SUBSCRIBE to Capitol Fax      Advertise Here      Mobile Version     Exclusive Subscriber Content     Updated Posts    Contact
CapitolFax.com
To subscribe to Capitol Fax, click here.
Question of the day

Wednesday, Jun 18, 2014

* The Local Government Distributive Fund doles out state income tax money to local governments on a per capita basis. The Daily Herald found, of course, wealthy suburbs whose residents pay a lot of income taxes, don’t get much of that back…

In 2012, each town got $87.85 per person, according to state revenue department records. For residents living in unincorporated areas, the county received those funds, state officials explained.

This state’s income tax redistribution policy means some suburban areas like parts of Aurora got back more than 25 percent of what residents paid in income taxes, while other areas like Oak Brook and Barrington received less than 2 percent of the income taxes workers there paid.

* The Question: Do you support keeping the LGDF based on population or switching to a formula based on a fixed percent of what local residents pay in income taxes, or getting rid of the LGDF? Take the poll and then explain your answer in comments, please.


free polls

- Posted by Rich Miller        


31 Comments
  1. - RonOglesby - Wednesday, Jun 18, 14 @ 2:15 pm:

    I guess I dont know enough about the system, though I would say get rid of yet, then make the locality tax as needed. Why have the state pull it in, only to distribute it (thus taking a cut for administration).

    I would like to see the “Make chicago another state” backers pipe up on this topic.


  2. - wordslinger - Wednesday, Jun 18, 14 @ 2:19 pm:

    If you’re going to do it, keep it as it is.

    I know it’s sacrilege in certain circles, but some taxation is an attempt to narrow the gaps in resources.

    That’s why the good small government folks in Mississippi, Alabama, Louisiana, etc., get back a heck a lot more from the federales than they pay in.

    Barrington and Oak Brook are doing a-ok.

    Speaking of Barrington, the dude who lives across the pond from my sister has put his house up for sale. Keypad locks for every room, panic room, two-story brick doghouse (for many guard dogs).

    Guy has some security issues, lol.

    http://www.chicagobusiness.com/realestate/20130702/CRED0701/130709963/admiral-theatre-owner-asks-15-9-million-in-barrington#


  3. - Disband the IML - Wednesday, Jun 18, 14 @ 2:26 pm:

    LGDF should be gotten rid of along with the IML that has become nepotism-ridden under Eisenhauer.


  4. - Ducky LaMoore - Wednesday, Jun 18, 14 @ 2:27 pm:

    Why would you change it? The cost of roads, water, sewers etc doesn’t change with how much income taxes are paid in any given municipality.


  5. - Wensicia - Wednesday, Jun 18, 14 @ 2:28 pm:

    Keep it as is; it’s hardly harming the people who need this benefit the least.


  6. - DuPage - Wednesday, Jun 18, 14 @ 2:29 pm:

    Get rid of it, but only if the funds go to the 5 state pension funds.


  7. - OneMan - Wednesday, Jun 18, 14 @ 2:30 pm:

    wordslinger

    It would appear there is good money in the dancing arts…

    To the question, kind of interested in what it means about ‘parts of Aurora’, did they break it down by neighborhood? Because I highly doubt it is that high in my neck of the woods…


  8. - G'Kar - Wednesday, Jun 18, 14 @ 2:31 pm:

    I did not vote as I am not clear on the concept. I would support what ever system gives more help to poorer communities, especially down state.


  9. - A guy... - Wednesday, Jun 18, 14 @ 2:38 pm:

    Keep it. It’s a mechanism designed to do exactly what it is doing. Some towns benefit more than others. The ones that do, can use the assistance. The ones that don’t are doing just fine. It’s probably much better than the distribution formulas the legislature lords over. Let it be.


  10. - Gathersno - Wednesday, Jun 18, 14 @ 2:38 pm:

    Keep it as because it is based on need. The richer ones can afford to help the poorer ones.


  11. - A guy... - Wednesday, Jun 18, 14 @ 2:41 pm:

    === wordslinger - Wednesday, Jun 18, 14 @ 2:19 pm:
    Barrington and Oak Brook are doing a-ok.
    Speaking of Barrington, the dude who lives across the pond from my sister has put his house up for sale. Keypad locks for every room, panic room, two-story brick doghouse (for many guard dogs).

    Guy has some security issues, lol.===

    Slinger, all you had to do was ring my Carillon. I’d have given you the punch code for the 3 entry doors, locked up the Rotts and Dobies and greeted you with a very warm smile. lol


  12. - Mister Whipple - Wednesday, Jun 18, 14 @ 2:43 pm:

    Get rid of it. Do as Indiana does. Every county has an income tax as do many municipalities. If the thought is the most responsive government is local government, let the locals decide what they need and how to raise it.


