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Archive for the ‘Cost of Living’ Category

By Jim Talamonti | The Center Square

Consumers in six Illinois counties will be soon be paying higher sales taxes.

Transit funding legislation signed by Gov. J.B. Pritzker last December provided for the 0.25% increase to take effect on Aug. 1 in Cook, DuPage, Kane, Lake, McHenry and Will counties.

The tax hike is projected to generate $478 million a year as part of the $1.5 billion in annual transit funding provided in Senate Bill 2111.

State Rep. Steven Reick, R-Woodstock, said suburban taxpayers are bailing out the Chicago Transit Authority.

“We’re giving them a lifeline of money that we’re not getting anything in return for,” Reick said.

The Center Square asked Reick if higher taxes might drive people out of the area.

“Here in McHenry County, we’re obviously on the border with Wisconsin. I think people are going to make economic choices to drive up to Walworth, in my case, to buy gas and things like that,” Reick said.

SB 2111 also gave the Illinois Tollway Board the power to raise tolls.

Before the bill passed, state Rep. Dan Ugaste, R-Geneva, said he appreciated the desire for a state-of-the-art mass transit system.

“I don’t know how, though, we justify spending more money than we need after $2 billion of tax increases in the last few years,” Ugaste said.

Report continues here.

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Illinois drivers have only a short window to comment on a $26.5 billion capital plan that includes the largest passenger tollway hike in state history.

By Shaw Carlson | Illinois Policy Institute

Drivers face up to 15 years of additional construction and congestion on Illinois toll roads under the system’s proposed capital plan.

They’ll also pay toll hikes continuing long after that.

The Driving Connections plan, announced in June, would spur projects on the Illinois Tollway system until 2042. The $26.5 billion plan would be funded with proposed toll hikes that Gov. J.B. Pritzker signed off on six months before the plan was released.

Former Tollway board member and state Sen. Bill Morris told the Daily Herald that “it appears they decided to raise tolls, and then they threw this together quickly for justification.”

The Tollway proposes raising tolls starting Jan. 1 by about 45 cents per toll for passenger drivers and 30% for commercial drivers. It would be the largest passenger toll hike in state history.

You can tell the Tollway Board to reject the tax hike here.

The board is hosting public meetings until July 24 and taking public comments online until noon Aug. 3. The next regular board meeting at which the hike could be approved is Aug. 19.

Lawmakers driven by road needs or union politics?

The proposed toll hike is tied to politics around last year’s mass-transit bailout. Lawmakers redirected about $1 billion a year from the Road Fund toward Chicago-area public transportation, a move opposed by construction unions objecting to losing that road money. The toll hike became the price for labor union support.

House Speaker Chris Welch said unions wanted something to point to that would “help keep working people working and keep roads getting repaired.”

Pritzker appoints the tollway board, and two of its members hold leadership positions in construction unions.

The Driving Connections plan would fund road-widening, reconstruction, bridge work and congestion relief across interstates 355, 88, 294, 80, 94, 90 and the Route 390/I-490 O’Hare-area projects.

Many of those toll roads have recently seen extended periods of construction.

I-294 remains tied up in Central Tri-State work, I-90 was modernized during the previous capital plan and Route 390/I-490 work has been going on for years.

Illinois spent $90,400 per lane-mile in 2023 on state-owned roads — about $16,700 more than the Reason Foundation’s model calculated it should have cost.

Article continues here.

Once again, you can tell the Tollway Board to reject the tax hike 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 Missouri state flag flies alongside the U.S. flag and the St. Louis city flag. | Photo: Tom Bastin / Flickr / CC BY 2.0 / Cropped from Original

By Sean Reed | The Center Square

A ballot measure in front of Missouri voters next month could give some Illinois residents in the Metro East area a reason to move across the Mississippi River if it passes.

The measure, which will be present on ballots in the state’s primary election Aug. 4, proposes an amendment to the Missouri Constitution that could phase out income tax entirely.

Andrew Wilford, director of state policy at the National Taxpayers Union Foundation, explained the ballot measure would allow the state legislature to eliminate income tax by raising other revenue sources, such as an increase to sales tax.

“They haven’t officially created the structure for that, but that would be the general idea,” Wilford said. “Currently, Missouri has a top tax rate of about 4.7%. A few years ago that was relatively low for the region, but a lot of the state’s neighbors have cut taxes pretty significantly in the intervening years.”

Bryce Hill, senior director of fiscal and economic analysis for the Illinois Policy Institute, noted there’s a larger trend, and Missouri is following other states in reducing, flattening or eliminating income taxes.

“Many states did that – started this process after the COVID-19 pandemic, when state tax revenues didn’t decline as much as anticipated and then subsequently grew very rapidly,” Hill said. “Illinois did not have that luxury. A lot of that excess revenue went to pay for previous debts.”

Article continues here.

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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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By The Editorial Board | Chicago Tribune

Gov. JB Pritzker on Tuesday signed into law a new state budget that modestly increased state spending on K-12 education and related costs.

Yet most headlines ignored a more consequential education narrative — not one of how much is flowing to classrooms, but how much money never makes it there in the first place.

