SB2544 Summary

• Amends State Revenue Sharing Act to allocate monthly transfers to financially distressed cities based on 10% of net income tax revenue, minus amounts already distributed under existing revenue sharing formulas.

• Modifies Illinois Income Tax Act Section 901 to create subsection (b-5) establishing a dedicated allocation mechanism for financially distressed cities, with continuing appropriation if funds are insufficient.

• Expands Financially Distressed City Law to apply to both home rule and non-home rule municipalities, removing previous restriction limiting the law to home rule units only.

• Prohibits the State from reducing revenues or imposing additional costs on financially distressed cities unless consistent with their approved Financial Plan and Budget; exempts pension fund contributions and settlement agreements.

• Provides that state mandates enacted while a municipality holds financially distressed city status that would increase costs are not enforceable during the distressed designation period; effective January 1, 2021.