  13. - zatoichi - Wednesday, Jun 18, 14 @ 2:47 pm:

    Just leave it alone. I do not think Oblong, Paris, or Pittsfield are going to be knocking Barrington or Oakbrook off the top of the money charts soon. Roads, bridges, schools, water systems, sewage and related stuff is still needed across the state. Some areas of the state will never have the population/economy to do these things well on their own.


  14. - railrat - Wednesday, Jun 18, 14 @ 3:03 pm:

    rid this and some township govt. entities, at least show the citizens an attempt of some type of relief!!!


  15. - Mayor Dave - Wednesday, Jun 18, 14 @ 3:11 pm:

    It should be proportional to the amount paid in by local residents. The state is already redistributing much of the other 94% to poorer communities as it is. A per capita distribution of the LGDF amounts to a double income redistribution.


  16. - Common Cents - Wednesday, Jun 18, 14 @ 3:23 pm:

    Under the % of income tax paid concept the dis advantaged communities become even more disadvantaged


  17. - Precinct Captain - Wednesday, Jun 18, 14 @ 3:24 pm:

    Is it working for its designated purpose? It is, so keep it as is. There is a reason the state of Illinois takes a statewide view of things. Sometimes that statewide view means helping our less able communities.


  18. - Norseman - Wednesday, Jun 18, 14 @ 3:34 pm:

    Keep current system. Wealthy communities are in a much better position to support their government services than lower income communities. Higher property tax proceeds, sales tax, etc.


  19. - Illiana - Wednesday, Jun 18, 14 @ 3:39 pm:

    Rich,

    It is rare for you to quote an article & not link to it. Half surprised no one mentioned the missing link yet.

    On the poll, I would say “Change to percent…” is clearly the worst of the three options. Costs do not change just because tax collections differ. Indeed for those of us downstate, this is probably a benefit to sharing a state with Chicagoland. I can see cogent logic in the other two, but really it is good enough that messing with the Local Government Distributive Fund methodology should be very low or absent from anyone’s priority list.

    Also from the article Arlington Heights Republican David Harris put it nicely “To my mind, it’s a fair way to do it now. I don’t want to go complicating the formula. The more complicated the formula gets, the more people play games with the money.”


  20. - DuPage - Wednesday, Jun 18, 14 @ 3:39 pm:

    @Gathersno2:38=Keep it as because it is based on need.=
    It is based on population. I have seen a lot of this money spent on things that were not really necessary. Local officials tend to look at it as “free money” and feel less accountability then if it was local tax dollars. It tends to be spent on wants instead of needs. When some of these spending items are questioned by local taxpayers, they are told it was paid by state dollars not local tax dollars. A lot of these towns could tighten their belts.
    The state is paying out this money and at the same time says they can’t pay the pension funds, can’t pay to fix the roof or the sump pump. Time for the state to end the LGDF and use the state tax money for state needs.


  21. - Charlie Wheeler - Wednesday, Jun 18, 14 @ 3:45 pm:

    Historical note

    Revenue sharing– the LGDF– was a key element of the 1969 compromise negotiated by Gov. Richard B. Ogilvie and Chicago Mayor Richard J. Daley that provided needed Democratic votes in the Senate and the House to approve legislation creating the income tax. Ogilvie had mentioned sharing some of the new income tax receipts with local government in his 1969 budget address, in which he proposed the tax. The negotiations between the two leaders resulted in local governments receiving a one-twelfth of share of income tax receipts, distributed on a per capita basis.

    Negotiations tied to later income tax rate increases resulted in a one-tenth share to the LGDF; since January 31, 2011, the local government share has been 6 percent of individual income tax proceeds and 6.8 percent of corporate income tax proceeds.

    Charlie Wheeler


  22. - Anonymous - Wednesday, Jun 18, 14 @ 3:48 pm:

    Keep it; given the ‘unfunded mandates’ Springfield imposes on local agencies, give them something. And these regulations are passed to all munis, large or small.


  23. - Michelle Flaherty - Wednesday, Jun 18, 14 @ 3:51 pm:

    Reminds me of the Replacement’s line …
    The rich are gettin richer, and the poor are gettin drunk …

    Abolish it, impose a corresponding reduction in the state tax rate, and give each muni the ability to impose an income tax if the locals are so enamored with spending income tax money. I’m sure Rep. Harris will gladly sponsor the plan.


