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Archive for the ‘Illinois Policy Institute’ Category

An outdated state law is meant to prevent injuries, which have significantly decreased, and prevents Illinois from benefiting from an industry worth billions of dollars.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

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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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A recent survey also shows that fully half of residents would move out of the state given the opportunity.

By Todd J. Behme | Illinois Policy Institute

Pocketbook issues concern Illinoisans significantly more than other issues and account for why so many would leave if given the chance.

More than half of Illinois voters polled cited high taxes as a top issue in a list of seven issues facing Illinois, according to a survey conducted for the Illinois Policy Institute.

Next was the economy, selected by 41% of respondents. That percentage has risen sharply in the past year, from 24% at the beginning of 2025 to 35% in the first quarter of this year. The percentage citing taxes fell from 58% in the first quarter.

Voter irritation with property taxes is high. Over 61% said they were somewhat or very dissatisfied with the value their community gets for those taxes. Fewer than 24% were somewhat or very satisfied.

Illinois is tied with New Jersey for the highest effective residential property tax rate. State residents pay the highest combined state and local tax rate in the country. Per-capita state and local taxes were in the top 10 in the country in fiscal 2023.

The resulting financial stress has more residents considering an out-of-state move. Just over 51% of poll respondents would leave Illinois if they had the opportunity, the highest percentage in the past six quarters. About 39% would stay — lowest since the beginning of 2025 — and about 10% were unsure.

Report continues here.

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The state saw a drop of over 10% in the period from 2014 to 2024, five times the national rate.

By Rich Witzel | Illinois Policy Institute

Illinois public schools are losing students at a faster rate than in nearly every other state.

From fall 2014 to fall 2024, public elementary and secondary school enrollment dropped 10% in Illinois, according to a recently released report by the National Center for Education Statistics. The national decline was 2%.

Public school enrollment is falling across much of the country, but some states are losing students at a far faster rate than others.

Illinois ranked fourth-worst in the nation for enrollment loss percentage in the period, behind only West Virginia, Mississippi and New Hampshire.

The struggling system

At least some of the drop can almost certainly be attributed to Illinois’ ongoing outmigration problem. Still, it is not difficult to guess why fewer Illinois families are choosing public schools for their children.

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Gov. J.B. Pritzker’s 2019 “Rebuild Illinois” plan created automatic inflationary adjustments in the state gas tax, which could reach over $1 per gallon by 2056.

By Patrick Andriesen | The Center Square

Illinois’ state gas tax is slated to go up every year without lawmakers ever voting on the increases.

The state went almost 30 years without raising the tax, which was 19 cents a gallon from 1990 to 2019.

That year, as part of his “Rebuild Illinois” infrastructure program, Pritzker doubled the tax to 38 cents a gallon.

More consequentially, the law created automatic yearly increases linked to inflation. Because of that, Illinois drivers will likely pay more in state gas taxes each year for the foreseeable future unless lawmakers take action, as there’s no expiration date on the annual adjustments.

The gas tax could more than double in the next 30 years. By then, it could be over $1 a gallon, five times more than before Pritzker took office.

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By Lilly Rossi | Illinois Policy Institute

While Illinois families won’t see gas prices increase July 1, they will see a record $55.9 billion budget with over $800 million in tax increases and new laws take effect.

Here are five laws effective July 1:

End-of-life option

Referred to as Deb’s Law, patients with a terminal disease may ask a doctor to prescribe aid-in-dying medication allowing them to end their life “in a peaceful manner.” Senate Bill 1950 was originally titled “Sanitary Food Preparation” and amended in the last week of the 2025 regular session to the “End-of-Life Options for Terminally Ill Patients Act.”

Cyber-bullying definition

House Bill 3851 adds to the bullying prevention section of the school code. “Posting or distributing sexually explicit images” is considered a form of bullying. Beginning in the 2026-2027 school year, “‘cyber-bullying’ also includes the posting or distribution of an unauthorized digital replica by electronic means” if the post creates fear or harm for the student, hurts the student’s physical or mental health, or interferes with the student’s academic performance or the ability to participate in other services, activities or privileges provided by the school.

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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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