Government Affairs Roundup
“Your Timely Roundup of Local, State, and Federal Updates”
Chamber members:
This will be the final roundup for 2023. Thanks for taking some time out of your day to keep up on all of the news, updates, and announcements. We look forward to continuing this email in ’24. Special thanks to Citgo and Silver Cross Hospital for their sponsorship this year.
Merry Christmas and Happy New Year to all of you!
*Government Affairs Roundup brought to you by CITGO & Silver Cross Hospital*
Governor Pritzker Says a “Careful” Approach Necessary as Deficit May Follow Current Surplus
With the upcoming return of Illinois lawmakers to the legislative session in less than a month, a recent government fiscal forecast offers insights into the budgeting landscape they will face. According to the five-year forecast from the Governor’s Office of Management and Budget (GOMB), the current fiscal year is expected to conclude with a $1.4 billion surplus. However, the forecast for the fiscal year 2025 shows a projected deficit of $891 million.
Governor JB Pritzker, commenting on the forecast at a recent event in Springfield, emphasized the need for caution in budget planning for FY ’25. He indicated a willingness to consider reductions in certain program increases to balance the budget, highlighting the importance of careful financial management for the state.
The GOMB report, released annually in November, assesses the state’s general revenue fund, the primary discretionary spending account subject to spring budget negotiations. The forecast for FY 2026 through FY 2029 predicts deficits exceeding $1 billion. However, Pritzker acknowledged the challenges of projecting future-year budgets due to evolving state, national, and global economic conditions.
Despite the projections, Governor Pritzker noted the historical tendency of revenue performances surpassing estimates during his tenure, indicating the unpredictability of future economic conditions. He anticipated fluctuations in the projected FY 2025 revenue total as the state approaches the fiscal year beginning July 1.
While Pritzker has overseen budget surpluses leading to supplemental spending plans, the likelihood of such a plan passing in the upcoming session remains uncertain. The governor identified a specific area of supplemental spending need, allocating $160 million in state support for migrants arriving in Chicago from U.S. border states.
The GOMB report identified additional “spending pressures” totaling $969 million, potentially necessitating supplemental appropriations. These pressures include state assistance for asylum seekers, increased caseloads in aging and human services departments, delays in federal reimbursements, rising group insurance costs, and outstanding technology bills.
After accounting for these pressures, the revised FY 2024 surplus is projected to be $422 million. GOMB anticipates revenues of just over $52 billion for FY 2024, up from the $50.6 billion approved in May.
The report emphasized that some surplus drivers, such as reimbursement for federal matching funds and strong tax filing seasons, are likely one-time occurrences and shouldn’t be incorporated into annual budgets. The projected decline in revenues to $51.5 billion for FY 2025, coupled with growing expenditures to $52.3 billion, contributes to the anticipated deficit.
The primary drivers of spending growth include the state’s public school and pension funding formulas, with each demanding an additional $350 million annually. The projected deficit for FY 2025 is $891 million, reducing to $721 million when considering the statutory contribution to the state’s “rainy day” savings fund.
Recent surpluses have bolstered the rainy-day fund, reaching its highest-ever balance of over $2 billion. Additional funds have been directed to pension funds, interest-accruing debt reduction, and replenishing the state’s unemployment insurance trust fund amid the COVID-19 pandemic.
The full scope of any supplemental spending plan resulting from the anticipated current-year surplus is expected to be known in the coming months. Governor Pritzker is scheduled to present his budget address to lawmakers on February 21, with budget negotiations continuing until the legislature adjourns and approves a budget in May.
CMAP Releases Plan of Action for Regional Transit
The Chicago Metropolitan Agency for Planning (CMAP) released its Plan of Action for Regional Transit (PART) for northeastern Illinois. This fulfills the requirements of Illinois Public Act 102-1028 tasking CMAP with developing legislative recommendations on the region’s transit system. A draft of the plan was released in September which we highlighted in other Chamber publications.
