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Archive for the ‘Illinois Policy Institute’ Category

Gov. J.B. Pritzker and state lawmakers have increased lawmaker pay while approving budgets that raised taxes on Illinoisans.

By Shaw Carlson | Illinois Policy Institute

Lawmakers’ pay has grown much faster than the average Illinois salary during Gov. J.B. Pritzker’s time in office.

Since 2019, the base salary for members of the General Assembly has risen 44.9%, to $98,304 in 2026.

In the same period, the average Illinois salary rose 33.7%, to about $79,779.

That base salary for lawmakers is set to rise to six figures under the newly enacted fiscal 2027 budget and doesn’t include the additional compensation they get for leadership positions and per diems for items such as lodging.

Pritzker signed the record-high $55.9 billion budget that included more than $800 million in business tax increases and rise to lawmakers.

While lawmaker compensation climbs, voters’ priorities are tossed aside

Illinoisans have made clear what they want state leaders to address.

A recent poll found high taxes were the top concern among Illinois voters, with 52.8% choosing it as one of the biggest issues facing the state. The economy ranked second, with about 41% naming it a top one or two issue out of seven.

Report continues here.

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Illinois public schools are teaching fewer students compared to a decade ago, yet taxpayers continue funding a system built for more students.

By Rich Witzel | Illinois Policy Institute

Falling birth rates suggest that Illinois’ declining public school enrollment will continue, a reality that should inform decisions of education policymakers.

The National Center for Education Statistics projected in early 2024 that Illinois public school enrollment would fall to 1.8 million students by 2030, but the number had already dropped to almost that low for the 2024-25 school year, according to state data.

The COVID-19 pandemic was a major factor in the decline in, but enrollment had already been falling for years. Year-over-year enrollment in Illinois increased only two times over the past 15 school years.

This is not just an Illinois problem. Nationally, public schools are serving 1.2 million fewer students in 2022-23 than before the pandemic, and enrollment is projected to fall by another 2.4 million students by 2031.

A shrinking student population

Falling birth rates factor in. Illinois recorded just under 125,000 births in 2023, a 31% decline from 2007 and one of the steepest drops in the country.

Birth data previews of future enrollment trends. Less births today mean fewer elementary and high school students in the years ahead. The drop in births is occurring among outmigration and families choosing other education options, further contributing to the state’s enrollment decline.

Report continues here.

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The governor said Illinoisans wouldn’t be interested in a toll increase to keep the Bears. Then he signaled support for what would be the largest passenger toll hike in state history.

By Rich Witzel | Illinois Policy Institute

Gov. J.B. Pritzker said in June that Indiana would have to raise tolls and sales taxes to get the Chicago Bears to move there.

Illinoisans wouldn’t want a deal like that, he said.

The irony: Pritzker had already signed legislation authorizing a Chicago-area sales tax increase for transit, and he later defended proposed toll increases that would include the largest passenger hike in state history.

Late last year the governor signed the Chicago-area mass transit bailout bill, which replaced the Regional Transportation Authority with the Northern Illinois Transit Authority and created new funding for CTA, Metra and Pace.

Part of that funding comes from a 0.25 percentage-point increase in the existing RTA sales tax.

The tax is in Cook, DuPage, Kane, Lake, McHenry and Will counties. The RTA approved the increase last month, so as of Aug. 1 the higher, Pritzker-approved rates will be:

  • 1.25% on general merchandise in Cook County.
  • 1.50% on qualifying food, drugs and medical appliances in Cook County.
  • 1.0% sales tax on general merchandise and qualifying food, drugs and medical appliances in DuPage, Kane, Lake, McHenry and Will.

Report continues here.

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The tax also risks being challenged in court.

By Adam Gorcyca | Illinois Policy Institute

Illinois’ new tax on digital asset transactions risks hurting trading volume and market liquidity, making the state unfriendly for the industry and prompting legal battles.

The fiscal 2027 state budget, which Gov. J.B. Pritzker signed in June, puts a 0.2% tax on the value of transactions in assets such as NFTs, bitcoin and other cryptocurrencies, starting Jan. 1. Such transactions include exchanges, transfers or custodial services.

