Government Affairs Roundup
“Your Timely Roundup of Local, State, and Federal Updates”
Chamber members:
Another short report this week as things are quiet for the summer policy wise, but certainly not quiet on the election cycle front as we have the Republican National Convention underway and the Democratic National Convention right around the corner.
I hope everyone escaped the past few days with no or limited damage from the storms that rolled through our area. As always, if in need of services, please visit our membership directory to utilize your fellow chamber members.
*Government Affairs Roundup brought to you by CITGO*
Economic Growth Provides More Opportunities for All Americans
U.S. Chamber President and CEO Suzanne P. Clark appeared on CNBC Monday calling on candidates and elected officials to focus on policies that will create the economic growth needed to preserve the American dream.
Greater economic growth means a better life for every American. Unfortunately, this debate is not front and center in the current political discourse—but it should be. “It’s a really important moment for voters and for business leaders to be taking seriously what public policy initiatives we need to get back to real economic growth in this country,” Clark said.
Economic growth must be a national priority. “When the country is growing at 3%, the American dream is more in reach,” Clark said. “Homeownership is more in reach, education is more in reach, affordable childcare is more in reach.”
To make that happen, the Chamber launched the Growth and Opportunity Imperative, urging candidates and elected officials to support policies that would achieve at least 3% annual economic growth over the next decade—a 50% increase over current projections.
To create the future we want, and that the next generation deserves, we need pro-growth policies that support:
- A better regulatory environment: Recent Supreme Court decisions allow us to take a fresh look at the regulatory state. How can we ensure there are consistent rules of the road that protect the health and safety of all Americans and also allow businesses to innovate and lead?
- Competitive tax policy: With key parts in the 2017 tax reform law set to expire next year, there’s $4.5 trillion of tax hikes at stake that would land in a crushing way on families, workers, and businesses of all sizes. Congress and the next Administration must find a way to come together to not just extend but improve the tax code.
- Workforce expansion: Our leaders need to address immigration reform and secure the border to ensure a larger and more skilled workforce.
- American innovation: Let’s promote and protect American creativity and make sure our companies have a fair chance to succeed.
Bottom line: “Economic growth is the most important agenda item that every candidate and elected official should be talking about,” Clark said.
Ongoing Push for Transit Oversight Reform
On Tuesday, a downtown Chicago committee hearing drew a standing-room-only crowd of activists, transit experts, and lobbyists, all eager to hear from the region’s transit agency chiefs. Public transit has become a hot-button issue in Chicagoland, with the Regional Transportation Authority (RTA)—which oversees Pace suburban bus routes, Metra regional rail lines, and the Chicago Transit Authority (CTA)—reporting a looming “fiscal cliff” in 2026.
Currently supported by pandemic-era funding and temporary state law allowances, the agencies face a projected annual budget gap of $730 million in operating costs starting in 2026, according to the Chicago Metropolitan Agency for Planning (CMAP).
“The preliminary analysis from our consultant shows that the fiscal cliff scenario, without state funding assistance, could wipe out 30 to 40 percent of the service in northeastern Illinois,” stated RTA Board Chair Kirk Dillard, a former state senator, during the hearing. This worst-case scenario could result in a $2.4 billion drop in regional GDP in the first year and affect up to 25,000 jobs. Conversely, Dillard painted a much rosier picture if the state increases its annual support for the transit agencies: $2.5 billion in annual GDP growth and the creation of 27,000 new jobs.
“You’ve got a choice to make,” he told lawmakers. However, some members of the General Assembly are hesitant to give unconditional support to the transit agencies, which have faced criticism for service cuts, safety issues, and poor workforce development since the early pandemic.
Senator Ram Villivalam, D-Chicago, chair of the Senate Transportation Committee, convened Tuesday’s hearing—the first in a series aimed at exploring possible improvements to public transit in Illinois. He asserted that there would be “no votes for funding” unless service issues and governance reforms are addressed first.
Earlier this year, Villivalam proposed legislation to consolidate the four agencies into one organization, in line with recommendations from CMAP and further supported by the Civic Federation, an influential Chicago think tank. Both proposals suggested either combining the four agencies or granting more authority to the RTA or a new oversight agency to control regional transit policy. However, the heads of the Chicagoland agencies expressed resistance to major reforms during the hearing.
“We all want to do the best job we can,” said Pace Executive Director Melinda Metzger. “I do not believe that combining us into one organization will make us better.” Metzger argued that each agency has local representation on its board and that suburban areas’ needs might not be met as effectively under a single agency.
CTA President Dorval Carter also defended the current system. “The model that’s been set up for governance today didn’t come about by accident,” Carter said. “It was a really hard-fought compromise between the need for accountability and the need for local control.”
Metra CEO James Derwinski noted that many of the improvements sought by transit advocates are funding issues, not oversight ones. “If we adequately fund the system, the operators can do the right things,” he said.
The hearing is the first of six, with additional sessions planned around Chicagoland and in Springfield in the coming weeks. According to Villivalam, these hearings will help shape a proposal by lawmakers’ spring session next year. “We definitely need to take action, I think, at least 9 to 12 months before the fiscal cliff of early 2026,” Villivalam remarked.
Stay well,
Mike Paone
Executive Vice President
Joliet Region Chamber of Commerce & Industry
mpaone@jolietchamber.com
815.727.5371 main
815.727.5373 direct