Without question, unfunded mandates continue to be one of the largest challenges confronting local governments in Illinois. Unfunded mandates are requirements imposed on local governments (like cities, villages and towns) by state law that create additional costs without providing the financial resources to cover the associated costs. 

Almost every time that the state passes a new law requiring additional training, reporting, record keeping, environmental regulations, disability access, tax exemption, or increased benefits or protections for local public employees, etc., the burden to cover the increased costs then becomes that of the local government and their taxpayers. The local government is then forced to either increase revenue or reduce services to meet these new requirements. 

In most cases, local governments have limited resources and are often left with little choice but to pass the burden onto taxpayers in the form of either increased property taxes or sales taxes. The fact that Illinois has the second highest effective property tax rate in the country, second only to New Jersey, should be enough for our state legislators to recognize the financial consequences to their decisions. 

Unfunded mandates undermine local autonomy and fiscal responsibility. There needs to be greater transparency when legislating mandates that have adverse financial implications for local governments. Members of the Illinois General Assembly consider dozens, if not hundreds, of proposals each year that would impose new unfunded state mandates on local government. Between 2019 and 2024, at least 145 new or expanded unfunded mandates were approved by both chambers and signed into law by the governor. Members of the 104th Illinois General Assembly introduced 274 proposed new or expanded unfunded mandates this year alone. It has yet to be determined how many of those were actually approved and sent to the governor. 

As Illinois Municipal League best explains, the preemption of municipal authority occurs when the General Assembly takes action to decrease or remove decision-making power from municipal officials, thereby threatening their ability to best represent their communities on local issues. Unfunded mandates are a perfect example of this type of behavior. We will continue to oppose unfunded state mandates and will continue doing our part to serve and advocate for the specific needs of our community to the best of our ability.

Always grateful,
John