Illinois’ Federal Funding Falls Short Due to State Size

(Photo by chicagobusiness.com)
Illinois continues to pay higher taxes due to our high incomes. However, we get less in federal spending because of funding formulas that benefit smaller states.(Photo by chicagobusiness.com)

By Haley Kosik/WJEZ News

An Illinois congressman says Illinois is getting the short end of the stick at both ends from the federal government.

U.S. Rep. Bill Foster (D-Naperville) says Illinois has and continues to pay higher taxes due to our high incomes. However, the state gets less in federal spending because of funding formulas that benefit smaller states.

“Every year, between $20 (billion) and $40 billion leaves Illinois, because we pay a lot more in federal taxes than we get back in federal spending,” Foster explained. “This is an enormous number, and I believe it is, in large part, one of the drivers of all the fiscal difficulties that our state is living through.”

The average federal tax burden in Illinois (all federal taxes, not just income tax) is $9,574; the national average is $8,107. Per capita federal spending is $1,800 less per person in Illinois than the national average. Illinois gets federal transportation spending of $89.62 per person, the third lowest rate in the nation.

Foster said this has been going on for decades, and it’s because small states are over-represented in the Senate. He said if there’s to be a resolution of this in favor of Illinois and other big states, including New York, California and Pennsylvania, it’ll have to originate in the House.

Foster has originated a “payer state caucus” with Rep. Scott Garrett (R-N.J.).

The other big states, Florida and Texas, tend to be on the border of payer-vs.-taker, getting just about dollar-for-dollar value, depending on the year.