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Penny shortage causes headaches for retailers in the Land of Lincoln

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Penny shortage causes headaches for retailers in the Land of Lincoln


SPRINGFIELD — At the Abraham Lincoln Presidential Library and Museum in Springfield, visitors can shop for sweatshirts, pillows, jewelry and chocolates using coins bearing the face of perhaps the most-famous Illinoisian, Abraham Lincoln.

But even here, pennies are growing scarce at the cash register.

The museum gift shop, like the rest of the country, is grappling with a penny shortage after the United States Mint halted production of the coin in November, citing the rising cost of producing them.

The lack of fixed guidance from the state and federal governments about how to cope with the shortage of new pennies has left some business owners scrambling to come up with ways to address it.

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Many retailers are just rounding up or down to the nearest 0- or 5-cent mark in their prices to make change. They will accept the one-cent coins, but can’t always pay them out.

“The retailer faces frustration on behalf of the consumer,” said Rob Karr, president of the Illinois Retail Merchants Association. “Most retailers are rounding in the consumer’s favor, which doesn’t make the consumer mad, but it also takes profits out of the retailer and puts them at the narrowest end of the net profit margin. So every penny matters there. I think the absence of clear guidance at the moment is difficult.”

Some businesses, like the Lincoln Museum gift shop, display a guide on how its rounding system works. The museum, for example, rounds amounts ending in 1 or 2 cents down to 0. It rounds amounts ending in 3 or 4 cents up to 5 cents, and amounts ending in 6 or 7 cents down to 5 cents. However, other business owners say this kind of multi-tiered rounding system can be inconvenient and confusing for customers.


The gift shop at the Abraham Lincoln Presidential Museum has a printed guide for customers explaining how its penny rounding system works. (Medill Illinois News Bureau photo by Erika Tulfo)

For many Illinoisans, there is a sad, end-of-an-era feeling watching the slow disappearance of the one-cent coin, which was one of the first coins made by the U.S. Mint after its establishment in 1792. President Lincoln’s profile has been on the “heads” side since 1909, and that change made him the first president featured on U.S. coins in honor of his 100th birthday.

Mary Disseler has been working as a volunteer at the Lincoln Museum for over 20 years since its founding in 2005. As a die-hard fan of Lincoln, she sees the decision to stop penny production as a sad but sensible decision.

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“It kind of breaks my heart. I think it’s a nice tribute to Mr. Lincoln, but I understand that it’s costing four cents to make a penny, so there’s a part of us that has to be practical, too,” she said.

Keith Wetherell, executive director of the Illinois Licensed Beverage Association, which represents a handful of small, cash-reliant or cash-exclusive businesses, has practical concerns, too. He worries that the inconvenience posed by complicated rules around rounding could affect customers’ sentiments.

“The one thing that we would really lobby against was any type of bouncing around from city to city where you have all these different rules and stuff; we want to just minimize the confusion,” he said. “We just like to make everything as good and as easy as possible for the customer. Small businesses are struggling as it is. We don’t want any operational challenges. When (customers) have challenges, they take it out on us by not buying them as much.”

Julie Johnson, who owns Daisy Jane’s, a boutique in downtown Springfield, said she rounded up cash change to the benefit of the customer when necessary, but would rather use pennies to give them exact amounts.

“My jar is pretty low on coins. I’m gonna have to figure out what (the state) wants us to do with pennies,” she said. “There has to be a plan for that. When you calculate tax on something, it’s almost always going to have pennies as part of the equation.”

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How will lawmakers respond?

Illinois lawmakers say the penny shortage is not an issue at the top of the agenda because of factors like the popularity of cashless payment methods and the fact that there are still billions of pennies in circulation.

Sen. Dave Syverson, R-Cherry Valley, wrote a note on his website in November applauding the U.S. Treasury’s decision to halt production, saying it was “more of an inconvenience than a useful part of the economy.” He said no steps were currently being taken to address the shortage at the state level and that he would await guidance from the federal level.

“It’ll be something that they’ll obviously start working on addressing more and more as the pennies become less in circulation,” he told Capitol News Illinois. “It doesn’t look like people have to worry about it at all for 2026. I’m guessing that the soonest there’d be any guidance would be ’27, when they would maybe set some rules about requiring businesses to accept whatever rounding decision that gets made.”

But Karr, head of the retail merchants association, said he wasn’t satisfied with Springfield playing the waiting game and leaving the decision up to the U.S. Treasury.

“While the federal government makes currency decisions, the states make sales tax decisions. So it’s a shared responsibility,” he said. “While there’s clarity that the federal government needs to provide, there’s also clarity that the state needs to provide. That clarity, it helps in terms of lawsuits as well, because there are lawyers out there who can sue if they don’t think you’ve done something correctly. And without that guidance, it leaves the retailers certainly exposed.”

