Local Government Fund History


The Formula

The statutory formula for determining the required appropriation to the Local Government Fund has changed over time, most recently in Act 84 of 2019. The change in formula first applies to appropriations for FY 2020-21. The formula currently requires an appropriation equal to the projected increase in recurring general fund revenues compared to the prior year’s recurring general fund expenditure base, up to 5 percent. From FY 1992-93 to FY 2019-20, the statutory formula required an appropriation of not less 4.5 percent of general fund revenues of the latest completed fiscal year. The statutory funding formula was suspended by budget proviso for FY 2008-09 to FY 2019-20. Prior to FY 1992-93, funding was based on varying percentages of specific general fund revenues.

Historical Data

County and Municipal Local Government Fund Distributions - Actual Funding and Statutory Formula FY 2008-09 to FY 2024-25
(Rev. 12/25)

Local Government Fund - Comparison of Actual Funding and Statutory Funding
(Rev. 11/25)