Illinois Insights: An update from Cozen O’Connor May 5, 2025

ILLINOIS

| AROUND THE STATE

Revenue warning signs flash as Springfield preps for budget talks

“Already there are signs that Gov. JB Pritzker’s budget plan announced in February, which projected $55.4 billion in revenue, was optimistic. The Commission on Government Forecasting & Accountability, the bipartisan body that provides the state Legislature with research and information regarding state and national economies, predicted about $700 million less,” by Crain’s Chicago Business.

With 1 month left in session, lawmakers near deal on public transit reform 

“Lawmakers apparently are close to a deal to resolve one of Springfield’s most hotly contested issues this session: transit reform,” by Capitol News Illinois.

Pritzker rejects One Central funding on feasibility study 

“Citing the results of a long-delayed feasibility study released today, Gov. JB Pritzker is pouring cold water on the proposed One Central megadevelopment despite the developer overhauling the project’s cost projections — and trimming the state subsidy he’s seeking by $4 billion,” by Crain’s Chicago Business.

With the state’s grocery tax set to end, many municipalities are adopting their own, even as food prices climb 

“Gov. JB Pritzker signed a bill last year repealing the state’s 1% grocery tax, saying it hit poorer families harder. But the bill also allowed municipalities, which depend on the revenue, to implement their own tax,” by the Chicago Tribune.

Senate leaders split on community college bachelor’s degree proposal

“Two Democratic leaders in the Illinois Senate openly expressed their disagreement this week about Gov. JB Pritzker’s proposal to allow community colleges to offer four-year bachelor’s degree programs in certain high-demand employment fields,” by Capitol News Illinois.

Justice Department sues Illinois over law hindering federal immigration efforts 

“The United States Department of Justice is suing Illinois over a workplace privacy law it claims interferes with federal immigration authority. The DOJ filed the suit in the Northern District of Illinois, claiming the Right to Privacy in the Workplace, which went into effect on January 1st, 2025, prevents the enforcement of federal employment verification through the E-Verify program,” by MyStateline.

CHICAGO

| MORE FROM CITY HALL

Mayor names former city insider to steer O’Hare through expansion, airline tensions

“Mayor Brandon Johnson has picked Mike McMurray, a veteran infrastructure and transportation executive with City Hall experience, to lead the Chicago Department of Aviation,” by Crain’s Chicago Business.

Jessica Vasquez appointed to Cook County Board to fill 8th District vacancy

“Jessica Vasquez will serve out the 18 remaining months of Anthony Joel Quezada’s term representing the 8th District. She previously served as chief of staff to former 35th Ward Ald. Carlos Ramirez-Rosa and hopes to run in next year’s election for a full term,” by the Chicago Sun-Times.

Appeals Filed by Cook County Businesses Added $2B to Homeowners’ Property Tax Bills: Report 

“Cook County’s property tax appeals system shifted approximately $2 billion in property tax bills from businesses to homeowners between 2021 and 2023, according to a new report from Cook County Treasurer Maria Pappas,” by WTTW.

Chicago Public Schools’ top education leader Bogdana Chkoumbova to leave in June

“Bogdana Chkoumbova, the Chicago Public Schools chief education officer and outgoing CEO Pedro Martinez’s second-in-command, is leaving the district at the end of the school year,” by Chalkbeat.

Group opposing Mayor Brandon Johnson and allies raises $10M, progressives decry ‘sucker politics’ 

“The Common Ground Collective has raised $10 million, according to its executive director, Chuck Swirsky. It’s a sum that’s sure to grow but that is already similar to the combined amount Johnson received in his 2023 campaign from his top funders, the Chicago Teachers Union, Service Employees International Union and related unions,” by the Chicago Tribune.

Chicago mayor’s progressive income tax idea would hurt Illinois, economist says 

“The mayor of Chicago is pushing for a progressive income tax in Illinois, even though a recent economic report says it would make the state less competitive. Mayor Brandon Johnson lobbied for more funding from state taxpayers when he visited the Illinois Capitol Wednesday,” by The Center Square.

FEDERAL

Cozen Currents – He Said, Xi Said

The US and China are locked in a trade war that both Presidents Donald Trump and Xi Jinping seem to want to de-escalate, but a standoff over who initiates a dialogue and at what level is making it challenging to find an off-ramp.

The upper ranks of the Pentagon may be subject to turmoil but this is unlikely to substantively affect the outlook for the defense sector.

Elon Musk is preparing to scale back his role with the Department of Government Efficiency (DOGE), having shaken up government contracting and trimmed the size of the federal workforce. But whether DOGE’s efforts will make a long-term dent in federal spending will be determined by factors outside of its control.

Read the Cozen Currents here.

Beltway Briefing – An unprecedented beginning

Back in office with the energy of a first term and unburdened by the political considerations of a second, Trump has acted with urgency to do what he said he was going to do on the campaign trail, deploying a high-stakes tariff strategy, shrinking the federal government, and enforcing strict immigration policies. But with bold action comes complexity, and the administration must try to manage a delicate economy and a changing world order. Featuring Public Strategies’ Howard Schweitzer, Patrick Martin, and Towner French.

Listen to the Beltway Briefing here.

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