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The gift shop at the Abraham Lincoln Presidential Museum has a printed guide for customers explaining how its penny rounding system works. (Medill Illinois News Bureau photo by Erika Tulfo)

Gordon Davis, founder of the Springfield tea store Whimsy Tea, said he hasn’t had issues with the penny shortage yet, but that it was “looming.” He said that while 72% of his customers opted to pay with cards, more than one-quarter still chose to pay with cash.

Instead of rounding prices, Davis made prices tax-inclusive in his store’s point of sale system, which he says saves him the trouble of facing legal complications with rounding.

“Rounding, as I understand, can run you afoul of federal law because you have to treat all currencies, all payment methods the same. If you’re rounding for cash but not rounding for card, you’re breaking the law,” he said.

Still, experts say that beyond minor adjustment costs on the retailers’ end, the penny shortage won’t pose a major issue in terms of price increases simply because its value is low.

“Inflation-wise, it’s not creating a problem,” said Shihan Xie, an assistant professor of monetary economics at the University of Illinois Urbana-Champaign. “The value of the penny has diminished. It’s at a point where the value is so small that it’s not going to affect daily life much, or that it becomes crazy.”

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But for some citizens of the Land of Lincoln, the penny shortage is an issue that has more to do with sentiment. Lincoln Museum volunteer Disseler she understands the economics no longer support the beloved one-cent piece.

“We’ll still have the $5 bill,” she said. “Even though they’re phasing (the penny) out, we’ll keep his memory alive forever.”

 

Erika Tulfo is a graduate student in journalism with Northwestern University’s Medill School of Journalism, Media and Integrated Marketing Communications, and is a fellow in its Medill Illinois News Bureau working in partnership with Capitol News Illinois.

Capitol News Illinois is a nonprofit, nonpartisan news service that distributes state government coverage to hundreds of news outlets statewide. It is funded primarily by the Illinois Press Foundation and the Robert R. McCormick Foundation.

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This article first appeared on Capitol News Illinois and is republished here under a Creative Commons Attribution-NoDerivatives 4.0 International License.



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Major upgrades continue at Illinois’ second largest state park

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Major upgrades continue at Illinois’ second largest state park


One of Illinois’ most beloved outdoor destinations is getting a major refresh, and improvements continue as we begin to emerge from hibernation and start to head outdoors. Starved Rock State Park, the state’s most visited park, is undergoing an $18 million trail improvement project designed to make hiking safer and help preserve the landscape for years to come.

Located about 100 miles southwest of Chicago, Starved Rock is home to towering sandstone bluffs rising above the Illinois River and forested trails winding through canyons carved by glacial meltwater more than 14,000 years ago. Established in 1911 as Illinois’ second state park, the site is known for its 18 dramatic canyons, seasonal waterfalls and sweeping river views.

The park’s popularity has taken a toll on its infrastructure, however. Over time, heavy foot traffic and harsh Midwest weather have worn down many of the timber bridges, stairways, boardwalks and retaining walls that guide visitors through the rugged terrain. To address that, the Illinois Department of Natural Resources launched a large-scale trail rehabilitation effort in late 2025 that will continue through most of 2026.

The goal is to repair aging structures, reopen previously closed trails and make the park safer and easier to explore.

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Construction is being staggered so that only certain areas are closed at a time. Currently, several routes are temporarily off limits while crews work, including the Brown Bluff Trail above French Canyon, Tonti Canyon and Tonti Bridge, the west side trail between LaSalle Canyon and Tonti Canyon and the trail leading from the west entrance to the boat ramp area. The Lone Tree Canyon staircase and the Owl Canyon overlook have also seen closures during portions of the project.

Short-term closures are also happening for tree removal and maintenance work. Work continues, and as of February 24, 2026, the IDNR says that trails may close temporarily through mid-March, with conditions changing day to day. Visitors can still access much of the trail system, and the historic Starved Rock Lodge remains open throughout construction.

If you’re planning a trip, park officials recommend stopping by the visitor center for the latest trail updates before heading out. Staff and volunteers can suggest alternate routes so you can still experience the park’s sandstone canyons, waterfalls and wooded overlooks.

Stay up to date with the latest closures and improvements on the park’s website.



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Mayors across Illinois push for local gas tax, other state laws

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Mayors across Illinois push for local gas tax, other state laws


SPRINGFIELD (25News Now) – Illinois mayors are asking state lawmakers for more tools to manage local budgets, roads, and growth as part of their yearly pitch.

The Illinois Municipal League, a coalition of towns, cities and villages throughout the state, laid out their wish list for lawmakers in 2026. Their message: Give cities, villages, and towns more control over how money is raised and spent close to home.

One of their core demands is for the state for fully fund all revenue that is shared with municipalities. One example is the Local Government Distributive Fund.

According to the IML, the LGDF used to spread 10% of state income tax revenues across municipalities. In 2011, that percentage was changed to 6%. This year, Governor JB Pritzker proposed allocating 6.28% to 6.47% of tax revenue towards LGDF.