As has been extensively discussed in a variety of publications, events, and hearings, there is an anticipated funding gap that will arise for regional transit in 2026 after COVID-related federal funding has been exhausted. The budget deficit is projected to be $730 million to return to pre-pandemic service levels.
Post-pandemic transportation has shifted nationally, but CMAP identified three “significant drivers” for the operating funding gap.
- Declining ridership (significantly impacted by the shift in transportation trends following the pandemic)
- Reduced average fares
- Increased cost to operate transit
Throughout the Plan, greater participation from the state for both funding and governance is present in the recommendations. Provided below are some of the revenue options discussed in the PART that go beyond system actions to achieve $1.5 billion in new revenue (see pages 63-93). View the linked document to see the revenue projections and categorizations.
- Expand sales tax base to a broad selection of services
- Raise RTA sales tax in the region by 0.25%
- Raise tolls on existing Tollway facilities
- Expand tolling to un-tolled expressways (a long-term option that would require federal action)
- In-region vehicle registration surcharge (+$10/car)
- MFT surcharge (+5¢/gallon)
The report is to be submitted to the General Assembly and the Governor’s office by January 1st. Read the full PART here. Learn more from CMAP here.
New Illinois Law Requires Landlords to Build EV Chargers at Request of Renters
Those involved in the housing sector are evaluating the implications of Illinois’ recently enacted law, which mandates landlords to install electric vehicle (EV) charging stations in residential buildings upon tenants’ request.
Senate Bill 40, approved earlier this year, stipulates that as of January 1, single-family homes and newly constructed residential buildings with parking spaces must include a conduit for EV charging if requested by tenants. The legislation was amended during the fall veto session to specify charging station capabilities for each available parking space.
Dean Graven, an Illinois home builder, explained that the changes were made to streamline costs. He noted that the requirement now involves installing a conduit or pipe from the breaker box to a designated location in the garage. Graven highlighted the versatility of the conduit system, accommodating different EV charging voltage requirements without the need for expensive infrastructure.
During legislative discussions, much of the debate focused on construction costs. Paul Arena, representing the Illinois Rental Property Owners Association, initially opposed the bill but later stated that while costs would rise, they wouldn’t be prohibitive. He emphasized concerns related to renovations and tenant activities as the primary focus of their objections.
Graven mentioned that the amendment also addressed worries about the impact on future home prices. He clarified that the law did not significantly affect new home construction, alleviating concerns about escalating housing costs.
Arena expressed skepticism about a significant surge in demand for EV charging stations, predicting a more pronounced impact on new construction projects. He asserted that the anticipated increase in construction costs would not deter landlords significantly.
Graven likened the installation process to a consumer-driven choice, drawing a parallel to someone opting to add a hot tub to their bathroom. He emphasized that consumers would bear the cost if they deemed it necessary, and those who did not require it could simply opt out.
The legislation also permits landlords to charge a security deposit to cover expenses associated with restoring the property to its original condition when a tenant vacates.
Illinois Minimum Wage Increases January 1
The minimum wage in Illinois is increasing on January 1st, 2024. Workers will see an increase of $1 per hour from $13 to $14. The minimum wage for tipped workers will rise to $8.40 per hour and youth workers (under 18) working fewer than 650 hours per calendar year will see their hourly wage increase to $12 per hour.
“Since day one as Governor, I’ve made it my mission to put Springfield back on the side of working families,” said Governor JB Pritzker. “With this new minimum wage increase, we are once again making Illinois a more affordable and equitable place to live for all of our residents.”
“We’re continuing to not only strengthen our workforce but sustain it by increasing the minimum wage. Leadership matters and we’re proud to see our administration’s sixth increase go into effect on January 1,” said Lt. Governor Juliana Stratton. “As we continue our work to make Illinois the best state to live, work and raise a family, this new increase brings us one step closer to a more equitable Illinois.”
