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Legislative Update

July 14, 2015 | Legislative briefs

Legislative Update

The IML released an update on the status of the distribution of certain state shared revenues to local governments. Because of ongoing confusion regarding the distribution of the Motor Fuel Tax (MFT), Local Government Distributive Fund (LGDF), and Sales Tax funds, the IML obtained clarification from both the Governor’s Office and the Comptroller’s Office.

Motor Fuel Tax 
According to the Governor’s Office, the three MFT funds – municipal, county, and township – are considered appropriated funds. The process for the Illinois Department of Revenue to collect and deposit money into the MFT funds is unchanged. However, the Governor’s Office believes additional appropriation authority is required for the actual distribution of the MFT funds to local governments.

Therefore, beginning with July collections, MFT funds cannot be distributed until additional appropriation authority is provided through an approved budget. As a result, there may be a delay in local governments receipt of July MFT funds. It is important to note that the MFT funds will be distributed as intended and without reduction once legal authority to disburse the funds is obtained.

LGDF and Sales Tax 
There is no change in the distribution of the LGDF or Sales tax funds at this time. The Comptroller’s Office indicated that local governments’ share of the LGDF and sales tax funds will continue to be disbursed.

The IGFOA will continue to forward updates on local government shared revenues disbursed by the state as received. In the meantime, anyone involved with preparing their government’s budget may want to consider registering for IGFOA’s webinar “Budgeting in Times of Legislative Uncertainty” to be presented on Thursday, August 6th from 10:00 am until 11:00 am. Please see below for more information and a link to register.

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