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.


Sorry, comments for this post are now closed.


* Bears open thread
* More adventures in misgovernance
* Question of the day - Golden Horseshoe Awards
* Petulance all around
* 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

          
        * Galaxy S6 evidence arrives courtesy of import database
        * Monster Dash returns: more monsters, weapons, better Barry
        * Ho, Ho, Ho: Fun Santa apps for your Lumia
        * Android TV Launcher now on Google Play
        * Just Windows Phone: Why Seepia Games loves Lumia best
        * Leak shows an insanely powerful Sony Xperia Z4 Tablet Ultra
        * How to uninstall MacKeeper from your Mac

        * BlackBerry Third Quarter Revenue Falls More Than Expected
        * Review: Leveraxe Vipukirves 2
        * Enhance Your Critical Thinking Skills with These Socratic Questions
        * Instagram is worth $35 billion, according to Citigroup
        * Shovel Snow Far Away from Your Path to Avoid Ice Sheets Later
        * io9 The Best And Worst Television Moments of 2014 | Jalopnik 'Customer States There's A Burning Smel
        * Red Hat’s success aside, it’s hard to profit from free

        * Terrerobytes: Future of Cuban baseball complicated on both sides
        * White Sox sign George Kottaras to a minor league deal
        * Kottaras to join White Sox with Minor League deal
        * Loss of Draft picks viewed as good trade for White Sox
        * Windy City revival: Cubs, White Sox revamped for '15
        * ZiPS projections underscore White Sox's riskiest bets
        * AL Central looking like one powerhouse division

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


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

        Archives
        December 2014
        November 2014
        October 2014
        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


        * Quinn wants special election in 2016 on Topinka.....
        * Quinn wants 2016 special election for comptroller..
        * Quinn Sets Special Session..


        * Report analyzes Nov. 4 election in Cook County
        * Chicago man charged in downtown bank robbery
        * China pledges to speed entry of US pharmaceuticals
        * Report: Illinois fails to monitor runaway kids
        * Gov. Quinn calls session for comptroller election
        * Chickenpox forces southern Illinois prison lockdown
        * Instructor at Illinois school for visually impaired arrested
        * Chicago announces plans to build 88-story skyscraper
        * GOP says Rauner should appoint next comptroller
        * Quincy mother gets 2 years for unlawful restraint

        * Quinn calls legislature back to Springfield to approve special election to replace Topinka
        * Audit: DCFS loses track of runaways
        * Audit: Illinois fails to monitor runaway kids
        * Chicago couple convicted of stealing state grants
        * Topinka remembered as tough, honest leader at memorial service
        * Illinois employers reminded of income-tax rollback
        * Memorial service for Topinka begins in suburban Chicago
        * Police use vacant Jacksonville site to train for worst-case scenarios
        * State-grant fraud case in hands of federal jury
        * Gov.-elect Rauner says some agency directors may stay

        * University of Illinois, Chicago Shriners Hospital link up
        * Midterms in Cook: Voters were younger, earlier
        * Great moments in Chicago architecture 2014
        * Restaurant menus shed some weight
        * McDonald's to sponsor 2015 SXSW festival


        * Obama guidance, press schedule, Dec. 19, 2014. Press conference
        * A whole lot of nothing from the City Council
        * Dozens gather at Logan Square eatery for ‘Serial’ podcast finale
        * Sony’s choice on ‘The Interview’ is one lost battle in a long war
        * Playing for dollars, smiles at O’Hare
        * Rewriting the Sony cyberattack script
        * Sony’s choice on ‘The Interview’ is one lost battle in a long war
        * Emanuel denies Willie Wilson petition challenge is racist ploy
        * Ex-FBI agent’s book tells mob tales in ‘A Gun in My Gucci'
        * Off Message: The Year in Review


        * Tribune study: Chicago red light cameras provide few safety benefits
        * Scene of the crime: Sister watches over slain brother in the dying light
        * Child with fever admitted to Chicago hospital to check for Ebola
        * Chicago restaurants that repeatedly failed health inspections in 2014
        * Broadway bike lane among 'Top 10' in the country
        * 5 people hurt in separate shootings
        * Metra train fatally hits pedestrian in Oak Forest
        * Chicago man shot to death in Montgomery
        * Santa helps Catholic school complete fundraising mission
        * Rahm Emanuel defends record on ethics in first term


