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.


* Chris Kennedy busts the contribution cap in governor's race
* Reader comments closed for the weekend
* *** UPDATED x2 - Emanuel responds - Cullerton responds *** Rauner vetoes Chicago pension fund bill
* State ban on med-mar campaign contributions struck down by federal judge
* Question of the day
* Vendor is hacked, Rauner admin calls out Mendoza
* So, what will Vallas do?
* The high price of deliberate inaction
* A completely bogus Democratic argument
* Caption contest!
* Durkin says he has 26 votes for pension reform and one-year CPS funding
* Leader Radogno: "No Governor's spokesman, even Goldberg speaks for the Senate caucus"
* *** UPDATED x1 - Mendoza slammed, too *** Republican Party pounces on AG Madigan
* Rauner says his Colorado friends are telling him "pretty terrible things" about legal weed
* When Springfield is in Atlanta
* Poll: Half of Illinoisans want to keep Obamacare, a third say state impasse has affected them, 41 percent blame the government for poverty
* SUBSCRIBERS ONLY - Supplement to today’s edition
* Rauner source on grand bargain: "As far as we’re concerned, it’s dead"
* SUBSCRIBERS ONLY - Today's edition of Capitol Fax (use all CAPS in password)
* Yesterday's stories

Support CapitolFax.com
Visit our advertisers...

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

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

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

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

...............
<


Loading


* Gov. Rauner vetoes overhaul of Chicago city pen.....
* Gov. Rauner vetoes overhaul of Chicago city pen.....
* Gov. Rauner vetoes overhaul of Chicago city pen.....
* Gov. Rauner vetoes overhaul of Chicago city pen.....
* Gov. Rauner vetoes overhaul of Chicago city pen.....
* Gov. Rauner vetoes overhaul of Chicago city pen.....
* Gov. Rauner vetoes overhaul of Chicago city pen.....
* Gov. Rauner vetoes overhaul of Chicago city pen.....
* Gov. Rauner vetoes overhaul of Chicago city pen.....
* Gov. Rauner vetoes overhaul of Chicago city pen.....


* 1.4M Illinois job seekers may have had personal data hacked
* Rauner vetoes overhaul of Chicago city pension system
* Study: Dramatic drop in Chicago stop-and-frisk procedures
* Judge imposes 7-year sentence in Chicago school bribery case
* Judge orders treatment for ex-Illinois village treasurer
* Chicago father, 2 sons sentenced for sex trafficking
* Indiana families affected by lead to protest forced move
* Advocates seek better awareness of Safe Haven baby laws
* Pennsylvania town marks vacant buildings with scarlet letter
* Illinois man sentenced to life for 2011 slaying of parents

* 1.4M Illinoisans affected after state agency vendor hacked
* Home care agency says it needs $2.1M from state to make payroll
* Rauner vetoes overhaul of Chicago city pension system
* Durbin blasts Trump plan to cut after-school program funding
* Illinois judge rules in favor of lawmakers seeking pay
* Chicago has biggest population dip as Southern states grow
* Illinois Supreme Court leaves hospital tax exemptions in place
* Could vacant state jobs be moved to Springfield?
* Proposed law would require headlights on while driving
* Agencies told to decide if vacant jobs can be moved to Springfield

* Lives really are at stake in the state budget war; it needs to end
* Upstart pizza chains losing battle with Domino's—especially here
* Fed gives Northern Trust 'living will' extension along with four foreign banks
* Illinois' stack of unpaid medical bills now reaches $3.5 billion
* 7 years in prison for CPS bribery 'mastermind' ​


* Man shot multiple times in West Englewood
* BROWN: Seniors’ safety shouldn’t depend on state paying its bills
* Article ‘unfairly criticizes’ U.S. attorney
* ComEd maintenance affects CTA Yellow Line service this weekend
* Missing New Lenox woman found dead in Frankfort
* Two men shot in West Englewood
* Handwritten letters — memories and a personal imprint
* Albert Almora Jr. leaves game with neck tightness, status unclear
* City warns retail electric suppliers to stay off CHA properties
* Partisan games make America the biggest loser


* Jerry Krause played his part, but Michael Jordan was source of Bulls' greatness
* Black officials to Rauner: We don't want Paul Vallas at Chicago State
* Trump, GOP leaders abruptly pull health care bill in stunning defeat
* 3 teenage boys among 7 wounded in shootings on South Side
* State police help save woman overdosing at Thompson Center
* Speaker Ryan falls short in first test of Trump presidency
* Ex-CPS consultant sentenced to 7 years in prison in bribery scandal
* Ex-Penn State president guilty of child endangerment in Sandusky scandal
* Rauner touts support for pension plan that includes CPS aid, vetoes a city proposal
* Week in review: GOP health plan collapses, miracle surgery for baby and Chance at Lolla


