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* The Illinois General Assembly’s Commission on Government Forecasting and Accountability is out with a new report entitled “2024 Illinois’ National Rankings - A State-by-State Comparison of Tax Rates, Tax Revenues, Government Spending, and Employment Trends.” Let’s take a quick look at the categories, but the whole thing is worth a read…
Category 1: State Government Tax Revenue
On a per-capita basis, Illinois ranked 13th in the nation with an amount of $5,019 per capita. Illinois’ value was higher than the national per-capita rate of $4,275.
Category 2: State Government Individual Income Tax Revenue
On a per-capita basis, Illinois ranked 16th. Illinois’ per-capita rate of $1,738 was above the national average of $1,412, but remains well below the 1st ranked state in this category, Oregon, at $3,136 per capita.
Category 3: State Government Corporation Net Income Tax Revenue
On a per-capita basis, Illinois ranked 6th with a per-capita rate of $786, notably higher than the national per-capita rate of $427. Illinois’ per-capita value was the highest in the Midwest Region.
Category 4: State Government General Sales Tax Revenue
On a per-capita basis, Illinois ranked 31st in the nation with a value of $1,235, which was below the national average per-capita value of $1,375. As shown in Table 7 below, in the Midwest Region, only Missouri (44th) ranked lower than Illinois on a per-capita basis.
Category 5: State Government Tobacco Product Sales Tax Revenue
On a per-capita basis, Illinois ranked 19th with a value of $63 per capita. New Hampshire is the highest-ranked state on a per-capita basis with a value of $155.
Category 6: State Government Alcoholic Beverage Sales Tax Revenue
On a per-capita basis, Illinois ranked 17th in the nation with a value of $25 per capita. Washington is the highest-ranked state on a per-capita basis with a value of $63 per capita.
Category 7: State Government Motor Fuel Tax Revenue
(O)n a per-capita basis, Illinois ranked 13th in the nation in 2023 with a per-capita rate of $207, which was higher than the national per-capita rate of $165. Illinois was the 4th highest ranking state on a per-capita basis in the Midwest Region.
Category 8: State Government Motor Vehicle Tax Revenue
Illinois had the 5th highest per-capita ranking in this category, collecting $180 per capita, which was well above the national per-capita value of $101. Only Iowa (ranked 1st) had a higher ranking than Illinois in the Midwest Region at $242 per capita.
Category 9: State Government Insurance Premium Tax Revenue
On a per-capita basis, Illinois ranked 47th in the nation with a value of $44, well below the national average of $97. Only Wisconsin (48th), Indiana (49th ) and Oregon (50th ) had lower per-capita rates than Illinois. Louisiana had the highest per-capita rate at $269.
Category 10: State Government Tax Revenue as a Percent of Personal Income
As shown in Table 17, Illinois ranked 15th in the nation in 2023 in the category of state government tax revenue as a percentage of personal income with a value of 7.1%. In 2023, the national average percentage was 6.2%. The highest-ranking state was New Mexico at 12.4%
Category 11: Local Government Tax Revenue
On a per-capita basis, Illinois ranked 8th at $7,672 per capita and was the highest- ranked state in the Midwest Region. New York was first at $11,186 per capita. A major reason for Illinois’ high rankings in this area is because Illinois has more units of government (over 8,0003) than any other state in the nation.
Category 12: Local Government Property Tax Revenue
On a per-capita basis, Illinois also ranked 6th and was the highest-ranked state in this category in the Midwest Region. Illinois’ per-capita rate was $2,606, which was well above the national average of $1,883.
Category 13: State and Local Government Total Expenditures
[Illinois] ranks 18th in terms of per-capita spending. … Illinois’ per-capita spending rate was $13,299, which was just above the national average rate of $12,903. Illinois had the highest amount of total expenditures in the Midwest in total dollars and on a per-capita basis.