This will be the sixth increase in the state’s minimum wage since 2019 when Governor JB Pritzker signed historic legislation establishing a schedule of increases culminating in a $15 per hour minimum wage in 2025.
“Nationally, minimum wage laws have not kept pace with the cost of living,” said Illinois Department of Labor Director Jane Flanagan. “These wage increases have helped Illinois workers pay for the increasing costs of groceries, childcare and other everyday expenses. While many working families are still struggling, we celebrate that once again, on January 1st, workers will get a raise. We also continue to look for ways to make Illinois an even better place to work and live.”
Illinois Celebrates 2023 Economic Development Milestones
Governor JB Pritzker and the Illinois Department of Commerce and Economic Opportunity (DCEO) released the 2023 Illinois Economic Development Highlights report. This summary reveals a record year for economic development in key sectors, including a tripling of REV and EDGE incentivized private investments to nearly $3 billion since 2022, record tourism achievements, and assistance for Illinois small businesses.
“Over the last five years, I’ve worked with the General Assembly to improve our state’s business environment and prioritize economic development,” said Governor JB Pritzker. “We attracted new companies and helped existing ones expand, achieved record job growth, and improved our state’s fiscal health. 2023 was another year of historic progress”
“Illinois had an incredible year for economic development. From a record number of loans provided to start and grow small businesses to record tourism achievements, Illinois is the place to be,” said Lt. Governor Juliana Stratton. “I can’t wait to see how we top these numbers in 2024!”
“2023 has been a banner year for economic development in Illinois, including successfully executing new incentive programs, supporting a record number of small businesses with low-interest loans, earning honors among the top states in education and infrastructure, and taking the top spots in national economic development rankings,” said DCEO Director Kristin Richards. “For the first time in a long time, Illinois is attracting businesses and employing a record number of Illinoisans.”
In 2023, EDGE & REV Incentivized Investments Tripled to Nearly $3 Billion Since 2022
Over the course of a year, the number of new jobs created by Economic Development for a Growing Economy (EDGE) and Reimagining Energy and Vehicles (REV) jumped nearly 60 percent, from 2,691 to 4,279 with the number of retained jobs increasing exponentially, from 151 to 2,962. By comparison, prior to the pandemic in 2019, company investments from EDGE totaled $348 million, new jobs totaled 1,667 and REV did not yet exist.
With competitive incentives, modernized infrastructure, unmatched transportation options to ship goods around the world, and an abundant and highly qualified workforce, Illinois is winning over companies looking to make large-scale, long-term investments.
Major agreements from 2023 include Gotion’s electric vehicle (EV) battery gigafactory in Manteno – which represents the largest manufacturing investment in decades and the largest EV battery investment to date, as well as REV agreements with Manner Polymers in Mt. Vernon, who is building a first-of-its kind solar-powered PVC compounding plant using clean energy generated on-site; Prysmian Group in Du Quoin, whose $64 million expansion will manufacture cables for the renewable energy and electric vehicle sectors; and Microlink Devices, which manufactures state-of-the-art solar cells and solar shields in Niles.
Notable EDGE investments include Incobrasa in Gilman, which broke ground on its $250 million expansion this summer; UPSIDE Foods, a recipient of EDGE for Start Ups, which is opening its first commercial-scale meat cultivation plant in Glenview; Gulfstream Aerospace Corporation’s expansion in St. Clair County that will create 200 new jobs and retain nearly 500; Flender Corporation’s manufacturing facility expansion in Elgin; Bonnell Industries’ expansion in Dixon and more.
In addition to REV and EDGE, in 2019 Governor Pritzker enacted incentives to attract data centers, and Illinois saw investments in that industry topping $1.5 billion in 2023 (up from $500 million in 2022), which include Prime Data Centers in Elk Grove Village, Metro Edge Development Partners’ $257 million data center investment in Chicago, Serverfarm’s CH1 data center in Chicago and more. In 2023, Illinois also celebrated the opening of Meta’s new $1 billion DeKalb data center.
