Orland Officials Call On Pritzker To Restore Municipal Funding

ORLAND PARK, IL — Orland Park is lobbying Gov. J.B. Pritzker and the Illinois General Assembly not to pass proposed legislation to further cut municipalities' portion of the Local Government Distributive Fund (LGDF). The village board is speaking out against the action, voting 7-0 Monday on a resolution to completely restore the LGDF to what it was when first put in place.

A state income tax was adopted in 1969, and lawmakers agreed to share 10 percent of Illinois' total income tax collections through the LGDF with local governments. This comes as a form of recognition that local governments are "essential service providers for Illinois residents," according to the resolution.

Up until January 2011, 10 percent of total income tax collections in Illinois were dedicated to LGDF for distribution to municipalities and counties. Pritzker's proposed state budget would further cut LGDF distribution after it was reduced to six percent in 2017. According to the Illinois Department of Revenue, the amount of funding each municipality or county receives is based on its population in proportion to the total state population. Population figures are found through the latest U.S. census data.

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The resolution passed by the Village Board of Trustees in Orland Park calls on the Illinois General Assembly and Gov. Pritzker to "protect and preserve existing levels of the LGDF revenue" — including other state-collected local government revenues that are shared with local municipalities to provide residential services — along with the complete restoration of LGDF distribution of revenue to local governments.

The resolution asks lawmakers to restore the plan to its original 10 percent that was agreed to "over 50 years ago."

The resolution states that the revenue reduction is being proposed at a time when local governments are already expending additional funds on the COVID-19 emergency response, and that an additional decrease in LGDF will negatively impact village residents and other residents throughout Illinois.

"This is yet again another example of the State of Illinois moving the finish line," Trustee Michael Milani said. "The distributions have been constantly reduced, and it’s really becoming a joke at this point."

Milani made note that the Village of Mokena would be losing around $225,000 if the reduction is approved. Mayor Keith Pekau said that in Orland Park, the reduction totals near $400,000.

Newly elected Trustee Brian Riordan stated that areas surrounding Orland Park may see a worse impact than Orland itself.

"This kind of a hit to their budget, that we've learned this week, that could be our problem," Riordan said. "This would be a significant impact on them, so I fully support this [resolution]."

Pekau said this is another example of "the state again keeping the money to themselves," adding that the village was due to receive nearly $9 million in COVID-19 relief funds, but was given $450,000 instead. Pekau referenced Mokena, saying the village received $900,000, adding that Mokena is about "one-third" of Orland Park's population.

"Because [the state] cannot balance their own budget, they are balancing it on the backs of municipalities, which really means they are balancing it on the backs of you."

Pekau went on to say: "Think about some of our neighbors to the east who are losing $2 million a year in this revenue and have had to eliminate their police departments or fire departments, and the county now has to pick that up."

"It hurts all of us," the mayor continued. "It hurts us in ways because of all of our neighbors having those issues, what do you think happens with crime and other things when that happens? It just feeds on itself all the way through the suburbs through downstate ... Every community gets damaged by this. And the state is doing it because they mismanaged their own funds."

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