It’s the first such tax in the country. Affected businesses include crypto exchanges, trades, wallet and custody providers holding customer assets and firms transmitting digital assets between accounts. The law applies to any digital asset broker with a place of business in Illinois and to any brokers that gross $100,000 or more in annual digital asset receipts with Illinois residents.

Compliance will require brokers to collect and retain customers’ personal online transaction history, account information, mailing address, IP address and other data to indicate Illinois is the customer’s place of primary use.

Because the tax targets transactions rather than profits, brokers must collect it even when a trade loses money or when assets are transferred between accounts. For gains, the new tax will be an addition to Illinois’ current 4.95% individual income tax, which applies to capital gains.

Lawmakers expect the tax to generate $60 million a year.

Read more here.

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Spending was $25,000 per student in 2022-23, almost $5,000 above the national average.

By Jessica Rehberg | Illinois Policy Institute

Illinois spends more per public school student than nearly every other state.

During the 2022-23 school year, the state spent $25,000 per student, adjusted to 2024 dollars, according to a report from the National Center for Education Statistics. That’s almost $5,000 more than the U.S. average of $20,039 per student. The figure includes local and state money.

Illinois’ spending ranked seventh-highest in the nation and highest in the Midwest. Despite that, the state has struggled to show strong academic outcomes.

In the 2024-25 school year, only about half of Illinois public school students in grades 3 to 8 and in 11th grade met state reading proficiency standards. In math, just 39% were proficient.

The poor results were much more pronounced in some groups. Low-income students scored 16 to 19 percentage points below the statewide average in both reading and math.

Among Black students, 32% of those in grades 3 to 8 and 26% of 11th-graders were proficient in reading, while 14% to 15% met proficiency standards in math.

For Hispanic students, 39% to 41% were proficient in reading and 24% to 25% proficient in math across grades 3-8 and 11th grade.

These figures come after the Illinois State Board of Education lowered its proficiency benchmarks in 2025 and made student performance appear stronger on paper.

Report continues here.

Editorial note: States spending the same of more than Illinois are New York, New Hampshire, Massachusetts, Vermont, Connecticut and New Jersey.

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The law promised major infrastructure improvements, but the state’s roads aren’t in any better shape than when it took effect seven years ago.

By Jess Plowman | Illinois Policy Institute

The state has collected billions of dollars in taxes for road improvements from the massive 2019 Rebuild Illinois law, but drivers aren’t seeing the benefits.

Illinois is taking in tax dollars faster than it’s spending them on improving infrastructure, and the roads are in no better shape than they were seven years ago, when the hallmark legislation of Gov. J.B. Pritzker’s first term took effect.

Despite Road Fund revenue growing an average of 14% a year under the bill, fund expenditures grew by an average of just 5% yearly.

What’s more, most of that increased spending was front-loaded in the first two years of the program. Since 2022, Road Fund outlays have increased just 1.3% a year on average, not even the rate of inflation.

In other words, since passing Rebuild Illinois, the state is collecting more money for roads, but it isn’t spending more money on roads.

The Illinois Department of Transportation did not respond to the question of why spending on state roads and bridges appears to have leveled off.

Meanwhile, a “lockbox” provision in the Illinois Constitution prevents Road Fund money from being diverted to non-transportation spending (in theory). That, coupled with the imbalance between revenues and expenditures, has left the fund flush with cash. At the end of fiscal 2025 it held $3.7 billion.

Report continues along with video here.

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The indictment of state Rep. Carol Ammons is a reminder that Illinois still relies on the honor system in conflicts of interest.

By Joe Tabor | Illinois Policy Institute

The federal indictment this week of a state representative is a reminder that Illinois lawmakers are on the honor system when it comes to conflicts of interest.

Rep. Carol Ammons was indicted July 7 on charges of wire fraud, making false statements to a federal investigator and obstruction of justice in an alleged apparent scheme to divert state grant money to herself and her daughter.

Key to the case is the alleged conflict of interest of Ammons aiding in arranging appropriations for state grants to go to Hood Votes Neighborhood Transformation, where her daughter was program director.

Voting for appropriations that will go to pay a close family member is a clear conflict of interest, but in Illinois, lawmakers are on the honor system there. State law reads:

When a legislator must take official action on a legislative matter as to which he has a conflict situation created by a personal, family, or client legislative interest, he should consider the possibility of eliminating the interest creating the conflict situation. If that is not feasible, he should consider the possibility of abstaining from such official action. (Emphasis added.)