» Study: Dramatic Drop In Chicago Stop-and-frisk Procedures
» State Department Instructs Embassies To Beef Up Screening For Visa Applicants
» Illinois Unemployment Drops To Ten-Year Low
» Rauner Vetoes Emanuel-Backed Pension Bill
» Chicago Businesses Consider Implications Of Health Care Overhaul
» Lawmakers Relieved To Receive Delayed Paychecks
» Chicago Police Not Yet Identifying Suspects In Livestreamed Gang Rape Case
» Durbin Goes After Trump Budget in Springfield
» State Week: Budget Battles Continue In Courts
» East Chicago Families Affected By Lead To Protest Forced Move


* 1.4M Illinoisans affected after state agency vendor hacked
* Home care agency says it needs $2.1M from state to make payroll
* Rauner vetoes overhaul of Chicago city pension system
* Durbin blasts Trump plan to cut after-school program funding
* Illinois judge rules in favor of lawmakers seeking pay
* Thumbs Down: To the never-ending Mendoza-Rauner blame game
* Endorsement: Gordon Gates for Lincoln Land College Board
* Department on Aging: Innovative changes needed for senior care in Illinois
* Eugene Robinson: Mr. President, the disgrace is all yours
* George Will: Whatever replaces Obamacare will look a lot like Obamacare


* Upcoming Services
* Let the trout fishing begin: Iowa DNR releases 2,000 fish into West Lake Park
* Auffenberg Dealer Group to relocate to Shiloh with $40 million project
* Rodney Davis statement on GOP health care law
* Voters to decide between Ann Thompson-Kelly, Bryant Moore for 7th Ward
* Alton man gets prison time for firearm charge
* Davis: 'Disappointed' in many GOP colleagues for not backing health care bill
* Fall Cleanup Week in East Peoria likely a go
* An ‘intellectual competition’ lands Southwestern High a third place state finish
* The Southern to host open house


* Libertyville High School students quiz mayoral candidates
* Carol Stream firefighters battling house blaze
* Woman found dead in house fire near Bensenville
* Attorney general: Lisle didn't fully comply with directive
* Model Train Day at Lambs Farm

* Protesters converge on US Rep. Randy Hultg...
* Veterans seek answers at forum with US Rep...
* Our View: Time for Randy Hultgren to hold ...
* GOP Obamacare replacement takes flak from ...
* Illinois rep: Republicans must 'figure out...
* GOP congressman appears to distance himsel...
* US Rep. Randy Hultgren reflects on busines...
* Republican health care bill fails, pulled ...
* US Rep. Randy Hultgren talks veterans' iss...
* US Rep. Randy Hultgren accepting internshi...

* Sen. Durbin Unsure of His Vote On Gorsuch ......
* US Senator Durbin Condemns GOP Healthcare ......
* Durbin Goes After Trump Budget in Springfi......
* Durbin Goes After Trump Budget in Springfi......
* Senator Dick Durbin: Repealing Obamacare i......

* Senator Tammy Duckworth Addresses Blooming......
* GOP plans to thank veterans for their serv......

* Trump’s proposed budget cuts would eviscerate aid to Chicago’s domestic violence victims, homeless services, lead poisoning screenings, and more
* Chicago Cocktail Summit 2017: David Wondrich’s seminar ‘Chicago Cocktails and Bars of Old,’ and more events
* At Last! Lawrence & Wilson Bridges To Get Long-Overdue Repairs
* Illinois home prices increase in February; sales lower amid tight inventory
* House committee hearing news dominates Illinois State Capitol Report
* Protest Paul Ryan by drinking beer
* Drake’s diaspora, Discogs drama, DJ ‘controllerism,’ and more of the week’s best music writing
* DeVos on choice.
* For-profit health care. Repeal and replace.
* Illinois may be broke but these guys aren’t.


* Rauner Urges Swift Action on State-City Pension Deal as House GOP Readies Its Votes
* Governor Announces Appointment
* Governor Takes Action to Protect Taxpayers
* Vendor Contracted by Illinois Department of Employment Security Data Breached
* Statement from Deputy Governor Leslie Munger on Court Ruling to Prioritize Lawmaker Pay

  
* T-Mobile upgrades their network with phone scam protection
* Watch someone type on the Samsung Galaxy S8
* Movado-made smartwatches for Hugo Boss, Tommy Hilfiger are official
* Google Talk moves to Hangouts, Google+ on Gmail is done
* Twitter is trying to fight Google, Amazon, and Facebook from stealing NFL games
* [Deal] Best Buy takes 75% off an Incipio case for the Moto G5 Plus
* Moto G5 Plus up for pre-orders, sales begin March 31

* MRI confirms no structural damage for Rodon
* Quintana to make first Opening Day start
* Prospect Moncada eats up to 85 Twinkies a week
* Rodon (tight biceps) scratched; MRI to come
* White Sox hand Quintana his 1st Opening Day start
* White Sox scratch Rodon due to biceps tightness
* Moncada, Giolito, Lopez reflect on Sox camp


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

Archives
March 2017
February 2017
January 2017
December 2016
November 2016
October 2016
September 2016
August 2016
July 2016
June 2016
May 2016
April 2016
March 2016
February 2016
January 2016
December 2015
November 2015
October 2015
September 2015
August 2015
July 2015
June 2015
May 2015
April 2015
March 2015
February 2015
January 2015
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




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