McHenry Times

State Rep. Allen Skillicorn (R-Crystal Lake) recently spoke out regarding the continuing exodus of Illinois residents, blaming high property taxes for driving families and businesses out of the state.

"Of course families and employers are leaving Illinois," Skillicorn said. "We have some of the worst property taxes in the nation. Local taxing bodies treat the annual cost-of-living tax increase like it's Christmas. Home rule units of government are even worse. Our local municipalities have more than enough tax revenue. Per capita tax revenues have grown exponentially faster than inflation over the last three decades. Local and state politicians continue to spend more and more money with these annual hikes."

While Skillicorn pointed to the high taxes and unfriendly business atmosphere in Illinois, not all lawmakers believe that the government is a root cause of the exodus.

“I do not think the migration is due to government services as much as some people would like us to believe. I am not sure it is a dramatic problem,” Steve Brown, House Speaker Mike Madigan's (D-Chicago) communications director, told Dan Proft on AM560’s Morning Answer.

Brown indicated that some of the flight could be seniors moving to warmer climates or to be closer to their grandchildren.

Bureau of Labor statistics, however, show that from 2005-15 the exodus was led by working-age residents, with a loss of 290,000 adults. IRS data shows similar results between 2011-14. The largest group leaving the state are those age 26 to 34, followed by workers between the ages of 35 and 44.

Research by the Illinois Policy Institute indicates that workers leaving the state are generally seeking lower taxes and better job opportunities. As Skillicorn pointed out, many workers do not receive annual raises. Employment opportunities in other states beckon to Illinois workers while retirees seek locations with lower taxes as well as warmer climates.

"Many working families don’t receive raises every year," Skillicorn said. "Certainly seniors living on Social Security don’t see COLA (cost of living adjustment) increases like bureaucrats and local governments. If the spending was for new or better services, that might be OK, but they (politicians) are spending the money on bigger buildings, more employees, more pensions, more patronage and higher salaries. Property taxes are forcing seniors and working class families out of their homes and hurting our communities."

Illinois has seen a net loss of approximately 1.22 million people since 2000. The last three years have seen an increase in residents leaving the state, from one person every 7.8 minutes in 2013 to the current rate of one person every 4.6 minutes.

"The net loss of one person every 4.6 minutes comes with a net loss of $30,000 of taxable income every 4.6 minutes too," Illinois Policy Institute Vice President of Policy Michael Lucci said.

The decline in manufacturing jobs has also affected the exodus from Illinois. Between November 2015 and November 2016, the manufacturing industry lost more than 10,000 jobs. The cost of doing business in Illinois is increased by the cost of workers' compensation insurance, which can be double or triple the rates of other Midwestern states. Neighboring business-friendly states with lower taxes, lower workers' compensation insurance and fewer regulations are an attractive option for many businesses.

Skillicorn is calling for changes in the way Illinois does business. He said that implementing reforms in the legislature to reduce the tax burden on residents and businesses will be the beginning of an economic turnaround for the state. While lawmakers block reforms, the exodus of taxpayers will continue.

"We need bold solutions," Skillicorn said. "We need a permanent property tax freeze (and) pension and unfunded mandate reform. Every day (that) Speaker Madigan and his obstructionist caucus blocks reforms is another day where families leave."