Most states require lawmakers to disclose any conflict of interest before a vote, to recuse themselves from voting on any legislation where they have a conflict of interest, or both.

In those states, lawmakers who violate the requirements can face stiff civil and criminal penalties.

With such a recusal provision in place, Ammons’ alleged corruption might have been caught earlier.

Report continues here.

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The number of state residents under 20 fell 6.8% from 2020 to 2025.

By Bryce Hill | Illinois Policy Institute

A sharp decline in young people in Illinois and other newly released age data should concern state leaders and spur work on solutions.

From 2020 to 2025, Illinois’ population of residents under 20 fell by 6.8%, more than three times faster than the national average of 2%, according to the U.S. Census Bureau.

The number of state residents under 20 fell by over 36,000 last year and nearly 214,000 since 2020.

Meanwhile, the population of older Illinoisans saw a large increase in that time. The number of those 60 and older rose by more than 46,387 last year and more than 240,000 since 2020.

Both nationally and in Illinois the number of residents in their 50s declined as the large Baby Boomer generation has aged. The population of those 60 and over increased by 11% nationally and 8.2% in Illinois from 2020 to 2025.

Other younger age groups also are growing far faster across the nation than in Illinois. From 2020 to 2025:

  • The population of those in their 20s grew by 4.3% nationally but only 1% in Illinois.
  • The number of 30-somethings grew by 4.7% in the U.S. but a mere 0.5% in Illinois.
  • The population in their 40s grew by 5.5% nationally but only 1.2% in Illinois.

The state’s median age has increased to 39.7, slightly above the national median of 39.4.

While the population changes by age trends in the U.S. and Illinois are similar in directionality, the state is seeing more substantial shifts in its age profile. These differences are likely due to outmigration trends in Illinois, as a net number of retirees and younger families are moving out of the state. Thus while Illinois’ median age might closely track the national figure today, the state’s population changes are much more concerning than what the nation as a whole is experiencing.

Report continues here.

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The document reflects a sacrifice that its 56 signers chose to make.

By Matt Paprocki | Illinois Policy Institute President and CEO

Unexpectedly, I heard myself say, “I would sign that document. I hope you’ll join me.”

A few months ago, I was with my family in Washington, D.C., standing in a dark room in the National Archives, looking at the Declaration of Independence.

I told my kids about the sacrifice that each of those men, and their families, made when they signed that document.

My then 8-year-old daughter, Fiona, asked me,

“Dad, would you have signed that document?”

“Of course I would,” I thought. Every American would, because we know how this movie ends.

For those 56 signers, the question wasn’t easy. They were standing up against the most powerful army in the world — for an experiment in self-government.

Declaring independence was risky. They were risking their fortunes. They were risking their honor. They were risking their lives. And they were putting their families at risk as well.

As I looked down at the names on the Declaration, I realized these were more than just signatures from 250 years ago. The signers were husbands and fathers. They were business owners and farmers.

They were us.

Looking at the document, I realized the Declaration of Independence isn’t just a historical document. Every generation is asked the same question the signers were asked 250 years ago.

Would we sign the document?

Commentary continues here.

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An outdated state law is meant to prevent injuries, which have significantly decreased, and prevents Illinois from benefiting from an industry worth billions of dollars.

By Grace Hansen | Illinois Policy Institute

For 250 years, we have celebrated our freedom on Independence Day, yet for the past 84 years Illinoisans have been banned from celebrating with fireworks.

Illinois refuses to allow most fireworks, even though 47 states do. (Some cities in those states don’t permit them.)

Passed in 1942, the Illinois Pyrotechnic Act bans the use, transportation and sale of fireworks, allowing only small novelties such as sparklers. Violating the Illinois law is a Class A misdemeanor, with possible fines up to $2,500 and jail time.

The Illinois sales ban directly benefits neighboring states. Indiana brings in an estimated $2.5 million a year in tax revenue from fireworks.

Report continues here.

Editorial note: Black Bull Fireworks has multiple locations just over the border in Wisconsin and many items are currently on sale.

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