Municipalities Unveil 2026 Moving Cities Forward Platform

Mayors are advocating for policies that strengthen municipalities by fully funding all state shared revenues including the Local Government Distributive Fund (LGDF), imposing a local Motor Fuel Tax (MFT), securing local authority over housing programs, modernizing public notice requirements and streamlining state permitting.

“Many essential public services that protect the health, safety and welfare of Illinoisans are delivered at the local level, and we’re asking lawmakers to equip municipalities with the resources and authority needed to best serve their residents,” said IML Chief Executive Officer Brad Cole. “Moving Cities Forward is composed of common-sense policies that support the fiscal solvency and overall well-being of communities throughout Illinois.”

Governor JB Pritzker’s State Fiscal Year (SFY) 2027 proposed budget reduces LGDF share of individual income tax revenues from 6.47% to 6.28%. Municipal officials are urging the General Assembly to fully fund LGDF, which for decades provided municipalities with 10% of state income tax revenues before being cut to 6% in 2011, following the enactment of a temporary state income tax increase that did not benefit local governments.

Restoring the LGDF formula to 10% remains a top priority for communities because it is a stable, flexible funding source. Underfunded state shared revenues threaten critical essential services and undermine the partnership between the state and local governments.

“Local governments are where residents feel impacts first, so shifting costs to the local level makes Illinois less affordable for residents,” said IML President, Village President Sheila Chalmers-Currin, Village of Matteson. “Reducing LGDF funding would leave us only two options: raise local taxes or cut critical services like public safety, infrastructure and transportation.”

Mayors are backing a proposal to help level the playing field for local revenue options in non-home rule municipalities. Currently, only non-home rule municipalities in Cook County or with a population of more than 100,000 can impose a local non-home rule MFT, limiting revenue generation for many non-home rule communities. The bill would allow all non-home rule municipalities to adopt a local MFT by ordinance, up to three cents per gallon, giving communities a flexible, locally controlled source of funding for roads and infrastructure.

“Local officials know their communities best, and many municipalities across Illinois have limited options to generate revenue to safely maintain roads and build needed projects,” said IML First Vice President, Mayor John C. Lewis, City of Mount Vernon. “This proposal gives every community an additional tool to support local infrastructure.”

Moving Cities Forward also seeks to preserve municipal authority for land use and zoning and to implement housing programs. Governor Pritzker’s SFY 2027 budget proposal also includes provisions broadly preempting local authority for land use and zoning.

“Illinois municipalities vary widely in geography, population density, infrastructure capacity and housing demand. One-size-fits-all statewide mandates are unworkable and ignore the unique needs of our communities,” said IML Second Vice President, Mayor Rita Ali, City of Peoria. “Preserving this authority enables local governments to address critical housing needs with policies that are fair, accessible and aligned with community priorities.”

Moving Cities Forward also promotes legislation that modernizes public notice requirements by allowing municipalities to post notices online, saving millions in publication costs while ensuring public access through searchable digital platforms. Publication of notices in traditional newspapers would remain an option, while offering a flexible, modern alternative to share information. To expand awareness and accessibility, IML has created a website, LocalPublicNotices.org, where municipalities can post public notices easily and efficiently, free of costs.

The platform also advocates for establishing a clear timeline for state agency permit reviews. Delays that often exceed a year drive up costs, jeopardize funding and worsen infrastructure conditions. Holding state agencies to timelines similar to those required of municipalities would improve efficiency and ensure timely project delivery.

For more information about IML’s 2026 Moving Cities Forward legislative platform, please visit movingcitiesforward.org.

Moving Cities Forward

Fully Fund All State Revenues

It is critical that Illinois municipalities receive the revenues necessary to offer essential services that provide for the health, safety and welfare of their communities. This partnership must continue in good faith and recognize that many services that benefit Illinoisans are provided by local governments. The General Assembly should fully fund all state shared revenues, such as: Local Government Distributive Fund (LGDF), Personal Property Replacement Tax (PPRT), Motor Fuel Tax (MFT), Transportation Renewal Fund (TRF), State Use Tax (UT) and Cannabis LGDF.

Non-Home Rule Motor Fuel Tax

HB 1283 (Rep. DeLuca, D-Chicago Heights)

Non-home rule municipalities within Cook County or those with more than 100,000 residents may impose a tax on motor fuel, by ordinance, not to exceed $0.03 per gallon in $0.01 increments. The remaining non-home rule municipalities in Illinois do not have this authority. This proposed legislation would allow all non-home rule municipalities to impose a local MFT, not to exceed $0.03 per gallon. This solution provides additional flexibility for non-home rule municipalities to utilize an alternative revenue source by expanding the authority to impose a local municipal MFT statewide.

Preserve Existing Municipal Authority to Implement Housing Programs

To the extent there are concerns, rightfully, with the cost or availability of housing, the issue is not caused by comprehensive planning or local zoning. More direct causes are state mandates affecting residential construction costs and pension benefits that pressure local property tax rates upward. Illinois communities vary widely in geography, population density, infrastructure capacity and housing demand. Uniform statewide standards cannot adequately reflect those differences or the planning efforts underway or completed in many municipalities. Zoning and land use decisions are best made locally by the leaders elected in those communities.

Authority to Fulfill Public Notice Mandates Electronically

SB 29 (Sen. Castro, D-Elgin), HB 3069 (Rep. Ford, D-Chicago)

Public notice requirements are an important service provided to citizens, but they add costs to local governments and their taxpayers, particularly for mandates to place notices in newspapers or mail them to residents. This proposed legislation would allow municipalities the option to fulfill any statutorily-mandated newspaper posting requirement by providing notice on the municipality’s website and on a publicly-available, searchable online database operated independently from the municipality. This is a shift to utilize modern technology in a way that recognizes how the public increasingly views public notices.

State Permitting Reforms

SB 4058 (Sen. Belt, D-Swansea)

State agencies often take significant time to process agreements and review municipal permit applications, in many cases longer than one year. This can result in lapsed funding sources, significant increases in project costs and continued degradation of critical infrastructure as time elapses. Municipalities are subject to statutory timelines for the review and issuance of permits in some cases. Establishing a specific timeline for state agencies to review municipal permit applications will result in reasonable completion times for projects, reduced construction costs and upgraded infrastructure on a more timely basis.

These issues are just a few of IML’s priorities outlined in Moving Cities Forward. Please visit the IML website (available via this link) for more information about IML’s 2026 State Legislative Agenda.

ABOUT THE ILLINOIS MUNICIPAL LEAGUE

The Illinois Municipal League is the statewide association representing municipalities throughout Illinois. Founded in 1913, IML has worked continuously for the benefit of all 1,294 cities, villages and towns in Illinois to provide a formal voice on matters involving common interests. The League is managed under the general direction of Chief Executive Officer Brad Cole, former Mayor of the City of Carbondale.