CHICAGO (July 2, 2015) – Illinois is two days into its new fiscal year and still doesn’t have a state budget. A key issue in the budget impasse is whether Illinois should raise taxes – but a new analysis by the Illinois Policy Institute highlights the state’s massive spending problem and why higher taxes aren’t the answer.

State and local tax collections in Illinois have grown much faster than personal income, according to federal data. From 1969 to 2012, state and local tax collections per capita in Illinois climbed by 121 percent to $5,165 per capita, up from $2,337 per capita, according to the U.S. Census Bureau and federal Bureau of Economic Analysis (these figures are inflation-adjusted to 2012 dollars). Meanwhile, average personal income per capita in metro areas in Illinois grew by only 66 percent, while non-metro income per capita grew by 69 percent.

Put simply: State and local tax bills for Illinois residents have grown much faster than the average person’s income.

Other highlights:

• Growth in state-government spending outpaced Illinoisans’ income from fiscal years 1992-2013, according to the most recent data from the U.S. Census Bureau.

• The burden of state-government spending has grown tremendously. If state spending had grown along with personal income, then state spending would have been $12.8 billion lower in fiscal year 2013 – or $2,596 lower for every Illinois household.

• This data only counts spending that actually occurred. It does not factor in the chronically underfunded public pension system and other liabilities. Had the state government fulfilled its obligations, total spending would have been higher or spending in other areas, such as roads and education, would have been lower.

For more details, check out: https://www.illinoispolicy.org/tax-growth-approaches-double-the-pace-of-income-growth-in-illinois/ and https://www.illinoispolicy.org/state-spending-outpaces-personal-income-in-illinois/

Experts are available to discuss the budget impasse by phone, Skype, or in-person in Chicago and Springfield.

MEDIA CONTACT: Nathaniel Hamilton or Diana Rickert (312) 607-4977