State Representative Mike Coffey said on Mar. 23 that reducing the Local Government Distributive Fund (LGDF) share rates will negatively affect municipalities and counties across Illinois. Coffey, a Republican representing Springfield, spoke after the State of the State and Budget Address about concerns regarding the state’s decision to lower LGDF revenue shares.
The issue is significant because LGDF funds are used by local governments for essential services such as police departments, roads, and infrastructure. Reducing these funds could lead to higher property taxes or cuts in services for residents.
“I’m extremely disappointed to hear about our state taking even more revenue from local governments to help fund a budget deficit,” Coffey said. “Cutting the LGDF revenue share to just 6.28% will risk property tax increases to Illinoisans who already pay the highest rates in the nation. We must have a government that works efficiently and right now we don’t so it’s costing taxpayers even more and creating burdens on local municipalities.”
The FY27 budget includes a $16 million cut from the LGDF, according to statements from Coffey’s office. The Illinois Municipal League has said this reduction forces local governments either to consider raising property taxes or cutting services.
Coffey also said, “Our community does not deserve to be punished by higher taxes because of failed policy and overspending. I want to see the LGDF restored to 10% so more tax dollars go to necessary programs and services that strengthen our communities which is why I cosponsor House Bill 4294.”
Coffey was elected in 2023 as representative for Illinois’ 95th House District, replacing Tim Butler according to public records.
