IL HB2575

Creates the Illinois Local Government Protection Authority, a political subdivision with a 9-member board of trustees appointed by the Illinois Municipal League, Governor, and legislative leaders to assist financially distressed local governments.

Establishes the Authority's powers to review and make recommendations on essential government services, tax increases, pension funding levels, cost-cutting measures, and alternative solutions including service consolidation, public-private partnerships, and modified retirement plans for new hires.

Allows the Illinois Comptroller, units of local government, significant past due creditors (unpaid debts of $5 million or 10% of annual revenues for 6+ months), and pension funds to petition the Authority to review a local government's financial status.

Sets trigger criteria for Authority review including past due debts, failure to make required pension contributions for 2 consecutive years, funded pension ratios below established thresholds, late budget passage, unpaid bills exceeding 180 days, and insufficient cash reserves.

Requires participating local governments to submit annual financial information, budgets, revenue sources, liabilities, and pension fund records to the Authority and provide explanations to voters if budgets are unaffordable or pension funding targets are missed for 2 consecutive years.