LGHP is a self-funded program administered by the Department of Central Management Services (CMS). The program serves employees of 584 municipalities, domestic violence shelters, libraries, fire protection districts, transit authorities, housing authorities, park districts, transportation districts, water districts, and townships throughout Illinois.

-The Blagojevich Administration has taken so much money from this fund that CMS has to increase rates on local governments,- said Rutherford. -This rate increase is unnecessary and it puts the health insurance coverage of thousands of local government employees at risk.-

CMS plans to increase rates by an additional 2.8 percent this year to replace the funds taken by the Governor. Had the Blagojevich Administration not funneled $2.1 million out of the program last year and used the funds for general state spending, this increase would not be necessary.

Since taking office, Blagojevich has increased state spending by $1 billion and plans another $700 million increase next year. The $2.1 million redirected from the LGHP was used to subsidize this increased spending.

-The Governor-s overspending has put local government health insurance at risk,- said Righter. -Local governments have already been forced to cut back their own spending to pay for last year-s excessive tax and fee hikes and now the Blagojevich Administration is asking them to pay more for their health insurance so he can pay for his own overspending. This is wrong.-

The lawmakers have received letters and phone calls from local governments unhappy about the situation.

-Each new burden we place on local governments places a larger burden on local taxpayers,- said Risinger. -Mayors in my district are unhappy about this increase because it affects the affordability of health insurance for its employees. They either have to charge employees more or make cuts elsewhere in the city budget with no real increased benefit to the city or the employees.-