Illinois Insights: An Update from Cozen O’Connor (5/10)

ILLINOIS

Pritzker warns state agencies to prepare for $800 million less than proposed budget

Deputy Gov. Andy Manar sent a memo to state agency directors Wednesday asking them to prepare for $800 million less in revenue in FY25 if lawmakers don’t pass Pritzker’s tax requests.

“It has become clear that opposition to proposed revenue is significant enough to direct agencies to prepare for the possibility of reductions to proposed spending,” Manar’s memo said. “That revision is not enough to offset the need for additional revenue to support the FY25 proposed balanced budget.”

Among Pritzker’s proposed tax increases for the coming fiscal year is a doubling of the state’s tax on sports betting companies. Pritzker has also proposed extending an expiring cap on operating losses that corporations can claim on taxes, as well as an adjustment to the individual income tax standard deduction.

Lawmakers have currently set a self-imposed adjournment deadline of May 24. However, the General Assembly has until May 31 to pass a budget with simple majorities. FY  2025 begins July 1.

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| AROUND THE STATE

Biden headlines Chicago fundraiser, bringing in more than $2 million for reelection campaign

“Biden, stopping in Chicago after a campaign tour of swing-state Wisconsin, is mining the deep pockets of Democratic mega donors in Illinois,” by the Chicago Sun-Times.

Governor Pritzker Awards $1.7 Million to 40 Recipients as Part of the Made in Illinois Grant Program

“Governor JB Pritzker, the Illinois Department of Commerce and Economic Opportunity (DCEO) and the Illinois Manufacturing Excellence Center (IMEC) awarded $1.7 million in grant funding to 40 small and mid-sized manufacturers across the state through the Made in Illinois Grant Program,” from the Office of Gov. JB Pritzker.

Measure to create new state agency for childhood services now on Gov. J.B. Pritzker’s desk

“The Illinois House on Thursday passed Gov. J.B. Pritzker’s initiative to consolidate early childhood services under a single agency, paving the way for the creation of a new state Department of Early Childhood,” by the Chicago Tribune.

Live theater credit expansion, affordable housing tax credit considered by legislators 

“The state budget picture has tightened this week, but state lawmakers are still exploring the possibility of adding new or expanded tax credits to the budget. Among those considered by the House Revenue and Finance Committee on Thursday was an expansion of the Live Theater Production Tax Credit in HB5426 by committee chair Rep. Kelly Burke (D-Evergreen Park),” by The Daily Line.

Lawmakers, organizations express frustration over continued licensing delays in Illinois

“A state agency overseeing licensing for health care and occupational professionals is under scrutiny from lawmakers after missing a deadline in its quest to cutdown on delays and modernize services,” by the State Journal-Register.

CHICAGO

| MORE FROM CITY HALL

Mayor Brandon Johnson talks school funding, Bears stadium and ‘less high-profile budget needs’ during Springfield visit

“Chicago Mayor Brandon Johnson met with Gov. J.B. Pritzker and state lawmakers on Wednesday to make his pitch for more state funding for critical city operations such as the public schools, and to discuss the Chicago Bears’ $3.2 billion domed stadium proposal,” by the Chicago Tribune.

Johnson’s nomination of pastor to transportation board gets pushback, but advances

“Mayor Brandon Johnson’s proposed appointee to the Regional Transportation Authority’s board, a politically connected West Side pastor, struggled Wednesday to answer aldermen’s questions about the role and the looming financial difficulties facing the agency responsible for oversight of Metra, Pace and the Chicago Transit Authority,” by the Chicago Tribune.

Public education, rotation program among possible solutions to ‘rogue towers’ discussed at public safety committee hearing

“Despite steps taken by the city a few years ago to crack down on so-called ‘rogue towers,’ consumers continue to be preyed upon by unlicensed tow truck companies or those that charge sky-high rates, alderpeople heard during a hearing at the Committee on Public Safety on Tuesday,” by The Daily Line.

FEDERAL

Cozen Currents: Biden Goes Off-label

Young voters and progressives are a weak spot for President Biden’s re-election bid, particularly as Israel’s war with Hamas has left the Democratic Party deeply divided.

As the presidential election draws closer, the Federal Reserve continues to stick to its higher-for-longer approach, which could lead to interest rate cuts later this year being perceived increasingly through a political lens.

With Congress becoming more dysfunctional in recent years, respective administrations have relied more heavily on executive actions to regulate, and deregulate, as the case may be, their partisan agendas. The resulting pendulum has resulted in significant uncertainty for the staying power of a broad array of major policy actions as well as the companies responsible for complying with them.

Read the Cozen Currents article here.

Beltway Briefing: Navigating Big Tech’s Regulatory Labyrinth

Having once sat on a pedestal, big tech finds itself grappling with a maze of state and global privacy and data security regulations. Now, some major tech companies are asking Congress to force privacy standards. With the unveiling of a new bipartisan, comprehensive data privacy framework, the American Privacy Rights Act (APRA), the question arises: will this be the year Congress finally acts on privacy legislation? Featuring Public Strategies’ Patrick Martin, Madison Smith, and Meagan Foster.

Listen to the Beltway Briefing here.

If you have any questions regarding this update or if you’re interested in ways to engage on these issues, please contact one of our team members here.

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