Sales, income, and property tax revenues are the primary source of general funding for state and local government.  Governments typically have more discretion over these revenues in comparison to federal grants, user fees, or other funds that must be used for a specific program or purpose.  Thus, fluctuations in these revenue sources can affect the ability of state and local governments...

CMAP closely monitors state legislative efforts related to the agency’s work and efforts to implement GO TO 2040.  The following describes highlights of recent legislative activity from November, including two budget reallocation bills and efforts to retain businesses through tax breaks.

Budget reallocation bills would provide much-needed funding for water data collection
In June 2011, the State of Illinois...

On August 29, 2011, the City of Chicago’s TIF Reform Panel released its final report.  The panel was formed in May 2011 to make recommendations regarding the transparency, accountability, and efficiency of the City’s Tax Increment Financing (TIF) program.  TIF districts are created to fund economic development projects in blighted areas where development would not otherwise occur or in areas...

State and local taxes have an impact beyond the public revenue they raise.  To a great extent, they create incentives that shape the commercial and residential development of our communities.  GO TO 2040 recommends that state and local tax policies be analyzed to ensure they are incentivizing a strong regional economy.  A burdensome, complex, or unpredictable tax system is likely to...

GO TO 2040 recommends a comprehensive evaluation of a series of potential reforms to the state and local tax structure.  In northeastern Illinois, tax policies frequently distort land use decisions rather than allow markets or quality-of-life factor to guide them.  Tax rates are often set very high, and the tax base is overly narrow rather than broad, which further stifles economic competitiveness.  ...

On May 10, Chicago Mayor-elect Emanuel released a 72-page transition report, which he said the public should use as a “scorecard” for his mayoral term.  The report outlines major initiatives -- grouped in categories of government, communities, children, and growth -- that the City will undertake during the first 100 days, first year, and first term of Mr. Emanuel’s administration.  Its emphasis...

Northeastern Illinois is made up of a network of unique, identifiable communities, each with their own histories and characters.  Each has its own “sense of place,” and that diversity within the region is reflected in the way local governments plan for their development and future.  When CMAP recently issued a call for projects for local technical assistance, the response was overwhelming...

On January 12, 2011, the Illinois General Assembly approved Senate Bill 2505, which includes an income tax increase.  The bill includes temporary rate increases to the individual and corporate income tax, as well as a permanent 0.25 percentage point increase to the individual income tax.  Under current law, the individual income tax rate is 3 percent and the corporate income tax rate is...

Illinois continues to face a $14 billion (and growing) budget deficit, and following the November elections, new revenue enhancing strategies are being proposed by lawmakers to address both the deficit and education funding.  Governor Pat Quinn recently proposed raising the personal income tax by one percentage point as a “surcharge for education” (read more in this November 2010 article from...