Third Reading Report: October 7, 2024

Illinois Legislative News

SB 2412, a mini election omnibus that passed the General Assembly in May, will put three non-binding advisory questions on the November 5 election ballot statewide. Given that they are non-binding, the General Assembly has no requirement to enact legislation, regardless of voters’ response. The result at the ballot box is meant to be a jumping off point for legislators to enact future policy.

The advisory questions cover three issues: (1) election interference, (2) property tax relief, and (3) reproductive healthcare. The questions read as follows: “Should any candidate appearing on the Illinois ballot for federal, State, or local office be subject to civil penalties if the candidate interferes or attempts to interfere with an election worker’s official duties;” “Should the Illinois Constitution be amended to create a 3% tax on income greater than $1,000,000 for the purpose of dedicating funds raised to property tax relief;” and “Should all medically appropriate assisted reproductive treatment, including, but not limited to, in vitro fertilization (IVF), be covered by any health insurance plan in Illinois that provides coverage for pregnancy benefits, without limitation on the number of treatments?”

The election interference and insurance coverage for reproductive healthcare questions are mostly responses to the changing national political environment. Alternatively, the property tax relief question is directly related to a legislative proposal from former Gov. Pat Quinn to raise the state’s income tax rate by 3% for all residents with an annual income over $1M.

On September 26, the House Revenue and Finance Committee held a subject matter hearing to consider Quinn’s proposal and other ideas to provide property tax relief to lower- and middle-income Illinoisans. The approach builds off the Property Tax Relief Fund, created in 2021 to provide an annual rebate to county treasurers on behalf of individuals receiving homestead exemptions. While the Fund already exists, it has no regular funding mechanism and has not received a significant appropriation to carry out the intended property tax relief. Quinn believes the 3% millionaire surcharge could fund this program with an estimated $4.5B in annual revenue.

Notably, the Illinois Constitution mandates a flat state income tax rate, which is currently set at 4.95% for individuals. Adding a 3% millionaire surcharge would create a progressive tax structure, requiring a change to the State’s Constitution. An amendment to the Constitution would require a binding referendum to receive the support of three-fifths of all voters on the question or a simple majority of all votes cast in the election. The 2020 election ballot included a similar question for Gov. J.B. Pritzker’s “fair tax” proposal, to create a graduated income tax structure. The fair tax only received the support of 47% of voters, well below the 60% threshold required for passage. If Quinn’s property tax relief question receives more than 60% support in November, the result could be used to justify support for a binding referendum in a future election.

Some have already criticized Quinn’s proposal for being too similar to the fair tax, which is still fresh in the minds of many voters. Quinn’s millionaire surcharge has two key differences from Pritzker’s fair tax. Quinn’s proposal only has two tax rates, one for millionaires and one for everyone else, rather than the six rates under the fair tax. Additionally, Quinn proposes using revenues from the millionaire surcharge to fund property tax relief. Pritzker did not specify how new revenues from the fair tax would be spent, although many advocated for using them to make additional contributions to the state’s pension system.

Besides considering Quinn’s millionaire surcharge, the House Revenue and Finance committee considered two proposals for a circuit breaker program. A circuit breaker is a property tax refund given to lower- and middle-income residents who meet specified criteria. The first proposal from Cook County Board of Review Commissioner George Cardenas (1st District) and aims to provide relief to anyone who pays more than 5% of their annual income to property taxes. The policy is still in the draft stage, but Cardenas suggested a maximum credit amount of $5,000, a maximum income limit of $75,000, and a maximum property value of $350,000 that the credit can be applied to. He did not have a cost estimate at this time, and each of the qualifying factors could be adjusted to increase or decrease the estimated cost to the state. Qualifying taxpayers would receive their credited amount when they file taxes the next year.

