CHAMPAIGN, Ill. (WCIA) — Many city leaders, including Champaign’s mayor, are happy one part of the state budget is receiving a funding increase.

Part of the fiscal year 2024 budget for Illinois includes an increase to the Local Government Distributive Fund, which goes to municipalities across the state. The fund will get 6.47% of state income tax revenues, compared to last year’s budget of 6.16%.

“The Local Government Distributive Fund is an important tool to help Illinois cities, villages and towns pay for services like mandated pension benefits, critical infrastructure repairs, public safety and other important programs,” Brad Cole, the executive director of the Illinois Municipal League said. “We are pleased that the General Assembly recognizes the importance of LGDF to Illinois communities.”

Champaign mayor Deb Feinen said she’s thankful for the for the increase.

For Champaign, the city just uses LGDF as another avenue of income, alongside sales tax revenue and property taxes, for its General Fund to pay for services. But Feinen believes it helps pay for community services while also alleviating taxpayers.

“The city services that everyone relies upon have to be paid for somehow,” Feinen said. “It’s how we pay for things like, you know, the staff that helps to fix your roads or to maintain trees or the other things that Public Works does, or your fire fighters and your police officers. And all of our other city staff.”

Up until 2011, the LGDF percentage was 10%. The IML are lobbying to get it back to 10%.

Feinen estimates Champaign lost around $1 million when the LGDF percentage was cut down.