IL HB4168

Increases monthly state revenue transfers to the Local Government Distributive Fund for financially distressed cities by calculating distributions based on 10% of net income tax revenue (up from approximately 6%) from individuals, trusts, estates, and corporations

Expands the Financially Distressed City Law to apply to both home rule and non-home rule municipalities, allowing non-home rule cities to qualify for designation and assistance

Prohibits the State from reducing revenues or imposing additional costs on financially distressed cities unless consistent with the city's Financial Plan and Budget, with exceptions for required pension fund contributions and existing settlement agreements

Exempts financially distressed cities from complying with new State mandates enacted during their designation period that would cause the municipality to incur additional costs

Effective January 1, 2021