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Sunday, November 24, 2024

Illinois faces flat revenues; unemployment rises amid licensure delays

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State Representative Michael Coffey (IL) | Representative Michael J. Coffey, Jr. (R) 95th District

State Representative Michael Coffey (IL) | Representative Michael J. Coffey, Jr. (R) 95th District

General Assembly reports largely flat state revenues in August 2024. The monthly report tracks state general funds revenues, equivalent to inflows into the state’s overall ‘checking account.’ Money coming into Springfield-based general funds totaled $3,485 million in August 2024, up only $50 million (1.5%) from the $3,435 million in equivalent state revenues enjoyed in the year-earlier period, August 2023. This 1.5% increase concealed a decline in real state income during this 31-day period, as 2023-2024 inflation has caused the prices of goods and services to rise faster than 1.5%.

August 2024 state general funds income was held back by a slight fall in personal income tax receipts, with this key state revenue cash flow dropping $54 million from August 2023 to August 2024. While some other state revenue sources showed slight increases, this key area of relative weakness held back the consolidated bottom-line number for all state revenues.

Most Illinois personal income tax cash flow is funneled to Springfield through automatic deductions from paychecks paid to employed Illinois residents, and this cash flow is heavily dependent on the overall employment picture in Illinois. During a comparable 12-month period starting in July 2023 and ending in July 2024, Illinois unemployment has gone up from 4.4% in July 2023 to 5.2% in July 2024. This increase in Illinois joblessness, of 80 basis points, could be affecting cash flow into the Illinois personal income tax top line.

Moneys paid in income tax go to the Illinois Department of Revenue (IDOR), which reports their monthly revenue numbers to the Commission on Government Forecasting and Accountability (CGFA), the nonpartisan budget monitoring arm of the Illinois General Assembly. As the State of Illinois’s independent fiscal watchdog agency, CGFA monitors monthly general funds revenue trends in Springfield.

Progress towards startup of a new Central Illinois school focusing on the building trades is ongoing. The San Damiano College for the Trades will provide adult-level education aimed at skilled-trades career pathways. The college will focus on carpentry, plumbing, and electrical contracting, which will be taught through a Catholic framework that will concentrate on the future of households and families in Illinois. The current scheduled operational startup date is fall of 2025.

The San Damiano College will be located on a repurposed footprint on the grounds of the Hospital Sisters of St. Francis near Springfield, Illinois. The location will continue and step up the Catholic educational heritage of its predecessors, with the goal of enabling the formation of adults with strong family-oriented values. Together with hands-on training in building trades, the new college plans to offer coursework oriented towards awarding associate degrees to student learners.

In a new mandate, Illinois government bans convenience hygiene bottles in hotel guest rooms. The familiar hand-sized bottles have been found throughout Illinois hospitality spaces, especially bathrooms and shower chambers. They contain soap, shampoo, and conditioners meant to ensure these hygienic products are personal to each guest. However, the new Small Single-Use Plastic Bottle Act will soon forbid these goods from being placed in Illinois hotel rooms. The Act will become fully effective on January 1, 2026; many hotels will take action before that time to remain compliant by phasing out these toiletries.

The ban on small hospitality toiletry bottles applies to all such bottles that are less than six ounces in size and are not intended for reuse. The new law aims to reduce demands on Illinois landfill facilities as these toiletry bottles cannot be recycled and are bulky after they are emptied. Some Illinois hotels are installing or have installed shower brackets to hold larger pump-action bottles for dispensing shampoos and conditioners while continuing distribution of small wrapped bars of soap.

All Illinois House Republicans voted “no” against the Small Single-Use Plastic Bottle Act. House Republican opponents pointed out that measure as yet another intrusive mandate imposed by Springfield on small businesses within Illinois. The bill was approved by House and Senate Democrats as SB 2960 and signed into law by Gov Pritzker.

House Republicans focus on delays issuing required state licenses led by House Minority Leader Tony McCombie who introduced a comprehensive plan and bill package intended to unsnarl license-issuance processes operated by IDFPR (Illinois Department of Financial and Professional Regulation). IDFPR is responsible for issuing most licenses used by professionally trained residents within Illinois but has faced dysfunctions recently.

State Representative Mike Coffey understands professionals' frustrations seeking work within Illinois filed House Bill 5007 aiming at helping individuals receive professional licenses more efficiently creating task force managing reports submitted General Assembly review.

“We have incredible people seeking professional careers within our State but waiting months obtain license work deprives them earning paycheck result poor policy driving workers other states creates barrier economic growth filed legislation support professional workers,” said Coffey.

Springfield-based IDFPR blames “computer problems” delays snafus department’s licensure paradigm based antique technological platform receiving inadequate support professional solutions providers overlaid separate security-software add-ons creaking system means neither computers nor operators know what going anymore General Assembly issued bipartisan instructions department switch out licensure hardware software create new platform so far unable do so McCombie plan legislative package sponsored also House Republicans Bill Hauter Dave Severin speed necessary work procuring new hardware software getting running important goal Hauter trained physician healthcare professionals impacted special force IDFPR licensure delays

State Representative Mike Coffey posted form help professionals tracking license renewals applications inside current IDFPR process

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