Category 14: Elementary and Secondary Education Expenditures by State and Local Governments
On a per-capita basis, Illinois ranked 6th at $3,130 per capita, which was above the national average of $2,499. New York was the highest-ranked state on a per-capita basis at $4,198. Illinois had the highest per-capita ranking in the Midwest.
Category 15: Source of Elementary and Education Funding
49.4% of Illinois’ portion of education funding in [Fiscal Year 2022] came from local sources, 39.9% came from state sources, and 10.7% came from federal sources. Illinois’ local government portion of elementary and secondary education is among the highest in the nation. In the year shown, Illinois ranked 12th in the nation. Illinois ranks 3rd in the Midwest after Ohio (6th) and Missouri (9th). [State pension payments and personal property tax replacement revenue are included in this calculation.]
Category 16: Higher Education Expenditures by State and Local Governments
On a per-capita basis, Illinois ranked 36th at $893 per capita, which was below the national per-capita value of $1,021. Utah was the highest-ranked state on a per-capita basis at $1,905. In the Midwest Region, only Ohio (38 th) and Missouri (45th) had a lower ranking than Illinois.
Category 17: State and Local Government Expenditures for Police Protection
On a per-capita basis, Illinois ranked 8th in the nation with a value of $493 per capita, above the national average of $420. Illinois was the highest-ranked state in the Midwest Region in total dollars and on a per-capita basis. The highest-ranked state on a per-capita basis was California with a per-capita value of $621.
Category 18: State and Local Government Expenditures for Corrections
On a per-capita basis, Illinois ranked 38th with a value of $199 per capita, which was below the national per-capita rate of $274. The highest-ranked state on a per-capita basis was Alaska with a per-capita value of $613. Illinois’ ranking on a per-capita basis had steadily declined over the past few decades. Illinois was ranked 29 th in 1997, 38th in 2004, 43rd in 2006, and fell to as low as 48th in 2016. However, the trend appeared to be reversing itself in the past decade as the per- capita ranking rose from 42nd in 2017 to 28th in 2018, but it has since fallen again to its latest ranking of 38th. The highest-rated state in the Midwest is Wisconsin with a per- capita value of $311 and a ranking of 12th.
Category 19: State and Local Government Expenditures for Housing and Community Development
On a per-capita basis, Illinois ranked 15th with a value of $256, which was above the national average of $222. Illinois was the highest-ranked state in the Midwest Region.
Category 20: State and Local Government Expenditures for Parks and Recreation
Illinois, on a per-capita basis, ranked 7th with a per-capita value of $223, which was above the national average of $153 per capita. Illinois was the highest-ranked Midwest Region state. North Dakota had the highest per-capita ranking overall with a value of $382.
Category 21: State and Local Government Expenditures for Public Welfare Programs
Illinois, on a per-capita basis, ranked 24th with a per-capita value of $2,755, which was below the national average of $2,913 per capita. Kentucky (8th ) was the highest-ranked Midwest Region state with a per-capita value of $3,715. New York had the highest per-capita ranking overall with a value of $4,715.
Category 22: State and Local Government Expenditures for Highways
On a per-capita basis, Illinois ranked 22nd with a value of $685, which was above the national average of $632. Illinois’ per-capita ranking has fluctuated in past years going from 10th in 2015 to 27th in 2019, and now to its latest ranking of 22nd . Illinois was the third highest-ranked state in the Midwest Region on a per-capita basis behind Iowa (ranked 9th) at $964 per capita and Wisconsin (ranked 16th) at $759 per capita. The highest-ranked states on a per-capita basis were Alaska, North Dakota, and South Dakota.
Category 23: State and Local Government Debt Outstanding
On a per-capita basis, Illinois ranked 12th with a value of $10,641. This amount was above the national average of $9,470 per capita. Illinois has consistently been the highest-ranked state in the Midwest Region in both total dollars and on a per-capita basis over the last several years. New York had the highest per-capita value of $17,939.
It’s a really good cheat sheet for arguments about our taxing and spending here.