Committee members also heard a circuit breaker proposal from Cook County Assessor Fritz Kaegi, which would provide relief to anyone whose property taxes increased by 20% or more in the three years following a reassessment and can pass a yet-to-be-determined means test. Kagei’s proposal is more narrowly targeted at areas of the south suburbs and rapidly gentrifying neighborhoods of Chicago that have seen sudden property tax increases following reassessment. Unlike Cardenas’ plan, Kaegi proposes having the credit be applied to the taxpayer’s second installment. The Assessor’s Office estimates a cost to the state of between $100M and $200M per year.

29 other states and Washington, D.C. have some form of circuit breaker program. Given that the circuit breaker proposals require new funding from the state, they will likely not receive consideration until the FY 2026 budget process, at the earliest.

Important Upcoming Dates – Statewide

November 5 – 2024 General Election

November 12-14 – Veto Session Week 1

November 19-21 – Veto Session Week 2

In the News

In an effort to address food deserts, Illinois doles out first round of state grocery funding. An Austin grocer is among the recipients.Chicago Tribune, October 3, 2024

Illinois announced the first recipients of grant funding Thursday under a new state program intended to bring grocery stores to food deserts. The state announced a total of $7.9 million in grants slated to go toward new stores in areas that lack access to fresh groceries and to existing stores that applied for funding for equipment upgrades.

Opponents in 45th District state representative race share their differing top prioritiesThe Daily Herald, October 3, 2024

During a recent interview with the Daily Herald on various issues, the two rivals for the 45th District state House seat chose their top priorities as the reasons voters should send them to Springfield.

Pritzker to travel to Tokyo for second time for business meetingsThe Daily Line, October 4, 2024

Gov. JB Pritzker will travel to Tokyo this weekend to meet with businesses in hopes of attracting more to set up operations in Illinois, Pritzker announced on Thursday at an unrelated news conference in Peoria.

Mike Madigan, once Illinois’ most influential powerbroker, now faces federal corruption trialChicago Sun Times, October 4, 2024

The former Illinois house speaker quietly wielded power in Springfield for decades while developing a reputation as a reclusive political wizard, well-schooled in the playbook of the late Chicago Mayor Richard J. Daley. His trial begins Tuesday at the Dirksen Federal Courthouse.

Illinois diversity reporting mandate is burdensome on nonprofitsChicago Sun Times, October 3, 2024

Nonprofits shouldn’t have to face a mandate to report demographics, writes a Philanthropy Roundtable leader, who says there are better ways to encourage diversity. Also, yet another reader takes issue with the changes made to the Sun-Times weather page.

Madigan judge refuses to toss counts after Supreme Court ruling limited bribery lawChicago Sun Times, October 2, 2024

U.S. District Judge John Blakey handed down his ruling less than a week before the former Illinois House Speaker is set for trial. The judge also denied a request from Madigan’s longtime friend and confidante to be tried separately.

District 79 candidates say economy a key issue among votersChicago Tribune, October 2, 2024

Both candidates running for the 79th Illinois House seat say the economy is a top concern for voters in a district that encompasses parts of Will, Kankakee and Grundy counties.

Schakowsky, Cohen differ on gun control, Gaza warThe Daily Herald, October 2, 2024

Democratic U.S. Rep. Jan Schakowsky of Evanston and Republican challenger Seth Cohen of Chicago disagreed about gun control, abortion, the war in Gaza and more during a recent candidate forum.

Illinois governor travels to campaign, union dues flow from Illinois to other statesThe Center Square, October 2, 2024

Illinois Democrats and government union dues are flowing from the Land of Lincoln into presidential battleground states. Gov. J.B. Pritzker traveled to Arizona last weekend to campaign for the Democratic Party’s presidential nominee, Vice President Kamala Harris.

Lawsuit alleges state left in dark about company’s deal with political insidersChicago Tribune, October 2, 2024

A judge on Wednesday scheduled a hearing for late January on a lawsuit alleging a company owned by a politically connected lawyer and lobbyist violated the rules of a lucrative state contract by failing to disclose that a former state senator and a prominent Springfield lobbyist profited from the deal.

Frerichs’ investment philosophy The Daily Line, October 2, 2024

The state treasurer’s job gets little attention and is often not well understood, despite it being a statewide elected office. In Illinois, the treasurer focuses on investing state money, but Treasurer Michael Frerichs told a civic meeting Monday he has also been focused on innovation.

