A Response to Foster & Jackson’s “The Politics of Public Budgeting in Illinois”
New Illinois rejects the findings of a recent study by the Paul Simon Public Policy Institute that
calls into question the legitimacy and feasibility of the state split movement. Authors John L.
Foster and John S. Jackson make flawed judgments that allow them to make claims going far
beyond what the data could support.
The study uses economic data from the Legislative Research Unit of the Illinois General
Assembly. Foster and Jackson mention, but proceed to ignore, issues the LRU warns about in the
use of their data. They ignore other factors, such as state mandates profoundly impacting the
Downstate economy. While many may think the study was an economic analysis, most of it was
a political/psychological analysis of Illinois voters, along with a biased narrative of recent
Illinois history. The authors viewed the whole through a lens of rural resentment and “fair
share;such tunnel vision means that major issues were excluded from view.
The media and others analyzing the split movement will be wise to be aware of those other
issues. The reality is that there is much more to the split movement. People long for
representative government and to be free from Illinois’ legendary corruption. It never enters the
authors’ minds that for some leaders, the pursuit of a state split is not a political gimmick but a
commitment to their constituents.
___________
The Foster and Jackson study focuses on the raising and distribution of revenue in the State of
Illinois. We are responding to this study because, as stated above, the authors scorn the state split
movement, of which New Illinois is a part.
The study bases its economic conclusions on a report by the LRU for fiscal year 2013. The LRU
report cautions about the limitations of what can be concluded from their data:
Precise allocations by county or even by region are unable to be determined.
Detailed analysis is impossible due to inherent limitations of the data.
Large portions of the state’s revenues and disbursements are excluded from the report.
Only about 80% of the General Funds revenue collections and 71% of disbursements
could be estimated.
Data by county do not always accurately show where revenue was collected, or
disbursements took place (e.g. numbers based on address of company headquarters).
Large state facilities, such as universities, mental health institutions, and prisons, provide
for regional and even statewide needs, not just the county where it is located.
Capital spending is not included because little comes from the General Funds.
The study mentions these warnings, but nevertheless uses the data to determine specific ratios by
region. Despite the LRU caveat about large institutions providing regional and statewide
benefits, state funds for these are counted as going toward that county, raising its ratio. In
Springfield, a great deal of money is received for state purposes but counted in the local ratio.
2
We don’t argue that wealthier areas, such as the Chicago suburbs, pay more and get less back.
We argue that the study’s claims exceed what the data can support. We further argue that it
overlooks other significant factors in the downstate economic situation.
One major source of analysis is sorely missing from this study: how much state mandates drive
up costs for downstate Illinois. These costs would be reduced dramatically in a new state under a
new constitution. For example, the pension rules mandated by the state are bankrupting many of
our cities. The statehouse, run by Chicago, sets the rules and cities across the state are forced to
play by them. Other factors include Illinois’ collective bargaining laws, some of the strictest in
the country and the Midwestthey are mandated by the state and greatly drive up compensation
costs for fire, police and teachers.
Other mandates include prevailing wage and many other education expenses. Without
considering the negative impact of those costs on downstate communities, the study is invalid.
Also, the study didn’t include information on who benefits from the big, expensive pensions in
this state. In general, they don’t go downstate but to wealthier districts in the Chicago area.
One study detail has been cited frequently in media coverage about the state split movement and
is used to question the movement’s feasibility. Table 8 of the Foster & Jackson study splits
Illinois into 6 sections and shows that Cook County gets back 90 cents on the dollar, the collar
counties 53 cents, downstate (collectively) $1.69, and the 19 southernmost counties $2.81.
While we question the study’s numbers, there is no question that the contrast between 90 cents
and $2.81 catches people’s attention. However, forming a state from the 19 southernmost
counties is not our goal. Rather, we advocate for the other 101 Illinois counties becoming a new
state. Using the study’s own numbers, there would not be a significant difference between Old
Illinois (Cook County) and New Illinois.
A political and psychological study, not an economic study
The Foster and Jackson study should be considered, more properly, a political analysis. Using
examples of Brexit and Trumpism, it describes “a political world which recently has been
infected by a mass populist movement.” The anti-state split bias is clear, with a disparaging
reference to perennial Southern Illinois feelings about it.
New Illinois’ Version of Table 8
Region
Number
Estimated
of Counties
Adjusted
in Region
Ratio
Cook
1
0.9
Rest of State
101
1.11
3
In fact, much of this analysis is not an economic study but a psychological study of Illinois
voters, using Paul Simon polling data to measure public perceptions about whether each region is
getting their “fair share.” We question, not their polling numbers, but their interpretation.
It is simplistic to attribute the perennial desire for separation to economic perceptions or
misperceptions only. Their own polling shows that, statewide, 70% of respondents believe state
government doesn’t pay attention to what people in their community think. Statewide, a majority
believe the government doesn’t represent their values.
The authors’ analysis includes charges of rural resentment and regional jealousy. They accuse
Illinois leaders of “mining the vein of anti-urban resentment” to “exploit and exacerbate these
regional differences for their own advantage.” For the cosponsors of the resolution to split the
state, nothing could be further from the truth.
With 40% of the population, Cook County dominates state government. Limited to an economic
distribution lens, Foster & Jackson don’t see that people outside of Cook County chafe at a lack
of representative government. Nowhere is room made for other factors, such as laws reflecting
the interests of Cook County but not the rest of the state, cultural differences, high taxes,
government debt, or a legitimate, natural response to a corrupt government. These are reasons
people in northern places, like wealthy Lake County, support a state splitnot regional
resentment. Nowhere do the authors consider that factors fueling Downstate frustration may be
some of the same things fueling the massive exodus of people from all over the State of Illinois.
G. H. Merritt, Chairman, New Illinois
Paul Durr, New Illinois St. Clair County Committee
September 22, 2019