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Archive for the ‘Economy’ Category

Fiscal Fallout: Illinois has among highest-paid state employees

Posted in Economy, Pension Funding, Springfield, The Center Square, Unions on October 10, 2025| Leave a Comment »

The Illinois State Capitol is shown in Springfield. Photo: Greg Bishop / The Center Square

By Jared Strong | The Center Square

The average wages for Illinois state employees are among the highest in the nation and belie the state’s more modest cost-of-living rankings, according to state and federal data.

A living cost analysis this year by the Economic Research and Information Center in Missouri ranked Illinois as the 24th most-expensive state. That is similar to the findings of the federal Bureau of Economic Analysis, which placed Illinois 19th among states and the District of Columbia, where it is most expensive to live.

But Illinois is among the Top 5 states for highest salaries for state workers, according to OpenPayrolls, which tracks the data nationwide.

It found that the average annual state government salary in 2023 in Illinois, excluding university jobs, is about $79,000.

That pay has been further buoyed by raises since, including a recently self-imposed raise for lawmakers that increased their base pay to $98,000, which is also in the Top 5 among states.

A review by the Illinois Policy Institute this year found that pay for state government employees who are represented by the AFSCME Council 31 union has increased 57% faster since 2021 than for private sector jobs.

Read more here.

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Illinois taxpayers each owe $38,800 for state’s unpaid bills

Posted in Commodius Maximus, Diversity, Equity and Inclusion (DEI), Economy, Illinois Policy Institute, Overhead, Pritzker’s Rules of Order, Unions on October 3, 2025| Leave a Comment »

Illinois taxpayers in 2024 owed an average of $38,800 each, ranking No. 3 in the U.S. Illinois earned an “F” for fiscal management.

By Patrick Andriesen | Illinois Policy Institute

Illinois amassed the third-highest debt for each of its taxpayers at $38,800, earning an “F” grade for fiscal management, according to experts from Truth in Accounting.

But it could be worse by now. The report compared other states’ data for 2024, but was forced to use Illinois’ 2023 data because Illinois has yet to account for its spending a year and three months after fiscal year 2024 ended.

The 2024 State of the States report found Illinois had $51.5 billion to cover $224.3 billion worth of bills. The outcome was a $172.8 billion budget shortfall, which would cost each taxpayer $38,800 to pay down.

The accountants found of the $224.3 billion in bills Illinois needed to pay down, over $148.6 billion of the cost stemmed from unfunded pension benefits for government employees. The next largest line item was bonds.

Illinois ranks among the 16 U.S. states deemed “excessively tardy” for not publishing their annual financial reports within 250 days of the end of fiscal year 2024.

Illinois’ financial report for fiscal year 2023 took 774 days to publish, setting a national record for tardiness. There is currently no estimate on when the 2024 report will be published.

Read more here.

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$3.3B in road funds sit idle, yet Illinois drivers face record-high gas taxes

Posted in Aunt Blabby, Economy, Fat Bastard, Illinois Policy Institute, Politics, Pritzker’s Rules of Order, Springfield, Taxes on September 16, 2025| Leave a Comment »

If Illinois state lawmakers are not going to spend the $3.3 billion sitting in the state’s road fund, drivers should get a break from the taxes going into it. Illinois gasoline taxes are No. 2 in the U.S.

By Ravi Mishra | Illinois Policy Institute

An accumulation of over $3.3 billion of unused dollars in Illinois’ road fund shows Gov. J.B. Pritzker’s automatic gasoline tax hikes are not necessary, and lawmakers should halt them.

Illinois      drivers have been paying more for gas every July since 2019, when Pritzker doubled motor fuel taxes and tied annual tax hikes to inflation. The state gas tax is now 48.3 cents per gallon, costing each driver an extra $143 annually and ranking Illinois as No. 2 in the country for highest gas taxes.

Road Fund balance has ballooned in the past six years

From 2018 to 2024, state road spending increased nearly $1 billion, but because of constant tax and fee hikes, revenues have surged even faster and grown nearly 95% in the same period. In 2024 alone, the state’s road fund collected over $5 billion while spending under $4 billion.

The fund reserves have ballooned. Cash balances grew from $624 million in 2018 to $3.3 billion as of 2024, a 428% increase. Balances are projected to continue growing to nearly $3.5 billion by 2026. Illinois’ “lockbox” amendment prevents these funds from being redirected to other expenses, yet lawmakers continue to allow automatic gas tax hikes regardless of need.