New Group, Database Designed to Help Combat Organized Retail Theft in IllinoisWTTW, September 30, 2024

Stealing is one thing. Organized retail theft is next level in the eyes of state law. A new group and database announced Monday will take combatting it to the next level, too.

GOP lawmakers seek transparency on migrants with convictions living in IllinoisThe Center Square, October 1, 2024

In the wake of a report detailing the hundreds of thousands of foreign nationals with criminal convictions living in the U.S., some Illinois lawmakers are demanding transparency at home.

Eye On Illinois: Another audit shows how state agencies fail to meet obligationsShaw Local, October 1, 2024

Thursday’s Auditor General compliance examination report covering the Illinois Department of Employment Security for two years ending June 30, 2023, echoes many of this column’s recurring themes.

Koehler and Owens compete for 46th District State Senate seat25 News, October 2, 2024

The race for the 46th Illinois Senate District is approaching the finish line with incumbent Democrat Dave Koehler facing off against Republican challenger Sally Owens.

DuPage County sees record-breaking turnout over first days of early voting: ‘There’s excitement in the air’Chicago Tribune, October 1, 2024

Turnout on day one of early voting in DuPage County smashed records set four years ago, according to the DuPage County Clerk’s Office. About 1,533 voters took to the polls Thursday for DuPage’s opening day of early voting for the Nov. 5 general election, the county clerk’s office said.

District 27 Senate candidates discuss mental healthDaily Herald, October 1, 2024

The two candidates for the Illinois Senate seat in the 27th District discussed mental health in a recent candidate interview panel with the Daily Herald.

State completes $73M project to ease erosion of Illinois’ only undeveloped shorelineThe Daily Line, October 1, 2024

Gov. JB Pritzker announced the completion of a project on Monday designed to preserve Illinois’ only undeveloped lakeshore land from erosion.

Jim Dey | Two former state powerhouses now behind barsThe News Gazette, September 30, 2024

They once were powerful politicos in Illinois and, given our state’s penchant for the politically preposterous, may be again. But, for now at least, they are Inmate Nos. 47922-509 and 53698-424, identified in civilian life as Tim Mapes of Springfield and Edward Burke of Chicago.

47th District rivals for state representative debate effectiveness of current gun lawsThe Daily Herald, September 30, 2024

The effectiveness of current gun legislation in Illinois, including an assault weapons ban, was among the topics debated by Republican incumbent state Rep. Amy Grant of Wheaton and her crosstown Democratic challenger Jackie Williamson in a recent interview with the Daily Herald.

Katie Stuart campaigns for 5th term in Illinois’ 112th House DistrictThe Telegraph, September 30, 2024

Katie Stuart is looking to win her fifth term as a state representative in the 112th District and is keeping busy as election day draws closer. She is facing a challenge from Republican Jay Keeven.

State lawmakers could be in for a short fall veto session — or none at allChicago Sun Times, September 27, 2024

There isn’t much on the agenda in Springfield. There are no gubernatorial vetoes to deal with, transit legislation won’t be ready yet and a new sports stadium in Chicago isn’t under serious discussion.

Pat Quinn on proposal to increase taxes on millionairesWGN Radio, September 27, 2024

Former Governor Pat Quinn joins Lisa Dent to discuss the proposal for those who make one-million dollars or more per year to pay an extra three percent.

Big staff changes announced for Pritzker’s communications teamCapitol Fax, September 27, 2024

Governor JB Pritzker announced the following staff transitions on his communications team.

Illinois voters to be asked for opinion on three questions this fallThe Daily Line, September 30, 2024

Illinois voters will be asked to weigh in on three issues this fall when they cast their ballots after the General Assembly approved advisory referendums to guide future policy decisions.

Early voting begins, and Chicagoans line up to vote for Kamala Harris, Donald Trump — and Jill SteinChicago Sun Times, October 3, 2024

Eager voters lined up as early as 7:40 a.m. to be among the first Chicagoans to cast their ballots.

