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Archive for the ‘Economy’ Category

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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No. 2 no more: Illinois property taxes rank highest in U.S.

Posted in Diversity, Equity and Inclusion (DEI), Economy, Illinois Policy Institute, Immigration, Look For The Union Label, Politics, Pritzker’s Rules of Order, Property Taxes, School Districts, Springfield, Unions on July 25, 2025| 1 Comment »

Illinois just ranked as having the highest property tax rate in the country. Property taxes in Illinois are an especially heavy burden without the tradeoff seen in states such as Texas or New Hampshire, where there are either no sales taxes or income taxes.

By Charlotte Rotkis | Illinois Policy Institute

After years of ranking No. 2 to New Jersey, the latest data shows Illinoisans paid the highest property taxes in the nation during 2023. Worst, Illinoisans also pay steep income and sales taxes.

Illinois homeowners paid an average effective property tax rate of 1.83%, the highest in the nation. On a median-priced home of $250,500, that amounts to $4,584 per year. Neighboring states had significantly lower rates, making the idea of finding a home outside of Illinois appealing.

Property taxes are based on the idea that the people paying benefit from the services the taxes go to fund. Yet nearly 3-in-5 Illinoisans feel as if the value of public services they receive is not worth their high property taxes.

Are Illinois property taxes a reason Indianapolis and St. Louis are in the top 10 housing markets?

The disparity between taxes and services received stems from pension spending crowding out other essential services. In addition to limiting funding for key services, pensions are the leading force for driving up property taxes. Growing pension payments redirects money away from property tax relief or better public services.

Read more here.

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AI fuels higher ComEd bills

Posted in ComEd Four, Economy, Hoffman Estates, Plum Farm development, Politics, Sears, Topics Of Interest on July 24, 2025| 1 Comment »

ComEd customers are already reeling from a big jump in monthly electric bill prices. | Pat Nabong/Sun-Times file

Reporting by Brett Chase | Chicago Sun*Times

Buckle up: The multistate electric grid operator PJM Interconnection confirmed Tuesday that power demand continues to be high and that the price of electricity is likely going up next year.

Hot, hot, hot: Electric rates went up June 1. Most customers didn’t see the increases on their bills until this month. A ComEd customer who normally pays about $100 a month on average will see a spike of almost 11% on upcoming power bills.

AI caramba: Power demand across the country has skyrocketed, spurred by artificial intelligence operations and big data centers. Meanwhile, new sources of renewable energy including wind and solar have been slow to get connected to an electric grid that spans from Northern Illinois to the East Coast.

Read more here.

Related: “Hoffman Estates could see third data center campus with sale of Plum Farms property,” “How data centers became the newest growth industry in the suburbs,” ”Done deal: Texas data center firm closes on deal for Sears campus in Hoffman Estates”

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710k Illinoisans avoid work advancement to keep welfare benefits

Posted in Economy, Ethics, Illinois Policy Institute, Perjury, Politics, Pritzker’s Rules of Order, Property Taxes, Springfield, Taxes on July 17, 2025| 1 Comment »

Welfare programs are structured poorly and punish people for working to climb out of poverty. An estimated 710,000 Illinoisans have intentionally hurt their own economic advancement to keep welfare benefits.

By Sachi Gaonkar | Illinois Policy Institute

An estimated 710,000 Illinoisans have intentionally hurt their personal finances to avoid losing a welfare benefit, according to a new study.

A new report by the Center for Social Development at Washington University in St. Louis shows nearly 1-in-4 welfare recipients has taken at least one negative action to avoid losing benefits, such as turning down raises or promotions, working fewer hours, declining job offers and refusing to build savings. With 3.2 million Illinoisians living at or below 200% of the federal poverty level, that translates to at least 710,000 people in Illinois intentionally holding themselves back.

Social welfare programs are supposed to support families during times of need. Instead, they punish people in Illinois and across America as they work their way back to independence by removing health care, food and other benefits – a dynamic known as a “benefit cliff.” Research shows these cliffs are not only real, but that they affect a sizable number of Illinoisans.

National research highlights a structural challenge

Benefit cliffs occur when modest increases in earnings lead to a sudden and significant reduction in social welfare benefits. In Illinois, research from the University of Chicago shows a modest $1,000 annual wage increase, from $54,000 to $55,000, would result in an Illinois family losing over $25,000 in child care benefits. This dynamic can leave workers in a significantly worse financial position after a raise or promotion than they were before.

Individuals in households with people with disabilities were more likely to avoid economic advancement, underlining the added vulnerability some groups face when navigating social welfare programs. In Illinois, half of disabled people age 18 to 64 are not in the workforce.

Read more here.

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Editorial: Gov. Pritzker and State Farm should stop throwing rhetorical bombs at each other and start negotiating

Posted in Chicago Tribune, Economy, OP/Ed, Topics Of Interest on July 16, 2025| Leave a Comment »

Scott Stantis editorial cartoon for Wed, July 16, 2025, on Gov. Pritzker and State Farm (Scott Stantis/For the Chicago Tribune).

