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Archive for the ‘Illinois Policy Institute’ Category

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.

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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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The governor has presided over $77 billion in increases while Illinois’ economic growth lags.

By Ravi Mishra | Illinois Policy Institute

Gov. J.B. Pritzker wants more tax and fee hikes even after presiding over at least 57 of them since 2019 and with Illinois’ budget still in dysfunction.

New tax and fee burdens under Pritzker have cost taxpayers more than $77 billion. Last year alone, Illinoisans paid $16.5 billion more in state taxes than they would have if taxes stayed consistent with 2018 levels.

The median Illinois household now pays nearly $1,400 more per year in state taxes than it would have under prior levels.

Examples of recent tax policy moves in Illinois:

  • The gas tax was doubled in 2019 from $0.19 to $0.38 per gallon and indexed to annual increases to inflation. It now stands at 48.3 cents per gallon.
  • The net-operating-loss deduction was capped in 2021, effectively double-taxing Illinois companies.
  • Late last year Pritzker signed a bill decoupling Illinois from federal business tax cuts.

Property taxes have risen 27% under Pritzker’s watch. While driven by local decisions, state policy, particularly around pension and school funding, has pressured local governments and contributed to those hikes.

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By Bryce Hill | Illinois Policy Institute

Illinois lost a larger share of income from outmigration than any other state in 2023, according to IRS data.

Federal tax returns show that Illinois lost a net of nearly 56,000 residents and more than $6 billion in income in 2023, the latest data available. When adjusting for total income per state, Illinois’ losses to net outmigration are the worst in the country — more than $11 for every $1,000 previously earned in the state.

While California ($13 billion) and New York ($10.6 billion) lost more income from outmigration, Illinois lost the largest share of a state total.

Meanwhile, South Carolina and Florida, two of the top three states adding the most total income from people moving in, also added the most as a share of their total income.

Part of why Illinois sees so much wealth flight is that high-income Illinoisans are leaving at twice the rate of other groups. People in all income brackets are moving out of the state, but those earning more than $200,000 a year have been leaving the fastest.

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A net of nearly 56,000 people and $6 billion in income left the state in 2023, according to IRS data.

By Bryce Hill | Illinois Policy Institute

Illinoisans who leave take a lot of money with them.

Federal tax returns show the state lost 55,609 people and $6 billion in adjusted gross income on net in 2023, the most recent IRS data available.

Most of those people were high-income. While people of all income levels left Illinois in 2023, the heaviest loss was among those making more than $100,000 a year. They made up 60% of the state’s net migration losses.

The economic impact of those departures is even greater: Filers making more than $100,000 took more than $5.5 billion with them — 90% of the state’s income loss.

Illinois lost residents to 38 states and the District of Columbia in 2023. By far the largest share of individuals and income was lost to Florida, which gained 10,583 residents and $2.4 billion in income from Illinois.

Texas was No. 2, adding 7,795 residents and $488 million in income from Illinois.

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The governor should say yes to a program that would provide donated education money for Illinois families.

By Lilly Rossi | Illinois Policy Institute

A billion dollars for Illinois students is on the line.

Gov. J.B. Pritzker can opt into a new program and allow Illinois families and students access to almost that much in donated education money.

Or he can watch the money flow to other states.

A new program allows donors to take a tax credit of up to $1,700 for qualified donations. If just 30% of filers in Illinois took the full credit, the state could gain nearly $1 billion a year in new education resources to be used for millions of students.

The money would help students afford a tutor, attend ACT or SAT prep sessions, pay tuition or fees, get special education services or assist with other academic needs.

Starting next year, any taxpayer can get the credit for a qualified contribution up to $1,700 to a scholarship-granting organization.

The only cost of the program is minimal foregone income tax revenue to the federal government. There is no cost to participating states, only the benefit of more help flowing directly to students.

A number of taxpayer-participation scenarios show that “even modest taxpayer engagement could translate into significant resources,” according to an analysis from Education Reform Now. Based on an estimated participation rate of taxpayers eligible to receive the full $1,700 tax credit in Illinois, students in the state could see as much as $1 billion.

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The governor pins the issue on local governments, but state law and decisions contribute to the problem.

By LyLena Estabine | Illinois Policy Institute

Gov. J.B. Pritzker isn’t as innocent as he wants us to think when it comes to Illinois’ property tax woes.

