(The Center Square) – The Illinois Municipal League is asking state government for more local authority.
IML leaders outlined their 2025 legislative agenda in Springfield Tuesday. They say the organization’s “Moving Cities Forward” platform is designed to ensure the long-term success of Illinois’ cities, villages and towns and promotes local government efficiency and modern policies that reflect community needs and resources.
“These policies are common sense reforms that give local leaders the tools and flexibility to meet evolving community needs,” said IML Chief Executive Officer Brad Cole. “We are calling on the General Assembly to ensure municipalities have the authority and resources needed to enhance public services and promote fiscal sustainability.”
When asked about IML agenda items that have carried over from previous years, Cole said there has been good dialogue
“They’re listening,” Cole said of state legislators.
Illinois municipalities are still waiting for full funding of state income tax revenues.
Cole said Local Government Distributive Fund (LGDF) tax rates have grown incrementally to between 6% and 7%.
“Full funding would be 10%, but we’re focused on maintaining the funding we get and obtaining the local authority to make decisions,” Cole said.
The LGDF contains a portion of state income tax revenues designated for cities and counties. According to the IML, state income tax increases of 2011 and 2017 did not increase revenues for local governments, because the state reduced the local share percentage and kept 100% of the additional revenues raised through higher taxes.
In the fiscal year 2025 budget Gov. J.B. Pritzker approved, Illinois eliminated a 1% grocery tax, effective Jan. 1, 2026. Cole said about 60 communities have passed their own taxes to make up for the lost revenue.
“You’re gonna see that pick up as the deadline approaches a little bit. I think the last six months of this calendar year, you’ll see the majority of communities that will adopt that and a number that will not, and that’s their choice,” Cole said.
Cities have until October 2025 to pass an ordinance to continue the grocery tax locally in order to avoid a lapse in revenue. Statewide, the revenue impact could be $350 million lost to local governments.
Champaign Mayor Deborah Frank Feinen, who also serves as IML President, said Pritzker’s move to eliminate the state grocery tax was “not without consequences.” Feinen said Champaign officials raised the city’s sales tax instead of implementing a grocery tax.
Matteson Village President and IML First Vice President Sheila Chalmers-Currin called for municipalities to have expanded authority to impose fuel taxes.
“This is not about increasing taxes arbitrarily. It’s about giving local governments the tools they need to improve their communities without solely relying on property taxes or state funding,” Chalmers-Currin said.
Chalmers-Currin urged lawmakers to support House Bill 1283, introduced by state Rep. Anthony DeLuca, D-Chicago Heights, which would allow all non-home rule municipalities to implement a motor fuel tax.
Washington Mayor and IML Second Vice President Gary Manier pushed to end the state mandate for annual audits by certified public accountants.
“Their expense often makes up a significant percentage of the municipality’s entire annual budget,” Manier said.
Manier asked legislators to support two measures to give relief to small communities. Senate Bill 82, filed by state Sen. Doris Turner, D-Springfield, and House Bill 1082, filed by state Rep. Gregg Johnson, D-East Moline, would exempt municipalities with populations under 1,000 from the annual CPA-performed audit requirements.
The IML also urged support of legislation that would allow municipalities to fulfill public notice requirements electronically, saying mandated print communications cost cities, villages and towns millions of taxpayer dollars annually.
Senate Bill 29, introduced by state Sen. Cristina Castro, D-Elgin, and House Bill 3069, introduced by state Rep. La Shawn Ford, D-Chicago, would grant municipal governments the option to fulfill public notice mandates on the municipality’s website and on a publicly-available, searchable online database operated independently from the municipality.
Greg Bishop and Kevin Bessler contributed to this report.