By The Editorial Board | Chicago Tribune

The governor of Illinois and one of the state’s biggest employers are engaged in an unusually heated war of words.

Shortly after news dropped last week of State Farm’s eye-watering 27% average rate hike on Illinois homeowners insurance customers, Gov. JB Pritzker erupted, accusing the Bloomington-based insurance giant of pulling a fast one. “These increases are predicated on catastrophe numbers that are entirely inconsistent with the Illinois Department of Insurance’s own analysis — indicating that State Farm is shifting out-of-state costs onto the homeowners of this state,” Pritzker said in a statement. “Hard working Illinoisans should not be paying more to protect beach houses in Florida.”

In the insurance world, those are fighting words.

State Farm responded with its own statement saying Pritzker had his facts wrong, and that the insurer’s rate hike — as shocking as it was — reflected only its experience in Illinois, where hail and wind storms, combined with higher replacement costs, have made its homeowners business here deeply unprofitable. “Illinois families deserve an honest conversation about insurance economics rather than political rhetoric.”

So what we appear to have now are two powerful forces facing off, each effectively accusing the other of being a liar. Not ideal, to say the least.

We understand the governor’s frustration. The 27% increase, set to take effect Aug. 15, is the largest such one-time hike in memory in Illinois, and State Farm isn’t just any old provider. The largest insurer of homes and cars in the land, State Farm is particularly dominant in its home state. For years, it’s insured roughly 1 of every 3 Illinois homes.

So when State Farm raises annual premiums by hundreds of dollars in one fell swoop, that could well have a negative impact on the state’s economy. State Farm is that big of a player. Consumers already are struggling with inflation of all sorts. Insurance — like utility bills, which also are rising sharply this summer — isn’t an avoidable cost. When insurance costs rise this much, many consumers have to tighten other parts of their budgets, which hurts businesses whose products are more discretionary.

More here.

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IL construction workers highest paid in U.S. as new home building lags

Posted in Economy, Look For The Union Label, Politics, The Center Square on July 14, 2025| Leave a Comment »

By Jim Talamonti | The Center Square

According to two new reports by Construction Coverage, Illinois ranked 48th out of 50 U.S. states for new home construction last year while leading the nation in construction worker pay.

Analysts at Construction Coverage looked at wage data from the U.S. Bureau of Labor Statistics and cost-of-living data from the Bureau of Economic Analysis to determine where in the country construction workers earn the most when local price differences are taken into account.

Michael Stromberg, head of Engineering & Data Analytics at Construction Coverage, said construction workers in Illinois have the highest median wages in the country after adjusting for cost-of-living metrics.

“That’s coming in at over $79,000 per year. For reference, that’s nearly 12% more than the next-highest neighboring Midwest state, Minnesota, at just over $70,000 annually. That’s also 50% more than the median wage for all workers in Illinois at roughly $50,000 per year,” Stromberg told The Center Square.

Without the cost-of-living adjustment factored in, Stromberg said Hawaii’s construction workers earn higher median wages than Illinois workers, but Hawaii’s high cost of living resulted in Illinois’ elevation to the top spot.

Stromberg said the trends hold true at the local level.

“The Chicago metropolitan area ranks first among large metros for construction worker pay. The Peoria metropolitan area ranks first among mid-size metros, and Decatur and Champaign rank second and third respectively among small metropolitan areas. So, from a personal income perspective, Illinois is an attractive state to work in for construction workers,” Stromberg said.

Read more here.

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State Farm to raise Illinois homeowners insurance rates by 27.2% in August

Posted in BOHICA, Chicago Tribune, Economy on July 10, 2025| Leave a Comment »

A house on Sandy Meadow Circle on the banks of Big Sandy Creek near Leander, Texas, seen on July 9, 2025, was heavily damaged in the Fourth of July weekend flood. | Jay Janner/Austin American-Statesman

By Robert Channick | Chicago Tribune

As Texas grapples with the massive flooding that struck Hill Country and killed at least 119 people during the July Fourth weekend, many Illinois homeowners will soon see their home insurance rates skyrocket due to the increase in such extreme weather events.

State Farm is raising homeowners insurance rates in Illinois by a whopping 27.2% beginning Aug. 15, according to a filing with the state last month. The rate hike, one of the largest in the state’s history, will affect nearly 1.5 million policyholders. New policyholders will pay the higher rates as of July 15.

In its filing, Bloomington-based State Farm said the rate increase is driven by catastrophic losses related to extreme weather events in Illinois.

“Over the last several years, our catastrophe provision has proven to be inadequate when compared to our actual catastrophe loss experience,” State Farm said in the filing. “While there is volatility associated with extreme weather events, our Illinois catastrophe losses have exceeded the year’s catastrophe provision in 13 of the last 15 years, signaling the provision used in rating has been insufficient in recent history.”

A State Farm spokesperson did not respond to a request for comment Wednesday.

In February, Northbrook-based Allstate raised homeowners insurance rates by 14.3% for nearly 248,000 Illinois customers, as the broader insurance industry struggles to keep up with the increasing frequency of extreme weather events across the country.

Read more here.

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