I wanted to share a little back-of-the envelope calculation with you. The Chicago Public Schools receives about 40% of its revenues from local taxes, about 31% from the state, and about 24% from the federal government. The CPS receives that much money from the state and federal government largely because so many of the children enrolled are from poor families.
The total budget for the CPS is about $6.6 billion. That means that just about $2 billion of its revenues come from the state of Illinois.
The amount that Illinois received in income taxes was about $13 billion. That was up about 32% from 2010 after an increase in the income tax rate of 66%. I don’t think that bodes particularly well for future income tax increases as a means of generating additional revenue for the state but that’s a subject for a different post.
About 20% or $2.6 billion of those state income tax revenues comes from the city of Chicago.
Here’s my point. Unless Chicago is receiving a lot of money for something else from the state, enough to offset the difference and the other funds that Chicago sends to Springfield, I don’t see a big windfall to Chicago from the state of Illinois.