  24. - dreamer - Wednesday, Jun 18, 14 @ 3:52 pm:

    Best to leave it the way it is now. If the formula were switched most local roads outside Chicago and the suburbs would be gravel or dirt.


  25. - lake county democrat - Wednesday, Jun 18, 14 @ 3:54 pm:

    “The rich get richer, the poor get the picture.” - Midnight Oil


  26. - Diogenes in DuPage - Wednesday, Jun 18, 14 @ 3:55 pm:

    A regressive tax doesn’t deserve a progressive tweak.


  27. - SAP - Wednesday, Jun 18, 14 @ 3:56 pm:

    Keep it. Wordslinger nailed it. For those who propose replacing it with a local income tax, be careful what you wish for. Letting local governments impose their own sales taxes has made the sales tax code much more complex. A local income tax would make that look like child’s play.


  28. - the Other Anonymous - Wednesday, Jun 18, 14 @ 4:10 pm:

    The argument underlying a switch in distribution from per capita to a proportion a tax paid is based on this idea that somehow I should personally get in government services the exact amount I put in. The argument seems to be that if I pay $1 on taxes, that money has to expended in a way that allows me to get exactly $1 in services.

    If one really believes that, then why have government at all?

    The point is that one thing that government does that no other entity can do is provide services based on need instead of ability to pay. And yes, that means that some people will pay taxes and not receive a benefit back in the exact amount.

    To me, that seems like a good thing, especially when the tax dollars flow to communities in need.

    IMO, this is a bogus issue designed to stir up populist envy amongst the very people who have the least reason to envy others.


  29. - BW - Wednesday, Jun 18, 14 @ 4:12 pm:

    I would look for the State to re-allocate the Personal Property Replacement Tax before the LGDF. It makes no sense to distribute funds based on what businesses your local government had 40 years ago.


  30. - Taxguy - Wednesday, Jun 18, 14 @ 9:32 pm:

    Why change it? You are taking a percentage of the Illinois Income Tax and distributing it to all communities based on population.

    It’s efficient and seems fair. Every city or county gets an amount based on population.

    Its okay if the folks in Barrington see some of their taxes go to Aurora or Dolton.


  31. - Ahoy! - Thursday, Jun 19, 14 @ 9:21 am:

    I voted to keep it as is. I would vote to get rid of it as long as their were guarantees of mandate reduction that would save more than the revenue being lost. This would be a win-win since the State could keep the revenue and for the local government would get more savings than revenue lost.

    I would not favor having it as a percentage of income. If that is the case, do away with the fund and allow municipalities to implement local income taxes.


TrackBack URI

Sorry, comments for this post are now closed.


* Today's number: $1.68 million
* Question of the day
* Rasmussen: Quinn up by 2
* Stop the partisanship on both sides, please
* Quotables
* *** UPDATED x1 *** Durbin vs. Oberweis react
* More new TV ads
* Get ready for "Bloodtober"
* DCCC defies DC expectations, runs ad attacking Davis
* Today's assignment
* Rate Quinn's new ad: "Washington"
* SUBSCRIBERS ONLY - Supplement to today’s edition: Crosstabs and TV ads
* SUBSCRIBERS ONLY - Today's edition of Capitol Fax (use all CAPS in password)
* Good morning!
* Yesterday's blog posts

Support CapitolFax.com
Visit our advertisers...

...............

...............


Search This Blog...

Search the 98th General Assembly By Bill Number
(example: HB0001)

Search the 98th General Assembly By Keyword

          
        * Path takes laziness to a new level with business messaging
        * Stream your Tivo-ed shows on mobile devices with new update
        * iPhone 5 Battery Replacement Program Now Includes Models with Third-Party Displays
        * Spotify now available in Canada
        * Browse a website without data connection with Cosmos
        * Sony Xperia Z3 underwater unboxing
        * TomTom MySports GPS Watch gets Android support

        * Pokémon Trading Card Game Arrives On iOS Platform
        * Zombie Train Lets Passengers Shoot At The ‘Undead’
        * Bra-Cam Intends To Raise Awareness About Breast Cancer
        * Huawei Honor 6 Pre-book Happening In Malaysia For $305
        * Can This Selfie Be Saved?
        * Google Glass Could Be Used For Airport Check-Ins
        * Hardware Dominator’s GPU Collection Exceeds 600 Units

        * Anderson, Edwards prospects to watch in AFL
        * Manager notes: How Robin Ventura and Chris Sale get along
        * Voting underway to decide Hank Aaron Awards
        * Development of young core in '15 can define Chicago's future
        * Improved White Sox take important step in 2014
        * September call-ups report card: position players
        * Ushering in the world after Paul Konerko


