As Mayor of the Round Lake, one of my top responsibilities is making sure we deliver the services our residents rely on while being mindful of the tax burden on our families.
That balance is getting harder to maintain, and one of the biggest reasons is something most people have never heard of: the Local Government Distributive Fund (LGDF).
A Promise That Has Been Eroded
When Illinois created the state income tax, local governments—including communities like Round Lake agreed not to implement their own local income tax.
In return, the State committed to sharing 10% of income tax revenues with municipalities through LGDF.
Today, that share has dropped to just over 6.47% and is expected to be cut further to 6.28% this fiscal budget year.
According to the Illinois Municipal League, this reduction has cost local governments billions over the past decade.
What That Means in Real Dollars for Round Lake
The Village of Round Lake currently collects approximately $3.3 million annually from LGDF.
If the State were still honoring the original 10% commitment, the Village would be receiving roughly $5.5 million per year.
This means Round Lake is losing about $2.2 million each year due to the reduced LGDF share.
Over the past decade, that adds up to approximately $22 million in lost revenue; funds that could have been invested directly into our community.
For Round Lake, LGDF is not extra funding, it is a core revenue source that helps support:
- Police services and public safety
- Road maintenance and snow removal
- Infrastructure and capital improvements
- Day-to-day Village operations
The Reality of “Flat Funding” and Misconceptions About Other Revenue Streams
Several state and local leaders have argued against restoring LGDF funding, suggesting that municipalities have already received additional funding through other initiatives.
While it is true that local governments have seen some revenue through programs such as grants, capital projects, or state-shared initiatives, these were never designed to replace LGDF funding or restore it to the original 10% level.
LGDF remains a predictable, flexible, and foundational source of revenue that municipalities rely on for day-to-day operations. Supplemental funding cannot make up for the loss of a stable revenue stream like LGDF.
There has also been discussion at the state level about keeping LGDF funding “flat.”
But as both the Illinois Municipal League and municipal leaders across Lake County point out, flat funding is not neutral.
With inflation and rising costs, flat funding is effectively a cut.
That leaves communities like Round Lake facing difficult choices:
- Delay needed infrastructure improvements
- Scale back services
- Or shift costs onto local taxpayers
Organizations like the Metropolitan Mayors Caucus, alongside the Illinois Municipal League, have made restoring LGDF a top priority:
- Oppose any further reduction in LGDF
- Restore funding toward the original 10% commitment
- Ensure stable, predictable revenue for municipalities
Why Your Voice Matters
Restoring LGDF is critical not just for local government operations; it impacts all taxpayers in our community.
It is important for residents and voters to contact their state and local elected officials to demand the restoration of LGDF funding to its original level.
Your voice can make a difference in ensuring that communities like Round Lake have the resources needed to provide safe streets, well-maintained roads, and strong public services.
This issue may not always be visible, but here in Round Lake, it has a real and lasting impact.
At its core, this is about keeping a promise and ensuring that our community has the resources it needs to serve residents today and into the future.
Forward Motion 