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Archive for the ‘Illinois Policy Institute’ Category

By Eric Allie/Illinois Policy Institute. View more of Eric’s work via Instagram here.

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Actuaries say Illinois needs to put in $17 billion a year to fix the plans, but the 2027 plan calls for far less.

By LyLena Estabine | Illinois Policy Institute

Gov. J.B. Pritzker’s proposed budget gives Illinois’ five state retirement systems $5.4 billion less than what actuaries say they need.

House Bill 0131 and Senate Bill 2512, which contain the proposed budget for fiscal 2027, would appropriate about $11.6 billion to contributions for the five systems. These payments are required by a 1995 state law known as the “Edgar Ramp.”

But while that would satisfy the legal requirement, it would not — by a long shot — meet the fiscally responsible requirements determined by the state’s actuaries. They say the state’s pension plans need just over $17.02 billion this year — and annually for the next 20 years — to fully fund the system and begin paying down the state’s pension debt. That’s almost $5.4 billion more than proposed in the fiscal 2027 budget.

For every year the state fails to make a full, actuarially determined contribution, more money will be needed from taxpayers to pay down the debt. In 2023, COGFA determined that $14.9 billion a year for 20 years would be enough to pay down the debt. That increased by more than $2 billion to $17.02 billion in its most recent report.

The state’s pensions shortfall, or the difference between what the state puts in and what actuaries deem sufficient, has grown, too. In 2023, the difference between statutorily required contributions and the actuarially determined amount was $4.1 billion, more than $1 billion less than the $5.4 billion proposed for fiscal 2027.

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The state again had the highest residential property tax rate in the U.S. in 2024, tied with New Jersey.

By LyLena Estabine | Illinois Policy Institute

Illinois remains at the top of the country in homeowner property taxes, tied with New Jersey.

Both states had an average effective rate of 1.88% of home value in 2024, more than double the national average of 0.86%.

That translates to a bill of roughly $5,452 on a house worth the 2024 Illinois median of $290,000. But the whole state isn’t affected evenly.

Residential property taxes are particularly burdensome in counties such as Kendall, McHenry, Lake and DeKalb, all four of which are among the 12 highest-rate counties in the country. Median household property taxes in those counties ranged from to $5,974 to $8,923. On top of income taxes and the highest combined state and local tax rate in the U.S., that’s a hefty bill to manage.

High taxes, particularly property taxes, were a top-two issue for 58.1% of likely Illinois voters in a recent poll. Neighboring states all have lower property tax rates, which can entice people to leave Illinois. In 2024, Illinois lost a net of nearly 12,000 people to Indiana, where the effective property tax rate was only 0.76%. Nearly a net 10,000 left for Wisconsin, with an effective property tax rate of 1.32%.

Illinois property taxes are driven by a combination of local and state decisions. Public schools are funded primarily by property taxes, but school districts are forced to rely so heavily on them in part because the state diverts a growing share of its education spending to pensions.

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High chronic absenteeism will no longer hurt a school’s state rating.

By Hannah Schmid | Illinois Policy Institute

Illinois plans to eliminate poor attendance from school ratings at a time when a fourth of the state’s students miss a significant chunk of the academic year.

In an overhaul the State Board of Education approved in April, “chronic absenteeism,” or missing 10% or more of the school year with or without a valid excuse, will no longer ding a school’s rating. All nine current board members were appointed by Gov. J.B. Pritzker.

The new system will use the term “consistent attendance,” the percentage of students present 90% or more of the school year.

That semantic switch may confuse parents about what’s really being measured, though it’s just a different way of saying the same thing. But the revised system also changes attendance from a “core indicator” in the rankings to merely an “elevating indicator.”

Why that matters: Strong “consistent attendance” will raise a school’s rating, but a weak performance won’t hurt it.

The state calls this a “strengths-based” approach, but it means the high rates of students skipping class across Illinois won’t affect schools’ ratings.

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By Brennan Park | Illinois Policy Institute

Illinoisans continue to pay the highest combined state and local tax rate in the country, according to WalletHub.

Effective state and local tax rates totaled almost 17% for a median Illinois household last year, compared with the national average of just over 11.02% and higher than No. 2 New York, at 14.95%.

The median amount of state and local taxes for an Illinois household was $12,538 last year, fourth-highest in the country. The national median was around $8,949. (These amounts use a different household measurement.)