Illinois Earned Nine Credit Rating Upgrades Since June 2021
After nearly two decades of steady downgrades, Illinois has earned nine credit rating upgrades since June 2021. Credit rating agencies and bond investors attributed the upgrades to consistent responsible budgeting, focused investments in economic growth initiatives, more than $11 billion in debt pay down, and increasing pension funding.
Record Support for Small Businesses Through the Advantage Illinois Program
Through the Advantage Illinois (AI) program, Illinois issued a record 145 low-interest loans totaling $35.7 million to small businesses – nearly 1.5 times the number of loans issued in 2022 and the most loans issued in a year since the program’s inception in 2012. Nearly 70 percent of loans were provided to Socially and Economically Disadvantaged Individuals (SEDI) or through the Fund for the Advancement of Minority Enterprises (FAME). DCEO is greatly expanding its small business support thanks to $350 million in funding as part of the State Small Business Credit Initiative (SSBCI) administered by the U.S. Department of the Treasury.
Illinois Now Among Leading States in National Economic Development Rankings
In 2023, Illinois topped the lists of major economic development rankings, including Site Selection Magazine, CNBC’s Top States for Business and more. Highlights include:
- #1 in Midwest for workforce development (Site Selection Magazine)
- #2 state in the nation for corporate investments, with Chicago clocking in as the top metro in the country for corporate investments for the 10th year in a row (Site Selection Magazine)
- CNBC Rankings:
- #2 in the nation for infrastructure (up from #3 in ‘22)
- #2 in the nation for education (up from #6 in ‘22)
- #6 in the nation for access to capital (up from #8 in ‘22)
- #9 in the nation for cost of living (up from #20 in ’22)
- Moved up 13 spots in Best States for Business since 2018
- Chicago voted Best Big City in the nation by readers for the seventh consecutive year (Condé Nast Traveler)
Illinois Achieved Record Hotel Revenue in FY23
With millions of visitors spending billions of dollars in Illinois each year, tourism is a critical part of the Illinois economy. In FY23, Illinois reached its highest-ever hotel revenue figures ($308 million) – surpassing the pre-pandemic record in FY19. According to the latest available data, Illinois welcomed 111 million visitors who spent $44 billion in 2022 – representing 14 million additional travelers spending $12 billion more than calendar year 2021.
Illinois Announced Record-High Film Expenditures for 2022
This year, Illinois announced record-high film expenditures of nearly $700 million for 2022 – $130 million more than pre-pandemic levels in 2019. In order to build upon the state’s reputation as a national destination for film and TV production, in 2022, the state expanded the Illinois Film Production Tax Credit and launched the Film and TV Workforce Training Program, which is designed to increase diversity in Illinois’ film industry.
The 2022 inaugural year of the Film and TV Workforce Training Program included more than 70 percent students of color, and 80 percent of the program’s participants obtained paid positions on productions after graduation.
Building Blocks of Success: IDOT announces January dates for Disadvantaged Business Enterprise program workshops
The Illinois Department of Transportation is hosting free virtual workshops in January as part of its continuing Building Blocks of Success series for Disadvantaged Business Enterprise firms interested in strengthening their skills, growing their business and bidding on state projects. New and existing DBEs, as well as firms interested in becoming certified in the program, are invited.
January workshop dates and topics:
- Jan. 9, 10 a.m. to noon: Capital and Lending Series – Accessing Capital
- Jan. 11, 10 a.m. to noon: Capital and Lending Series – Advanced Banking (Underwriting Process)
- Jan. 16, 10 a.m. to noon: Capital and Lending Series – Improving your Personal and Business Credit Score
- Jan. 18, 10 a.m. to noon: Capital and Lending Series – What Banks Look For/How to
- Connect with Lenders
- Jan. 23, 10 a.m. to noon: Bonding and Insurance – Advanced Insurance and Bonding (Underwriting)
- Jan. 25, 10 a.m. to noon: Bonding and Insurance – Insurance, Bonding and Risk Management for Construction Firms
- Jan. 30, 10 a.m. to noon: Marketing and Networking Series – Business and Strategic Plans Q&A
Building Blocks of Success will continue through April. Workshop information, including dates and times, is available through Eventbrite at bit.ly/DBEworkshops. Advance registration is required.