“I want to remind you that property taxes are not determined by the state of Illinois, but rather by local governments…including school boards, park boards, library boards, municipalities, etc.,” he said last month.

He put special emphasis on school boards.

Pritzker is right that local taxing bodies set levies, but suggesting those decisions have nothing to do with him is naive at best and dishonest at worst. State mandates, pension obligations and funding choices he oversees play a significant role.

Under the governor, property taxes have risen nearly 27% — from $31.8 billion in 2018 just before he took office to $40.37 billion in 2024.

State decisions shape some of the largest pressures behind those tax bills.

Illinois public schools are primarily funded by property taxes. But school districts are forced to rely so heavily on those taxes in part because the state diverts a growing share of its education spending to pensions instead of classrooms.

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Drivers paid nearly $27 billion in tolls from 2024 back to 1973, the year the roads were to become toll-free. Now the largest passenger toll hike in Illinois history is possible.

By Patrick Andriesen | Illinois Policy Institute

In the 53 years since they were supposed to become free, drivers have paid nearly $27 billion to use Illinois’ toll roads.

Those drivers now face the possibility of the largest passenger toll increase in state history.

In a move to gain union support, last year’s transit bailout bill allows the Illinois State Toll Highway Authority board to implement a hike that could raise $1 billion more in tolls a year starting in 2027.

Passenger drivers could see an increase of 45 cents per toll, driving the average up to $1.24, based on the most recent data. Commercial tolls could rise 30%.

That’s despite the fact that since 1973, the authority has collected more in tolls each year than it needed to operate and maintain the system. The agency reported more revenue from tolls in 2024 than any year in the tollway’s history.

For a hike to take effect Jan. 1, the board must vote by Dec. 2.

Record toll revenue in 2024

Illinois has five toll roads totaling almost 300 miles, mainly in Northern Illinois. The tollway authority took in nearly $1.44 billion in tolls in 2024, the most in any year since tolls were first charged in 1959.

Commercial drivers paid $742 million of that, again more than any other year in the tollway’s history, and passenger drivers paid $697 million. The total of almost $1.44 doesn’t count revenue recovered from fare evasion and penalties.

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Outside Chicago, only a fourth of municipal property taxes collected this year for police and fire are going to services.

By LyLena Estabine | Illinois Policy Institute

The vast majority of the police and fire levies in last year’s Cook County property tax bills funded pensions, not protection.

The 2024 police and fire levies for cities outside Chicago total $599 million. Just over $450 million of that is for pensions, according to the Illinois Department of Revenue.

First-installment bills are due April 1. Many in the county may still be recovering from the delayed property tax bills that were due Dec. 15. Some of those bills grew by record-setting amounts.

Since 1996, the amount Cook County municipalities outside Chicago have levied to keep up with police and fire pensions has grown by 416%, while the amount levied for services hasn’t even doubled.

The amount going to fund protection increased by about $2 million in 2024 levies over 2023. The amount for pensions rose $27 million.

Police and firemen deserve generous pensions given the risk in their work. But when those benefits become too generous — as they are in Illinois — they undermine retirement security and reduce the amount of money available for service.

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Counter to the governor’s claims, Illinois students’ scores on a national assessment have dropped despite more education spending.

By Hannah Schmid | Illinois Policy Institute

Gov. J.B. Pritzker recently touted Illinois eighth-graders’ reading and math scores as proof of increased public school funding’s effect on student success.

Here’s the reality: Illinois students’ scores have dropped despite that increased spending. And there’s more to the data than Pritzker let on about Illinois students outperforming those in other states.

If the governor wants to help students, he should join the majority of states that are opting into a federal program that provides donor money for students’ targeted needs.

Illinois student scores drop despite increased education spending

In his budget address last month, Pritzker said “historic investments” in public education have boosted student success. But Illinois student performance in both reading and math fell over the most recent 10 years of the National Assessment for Educational Progress.

Those declines weren’t just because of COVID-era shutdowns. Both eighth- and fourth-grade scores were dropping in both reading and math even before schools were closed.

During that same period from 2013 to 2024, the state’s spending on K-12 education rose by nearly $10 billion. That’s a 44% increase over a period when enrollment declined 10%.

Counter to Pritzker’s claims, the increased spending on Illinois schools has not improved student achievement.

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