ACTION REQUESTED:
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Communication from the City Manager with a Request to APPROVE a RESOLUTION Urging the Governor and General Assembly to PROTECT FULL FUNDING OF LOCAL GOVERNMENT DISTRIBUTIVE FUND REVENUES.
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BACKGROUND: In his recent budget address, Governor Bruce Rauner proposed that Local Government Distributive Fund (LGDF) revenues be reduced by 50 percent for all municipalities across the State. LGDF is shared state income tax money. Municipalities currently receive eight percent of total state income tax collections. The revenue is distributed based upon population, which is a fair and equitable funding system. Municipalities have used this funding to provide basic services to citizens. The attached Resolution, if passed, will be sent to the Governor's Office and the General Assembly to indicate the City's opposition to the reduction of these funds.
In addition to the Resolution, citizens can also voice their opposition to the reduction in LDGF revenues. An email can be sent to the Governor, along with each citizen's Senator, Representative and the four General Assembly Leaders, by visiting the following link: http://legislative.iml.org/ams/base.cfm?job=lgdf.
FINANCIAL IMPACT: The estimated loss of LGDF revenues for the City of Peoria is $5,692,847.00 from fiscal year 2015 to fiscal year 2016. Attached is a spreadsheet provided by the Illinois Municipal League with the estimated reduction for several municipalities across the State.
NEIGHBORHOOD CONCERNS: The loss of LGDF revenues would have significant impacts across the community as the General Revenue Fund is supported by these dollars.
IMPACT IF APPROVED: The City of Peoria will join communities across the State in defending the preservation of current LGDF funding by sending this Resolution to both the Governor's Office and the General Assembly.
IMPACT IF DENIED: The City of Peoria will not send a unified message to the Governor's Office and the General Assembly ...
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