* Click here for the House’s feed, or click here for the free BlueRoomStream.com feed. Let us know what you think in comments.

…Adding… Mayor-elect Johnson called for restoring the full Local Government Distributive Fund payment. The Illinois Municipal League’s members have descended on the Statehouse demanding the same thing. From the governor’s office…

Supporting the operation of local governments is a key part of the state’s financial infrastructure. Since Governor Pritzker took office, over $1.1 billion annually has been allocated to local governments to assist with costs over and above what they were previously receiving from the state. This is on top of the 49% increase in revenue sharing to local governments over Governor Pritzker’s first term. When possible, the State has provided additional funding mechanisms to help local governments, including one-time and permanent revenue supports to minimize the need for local property tax increases.

Over the last few years, local governments have also seen an increase in the percentage of income and sales taxes that state government shares with towns, counties, and transit districts. This is due to the removal of the distribution proration that was put into place during the budget impasse. In fiscal year 2018, these allocations totaled $1.7 billion, but are expected to total $2.7 billion in the fiscal year 2024 budget proposal.

Background

Support for local governments enacted since Governor Pritzker took office includes:

• An additional $200 million a year in sales taxes from the passage of internet sales tax language following the Wayfair decision, including the Leveling the Playing Field for Illinois Retail Act, to help ensure compliance with state tax laws on internet sales.
• Over $600 million annually in additional motor fuel taxes directed to local governments and transit districts to support needed transportation projects through the passage of Rebuild Illinois.
• Granting $1.5 billion in state transportation bond funds directly to local governments for road and highway project expenditures, saving local governments $110 million annually in debt service costs from not issuing local bonds.
• Authorization of adult-use cannabis, generating an estimated $100 million in additional revenues for local governments.
• Increased allocations through the Local Government Distributive Fund process totaling $46 million annually from business loophole closures included in PA 102-0016.
• Increased tax rates and positions for video gaming operations are expected to generate an additional $77 million a year for local governments.
• Anticipated additional local revenues from the opening of new casinos authorized under the Rebuild Illinois plan.
• Provided $400 million to support local governments during the 12-month suspension of the grocery tax authorized under the Illinois Family Relief Plan.
• Increased the percentage of individual income taxes that state government shares with municipalities and counties from 6.06 to 6.16 percent of total individual income tax collections. This 0.1 percent increase is worth $27 million annually.

OVERALL LOCAL GOVERNMENT SUPPORT

• Income tax revenue sharing with locals increased 49% over the last 4 years. In FY19 LGDF was $1.342B. In FY22, LGDF was $2.00B – an increase of $658M or 49%.

…Adding… The IML’s fact sheet on the LGDF is here.

…Adding… If you’d like to compare with the last two first-time mayor speeches, click here for Rahm Emanuel and click here for Lori Lightfoot. [Hat tip: Amdor]

…Adding… Illinois Chamber…

The Illinois business community stands ready to work with Mayor-Elect Johnson to achieve our shared goals of a vibrant Chicago.

We look forward to working with Johnson on developing specific proposals for job growth and economic development within the state. This can be achieved through bipartisan cooperation that balances the needs of the citizens of Chicago with measures promoting a strong business climate, enhancing the city’s role as an economic engine that is so important to the prosperity of the state of Illinois.

…Adding… Press release…

House Speaker Emanuel “Chris” Welch, D-Hillside, and Senate President Don Harmon, D-Oak Park, welcomed Chicago Mayor-Elect Brandon Johnson to the State Capitol Wednesday, beginning a conversation on economic development, public safety, and moving Illinois and the City of Chicago forward together.

“I sincerely thank Speaker Welch, President Harmon, and every legislator for their warm welcome today. Together, we have laid the foundation for a collaborative, productive, and energetic partnership to build a better, stronger, safer Chicago that benefits every community across Illinois,” said Mayor-Elect Johnson. “This legislative body has shown it’s possible to take bold action to lift-up people all across our state, and I stand ready to work together to strengthen our public schools, ensure safety in every community, and support Illinois businesses to drive widespread economic growth and prosperity.”

Before a joint session of the House and Senate, Johnson emphasized the need for collaboration and collective responsibility in creating a stronger Chicago and a stronger Illinois.

“In the days ahead, this Legislature will make significant decisions about how we continue to rebuild Illinois’ fiscal house, expand opportunity across our state, and protect and strengthen Illinois communities. I’m pleased to welcome Mayor-Elect Johnson now, so that the priorities that will define the beginning of his term can inform our work,” said Speaker Welch. “Chicago is a critical component to Illinois’ success and it’s wonderful to hear the mayor-elect discuss priorities that mirror so closely what we’ve been fighting for in Springfield. I’m excited to work with Mayor-Elect Johnson as we continue to push for a smart approach to public safety, for fiscally and socially responsible budgets, and for the rights of women, of immigrants, and of working families.”

“I commend the mayor-elect for hitting the ground running, establishing his priorities and building relationships with the General Assembly before he even takes office,” said Senate President Harmon. “I found inspiration with his central message that progressive values and economic prosperity are one and the same, and that we are proving it here in the great state of Illinois. I look forward to finding ways to work together in the years ahead.”

Earlier Wednesday, Johnson met with Welch and Harmon, as well as the Black, Latinx, Progressive, and Moderate House sub-caucuses. Johnson emphasized that Chicago’s success is Illinois’ success, and called for leaders across the state to work together for a smart approach to safe communities, economic opportunity for all, and increased investment in local government.