The report then delves into employment-related issues, which COGFA has already partially covered (as have we), but we will go over those numbers soon.
posted by Rich Miller
Friday, Jan 24, 25 @ 12:20 pm
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Excellent! A nice thing would be nice is to contrast neighboring states use / non-use of certain taxes, and which level of government(s) use them (thinking specifically of Missouri local government personal property taxes on vehicles, in 2023 was $690 annually).
How broad / narrow a tax base is (any state apply sales taxes to haircuts?).
However, it is a great start.
Comment by Anyone Remember Friday, Jan 24, 25 @ 1:01 pm
So, to generalize a bit, in most categories Illinois is in the top quarter in terms of taxing, spending, and resources.
In welfare, education, and roads Illinois is average or below average … all areas the citizens complain about.
As Rich said, it makes a really nice cheat sheet. I can also see it being used both to target increased revenue sources and what may be viewed as excessive spending categories.
Expect policy makers will be quoting the numbers this year. And I expect we’ll see some IP press releases about the excessive spending categories since the report gives them a few different oxen to gore.
Comment by RNUG Friday, Jan 24, 25 @ 1:01 pm
Some of the notes that accompany the tabular data are very interesting…
“Because Illinois’ ranking in per-capita local government revenue is higher than its ranking in state government revenue, many argue that the State should take a larger role in financing programs. They argue that local taxes need to be lowered, while increasing State tax sources to create a more “equitable” system. Others argue that a reliance on property taxes gives local governments more local control and promotes a higher degree of accountability to their community. This debate will continue in the years to come, especially in the area of education funding.”
Comment by Donnie Elgin Friday, Jan 24, 25 @ 1:05 pm
Great data, great report. No real surprises in my opinion.
Comment by allknowingmasterofraccoondom Friday, Jan 24, 25 @ 1:11 pm
Please do not confuse me with facts.
Comment by DuPage Saint Friday, Jan 24, 25 @ 1:17 pm
“Category 12: Local Government Property Tax Revenue - Illinois’ per-capita rate was $2,606″
Where can I sign up for this rate? My 2023 property taxes were more than double that!
Comment by Aaron B Friday, Jan 24, 25 @ 1:22 pm
===My 2023 property taxes were more than double===
Do you just not know what per capita means, or do you not read very well?
Comment by Rich Miller Friday, Jan 24, 25 @ 1:23 pm
The State of Illinois is number two or three in Black market tobacco products depending upon which measurement is used. The State is estimated to be missing one out of six revenue dollars or $153 million. Sad.
The State is losing money on alcohol sales. The $300 plus million is much less than the cost to taxpayers. Alcohol fuels violent crime. Sober adults deserve discounts on insurance premiums. Billions in potential revenue being lost.
One wonders what the revenue would be if the Brothels paid taxes?
Comment by Mark Miller Friday, Jan 24, 25 @ 2:04 pm
Another interesting factoid would be total liabilities per capita- I think we are second most indebted State and we certainly fair poorly when compared to our neighbors
Comment by Sue Friday, Jan 24, 25 @ 2:07 pm
Those jobs numbers under Pritzker are pretty bleak. Since 2019, Illinois added only 10,100 jobs overall but added 12,800 in government. Biggest losses are in the highly lucrative IT and finance sectors. Not good.
Comment by City Zen Friday, Jan 24, 25 @ 2:23 pm
Illinois has 3rd highest Corporate income tax rate in the nation.
Comment by Mason County Friday, Jan 24, 25 @ 2:59 pm
For the expenditures on highways it would be interesting to see the numbers normalized against highway miles rather than population. Per-capita, IL is ranked 22nd. However since we have the 3rd most highway miles, our ranking would be even lower if expenditures compared by miles of road.
Comment by From DaZoo Friday, Jan 24, 25 @ 4:21 pm
The I.P. claims Illimois has the second highest tax burden. Yet COGFA says we rank 15th state government tax revenue as a percentage of personal income.
Comment by anon2 Friday, Jan 24, 25 @ 4:26 pm