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“Local governments are where residents feel impacts first, so shifting costs to the local level makes Illinois less affordable for residents,” said IML President and Matteson Village President Sheila Chalmers-Currin.

“Reducing LGDF funding would leave us only two options: raise local taxes or cut critical services like public safety, infrastructure and transportation,” she continued.

City, town and village leaders with the IML are also pushing to amend laws around the Motor Fuel Tax.

“Under current law, only non home rule communities located in Cook County, or those with a population exceeding 100,000 are authorized to impose a local non home rule mobile fuel tax without a referendum”, said Mayor John Lewis and first Vice President of Illinois Municipal League.

New legislation aims to change that. The proposal would allow all Illinois municipalities to add their own local gas tax in one-cent increments, up to a maximum of three cents per gallon, on top of the state’s existing motor fuel tax of 48 cents per gallon.

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Any revenue from a local gas tax would be dedicated to infrastructure projects. That includes repairing roads, replacing bridges, and funding other transportation improvements that residents use every day.

Supporters argue that a small local gas tax is a fair and transparent way to pay for the streets and bridges drivers rely on. Opponents focus on what it would mean at the pump. They warn that adding another layer of tax would drive gas prices even higher at a time when many families are already struggling with rising costs.

The motor fuel tax bill, HB 1283, was filed by Chicago Heights Democratic Representative Anthony DeLuca in January 2025. It was last sent to a House committee in March 2025.

Lawmakers will consider it during this year’s legislative session.

You can watch 25News – any newscast, anywhere – streaming LIVE on 25NewsNow.com, our 25News mobile app, and on our WEEK 25News SmartTV streaming app. Learn more about how you can get connected to 25News streaming live news here.

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Chicago property taxes jump — but unevenly

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Chicago property taxes jump — but unevenly



Some communities saw their bills rise 75% or more.

The median property tax bill for Chicago homeowners rose by a record last year, and some parts of the city saw much steeper increases than others.

The citywide median rise was 16.7%, according to a report from the Cook County Treasurer’s office on bills for tax year 2024.

Many poor communities in Chicago saw the largest increases. In 15 areas on the South and West sides, property taxes shot up 30% because of rising home values. In West Garfield Park, North Lawndale, Englewood, West Pullman and West Englewood, property tax bills rose 75% or more.

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Chicago homeowners have suffered in recent years. While property taxes did increase in some Cook County suburbs in 2024, city homeowners felt the bulk of the pain. That’s because assessed values on downtown commercial buildings fell 7.2%, reducing taxes on those properties.

Lower commercial assessments don’t reduce what the city expects to collect in property taxes — it just means homeowners pay a larger share.

Other reasons for Chicago homeowners’ high bills this year included a 6.3% increase in the levy, or what taxing bodies request. That rise was driven by a larger request from Chicago Public Schools and a higher amount earmarked for Tax Increment Financing districts. TIF districts collected 10.4% more year over year in 2024, totaling over $1.3 billion.

For 2024 the total Cook County levy was $19.2 billion, up about 4.8% from the previous year. The Chicago-area inflation rate was closer to 3.5%.

Cook County property taxes have outpaced inflation for a long time. Since 1995, they’ve gone up 181%, from $6.8 billion in 1995 to $19.2 billion in 2024, according to the county treasurer. Adjusted for inflation, that’s a 48% increase. If property taxes had risen on pace with inflation, the 2024 levy would have been $13 billion rather than $19.2 billion.

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This rising burden can’t continue. Since 2019, more than 1,000 Cook County homeowners — including 125 senior citizens — have lost their homes and all their equity over a property tax debt smaller than the price of a 10-year-old Chevy Impala.

The U.S. Supreme Court has found the practice of taking more than the tax owed to be unconstitutional, but the Illinois General Assembly has yet to change the law to stop it. Cook County Treasurer Maria Pappas delayed the property tax lien sale scheduled for last August, but it’s now set for March.

Of the Illinois residents who moved out in 2024, 95% went to lower-tax states. Lawmakers must reduce the property tax burden. They should cap how long TIFs can last and limit how many times they can be extended. Returning that money to general use would bring much-needed transparency and real property tax relief for Illinois residents.

Also, legislators are allowed to work as property tax appeal lawyers, enabling them to profit from ever-growing tax hikes. Imprisoned former Illinois House Speaker Mike Madigan did that, as did former Chicago Ald. Ed Burke. This practice should not be prohibited.

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The best way to reduce the property tax burden is to reform its largest driver: public-sector pensions. In Chicago, 80% of property taxes go toward its growing pension debt. Rather than seeking to control spending, Gov. J.B. Pritzker recently signed a “pension sweetener” for Chicago police and firefighters that will increase liabilities by $11.1 billion.

Reforming the state constitution would allow for moderate pension changes, increasing the fiscal health of those systems and reducing the property tax burden on Chicago homeowners.

Until changes are made, Cook County homeowners will continue to see their property tax bills climb.





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