Government Affairs Roundup
“Your Timely Roundup of Local, State, and Federal Updates”
Chamber members:
Happy New Year to everyone! I hope you all had an enjoyable holiday season. We’re looking forward to 2025 with municipal elections at the first of April. More recently, lawmakers returned to Springfield this weekend and the past two days. Their lame duck session began late Saturday afternoon and ran through Tuesday, with the inauguration of the next General Assembly scheduled for noon today/Wednesday.
Our first luncheon of the new year has been announced and placed on the calendar. Join us on Wednesday, January 22nd at the Holiday Inn to hear Doug Pryor, President/CEO of the Will County Center for Economic Development talk about “Insights & Perspectives on Housing in Will County.” A much-needed discussion on a topic mentioned here in this space from time to time.
Here is the link to register: https://members.jolietchamber.com/events/details/2025-member-lunch-january-22-housing-in-will-county-insights-and-perspectives-7242
*Government Affairs Roundup brought to you by CITGO*
Lame Duck Session: Energy Initiatives in Illinois
As Illinois aims to position itself as a leader in data centers and quantum computing, the state faces the dual challenge of growing energy demands and a potential energy shortfall. In response, lawmakers are crafting legislation to ensure a reliable energy supply for these energy-intensive sectors.
“When we negotiated CEJA (the Climate and Equitable Jobs Act) four years ago, we anticipated increased demand for electric vehicles. What we didn’t foresee was the energy demands driven by data centers and the imminent emergence of quantum computing,” said state Senator Bill Cunningham, a Democrat from Chicago. Both data centers and quantum computing require vast amounts of energy, intensifying concerns as Illinois grapples with high electricity rates, retiring coal plants, and the risk of missing clean energy targets.
Behind-the-scenes negotiations for a clean energy package have been ongoing for months. Lawmakers aimed to pass a “skinny” energy bill during the lame-duck session, with plans to revisit broader legislation in the spring. Senator Cunningham and state Representative Barbara Hernandez are spearheading this effort, though its passage during the current session remains uncertain.
Key Components of the Bill
The proposed bill includes three primary initiatives:
- Expanding Energy Efficiency Programs
- The legislation seeks to enhance the state’s energy efficiency program, developed in collaboration with the Clean Jobs Coalition—a partnership of environmentalists and utility companies. While past efforts have focused on initiatives like replacing old light bulbs with energy-efficient ones, the new bill proposes subsidies for energy-efficient appliances such as refrigerators and furnaces.
- Accelerating Renewable Energy Development
- The second component emphasizes expediting renewable energy projects, particularly wind and solar. According to Senator Cunningham, this involves revising contractual language to streamline the development process.
- Advancing Energy Storage Solutions
- The third part mandates the Illinois Commerce Commission to conduct workshops on energy storage, specifically focusing on battery development. These batteries would store energy generated by renewables, providing power during periods when solar or wind energy production is low. “When the wind isn’t blowing and the sun isn’t shining, the batteries would take over,” Cunningham explained.
Energy storage requires extensive transmission infrastructure, which is expected to be addressed in the spring session. Experts stress the need for a significant expansion of high-voltage direct current (HVDC) interregional transmission lines. Such efforts have garnered support from environmental advocates, businesses, and labor groups alike.
Once the “skinny” energy package is passed, lawmakers plan to introduce a comprehensive energy bill in the regular legislative session. This subsequent legislation will build on the groundwork laid during the lame-duck session, focusing on energy storage strategies and the necessary transmission infrastructure to support Illinois’ clean energy goals.
Pay Stub Requirement Takes Effect January 1, 2025
Starting January 1, 2025, employers in Illinois will be required to provide pay stubs to employees each pay period. The pay stubs must include information on hours worked, pay rates, overtime pay, and deductions from wages. “This law gives employees greater transparency about their earnings, allowing workers to verify their hours, income, and deductions,” said Illinois Department of Labor Director Jane Flanagan.
As part of Public Act 103-0953, employers must keep a copy of an employee’s pay stub for a period of three years from the date of payment, regardless of whether that person remains employed at the business. An employee or former employee may request copies of their paystubs at least twice in a 12-month period.
Questions about Public Act 103-0953 can be sent to [email protected] and 312-793-2808.
Budget Pressures Could Impact K-12 Funding in Illinois
Illinois public schools have benefited from several years of significant state funding increases, driven by steady revenue growth and the adoption of a new funding formula in 2018. However, the sustainability of these increases in the upcoming fiscal year remains uncertain, as state lawmakers prepare to address potential budget challenges when they reconvene in January.
Budget forecasters predict flat revenue growth over the next year, coupled with rising demands for spending in other areas such as pensions and health care. Members of the Illinois State Board of Education (ISBE) were briefed on Wednesday about the state’s changing fiscal environment.
“I do not envy anybody involved in that process because it won’t be a fun time,” said Eric Noggle, revenue manager for the legislature’s Commission on Government Forecasting and Accountability (COGFA). COGFA, a nonpartisan agency providing economic and budgetary analysis, operates independently from the Governor’s Office of Management and Budget (GOMB), though their findings often align.
In November, GOMB projected a $3.2 billion deficit for the fiscal year beginning July 1, 2025. This estimate is based on flat revenue growth of approximately $53.4 billion and a 6% increase in spending, driven by statutory requirements such as pension contributions, Medicaid, state employee health care, and PreK-12 education.