Questions can be directed to IDOT’s Bureau of Small Business Enterprises at (217) 785-4611.
Through Gov. JB Pritzker’s historic, bipartisan Rebuild Illinois, IDOT is helping to deliver the largest capital program in state history while promoting diversity, equity and inclusion.
Administered by IDOT, the DBE program provides minorities, women and eligible small businesses with opportunities to participate in federally and state funded highway, transit and airport contracts. For more information on becoming a certified DBE and learning more about available IDOT resources, visit www.idot.illinois.gov/dbe.
HEALTHCARE, PHARMACY, BEHAVIORAL HEALTH, AND SOCIAL WORK PROVIDERS
Department of Financial and Professional Regulation
Administrative Procedures for General Professional Regulation Under the Administrative Code (68 Ill. Reg. 1130)
Text of Rulemaking: 47 Ill. Reg. 18250
Link to Flinn Report summary
Requires healthcare, pharmacy, social work, and behavioral health professionals to complete a one-hour cultural competency training course. Requires healthcare and behavioral health professionals to complete a one-hour course on Alzheimer’s disease and other dementias. ■ In cases when a healthcare provider is accused of sexual misconduct and violates an order requiring the provider to be accompanied by a chaperone when seeing patients, makes the hearing optional (upon the request of the provider) rather than automatic.
Comments (through 1/29/24), public hearing requests (through 12/29/24), or questions to:
Department of Financial and Professional Regulation
Attention: Craig Cellini, Rules Coordinator
320 West Washington, 2nd Floor
Springfield, IL 62786
217-785-0810
Fax: 217-557-4451
Craig.Cellini@illinois.gov
Illinois Back to Business New Business Grant Program (B2B NewBiz)
Illinois B2B NewBiz will provide financial relief to businesses that started during the pandemic in the industries most impacted by the pandemic. Businesses that started during the pandemic have not been eligible for state grants and most federal emergency support provided for emergency relief to small businesses thus far.
Eligibility Requirements
To be eligible for a grant award under Illinois B2B NewBiz, for-profit businesses and nonprofit organizations must meet all the criteria listed below:
- Started operations between January 1, 2020, and December 31, 2021.
- Had gross receipts of at least $25,000 and up to $20,000,000 in 2021 (annualized if started during 2021).
- Currently active operations in Illinois.
- Have not received a Back to Business (B2B) grant prior to 2023.
- Business Interruption Grant (BIG), Back to Business (B2B) Grant issued prior to 2023, Shuttered Venue Operators Grant (SVOG), or Restaurant Revitalization Fund Grant (RRF).
- Must meet one of the following two criteria:
- The business or nonprofit is in a priority industry as defined for the previous Back to Business program
- A list of priority industries and their definitions can be found here.
- The business is majority owned by an individual or individuals that became eligible for and received unemployment insurance benefits – including from Pandemic Unemployment Assistance (PUA) – between March 13, 2020, and the date the business began operations.
- The business or nonprofit is in a priority industry as defined for the previous Back to Business program
Application Window Opens: November 30, 2023, at 9:00 a.m. CT.
Application Window Closes: January 11, 2024, at 11:59:59 p.m. CT.
Full information and forms can be found at https://b2bnewbiz.com/
Stay well,
Mike Paone
Executive Vice President
Joliet Region Chamber of Commerce & Industry
mpaone@jolietchamber.com
815.727.5371 main
815.727.5373 direct