Metra mulls expanding service from Union Station to O’HareCrain’s Chicago Business, October 3, 2024

A faster train ride between O’Hare and downtown Chicago, a dream scenario for the city’s regular travelers, may finally be starting to come together.

Finance committee approves bond refinancing ordinances as city searches for ways to shrink budget holesThe Daily Line, October 3, 2024

The City Council Committee on Finance approved two significant bond transactions Wednesday that are aimed at helping the city address big budget holes by reducing its debt service and increasing cash flow savings.

O’Neill Burke, Fioretti discuss pre-trial detention, business confidence as early voting opens in race to replace Foxx as state’s attorneyThe Daily Line, October 4, 2024

Although Eileen O’Neill Burke is favored to win the Cook County State’s Attorney race in a county that regularly votes for Democrats, the former judge told The Daily Line she’s not taking anything for granted as polls open countywide.

Chicago’s $1.5 billion bond refinancing plan moves forwardCrain’s Chicago Business, October 2, 2024

The Chicago City Council Finance Committee passed a $1.5 billion bond proposal to refinance debt as part of Mayor Brandon Johnson’s efforts to close back-to-back deficits for the third-largest US city.

United Center’s $7B transformation could break ground next summer, ownership saysChicago Sun Times, October 2, 2024

Shovels could be in the ground as early as next summer on The 1901 Project — the $7 billion plan to transform the “sea of asphalt” surrounding the United Center. The next generation of United Center ownership told attendees Wednesday at a joint Lincoln Forum and Union League Club of Chicago event that the development will likely stretch to 15 years. It was originally projected to take shape over 10 years.

Union targets aldermen over support for climate change-focused ordinanceChicago Tribune, October 2, 2024

The union representing Chicago gas pipeline engineers is sending a message to voters and aldermen alike in an effort to finally quash a climate change-focused ordinance that would severely curtail gas fixtures in new buildings in the city.

Housing committee approves ordinance to cut the number of items subject to Plan Commission, Community Development Commission reviewThe Daily Line, October 2, 2024

The City Council Committee on Housing and Real Estate approved an ordinance Tuesday in line with Mayor Brandon Johnson’s “Cut the Tape” Initiative, which seeks to speed up housing and commercial development by eliminating some processes and reducing other bureaucracy and requirements.

Trump to appear before Economic Club of Chicago this monthCrain’s Chicago Business, October 1, 2024

Donald Trump will address the Economic Club of Chicago later this month, one of a string of appearances by both candidates before regional economic organizations in the run-up to Election Day.

Anti-gentrification ordinance gives rare power to tenants over building salesCrain’s Chicago Business, October 1, 2024

Renters in some North and West Side neighborhoods will soon have the rare power to control who buys the buildings they live in, under the city’s latest tool for cooling off gentrification hot spots.

Homeless camp to stay in Gompers Park until 2025, city tells Northwest Side neighborsChicago Sun Times, September 30, 2024

Residents near a homeless encampment at a Northwest Side Park were told Monday that the city likely won’t move the camp until next year at the earliest. Hundreds of people showed up at a community meeting led by Sendy Soto, Mayor Brandon Johnson’s chief homelessness officer, to learn more about options for a tent city at Gompers Park on the Northwest Side.

Housing committee to consider Cut the Tape-driven policy change, Low Affordability Community designationsThe Daily Line, October 1, 2024

The City Council Committee on Housing and Real Estate will vote on an ordinance Tuesday that would advance Mayor Brandon Johnson’s “Cut the Tape” Initiative, which seeks to speed up housing and commercial development by eliminating some processes and reducing other bureaucracy and requirements.

City allocates $75 million in bond funds to market rate housing initiative on South and West sidesChicago Tribune, October 1, 2024

Chicago’s Department of Planning and Development is launching a $75 million program to build “missing middle housing” in neighborhoods on the South and West sides in an effort to provide lower-cost, owner-occupied for-sale housing options and repopulate communities after a decades long population decline, the department announced Tuesday.

