Broadview to Pritzker: Back Off Plan to Siphon Town’s Tax Money

(Broadview, IL) – The Village of Broadview Board of Trustees voted unanimously this week to approve a resolution that rejects Governor JB Pritzker’s new state budget proposal that would cut the village’s share of Illinois income tax revenue by $52,056.

The resolution, adopted by trustees 6-0 at their May 17 board meeting, calls on Pritzker and the Illinois General Assembly to reject legislation that would cut municipalities' portion of the Local Government Distributive Fund this year.

When Illinois created a state income tax in 1969, the law stipulated that 10 percent of Illinois' total income tax collections would be shared with local governments through the Local Government Distributive Fund. Since January 2011, however, the amount of tax money returned to local governments has dropped from 10 percent to just six percent. Pritzker's proposed fiscal year 2022 state budget would cut the amount distributed by a further 10 percent or a $152 million reduction to counties and municipalities throughout the state compared to last year’s distribution.

“The burden of a cut of $52,056 of Broadview’s share of state income tax money by Governor Pritzker, would likely fall hardest on our local property taxpayers in order to preserve village services, such as police and fire protection,” said Broadview Mayor Katrina Thompson. “Governor Pritzker and state lawmakers will likely force property tax increases on homeowners and small businesses alike if they pursue a misguided policy of pushing off the responsibility of balancing the state budget onto small communities, like Broadview and its 7,755 residents.”

Currently, Broadview receives $520,569 annually from the Local Government Distributive Fund which is down from $839,628 in 2011. If Governor Pritzker’s proposed 10% cut is approved by lawmakers, the village’s share would drop to $468,512.

The resolution approved by Broadview trustees highlighted that lawmakers have previously imposed other state financial burdens on local governments. “[T]he State has also reduced municipalities’ share of the personal property replacement tax and increased sales tax collection fees while cities and villages have had to fund skyrocketing pension costs,” according to the resolution.

In fact, the Broadview resolution calls on Governor Pritzker and lawmakers to reverse the downward trajectory of state support for municipalities and to “restore LGDF payments to the promised 10% rate so municipalities across Illinois may provide basic levels of service and lessen the reliance on property taxes.”

Voting in favor of the resolution were trustees Judy Abraham, Sheila Armour, Andrea Senior, Judy Miller, John Tierney, and Patricia Chao-Malave.

The Illinois General Assembly must adopt the state budget before its scheduled May 31 adjournment.

davidormsby@davidormsby.com