        * IIAA Teaches Life Skills Through Sports
        * Jordan on the Frontline: An International Town Hall
        * Rents may be going up, but residents not going anywhere
        * Report: Illinois Fails To Monitor Runaways
        * Parties' Power Grabs In Battle For Comptroller; Quinn Calls Legislators Into Special Session
        * Let's Talk Kids - "Your Phone-a-Friend List"
        * Vatican signals new tone on US nuns
        * StoryCorps: Bilingual pre-school teacher describes the state of education in Chicago
        * Chicago mayor's commission unveils plan for a safer Chicago
        * US announces protections for transgender workers


        * E.J. Dionne: Chuck Schumer: Take two
        * Esther Cepeda: The rainbow that isn’t
        * Raoul, Righter, Nekritz, Sandack: Clarifying privacy, eavesdropping bill
        * Quote of the day: Friday, Dec. 19, 2014
        * Quinn calls legislature back to Springfield to approve special election to replace Topinka
        * Audit: DCFS loses track of runaways
        * Audit: Illinois fails to monitor runaway kids
        * Bernard Schoenburg: Schmidt considers challenging Sgro for park board president
        * Brian Sauder: Faithful decisions for the holidays
        * Eugene Robinson: The price of being hacked


        * Let's talk bowl games
        * Let's talk, Illinois football fans
        * Making an impact: Congressional Medal of Honor recipient encourages crowd in Vienna
        * Jim Turpin 12/19/2014
        * Football pick em bowl game edition
        * Residents still are not sold on solar array
        * Home Sweet Home recycling bins a success
        * Firefighters battle blaze at abandoned Washington Park school
        * Caseyville police search for missing teen
        * Missing Caseyville teen found safe


        * National Football League
        * National Hockey League
        * Expanded Conference Glance
        * National Basketball Association
        * Boy sends $1 allowance to help save UAB football

        * Rep. Bob Dold
        * Washington outraged over Sony decision
        * Rep. Mike Bost
        * Can Congress End the Cuba Embargo? Many Re...
        * Representatives Pocan and Schakowsky Intro...
        * Bera and Holding to be co-chairs of Congre...
        * Congressman calls for removal of police co...
        * New Philadelphia site now closer to Nation...
        * How did your congressman vote on keeping t...
        * Letting Duckworth vote is a problem for Pe...

        * Durbin backs federal budget despite 'odiou......
        * Durbin on Cuba Relations...

        * GOP senator wants 'The Interview' shown at......

        * City of Chicago releases youth violence report. Recommends more spending.
        * Durbin to GOP: Get Cruz under control
        * Government labor unions file lawsuit to stop Chicago pension overhaul
        * Illinois Watchdog Radio - Live on IR
        * Republican analysis calls for Rauner to pick new state comptroller for 4 year term
        * Crain’s Business slow pitches a snowball in hell.
        * An Illinois constitutional crisis. Who will keep an eye on our cemeteries?
        * DNA Info: Residents Rip CPS' Rejection of Private School's Offer To Buy Vacant School
        * The Joke Is On The #Bears
        * The Miracle Of Congressukah


        * Governor Quinn Calls Legislative Special Session - Governor Urges Legislature to Set Up 2016 Special Election for Comptroller
        * Governor Quinn Announces Illinois’ Unemployment Rate Hits New Low - Illinois’ Economic Comeback Continues; Unemployment Rate Falls to Lowest Level in More than Six Years
        * Illinois Ranks #1 in Volunteer Rate Among the Country’s 8 Largest States - 2.57 Million Illinoisans Give $7.2 Billion in Service
        * Law Enforcement, IDOT Make Final Push to Save Lives in 2014, Roadside Safety Checks Planned Over Holidays - New Episode of “The Driving Dead” Premieres Friday as Holiday Travelers are Reminded to Drive Sober and Buckle Up
        * Department of Insurance Announces Two Convictions Resulting from its Workers’ Compensation Fraud Investigations - Former Crystal Lake Police Officer and Former Business Owner Convicted




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