* He’s coming back to town…
* Fox 32…
Johnson, along with mayors from Broadview, Fox Lake, Lynwood, Palos Hills, and other leaders representing local municipalities, will be at the state capitol in Springfield on Wednesday, according to the mayor’s office.
The local leaders argue that the loss of money shared with municipalities from the Local Government Distributive Fund (LGDF) would impact essential services they provide their residents. The fund represents a portion of the state’s income tax revenue distributed to local governments.
Mayors across the region said they oppose the proposed reduction of the revenues shared with local governments from 6.47% to 6.28%. That could result in the loss of about $60 million to local governments statewide, according to the mayors.
Chicago specifically would lose around $12.7 million in funding, Johnson’s office said.
* From the governor’s office…
At a time when states are facing fiscal uncertainty driven by the Trump Administration, Governor Pritzker’s FY27 budget holds local governments harmless, maintains the same income tax dollars as last year, and continues record levels of overall support. Since 2019, the Governor has increased revenue sharing with local governments by nearly $1 billion — a 71% increase — and enacted more than $2.5 billion annually in additional ongoing resources through transportation funding, cannabis legalization, video gaming, casino expansion, and other measures. He has also given local municipalities greater authority to adopt local sales taxes without requiring voter referendums and eliminating certain state administrative fees on collections — giving communities greater flexibility and control over their fiscal future.
FY27 Operating Budget Book.
Please see the following excerpts:
Chapter 2, Page 72:
Hold Harmless Local Government Distributions
For fiscal year 2027, the Governor proposes adjusting the diversion percentage of individual income taxes from 6.47 percent to 6.23 percent to hold flat the dollar amount of state income tax diverted to local governments. This change will net the general funds an additional $60 million dollars based on the current fiscal year 2027 individual income tax estimate while sharing the same dollar amount of income taxes with local governments as in fiscal year 2026.
And Page 69-70:
Supporting Illinois’ Local Governments
The operations of local governments are a critical part of the state financial infrastructure. 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 or the authorization of financing options to support economic development. Examples of ongoing support, totaling over $2.5 billion annually, enacted since Governor Pritzker took office include:
• An additional $600 million a year in sales and retailers’ occupation taxes (ROT) from the passage of several bills following the Wayfair decision. These changes include the Leveling of the Playing Field for Illinois Retail Act, which ensured compliance with state tax laws on internet sales. Subsequent changes to the Retailers’ Occupation Tax Act ensured that all retailers are subject to ROT and capped the Retailers’ Discount for certain tax returns at $1,000 per month.
• Over $800 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. An additional $400 million in state transportation aid to local governments in economically distressed communities was included in the fiscal year 2025 final budget.
• 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 $50 million annually from business loophole closures included in PA 102-0016 and PA 104-0006.
• Increased tax rates and positions for video gaming operations expected to generate an additional $80 million a year for local governments.
• Added local revenues from opening new casinos authorized under the Rebuild Illinois plan, including revenues from the Chicago casino licensed in 2023.
• Increasing the percentage of individual income taxes that state government shares with municipalities and counties since 2019.
• Redirecting state sales tax revenue on sales of motor fuel purchases to support local transit districts starting July 1, 2026, under PA 104-0457, the NITA and transit reform bill, estimated to total $788 million in fiscal year 2027.
o This was a component of the $1.5 billion transit funding package outlined in PA 104-0457 to address budgetary shortfalls for regional transit including Chicago transit, Metra commuter and Pace suburban bus services. This transit package shifted certain existing state revenues to support local public transportation systems without a statewide tax increase and provided the framework for local governments to increase locally imposed taxes.
Finally, in the last few years, local governments have seen an increase in the dollar amount of income and sales taxes that state government shares with municipalities, counties, and transit districts due to the removal of the distribution proration that was put into place during the budget impasse. In fiscal year 2027, the income and sales tax revenue the State shares with local governments is expected to total $4 billion. Of this amount, nearly $2.3 billion is estimated to be shared with cities and counties from the State’s income tax collections (via the Local Government Distributive Fund), while $1.7 billion of the State’s sales taxes will be shared with mass transit districts. The income tax revenue sharing equates to a $960 million, or 71.5 percent, increase in annual support since 2019.
Discuss.
- Flyin' Elvis'-Utah Chapter - Tuesday, May 5, 26 @ 8:42 am:
I live 360 miles south of Chicago, so not much of a dog in the fight, however I’ve always felt a certain amount of sympathy for any mayor of that town.
Yeah, I get it. There have been some bad ones. However, from what I have read, mostly on this site, it is a thankless job that if you somehow manage to please a third of the residents you’ve worked a miracle.
- RNUG - Tuesday, May 5, 26 @ 9:15 am:
Johnson still looking for Other People’s Money
- Demoralized - Tuesday, May 5, 26 @ 9:28 am:
Does the Mayor not understand how Springfield works? It’s May and he’s JUST coming to town. Why is he so clueless about his interactions with the General Assembly and the Governor?
- Incandenza - Tuesday, May 5, 26 @ 10:07 am:
As a purely comparative exercise, it is interesting to see this situation contrasted with how Mayor Mamdani has worked with Albany in a collaborative way to achieve one of his 3 very specific goals, the free/affordable childcare initiative.
- The Farm Grad - Tuesday, May 5, 26 @ 10:22 am:
“situation contrasted with how Mayor Mamdani has worked with Albany”
The Governor of New York has championed a tax on luxury second homes in Manhattan, a progressive revenue option.
