headquarters of McDonald's Corporation, Ace Hardware, Tree House Foods, Inland Real Estate
and the service club organization Lions Clubs International, Oak Brook is also known for being one of the
few municipalities in the Chicago area that does not levy a property tax on residents or businesses. Visit
www.oak-brook.org to learn more.