Illinois’ burden is driven by property, sales and excise taxes that exceed national averages and those in neighboring states.

Property taxes are especially high, with an effective rate of 1.92% of the value of a typical home, more than double the national median of 0.89%.

Sales taxes are also elevated in Illinois, with a 6.25% state rate and a nearly 9% combined state and local rate on average.

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Matt Paprocki

By Matt Poprocki | Posted to the Daily Herald

Gov. JB Pritzker is marketing himself as a champion of affordability. A proposal to impose the largest passenger toll increase in state history cuts directly against that message.

The plan would raise tolls 45 cents for passenger vehicles and 30% for commercial vehicles. If approved, it would generate an additional $1 billion annually starting in 2027, with automatic increases tied to inflation every two years beginning in 2029, capped at 4% annually.

State leaders have framed the proposal as forward-looking, but in reality it’s another cash grab — for a system that doesn’t need the money.

State leaders approved the potential toll hike in November 2025 to secure labor support for a broader transit funding agreement. But the tollway does not need more money: Toll revenues have exceeded operating and maintenance costs for decades. In 2024 alone, the tollway collected nearly $1.44 billion — the most in its history.

With cost of living a top concern in Illinois, residents and businesses do not need something disconnected from necessity or announced projects.

The Illinois Tollway board has a choice. It can approve a record-setting unnecessary increase that drivers and businesses cannot afford, or it can decline the increase and recognize that Illinoisans already pay enough. Nothing will change; the state still has enough money to run road projects and has a surplus sitting in tollway reserves right now.

Since 2019, Illinois drivers have paid roughly $1,500 more in gas taxes and vehicle fees. Higher tolls would affect not only commuters, but ripple through the broader economy.

Commercial tolls are set to rise by 30%, and those costs will be passed on to consumers through higher prices on everyday goods. Nearly everything purchased in Illinois travels by truck at some point, making this toll increase a broad, indirect tax on households statewide.

The proposal is even more troubling because of its automatic inflation-linked increases. That lets lawmakers avoid future accountability. Costs will simply rise in the background, removed from public debate or oversight.

This approach raises serious concerns about how transportation dollars are being managed. Voters approved the 2016 transportation “lockbox” amendment to ensure money would be used appropriately. While this proposal may comply with that framework, it undermines its spirit by layering on new, permanent revenue streams instead of emphasizing the efficiency and restraint voters were looking for.

Illinois has seen this pattern before. In 2019, Pritzker and lawmakers tied the state’s gas tax to inflation, creating automatic annual increases. The result has been one of the highest gas taxes in the nation and billions in surplus revenue. Now, the same approach is proposed for tolls, despite clear evidence that existing funds are more than sufficient.

Spiking fees beyond what’s needed for road maintenance is unfair to drivers, who should pay only for the actual cost of maintaining infrastructure. Using fees collected from residents and businesses to set aside billions to satisfy unions is directly opposed to improving affordability and economic growth in Illinois.

State leaders could pursue meaningful relief. Georgia and Indiana implemented temporary gas tax holidays to help offset rising fuel costs. With Illinois’ transportation funds running a surplus, lawmakers could provide similar relief without jeopardizing long-term funding.

The board responsible for approving the hike is composed of Pritzker appointees, and the governor himself sits on it as an ex-officio member. If the increase moves forward, it will do so with the backing of the same leadership that claims to want to ease the burden on families.

Will Pritzker allow another unnecessary cost increase on Illinoisans, or will he step in and stop it?

For a governor who says he’s focused on affordability, the answer should be clear.

     – Matt Paprocki is the president and CEO of the Illinois Policy Institute

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On July 1 the state tax will hit almost 50 cents a gallon. Lawmakers made yearly automatic.

By Dylan Sharkey | Illinois Policy Institute

Illinois drivers will see another gas tax increase July 1.

The state tax will rise to 49.6 cents per gallon because of the automatic annual inflation increase built into the 2019 “Rebuild Illinois” infrastructure program signed by Gov. J.B. Pritzker.

That means Illinois drivers will continue paying among the highest gas taxes in the country. Indiana and Georgia gave residents a gas tax holiday from high prices because of the war in Iran.

The average price of a gallon of gas in Illinois was $4.986 on May 6, up from about $3.40 a year ago, according to the AAA.

When Pritzker doubled the state gas tax from 19 cents to 38 cents in 2019, lawmakers also ensured Illinoisans would face automatic inflation-linked increases every year without another recorded vote.