What progressive revenue options have Governor Pritzker sought over the last couple of years?
- Three Dimensional Checkers - Tuesday, May 5, 26 @ 10:29 am:
So late. There were small asks from the City last year that did not go anywhere. What is the point of this? I have heard the buzzwords “progressive revenue” enough for one lifetime.
- Ducky - Tuesday, May 5, 26 @ 10:34 am:
Perhaps one day Mayor Johnson will understand that charity starts at home. Maybe if the city was raising its property taxes to address its financial problems, the state would be more open to helping out.
- queenies - Tuesday, May 5, 26 @ 10:47 am:
The Governor’s Office might not realize that many of their policies, or lack of policies, put additional pressures on local governments and property tax payers. Cannabis is a good example. The Governor’s agencies have done nothing to stop un-taxed hemp shops from popping up on every corner or laying regulations to make it easier for social equity dispensaries to compete with the hemp shops. The result is less taxes for the state and locals.
- Regular democrat - Tuesday, May 5, 26 @ 11:45 am:
Where is his handpicked lobbyist John Arena ? Probably picking a fight with someone. These two together lobbying is not a recipe for success.
- Pundent - Tuesday, May 5, 26 @ 11:51 am:
=It’s May and he’s JUST coming to town.=
Johnson knows exactly what he’s doing. He’s done this before. It’s performative. He’s seeking attention not accomplishments.
- 5h4qf - Tuesday, May 5, 26 @ 1:01 pm:
Hey, it’s hard running as the outsider while also being an incumbent, so maybe picking fights with JB and tanking in Springfield for a couple days in May is his campaign strategy to give other people the blame for his mismanagement of the City
- Rich Miller - Tuesday, May 5, 26 @ 1:01 pm:
===The result is less taxes for the state and locals. ===
Um, didn’t Mayor Johnson work against that bill?
- lol - Tuesday, May 5, 26 @ 1:05 pm:
Someone want to let Queenie know her issue is with Chris Welch, who killed hemp regulations, and not the governor who advocated for them. Also, Pritzker doesn’t get credit for this, but he’s closed a whole bunch of corporate tax loopholes that have brought in revenues over the last few years.
- Juvenal - Tuesday, May 5, 26 @ 1:27 pm:
@RNUG
Pritzker is literally taking $60 million from local government and using it to plug his own budget holes.
Then complaining they need to learn to live within their means instead of raising property taxes, about the only stable revenue stream they have left.
We’re talking about tax revenue collected from Chicagoans in Johnson’s case.
As for the “Why doesn’t he just raise property taxes?” crowd, the Lt. Governor is on social media today praising BOMA-Chicago, the Building Owners and Managers Association.
They’re the heavy-hitting property owners of the Chicago Loop who helped kill efforts to end homelessness in Chicago, and they’ve got enough hooks in enough lawmakers and city council members to make sure a property tax hike does not happen.
Pritzker knows this well, it’s a real “let them eat cake” moment.
- Huh? - Tuesday, May 5, 26 @ 1:58 pm:
“… looking for Other People’s Money”
OPM is the best money.
- IllinoisGirly2 - Tuesday, May 5, 26 @ 2:06 pm:
@the Farm Grad - Bless your heart. I know 2020 seems like 50 years ago but I do recall a ballot initiative to tax the rich that was **checks notes** led by Governor Pritzker.
- The Farm Grad - Tuesday, May 5, 26 @ 10:22 am:
“situation contrasted with how Mayor Mamdani has worked with Albany”
The Governor of New York has championed a tax on luxury second homes in Manhattan, a progressive revenue option.
What progressive revenue options have Governor Pritzker sought over the last couple of years?
- Illinois Horse Girly - Tuesday, May 5, 26 @ 2:10 pm:
- The Farm Grad - Bless your heart. I know 2020 seems like 50 years ago but there was in fact a ballot initiative to tax the wealthy led by…checks notes….Gov Pritzker.
- thisjustinagain - Tuesday, May 5, 26 @ 2:17 pm:
Oh no…we get to hear Johnson again demand a Zillion dollars for Chicago that he thinks is “owed” to the city. I have much more sympathy for the smaller communities that don’t throw money around then cry “poor”.
- Shytown - Tuesday, May 5, 26 @ 3:17 pm:
Gov’s office playing chess and Johnson playing checkers…again
- Juice - Tuesday, May 5, 26 @ 4:56 pm:
The mayor is a fraud. The budget hole of the CTA/RTA was probably the biggest risk to quality of life issues for working class Chicagoans during his tenure, and he was essentially awol.
He pushes for a multi-billion dollar bailout for the Bears, and then wants to essentially take his ball and go home when that plan is clearly a non-starter with anyone outside his own bubble.
On the mansion tax, he never once had any sort of plan on how the funds were going to be invested to address legitimate concerns with affordability. But the tax would have applied to rental properties, thus increasing the costs for individuals who are the most likely going to end up being squeezed by increased costs.
He has repeatedly wanted to issue more and more bonds, even when pay as you go options are on the table. Which is a massive transfer of wealth from the city to Wall Street banks over the life of the debt.
And his main policy priority appears to be the head tax. Which imposes a marginal increase of the cost of employing each and every Chicago worker at those employers, regardless of whether they are working class, low wage, or high salaried. Clearly demonstrating he is not capable of differentiating who writes the check for a tax versus who actually pays.
The guy cannot leave office soon enough.