Drivers are paying more than necessary

Motor fuel tax rates were doubled in 2019 from 19 cents per gallon to 38 cents. Since then, rates have risen automatically to match inflation, ballooning to 48.3 cents in 2025, the second highest in the nation.

Read more here.

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Chicago ranks near bottom in survey of best and worst run cities

Posted in Clown Car, Deception, Economy, Immigration, Look For The Union Label, Politics, Preckwinkle's Rules of Order, Pritzker’s Rules of Order, Resident Spotlights, Springfield, Taxes, The Center Square, The Chicago Way, Unions on September 5, 2025| Leave a Comment »

By Sarah Roderick-Fitch | The Center Square

By Glenn Minnis | The Center Square contributor

The city of Chicago ranks near the bottom in the new Best & Worst-run cities in America survey of 148 different locations.

With researchers comparing the operating efficiency of each city, Chicago lands at No. 136 in the WalletHub survey after finishing 102nd in quality of city services and 140th in total budget per capita.

State Rep. Martin McLaughlin, R-Barrington Hills, isn’t shy about voicing his displeasure with Chicago’s dismal showing.

“Chicago has been known as The Second City, but we have dropped quite precipitously down to 136, and that is based on one thing and one thing alone, and that is progressive policies from people who are producing painful results for the residents and for those like my community who are living adjacent to the city,” McLaughlin told The Center Square. “It is no longer the place it was 30 years ago. It is no longer the financial capital of commodities in the world and no longer a place that you will go to and feel safe.”

Researchers weighed “quality of services” metrics that included health, safety and economy rank, measuring each category against the city’s per-capita budget.

As bad as things have gotten, McLaughlin still sees a way out for the city.

“I think Chicago has an opportunity, particularly with those who have recognized that the governor and the mayor have put illegal migrants ahead of citizens and the neighborhoods who have been underserved now recognize that they have been overlooked,” he said. “They just have to change who they’re voting for and they have a chance to do that every two years.”

Read more here.

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Illinois tops U.S. in college spending, but loses over 106K students

Posted in Economy, Education, Illinois Policy Institute, Look For The Union Label, Overhead, Pension Funding, Politics, Pritzker’s Rules of Order, Property Taxes, Springfield, Taxes, Uncategorized, Unions on September 4, 2025| Leave a Comment »

Illinois ranked No. 1 for spending per student on higher education in 2024, paying more than double the national average. Declining enrollment, poorly structured finances, growing pension payments and bloated administration have driven up costs.

By Patrick Andriesen | Illinois Policy Institute

Illinois spends double the U.S. average per full-time higher education student, yet 106,375 fewer students want to attend its public community colleges and state universities than 15 years ago.

Pensions, administrative bloat and a poor funding formula are mainly to blame.

Illinois ranked No. 1 in the U.S. for higher education spending per full-time student in fiscal year 2024, spending $25,529 per student. That was double the national average and over $4,400 more per student than the No. 2 state: Wyoming, which had only about 8% of the students Illinois supports.

(Click on image to enlarge)

That translates to Illinois spending the most in the nation per full-time student at public two-year institutions and the second most in the U.S. per full-time student at public four-year institutions.

But all that government money has failed to make Illinois higher education more attractive to students. Enrollment at two- and four-year institutions has dropped from 368,019 in 2009 to 261,644 in 2024, according to the State Higher Education Finance report.

(Click on image to enlarge)

As spending by the state on higher education has climbed, so has the cost of tuition. Illinois’ in-state tuition for a public university now ranks No. 6 in the nation. It is the highest in the Midwest, rewarding Illinois students with more affordable options when they cross state lines.

Research in 2021 showed nearly 48% of Illinois’ four-year, college-bound students chose schools elsewhere, with the top picks being public universities in neighboring states where tuition was cheaper. They took their knowledge, income and tax dollars with them – often for good.

So why are Illinois taxpayers being forced to spend more on higher education when their schools are serving fewer students? And why does all that government spending fail to keep Illinois tuition from being among the highest in the nation?

State pensions, administrative glut and a poor funding model are mainly to blame at the state’s 12 public universities and 48 community colleges.

Read more here.