        Main Menu
        Home
        Illinois
        YouTube
        Pundit rankings
        Obama
        Subscriber Content
        Durbin
        Burris
        Blagojevich Trial
        Advertising
        Updated Posts
        Polls

        Archives
        September 2014
        August 2014
        July 2014
        June 2014
        May 2014
        April 2014
        March 2014
        February 2014
        January 2014
        December 2013
        November 2013
        October 2013
        September 2013
        August 2013
        July 2013
        June 2013
        May 2013
        April 2013
        March 2013
        February 2013
        January 2013
        December 2012
        November 2012
        October 2012
        September 2012
        August 2012
        July 2012
        June 2012
        May 2012
        April 2012
        March 2012
        February 2012
        January 2012
        December 2011
        November 2011
        October 2011
        September 2011
        August 2011
        July 2011
        June 2011
        May 2011
        April 2011
        March 2011
        February 2011
        January 2011
        December 2010
        November 2010
        October 2010
        September 2010
        August 2010
        July 2010
        June 2010
        May 2010
        April 2010
        March 2010
        February 2010
        January 2010
        December 2009
        November 2009
        October 2009
        September 2009
        August 2009
        July 2009
        June 2009
        May 2009
        April 2009
        March 2009
        February 2009
        January 2009
        December 2008
        November 2008
        October 2008
        September 2008
        August 2008
        July 2008
        June 2008
        May 2008
        April 2008
        March 2008
        February 2008
        January 2008
        December 2007
        November 2007
        October 2007
        September 2007
        August 2007
        July 2007
        June 2007
        May 2007
        April 2007
        March 2007
        February 2007
        January 2007
        December 2006
        November 2006
        October 2006
        September 2006
        August 2006
        July 2006
        June 2006
        May 2006
        April 2006
        March 2006
        February 2006
        January 2006
        December 2005
        April 2005
        March 2005
        February 2005
        January 2005
        December 2004
        November 2004
        October 2004

        Blog*Spot Archives
        November 2005
        October 2005
        September 2005
        August 2005
        July 2005
        June 2005
        May 2005

        Syndication

        RSS Feed 2.0
        Comments RSS 2.0
        WordPress

        Loading


        * Gov. Quinn leans on Obamas for support - Northw.....
        * Mayor Gary Manier, a Republican, endorses Democ.....
        * Washington Mayor Gary Manier, a Republican, end.....
        * Washington Mayor Appears in Gov. Quinn Ad - CIp.....
        * Rauner Cautions Against Lame Duck..
        * 64th Illinois House District candidates differ .....
        * Barbara Shaw..
        * Illinois Racing Board cuts back live horse racing..


        * Illinois governor leans on Obamas for support
        * EIU joins Garoppolo hype with jersey offer
        * Appellate court agrees AFSCME workers owed money
        * Investigation prompts Dixon prison head to retire
        * DeWitt County lawyer pleads guilty to drug charges
        * Fire recovery beginning in downtown Rock Island
        * Chicago man charged with double homicide
        * Illinois measure would give victims more rights
        * Panel plans to resume anti-violence program probe
        * Chicago court hears arguments Holocaust case

        * Appellate court: State workers owed back wages
        * Quinn leans on top Democratic support — Obamas, Clinton
        * IDOC investigation prompts state prison warden to retire
        * Lawmaker panel plans to resume anti-violence program investigation
        * Quinn touts first year of Affordable Care Act
        * State-owned airplanes to be sold in online auction
        * GOP opposition to school funding bill irks Manar
        * Durbin, Oberweis debate background checks for guns
        * Election 2014: Simon, Topinka spar over transparency, ethics in comptroller’s race
        * Statehouse Insider: There are a lot of campaign ads, in case you haven’t noticed

        * De Blasio signs order raising NYC living wage to $13.13
        * New intrigue in political war over Illiana expressway
        * Pat Tillman's widow launches a 'Stitch Fix' for kids out of Chicago
        * Pat Tillman's widow launches a Trunk Club for kids out of Chicago
        * Lawsuit alleges sperm bank got order wrong


        * Taxi reforms steer in the right direction
        * Area churches to conduct free on-site health tests Sunday
        * Vigil held for Skokie teens; two Niles North seniors shot, one killed
        * The thug life runs deep
        * Chicago shutdown will cost airlines ‘hundreds of millions’: analyst
        * Man accused in FAA fire made 'tragic mistake,' lawyer says
        * Shake-up at Robert R. McCormick Foundation
        * Church hosts woman fighting deportation
        * Hackers might have Jewel-Osco customers credit card data — again
        * Prosecution rests in Joliet double murder trial


