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Illinois Home Rule: A Case Study in Fiscal Responsibility

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  • Banovetz, James M.

Abstract

This article examines the popular notion that elected officials, particularly at the local level, can not be trusted with broad powers of taxation; that they are likely to use and perhaps abuse all of the powers of taxation they possess. The study looks at the use of tax powers, made over a 30 year period, by Illinois’ home rule municipalities which have one of the broadest grants of tax powers given by any state to its local government officials. This study found only seven reasonably verifiable examples of unwarranted uses of home rule powers, only three of which represent unequivocal instances in which the voters, the courts, or the legislature voided uses of home rule powers. Available evidence produced neither a rational nor an empirical basis to support a reasonable probability that, given the opportunity, local elected officials will enact new or higher taxes without regard for the wishes of the voters. Indeed, the Illinois experience suggests that, with adequate safeguards, local offi - cials can be trusted with broad based local tax powers.

Suggested Citation

  • Banovetz, James M., 2002. "Illinois Home Rule: A Case Study in Fiscal Responsibility," Journal of Regional Analysis and Policy, Mid-Continent Regional Science Association, vol. 32(01), pages 1-20.
    • Handle: RePEc:ags:jrapmc:132232
    DOI: 10.22004/ag.econ.132232
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    File URL: https://ageconsearch.umn.edu/record/132232/files/02-1-5.pdf
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    References listed on IDEAS

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    1. Dye, Richard F. & McGuire, Therese J., 1997. "The effect of property tax limitation measures on local government fiscal behavior," Journal of Public Economics, Elsevier, vol. 66(3), pages 469-487, December.
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    Cited by:

    1. Matthew Walshe, 2019. "Does Local Government Autonomy Promote Fiscal Sustainability? Lessons from Illinois," IMFG Papers 42, University of Toronto, Institute on Municipal Finance and Governance.
    2. Daniel Shoag & Cody Tuttle & Stan Veuger, 2019. "Rules Versus Home Rule—Local Government Responses to Negative Revenue Shocks," National Tax Journal, National Tax Association;National Tax Journal, vol. 72(3), pages 543-574, September.
    3. Pengju Zhang & Phuong Nguyen‐Hoang, 2023. "Home rule and municipal revenue stability: New evidence from Texas," Public Budgeting & Finance, Wiley Blackwell, vol. 43(1), pages 38-60, March.
    4. Latzko, David A., 2008. "Home Rule and the Size of County Government in Pennsylvania," Journal of Regional Analysis and Policy, Mid-Continent Regional Science Association, vol. 38(01), pages 1-8.

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