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Businesses moving out of Illinois triples since pandemic

Posted in Economy, Illinois Policy Institute, Open Meetings Act, Politics, Pritzker’s Rules of Order, Springfield, Unions on August 12, 2025| Leave a Comment »

Illinois lost 218 businesses to other states in 2023, part of an acceleration to triple the rate of what losses were before the pandemic. When adjusted for population, Illinois ranked No. 2 for the most business losses.

By Bryce Hill | Illinois Policy Institute

The Illinois exodus isn’t limited to people: businesses are moving out of the state, and the rate is accelerating dramatically.

Illinois lost 2,616 businesses to other states from 1994-2023, data from the Bureau of Labor Statistics shows. For most of that time, the average loss was 65 businesses per year. The rate started accelerating significantly in about 2017 and has tripled since the pandemic.

Losing businesses to other states is nothing new in Illinois. Since the Bureau of Labor Statistics began tracking this data in 1994, Illinois has lost businesses to other states every single year.

The acceleration is what is new and troubling. Losses peaked at 260 in 2022 and were 218 in 2023, the most recent year of data. In terms of raw numbers, that was third in the nation, behind California losing 533 businesses and New York losing 278. But per capita, Illinois ranked No. 2.

Florida led the nation in attracting businesses from other states: 503 just in 2023. No other state attracted more than 160 migrating businesses.

The 2,616 businesses lost to other states from 1994-2023 put Illinois in third place for most losses. Again, when adjusted for the population, Illinois ranked No. 2 behind New York for losses during the 30-year period.

Read more here.

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Pritzker works on national profile as Illinoisans tire of him

Posted in Economy, Elections, Illinois Policy Institute, OP/Ed, Politics, Pritzker’s Rules of Order, Property Taxes, Taxes, The Chicago Way on August 12, 2025| Leave a Comment »

Illinois Gov. J.B. Pritzker is burnishing his national image as a Democratic presidential candidate by inserting himself in the Texas redistricting controversy. But Illinoisans are growing tired of Pritzker and taxation, pushing his favorability rating into the negative.

By Paul Vallas | Illinois Policy Institute

Gov. J.B. Pritzker’s decision to welcome Texas Democrats to Illinois, framing the state as a sanctuary for lawmakers seeking to block partisan redistricting efforts in Texas, offers a timely diversion from his mounting problems closer to home.

While Pritzker works to draw the national spotlight, Illinois residents are increasingly vocal about their dissatisfaction with him.

Recent polling by the Illinois Policy Institute shows Pritzker’s approval has dipped underwater: 47% view him favorably, while more than 50% hold an unfavorable opinion.

Even more troubling is over half of Illinois residents would relocate if they had the means. They overwhelmingly cited high taxes as their main concern: 60% said it was the top issue, followed by worries about governance, the economy, crime and migration.

These concerns are valid. In 2025, Illinois will impose the highest combined state and local tax burden in the nation on households earning the median U.S. income. That tax burden is $13,099, or more than 16.5% of annual earnings. It’s $4,472 more than the national average and nearly 52% more than what most Americans pay. Families can save over $5,000 a year simply by moving to Indiana.

Despite receiving over $53 billion in federal COVID relief – with $11.8 billion eligible to be used directly by the state for operational and one-time expenses – Pritzker has grown Illinois’ budget by $16 billion and enacted over 50 tax hikes.

Read more here.

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New poll: 50.2% of Illinois voters view Pritzker unfavorably

Posted in Clown Car, Commodius Maximus, Deception, Diversity, Equity and Inclusion (DEI), Economy, Ethics, Fat Bastard, Fat Man Walking, Girlie man, Illinois Policy Institute, Immigration, Look For The Union Label, Politics, Pritzker’s Rules of Order, Property Taxes, Springfield, Taxes, The Center Square, Unions on August 8, 2025| 2 Comments »

Illinois Gov. J.B. Pritzker | BlueRoomStream

By Jim Talamonti | The Center Square

A new poll shows that Gov. J.B. Pritzker’s approval rating has flipped negative for the first time.

The Illinois Policy Institute’s newest Lincoln Poll conducted by M3 Strategies July 15-18 found that 50.2% of likely voters in 2026 view the governor unfavorably and 47.2% view Pritzker favorably.

M3 surveyed 752 individuals and reported a +/- 3.57 percentage point margin of error.