Once federal, state and local taxes are combined, many Illinois drivers pay more than 85 cents per gallon in taxes alone at the pump. Only California and Michigan rival Illinois for the highest total gas taxes in the country.

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With Gov. J.B. Pritzker stepping further onto the national stage and priming for politics outside of Illinois, let’s not forget his scandalous past.

By Lilly Rossi | Illinois Policy Institute

J.B. Pritzker’s bid for a third term as governor doesn’t seem to be the only race he has his eye on.

Pritzker, who’s up for re-election Nov. 3, is on tour building a national profile and says a bid for the White House hasn’t been “ruled out.”

While he mulls that, don’t forget the trail of scandals Pritzker has left across Illinois:

  • Hiding millions of dollars in trusts in the Bahamas.
  • Cited on federal wiretaps with a politician convicted of corruption.
  • Removed toilets in his mansion for a $331,000 tax break. (He ended up paying the money.)
  • Scrubbed internet of photo with someone accused of murder.
  • Blurred the lines when giving out political contracts.
  • Hypocrisy during the COVID no-travel order.
  • Skirted rules to appoint brother-in-law to a political position.

Pritzker also has prioritized traveling to build his personal brand over concerning himself with his constituents in Illinois.

Here are details:

Hiding millions of dollars in trusts in the Bahamas.

While Pritzker has consistently pledged to raise taxes on the rich in Illinois, he has exempted himself.

When he was challenging incumbent Republican Gov. Bruce Rauner for governor in 2018, the Chicago Tribune connected Pritzker to trusts in the Bahamas that were avoiding taxes. Reporting then indicated Pritzker may have avoided millions of dollars in taxes from 2008 to 2018.

At the same time, Pritzker has levied at least 57 tax and fee hikes on Illinoisans since taking office, punishing Illinois with the highest tax burden in the nation.

Article continues here.

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Louisiana v. Callais prohibits using race to draw districts. That would make the proposed amendment unconstitutional.

By Joe Tabor | Illinois Policy Institute

A fresh U.S. Supreme Court decision poses a setback to Illinois’ proposed redistricting amendment and highlights the need for real redistricting reform in the state.

The Illinois House passed House Joint Resolution Constitutional Amendment 28 and sent it the state Senate just the day before the high court decision. The amendment would do little to combat Illinois’ problematic history of gerrymandering to avoid competition and gain unfair partisan advantage.

It would, however, among other things, require the creation of racial influence districts and racial coalition districts, where practical, in any state or congressional redistricting plan.

But in its 6-3 decision April 29 in Louisiana v. Callais, the Supreme Court ruled that under the 14th Amendment’s Equal Protection Clause, complying with Section 2 of the Voting Rights Act is not a compelling reason to draw congressional districts based predominantly on race.

By contrast, the decision explicitly recognized that gaining partisan advantage and protecting incumbents from competition were “legitimate goals” for redistricting.

The ruling leaves Illinois partisan gerrymandering practices untouched, but it means the racial district requirement of HJRCA 28 would violate the 14th Amendment. The Illinois Senate has paused any movement on the amendment to assess the decision for what steps to take next, if any.

Article continues here.

Related: “Top Illinois Democrats call U.S. Supreme Court ruling on voting rights a ‘crushing blow to our democracy’

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Labels on the familiar state report card are poised to change.

By Hannah Schmid | Illinois Policy Institute

Illinois plans to revamp how it rates public schools, meaning familiar labels on the state report card will change.

The Illinois State Board of Education in April approved a new school accountability system beginning in fall 2026.

The board says the overhaul will make school ratings clearer and fairer. The changes also remove some key measures and reshape how performance is judged.

Yet at a time when nearly half of Illinois students can’t read at grade level and even fewer are proficient in math, the board’s overhaul will change how schools are labeled but not how they perform.

Here are five things you should know about the changes while the plan awaits federal approval.

1._Schools will no longer be graded on a curve.

Illinois’ rating system ranks schools against each other. Only the top 10% can be in the top category and only the bottom 5% are ranked in the lowest.

The rankings are based on a school’s performance against other schools rather than strictly on how well its students meet specific criteria.

The new system will grade schools based on fixed standards. The goal is to eliminate moving goalposts, where a school’s rating could change based on comparison to other schools even if its performance doesn’t change. That could make ratings more consistent over time.

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