Government Affairs Roundup
“Your Timely Roundup of Local, State, and Federal Updates”
Chamber members:
Last call for our member luncheon event on July 15 as we welcome in Illinois Department of Transportation Secretary Gia Biagi as the featured speaker to talk about I80 project progress, downtown bridges, and upcoming transportation projects in the region. You can rsvp here: https://members.jolietchamber.com/events/details/2026-member-lunch-july-15-idot-project-updates-with-gia-biagi-secretary-of-transportation-7833
Additionally, I’m sharing an opportunity to assist a fellow chamber member this weekend:
4-H Youth Development at the Will County Illinois Extension is having their 4-H Fair judging for General Projects this Saturday at the JJC Weitendorf Center. They need some last-minute judges, as well as assistants. They are especially in need of judges for Welding, Woodworking, Health, and Career and Leadership. Judges play a key role in the 4-H experience, providing feedback that recognizes what they have learned, as well as coaching them on areas for improvement and future focus.
Time Commitment:
Will County General Projects judging is Saturday, July 11, 2026. Judges arrive between 8 and 8:15 am. We will have a short meeting, and then you will go to your judging space already set up for you. We plan for judging to be completed at 11:30 a.m. and State Fair Delegate and Alternate selections will then take place. Our hope is that all your judging is completed by noon.
The RSVP link and info for our judges and assistants is here: https://emails.illinois.edu/newsletter/25/387088025.html
Questions and further information can be obtained from Barbara Dubravec, 4-H Youth Development Program Coordinator – 815.727.9296 / bud23@illinois.edu
Finally, no GA Roundup email for next week as I’ll be on vacation.
*Government Affairs Roundup brought to you by CITGO*
State Surpasses Revenue Budget at End of Fiscal Year
Illinois ended fiscal year 2026 with revenues exceeding expectations, but a closer look at the numbers suggests a more nuanced fiscal picture than the headline figure alone might indicate.
The state collected approximately $1 billion more in General Funds revenue than lawmakers projected when they enacted the budget last May. According to the Commission on Government Forecasting and Accountability (COGFA), revenues surpassed estimates by $1.003 billion, or 1.8%, marking the second consecutive year of record collections.
COGFA Revenue Manager Eric Noggle characterized the fiscal year as “exceptionally strong” relative to budget assumptions. The outperformance was driven primarily by stronger-than-anticipated receipts from the Personal Income Tax, Estate Tax, and Transfers In. These gains were sufficient to offset weaker results in other areas, including the Corporate Income Tax and Federal Sources, which came in below projections.
However, the extent to which this revenue growth reflects underlying economic strength versus one-time or timing-related factors remains an open question. The final revenue report noted that June included an additional receipting day compared to the prior fiscal year, a calendar-related factor that likely boosted collections. Such anomalies can temporarily inflate revenue totals without signaling a sustained trend.
In addition, the state’s fiscal position is moderated by spending decisions made during the year. Lawmakers approved more than $830 million in supplemental fiscal year 2026 appropriations, absorbing a significant share of the unexpected revenue. As a result, the net improvement to the state’s overall financial position is smaller than the topline revenue gain might suggest.
From a policy perspective, the FY2026 results highlight both strengths and ongoing structural considerations within Illinois’ budget. On one hand, consistent revenue growth and above-estimate collections provide short-term flexibility and reduce immediate fiscal pressure. On the other hand, reliance on economically sensitive revenue streams, such as income taxes, and the presence of one-time factors underscore the importance of cautious forecasting and disciplined spending.
Taken together, the state’s fiscal year-end performance reflects a period of relative stability, but not without caveats. Whether this trajectory continues will depend on broader economic conditions, revenue volatility, and future budget decisions made by policymakers.
More on Tax Revenue Growth
Illinois is seeing continued growth in key tax revenues, though at a more moderate pace than in recent years, according to the latest reading of the state’s Flash Economic Index.
The index, which is based on major state tax revenues, rose slightly from 101.1 in May to 101.4 in June. Readings above 100 indicate economic growth. The increase reflects higher income tax and sales tax receipts for the fiscal year that ended June 30, suggesting continued expansion in the state’s economy.
However, Fred Giertz, an emeritus professor at the University of Illinois Urbana-Champaign, said the latest data should be viewed within the context of a longer-term slowdown in growth.
“Decline doesn’t mean the economy is getting worse,” Giertz explained. “It means the economy is not advancing as quickly as it otherwise would.” He characterized the current period as one of modest growth, but slower compared to the stronger pace seen over the past several years.
Illinois’ labor market reflects a similar dynamic. While the state’s unemployment rate remains low by historical standards, it continues to run higher than the national average. Giertz noted that Illinois is expanding economically, but still lagging behind overall U.S. growth trends.
Breaking down the components of the index, all major categories showed year-over-year increases in June. Individual income tax revenues have been particularly strong throughout the year, which Giertz said may be partially driven by elevated capital gains tied to strong stock market performance.
“That increases the revenue,” he said, pointing to the impact of financial markets on tax collections.
