# Illinois HB5785: LOCAL GOV SURPLUS FUNDS ACT

Illinois HB5785, LOCAL GOV SURPLUS FUNDS ACT, is a 104th General Assembly (2025–2026) House bill sponsored by Daniel J. Ugaste (Republican); status in committee, last action 2026-05-20 (Referred to Rules Committee) (as of 2026-11-01).

- Canonical: https://policyrisk.com/state-bill/IL-HB5785-2025-2026
- As of: 2026-11-01
- Plain-text twin of the page above; the HTML and this file carry the same facts.

## Facts
- Bill: Illinois HB5785
- State: Illinois
- Session: 104th General Assembly (2025–2026)
- Title: LOCAL GOV SURPLUS FUNDS ACT
- Status: in committee
- Chamber: House
- Introduced: 2026-05-20
- Last action: 2026-05-20, Referred to Rules Committee
- Sponsor: Daniel J. Ugaste (Republican)
- Cosponsors: 0
- Touches household money: no
- Economic provisions PRIA read: 0

## Summary

Creates the Local Government Surplus Funds Limitation Act. Provides that no taxing district, other than a municipality with a population of less than 10,000 inhabitants, may hold more than 200% of the amount of the municipality's tax collections from the previous fiscal year in cash or cash-equivalent assets. Provides that, if, at the end of any fiscal quarter, the taxing district has more than that amount in cash or cash-equivalent assets, then the excess amount shall be refunded to taxpayers pro rata based on each taxpayer's percentage of the total levy for the previous year. Preempts the concurrent exercise of home rule powers. Effective immediately.

## Bill overview

No economic impacts identified for this bill.

## Sponsors and cosponsors

- Sponsor: Daniel J. Ugaste (Republican), House

## Actions (3)

- 2026-05-20: Referred to Rules Committee (House)
- 2026-05-20: First Reading (House)
- 2026-05-20: Filed with the Clerk by Rep. Daniel J. Ugaste (House)

## Bill text

- Introduced: [PDF](https://www.ilga.gov/documents/legislation/104/HB/PDF/10400HB5785.pdf)

## Related bills

- HB5198: AFFORDABLE HOUSING-CILAS (passed house)
- SB1937: PENSION CODE-VARIOUS (passed senate)
- HB2563: CONDO-RESERVE STUDY (in committee)
- HB4701: LIMITATIONS FACILITY FEES ACT (in committee)
- SB3008: DHS-ABLE PROGRAM INFO MATERIAL (passed senate)
- SB3484: VEH CD-PLATES-REGISTRATION (signed)

## Sources
- [Introduced (PDF)](https://www.ilga.gov/documents/legislation/104/HB/PDF/10400HB5785.pdf)

## Related
- [HB5198: AFFORDABLE HOUSING-CILAS](https://policyrisk.com/state-bill/IL-HB5198-2025-2026)
- [SB1937: PENSION CODE-VARIOUS](https://policyrisk.com/state-bill/IL-SB1937-2025-2026)
- [HB2563: CONDO-RESERVE STUDY](https://policyrisk.com/state-bill/IL-HB2563-2025-2026)
- [HB4701: LIMITATIONS FACILITY FEES ACT](https://policyrisk.com/state-bill/IL-HB4701-2025-2026)
- [SB3008: DHS-ABLE PROGRAM INFO MATERIAL](https://policyrisk.com/state-bill/IL-SB3008-2025-2026)
- [SB3484: VEH CD-PLATES-REGISTRATION](https://policyrisk.com/state-bill/IL-SB3484-2025-2026)
- [Illinois bills](https://policyrisk.com/states/illinois/bills)
- [Illinois state hub](https://policyrisk.com/states/illinois)
- [All state legislation](https://policyrisk.com/state-bills)

Source: PRIA, https://policyrisk.com/state-bill/IL-HB5785-2025-2026 (as of 2026-11-01).