Budget Brief – Local Government Fund
March 29, 2011
Sharing the pain:
State seizes Local Government Fund and tax replacement funds
The Executive Budget Proposal for state fiscal years 2012 and 2013 garners approximately $2 billion over the biennium by elimination of revenue sharing and tax replacement for local government, libraries and schools (Table 1). The biggest loss to local government comes from a tiered reduction of half of the Local Government Fund. The state anticipates gaining more than $555 million for the General Revenue Fund from this recapture of funds that had been earmarked for the Local Government Fund.