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Lake County Gazette

Tuesday, April 30, 2024

McLaughlin Aims to fully fund the LGDF: University of Illinois Report “Pritzker’s grocery tax will hurt municipalities”

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State Representative Martin McLaughlin (IL) | Representative Martin McLaughlin (R) 52nd District

State Representative Martin McLaughlin (IL) | Representative Martin McLaughlin (R) 52nd District

BARRINGTON HILLS… State Representative Martin McLaughlin has voiced his concerns following the release of a study by the University of Illinois System’s Institute of Government and Public Affairs regarding Governor Pritzker's proposed Grocery Tax elimination.

In response to the study, McLaughlin emphasized the importance of balancing priorities, stating, "We can do two things at once just like walking and chewing gum or in this case eliminating the grocery tax and restoring the full 10% allocation to our Local Government Distributive Fund."

The report highlighted the potential negative impact of the proposed Grocery Tax elimination on local municipalities, with estimates indicating a significant financial burden. Specifically, the study pointed out the modest savings for low-income households resulting from the tax elimination, stating, "Those families within the first quintile of income would on average see an annual savings of $1.64. Households in the second quintile would on average maintain less than $30 in annual savings."

Furthermore, concerns were raised regarding the timing of the proposed tax elimination, particularly its potential effect on local government budgets in the upcoming fiscal year. McLaughlin pointed out the need for alternative revenue sources for municipalities facing losses due to the elimination of the Grocery Tax.

McLaughlin also called for a focus on fulfilling the 10% Local Government Distributive Fund (LGDF) agreement to alleviate the financial strain on local communities. He emphasized the need for comprehensive solutions to benefit low- and middle-income households while ensuring that the elimination of the Grocery Tax does not exacerbate existing financial challenges.

In conclusion, McLaughlin urged Governor Pritzker and his colleagues to prioritize fully funding the LGDF and addressing the implications of the proposed tax elimination in the upcoming fiscal year.

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