The previous Lincoln Poll in late January showed a slim majority of Illinois voters approving of Pritzker’s job performance.

Illinois Policy Institute Senior Fellow and former Illinois state Rep. Mark Batinick, R-Plainfield, said he would have advised Pritzker not to run for a third term.

“Third terms are often called the third-term curse, number one. Number two, running a general election for governor doesn’t match with running in a far-left Democratic primary for president,” Batinick told The Center Square.

Batinick said he predicted months ago that the governor’s poll numbers would drop.

“The stuff that he’s trying to do to go to the far left to be relevant in the Democratic primary for president is costing him with rank-and-file voters here in Illinois. They’re like, ‘You know what? I’ve got a high property tax bill. I don’t care about Texas legislators. I want you back in Illinois doing the things that matter to us.’ When you look at that poll, taxes was the number one issue,” Batinick said.

Read more here.

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Economist explains flight of people, dollars from Illinois

Posted in Economy, Real Estate, School Districts, The Center Square, Topics Of Interest on July 29, 2025| Leave a Comment »

Vladimir Solomianyi | Unsplash

By Jim Talamonti | The Center Square

Outmigration has taken a major toll on the Illinois economy, according to a new report by Unleash Prosperity.

Using data from the Internal Revenue Service and the U.S. Census Bureau, analysts found that Illinois lost 881,012 residents from 2012 to 2022.

Economist Stephen Moore said only New York and California suffered more domestic outmigration than the Land of Lincoln.

“This is the sad story, same thing. New York and California and Illinois are just being bled to death,” Moore said.

VoteWithYourFeet.net breaks down the Census Bureau and IRS numbers from 2012 to 2022.

The data shows that Illinois was also one of the biggest losers for personal income, with a net adjusted gross income loss of $63,478,115,000 from 2012 to 2022. Only New York and California suffered heavier losses.

“Some of our friends on the left and some of our Democratic friends like to say, ‘Well, taxes don’t matter that much. They don’t really have an impact.’ You’re looking at the impact of taxes right here,” Moore said.

Read more here.

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Editorial: Soaring ComEd bills have us all on edge. Springfield must confront our electricity woes head-on.

Posted in Chicago Tribune, Economy, Politics, Pritzker’s Rules of Order, Springfield, Taxes on July 26, 2025| Leave a Comment »

Rows of tall ComEd electrical towers follow a north-south pathway through Barrington Hills on May 23, 2023. | Stacey Wescott/Chicago Tribune

By The Editorial Board | Chicago Tribune

The politics of energy in Illinois are hot this summer. And they’re only going to get hotter.

Residents throughout the Chicago area only now are opening their electric bills and seeing the effect of our sweltering June, combined with substantially higher electricity rates, on their household budgets. With inflation top of mind for everyone, you can add the cost of keeping the lights on and the air conditioners humming to food, insurance, housing, health care and more items making it harder for ordinary folks simply to pay their bills every month.

A spike in the cost of energy that took effect June 1 along with higher usage in one of the hottest Junes Chicago has experienced resulted in a $67.28 increase in the average June 30 household electric bill, according to Commonwealth Edison. So far, July has been no picnic either in terms of heat and humidity, so next month’s bills aren’t likely to provide relief.

And, adding to the electric-bill angst, there was news Tuesday that next summer’s electric bills will see more upward pressure after the results of a power auction just completed by PJM Interconnection, the power-grid manager for a multistate territory running from northern Illinois east to the mid-Atlantic. The details of that auction are somewhat technical; PJM solicits bids from power generators and others for what the industry calls “capacity” and what effectively are promises from those power-plant operators to produce energy during high-demand periods over a year. The amount paid to those selected operators for those promises comes from power consumers throughout the PJM region — that is, virtually all households and businesses — and is embedded in the overall price they pay utilities or other suppliers for energy.

Much of the reason for this summer’s increase in ComEd rates is due to a spike in the current cost of capacity. That capacity cost will rise another 22% in the year beginning in June 2026 after PJM’s latest auction. ComEd says that change by itself will hike ComEd rates another 2%, raising the average residential bill by $2.50 per month.

Politicians and environmental groups, among others, are castigating PJM for the increases and blaming the grid operator for being too sluggish in approving high-voltage connections of renewable power sources such as wind farms to population centers.

Read more here.

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