Sales tax receipts also rose, and importantly, the gains reflect real economic growth rather than just inflation. Giertz emphasized that the index adjusts for inflation, meaning the figures represent increases in actual purchasing power and economic activity, not simply higher prices.
Corporate income tax revenues, while down compared to last year, remain solid when viewed against historical benchmarks, indicating that business-related tax collections are still performing at relatively high levels.
The Flash Economic Index itself was developed nearly 30 years ago by the University of Illinois Institute of Government and Public Affairs to provide a timely snapshot of economic conditions. Because official state and federal economic data is often released with significant delays, the index uses tax revenue trends as a proxy for real-time economic performance.
Giertz noted that while the index is valuable for its speed, it requires careful interpretation. Adjustments must be made for anomalies in tax collection patterns, such as shifts in payment timing or changes in cash flow, which can temporarily distort the data.
Illinois Tollway $26.5 Billion Construction Program Details
The Illinois State Toll Highway Authority has unveiled an ambitious $26.5 billion, 15-year capital plan that will reshape major portions of the state’s tollway system, though much of the work focuses on long-needed repairs and congestion relief rather than headline-grabbing expansions.
The initiative, dubbed “Driving Connections,” allocates more than $14.6 billion toward reconstructing and rehabilitating existing toll roads, along with nearly $3.36 billion for interchange improvements and approximately $880 million for roadway widening projects. Compared to the agency’s previous $15 billion “Move Illinois” program, which included major new construction like the I-490 toll road near O’Hare International Airport, the new plan is more focused on modernization and system efficiency.
Transportation experts say that shift reflects current needs. Joseph Schwieterman of DePaul University noted that while the program may lack a “wow factor,” it addresses critical infrastructure challenges. Persistent congestion across the tollway system, particularly during peak travel times, underscores the urgency of these investments.
Among the largest projects is a $3.1 billion overhaul of the interchange at I-88 and I-355, a heavily traveled junction in the western suburbs. The plan includes adding lanes to both northbound and southbound I-355 in the Downers Grove area, along with ramp improvements designed to ease traffic flow and reduce bottlenecks.
Another key project would be to reconfigure the Tri-State Tollway interchange at Irving Park Road in Schiller Park. Currently limited to partial access, the proposed $132 million upgrade would create a full interchange, improving connectivity in a busy corridor near O’Hare.
The plan also includes a $2.2 billion reconstruction of a 17-mile stretch of I-355 between I-55 and Army Trail Road in Addison, one of several large-scale efforts to address aging infrastructure across the system.
Beyond construction, the Tollway is investing in future planning and engineering. This includes $240 million for studies and preliminary work aimed at reducing congestion at the I-294 and I-90 interchange in Rosemont, as well as a $34 million study focused on the I-90/I-290/Route 53 corridor, another major chokepoint for regional traffic.
Officials say the program also emphasizes coordination with regional partners. One example is a proposed $412 million project near the future Route 390 and I-490 interchange adjacent to O’Hare. In partnership with the Chicago Department of Aviation, the Tollway would construct a western access facility for airport employees, including parking and security screening. Additional details on the project’s scope and timeline are expected to be released later this year.
Cassaundra Rouse, the Tollway’s executive director, said the plan reflects a broader effort to align transportation investments across the region. She emphasized the importance of improving safety, upgrading aging bridges, and integrating technology to enhance system performance.
To help fund the program, the Tollway is considering a series of toll increases. For I-PASS users driving passenger vehicles, rates would rise by an average of 45 cents per toll, with additional inflation-based increases proposed every other year beginning in 2029. The changes are subject to board approval.
Here’s a sampling of significant proposed construction, which often includes improvements such as better drainage and upgraded technology.
Veterans Memorial Tollway (I-355)
•Resurfacing between the Spring Creek Toll Plaza near Lockport and I-55 at a cost of $650 million.
•Widening in both directions between Roosevelt Road and North Avenue in the Lombard area to reduce congestion, budgeted at $197 million.
Reagan Memorial Tollway (I-88)
•Resurfacing and rehab between the Aurora Toll Plaza and Washington Street in Naperville for $391 million.
•Widening in both directions between the Aurora Toll Plaza and Route 59 in the Naperville area for $390 million.
•Rehabbing roadway and bridges between 95th Street in Bridgeview and 159th Street in Markham for $1.4 billion.
•Rehabbing roadway and bridges between Balmoral Avenue and the Edens Spur at a cost of about $1.3 billion.
•Resurfacing between 95th Street and Wolf Road in Burr Ridge for $707 million.
•Widening and rehabbing between Route 394 and 159th Street for $757 million.
•Widening the northbound lanes between Deerfield Road and Route 22 for $105 million.
Jane Addams Tollway (I-90)
•Resurfacing and rehabbing between the Elgin Toll Plaza and Kennedy Expressway at a cost of $664 million.
•Resurfacing and pavement upgrades between the Kishwaukee River near Rockford and the Elgin Toll Plaza for $823 million.
Stay well,
Mike Paone
Executive Vice President
Joliet Region Chamber of Commerce & Industry
mpaone@jolietchamber.com
815.727.5371 main
815.727.5373 direct