Currently, Illinois allocates nearly $11 billion—about 20% of the state’s $53 billion General Revenue Fund budget—to public schools. Two main factors are driving the demand for increased funding:
- Evidence-Based Funding (EBF) Model
- Adopted in 2018, the EBF model requires annual increases of at least $350 million. This formula determines the “adequate” funding level for each district based on factors like student enrollment, poverty rates, and the number of English language learners. New funding is prioritized for districts furthest from their adequacy targets, with the goal of bringing all districts to at least 90% of their target.
- Some advocates, including Jelani Saadiq of Advance Illinois, argue that the state must exceed the minimum $350 million annual increase. “Three out of four children in Illinois are still in underfunded districts…We need to double down on our EBF investment moving forward,” Saadiq said.
- Mandatory Categorical (MCAT) Spending
- MCAT expenses include transportation, free breakfast and lunch programs, and education for children in foster care. According to Andy Krupin, ISBE’s director of funding and disbursements, the state often prorates reimbursements for these costs, with proration levels varying based on legislative appropriations.
To maintain this year’s proration levels, ISBE estimates the General Assembly would need to allocate an additional $142.2 million. Combined with the $350 million EBF increase, PreK-12 funding would need to rise by $492.2 million next year.
During public hearings in October, ISBE received numerous funding requests totaling approximately $2.2 billion. These include:
- A $550 million increase in EBF funding.
- A $10 million increase for career and technical education programs.
GOMB’s $3.2 billion deficit projection assumes a $444 million increase in school spending, along with $1.1 billion in additional health care expenses and $437 million in higher pension contributions. State Superintendent of Education Tony Sanders is set to present his final budget proposal to the board on Jan. 15, ahead of Governor Pritzker’s Feb. 19 budget address to the General Assembly. Upcoming fiscal decisions will test lawmakers as they strive to balance competing priorities while maintaining critical investments in education.
Illinois’ Pending Swipe Fee Law Delayed by Court Ruling
An Illinois law aimed at banning banks and credit card companies from charging swipe fees on taxes and tips is currently in legal limbo due to a court ruling.
A U.S. District Court judge has issued a preliminary injunction preventing the state from enforcing the Interchange Fee Prohibition Act on nationally chartered banks and savings institutions. However, the injunction does not apply to credit card companies or Illinois banks, meaning the state could enforce the law on those entities starting in July.
The judge’s ruling highlighted that the state law, which prohibits national banks from collecting specific fees from customers, conflicts with the National Bank Act.
The American Bankers Association and the Illinois Bankers Association are leading the lawsuit, arguing that the Interchange Fee Prohibition Act violates federal law. “We look forward to answering the judge’s questions to ensure that this relief applies to all financial institutions involved in the Illinois payment system, so the customers they serve will also be protected from the harm [the] IFPA will cause if it is allowed to move forward,” said a joint statement from the American Bankers Association, Illinois Bankers Association, America’s Credit Unions, and the Illinois Credit Union League.
Rob Karr, president of the Illinois Retail Merchants Association, welcomed the ruling, stating it would provide tangible relief for Illinois families. “Eighty-six percent of voters agree that it is unfair for banks and credit card companies to charge businesses swipe fees on sales taxes they collect for the state of Illinois and units of local government,” Karr said.
Governor J.B. Pritzker also supported the law, describing it as the best outcome for Illinois retailers. The law would also cap the discount retailers receive for collecting and remitting sales taxes. However, the Electronic Payments Coalition criticized the legislation, calling it an example of troubling self-dealing by a state government.
The court is scheduled to hear additional arguments on the matter on Jan. 15, which could determine the future enforcement and scope of the Interchange Fee Prohibition Act.
Notice of Funding Opportunity (NOFO)
Small Business Capital and Infrastructure Grant Program
OVERVIEW & ELIGIBILITY
The Illinois Department of Commerce and Economic Opportunity (DCEO) Office of Economic Equity & Empowerment (OE3) is pleased to announce the OE3 Small Business Capital and Infrastructure Grant Program. This program will provide funding to small businesses owned by Socially and Economically Disadvantaged Individuals (SEDI) or Very Small Businesses (VSBs) for capital improvement and infrastructure projects.
Grants ranging from $10,000 to $245,000 will support initiatives that drive business growth, enhance operational efficiency, promote sustainability, and create or retain jobs. This funding opportunity is exclusively focused on capital improvements and infrastructure projects to support SEDI-owned businesses and VSBs. Priority will be given to applicants located in Community Development Financial Institution (CDFI) Investment Areas where businesses play a critical role in addressing local economic needs.
ELIGIBLE PROJECTS
Examples of eligible capital and infrastructure projects can be found here bit.ly/4gFmCB9.
APPLICATION INFORMATION
Applications must be submitted by Monday, April 7, 2025, at 5 pm.
WEBINAR
Tuesday | January 14, 2025 | 11 am | Register here
CONTACT
For program-specific questions, contact the team at [email protected].
Stay well,
Mike Paone
Executive Vice President
Joliet Region Chamber of Commerce & Industry
[email protected]
815.727.5371 main
815.727.5373 direct