        * 16-year-old boy killed in South Side shooting
        * FBI: Former SIU student threatened to blow up dorms, kill students
        * Accounts of arrest vary during Naperville 'smart meter' trial
        * Prison warden retires after link to sex offender
        * Suit: Black donor's sperm sent to white woman
        * Lawyers want evidence seized in Sacred Heart raid tossed
        * Man pleads guilty to sex abuse of disabled woman
        * Elgin woman dies in head-on crash
        * Hampshire High School evacuated after fire
        * Facebook posting offers new details on suspect in fire at FAA radar center


        * Meet Bishop Blase Cupich, Chicago's incoming archbishop
        * After the accident: Metra and pedestrian fatalities
        * Cupich to be next Chicago archbishop
        * Chicago moves on taxi reforms to leave more money in cabbies' pockets
        * Court Rules AFSCME Members Are Owed Money
        * Chicago Mayor: Lower Penalties For Drugs
        * Can Politics And Prison Reform Mix?
        * Nursing Program Comes To UIS
        * IDOT Layoffs Halted, But Quinn Wants To Proceed
        * Quinn, Rauner Share Hazy Stance On Decriminalizing Pot


        * Michael Gerson: Two cheers for Obama, not three
        * Appellate court: State workers owed back wages
        * Quinn leans on top Democratic support — Obamas, Clinton
        * IDOC investigation prompts state prison warden to retire
        * Panel plans to resume anti-violence program probe
        * Lawmaker panel plans to resume anti-violence program investigation
        * Quinn touts first year of Affordable Care Act
        * State-owned airplanes to be sold in online auction
        * Our Opinion: Job creation is a health priority in Sangamon County
        * GOP opposition to school funding bill irks Manar


        * Okaw ponders football options
        * Crimsons down MacArthur
        * N-G Top 10: Boys' cross-country rankings — M-S at top
        * Teams of the Week: Hoopeston Area soccer in spotlight
        * Crimsons fall in three
        * Bulletin board: Rantoul Hall adds three
        * Athletes of the Week: White and Rajic
        * Tuesday's prep highlights: Central stays on volleyball roll
        * Baseball team heading to Dominican
        * Volleyball team ready to get physical


        * Lake County roundup
        * State hears from both sides on Elgin charter school plan
        * Rice fits Stevenson's Cashaw nice
        * Milestone night for Ahonen, Lake champ Warren
        * A taste of October, German style

        * Representative Jan Schakowsky Sends Letter...
        * Rep. candidate pushes to uphold marriage b...
        * Reps. Schakowsky and Waxman Introduce Bill...
        * Statement by Representative Jan Schakowsky...
        * FAA Rejects Call For New O'Hare Noise Stud...
        * Representatives Quigley, Duckworth, Schako...
        * Representative Jan Schakowsky Statement on...
        * Representative Jan Schakowsky Statement in...
        * U.S. House Passes Resolution Condemning An...
        * Representative Jan Schakowsky Statement on...

        * Senate Candidates on Iraq...
        * Senate Candidates on Iraq...
        * GateHouse Media special report: Grading Co......
        * GateHouse Media special report: Grading Co......
        * GateHouse Media special report: Grading Co......

        * Kirk Cameron Calls Homosexuality 'Unnatural'...
        * US talk of thawing Iran relations highligh......
        * U.S. talk of thawing relations with Iran h......

        * Lawsuits won't defeat bigots
        * GCA Special Event with CTU Pres. Karen Lewis
        * Sun-Times: The sitdown Seaway Bank President/CEO
        * GCA community forum with Karen Lewis
        * Lems BBQ on 75th Street celebrating 60 years
        * CBS 2: Probation Officer For Teen Charged With Assaulting CSU Student Suspended
        * DNA Info: A Bloomingdale Trail for Englewood? City Moves To Get Train Tracks for Park
        * Recap of Townhall Meeting on "Park Manor Inn Hotel Development on 76th State
        * Tribune: No bail for teen charged in Roseland sex assault
        * Defender: Chicago Seaway Bank’s New CEO Discusses Personal Journey to Top


        * Quinn must take lame duck tax vote off the table
        * Governor Quinn Announces Successful First Year of Affordable Care Act Enrollment - More than 685,000 People Now Have Access to Quality Health Coverage Under the Affordable Care Act
        * Liquor Control Commission September Underage Compliance Report
        * Rauner hits Quinn on tax hike timing
        * Taxpayer Red Alert: Quinn Doubles Down on Lame Duck Tax Hike




            Hosted by MCS SUBSCRIBE to Capitol Fax Advertise Here Mobile Version Contact Rich Miller