Public safety committee to hold hearing on improvements to city’s extreme weather response planningThe Daily Line, October 1, 2024

The City Council Committee on Public Safety on Tuesday will hold a subject matter hearing on a resolution (R2024-0010357) sponsored by Ald. Andre Vasquez (40) that calls on the city to develop a better plan to keep Chicagoans safe during extreme temperatures, with a specific focus on people experiencing homelessness.

As Johnson scrambles to close $1 billion budget gap, vote could get delayed to DecemberCrain’s Chicago Business, September 27, 2024

Mayor Brandon Johnson is considering pushing back the rollout of his plan to close a $982 million budget gap in 2025, a move that could delay City Council consideration of the proposal until December.

Many cameras. Little focus. Blurry results.Illinois Answers Project, September 29, 2024

Chicago police bet big on pricey surveillance cameras. Two decades later, the devices do little to solve most crimes.

Special Reports

2024 Illinois General Election Results

In what was a bad showing for Democrats nationally, Illinois Democrats held onto all their Congressional seats and appear likely to keep their current General Assembly makeup following the November 5 general election. At the presidential level, Vice President Kamala...

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2024 Illinois General Election Preview

Following is a complete listing of the U.S. presidential and vice presidential, Congressional, Illinois Senate, Illinois House, and Illinois Supreme Court races in the November 5, 2024 general election. Results will be sent out following the election. U.S. President...

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FUNDRAISING TOTALS UPDATED: July 25 at 12:39PM Illinois Senate 40th Senate District Patrick Joyce (D) (i) - $3,950,201.04 Philip Nagel (R) - $91,103.35   19th Senate District Michael E. Hastings (D) (i) - $1,536,679.45 Samantha Jean Gasca (R) - $9,616.20  ...

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2024 Illinois General Election Preview

U.S. President Kamala Harris (D) **Presumptive Nominee Donald J. Trump (R) Robert F. Kennedy Jr. (Independent) Jill Stein (Green) Scott Schluter (Libertarian) Congressional Representatives 1st Congressional District Jonathan L. Jackson (D) (i) Marcus Lewis (R) 2nd...

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2024 Illinois End of Session Legislative Report

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FY 2025 Illinois Budget Bills & End of Session Packages

FY 2025 Budget   SB 251 (Sims/Gordon-Booth) creates the FY 2025 state budget. After three consecutive years of strong revenue growth, FY 2025 revenues are projected to be relatively similar to the previous fiscal year, which led to contentious budget...

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Previous Reports

Third Reading Report: December 23, 2024

NOTE: We will not put out a weekly update on Monday, December 30 or Monday, January 6 due to the holidays. Illinois Legislative News Lame Duck and 2025 General Assembly Session Preview Following veto session at the end of November, the Illinois House and Senate released their calendar for the 2025 regular session. Both chambers also flagged January 2 through 7 as tentative dates for a lame duck session of the outgoing 103rd General Assembly. House and Senate leadership recently finalized the...

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Third Reading Report: December 16, 2024

COGFA Annual Pension Update On Monday, the Commission of Government Forecasting and Accountability (COGFA) released their FY 2024 pension briefing. As of June 30, 2024 all five state retirement systems had actuarial (five-year smoothed) assets of $122.009B and unfunded liabilities of $144.305B for a combined funded ratio of 45.8%. Assets are up 5.74% and unfunded liabilities are up 2.06% over FY 2023. The actuarial funded ratio of the state pension system increased by 0.9% since the end of FY...

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Third Reading Report: December 9, 2024

Administrative Rules CAPITOL COMPLEX The SECRETARY OF STATE adopted emergency amendments to the Part titled Public Use of the Capitol Complex and Springfield Facilities (71 IAC 2005; 48 Ill Reg 17392) effective 11/18/24 for a maximum of 150 days. An identical proposed rulemaking appears in this week's Illinois Register at 48 Ill Reg 17322. The emergency and proposed rulemakings require all members and employees of the General Assembly, employees of SOS, and employees of other State agencies to...

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