Pritzker’s budget allocates nearly $10.8 billion for K-12 education.

It also includes $7 billion for K-12 pension costs.

In 2000, the state spent about $705 million on K-12 pensions.

That’s not a typo.

Even after adjusting for inflation, Illinois’ spending on K-12 pensions has skyrocketed by roughly fivefold since the turn of the last century, ballooning to nearly 10 times the raw dollar amount spent in 2000.

For every dollar Illinois spends on education, it spends another 65 cents on pension obligations. Imagine how much more schools could do with even a sliver of that money.

These numbers help explain one major reason why costs continue to climb even as Illinois’ student population goes down. New data show Illinois lost more than 100,000 public school students in just the five years since 2019, more than twice the rate of decline for the Midwest as a whole. The state educates roughly 206,000 fewer public school students today than it did in 2000.

Yet total education spending continues to grow, though not necessarily in the best way for current and future students.

Editorial continues here.

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Engineer John Zimmerman, left, and Commissioner George DeMent, right, view an automatic coin collector at the toll gate of the Calumet Skyway on April 10, 1958, to be opened to traffic. | George Quinn/Chicago Tribune

By The Editorial Board | Chicago Tribune

Illinois tollways were meant to be freeways decades ago.

Gov. JB Pritzker promised to reform the Illinois Tollway before he was elected, the latest in a long line of governors, from Rod Blagojevich to Jim Thompson, who vowed reform.

Remember, the tollways aren’t even supposed to be tollways anymore. The tolls were meant to be temporary until the bonds issued to build the roads were paid off. Many of our readers may remember that old promise that by 1973, our dear tollways would become freeways.

“Toll free in ‘73,” it turns out, is just another empty promise long forgotten.

After decades — and billions of dollars — in paid tolls later, drivers are further away than ever from those cost-free roads.

Now, they’re staring down the prospect of another toll hike.

The Illinois Tollway board is in the process of implementing a 45-cent toll increase for I-Pass users, meaning a 70-cent toll today could become $1.15 in 2027.

And the toll hikes won’t stop there. Starting in 2029, the proposal to be considered by the Illinois Tollway board sets up CPI-indexed toll hikes every two years.

Editorial continues here.

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By Claire O’Brien | Shaw Media

As McHenry County officials express frustration at state legislation that they say erodes local control, they’re considering asking voters for permission to become home rule.

Home rule is a classification that allows a local government to enact laws as it sees fit, as long as they’re not in conflict with state laws. That includes more leeway to impose fees, restrictions and taxes.

Though some municipalities in McHenry County have home rule powers, Cook County is the only county in Illinois with such powers.

In recent years, solar farms have been a source of frustration for McHenry County officials because state law has limited the county’s ability to regulate such facilities.

Now, officials at the county and in several municipalities have expressed frustration over the proposed BUILD Act — Democratic Gov. JB Pritzker’s plan that would limit local authority on what types of housing structures can be built on land zoned for residential.

So McHenry County officials are considering asking voters to weigh in on a home-rule request during the November election.

Article continues here.

Related: “South Barrington Mayor Paula McCombie provides an update of Pritzker’s proposed BUILD Act,” “Village of Barrington President shares perspectives on Pritzker’s BUILD plans,” “(Ignoring public opinion) Pritzker says of BUILD Plan for homes would not cost taxpayers,” “Gov. JB Pritzker’s ambitious housing plan for Illinois: More four-flats, looser rules,” “Pritzker to propose statewide zoning laws to spur homebuilding, limit local control,” “McLaughlin’s press conference video recording regarding Pritzker’s proposed municipal zoning powers grab posted,” “‘It’s just a bad idea’: Suburban officials oppose Pritzker’s plan to reduce local control over residential It’s just zoning

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A natural gas stove burner produces a blue flame while in use. Photo: KWON JUNHO / Unsplash

By Sean Reed | The Center Square

Consumer advocates have signaled heavy opposition to a proposed $221 million rate hike by Nicor Gas, arguing that the request is excessive, charging Illinoisans over five times what’s needed.

The request trailed just weeks behind the Illinois Commerce Commission’s approval of a $167.8 million hike last year. It would also be the sixth jump in delivery costs in the past decade.

Experts on the matter from the Citizens Utility Board, Illinois PIRG, and the Environmental Defense Fund came together early Monday to outline their opposition to the rate hike.

The same experts have also shared testimony to the ICC, which must approve or deny requested utility rate hikes before they can take effect.

Nicor’s spending has significantly increased since 2015 – mostly attributed to a state law that required the replacement of old delivery pipes. Despite the law’s sunset and all replacements having been completed by 2018, critics say the company’s spending has only continued to trend upward.

According to Jim Chilsen of the Citizen’s Utility Board, the proposed increase would add to the financial burden for all Nicor customers, 200,000 of whom are behind on their bills by $74 million total, as of last month.

“When the supply side of bills is so volatile, it just adds to the pain when you have a company like Nicor Gas going on a spending spree over the last decade and going before the commission to ask for six separate rate hikes. That’s been a hardship,” Chilsen said.

Report continues here.

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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.

Article continues here.

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