Illinois

Is a tax on services in Illinois' future? Pritzker no longer rules it out.

Published

7 months ago

May 4, 2024

Is a tax on services in Illinois' future? Pritzker no longer rules it out.

Gov. J.B. Pritzker unexpectedly moved away last week from his longstanding opposition to taxing services, saying he didn’t want to start taking ideas off the table as lawmakers search for ways to fund and reform the Chicago region’s mass transit system.

As you may know, the Chicago area’s mass transit agencies are facing a $730 million “fiscal cliff” in 2026. The federal government’s COVID-era subsidies will expire that year. While ridership has declined as service worsens, operating costs have increased and average fare prices have fallen.

According to a report last year from the Chicago Metropolitan Agency for Planning, imposing a service tax could be part of the solution. The CMAP report said adding a service tax to the state’s existing 6.25% state tax rate could generate $1.1 to $1.9 billion in 2026. Some legislators are proposing a $1.5 billion annual funding increase for transit, as part of a consolidation effort.

So, my associate Isabel Miller (who contributed to this column) asked Pritzker during an unrelated media event if he wanted to take any state taxes off the table before the talks heat up, including the service tax.

“I have never been in favor of that before,” Pritzker said of the service tax. He has indeed opposed the tax all the way back to his first 2018 gubernatorial campaign, often calling it regressive.

“There may need to be a source of revenue here,” Pritzker said, “but that’s not something that I have favored in the past.”

As far as specifically ruling out a service tax, however, the governor said: “I really don’t want to start saying, ‘We’re not going to do this, we’re not going to do that.’ At this point, there are just so many pieces of this that we have to look at before we’re going to pay for what’s necessary here as we come off of support from the federal government and making sure we’re restoring transit services.”

Some legislative Democrats pushing transit agency consolidation and reform welcomed the news of the governor’s new openness to a service tax, which seems to be evidence the governor is serious about finding a fix.

“I appreciate the governor being open to it, and I appreciate him recognizing this is a complicated matter,” Rep. Eva-Dina Delgado, D-Chicago, told me. Delgado introduced House Bill 5828 last week to provide the systems an annual $1.5 billion state appropriation once the mass transit system is consolidated.

Rep. Kam Buckner, D-Chicago, whose House Bill 5823 would create a consolidated transit agency, told me he’s also opposed a service tax in the past. But Buckner said he is open to it now, and he appreciates the governor is keeping an open mind.

Change must come for mass transit

Pritzker also reiterated last week he’s not yet endorsing any particular mass transit reform proposal but insisted “change is going to have to come.”

“We just know that we’re going to have to upgrade service, make sure that we’re dealing with the transit funding challenge that’s coming up,” Pritzker said. “I hope to see several proposals so that we can consider what direction to take.”

That change in direction will be a complex endeavor, the governor said.

“We’ve got to look at cuts that need to be made, along with, you know, are there changes in fares for certain types of riders that need to be made,” Pritzker said.

A Pritzker spokesperson later explained when the governor said “cuts,” he meant efficiencies to save money, like consolidating the regional transit system but not service cuts.

Most transit agencies hotly oppose consolidation, including the Chicago Transit Authority.

A spokesperson for the Illinois Chamber told me the organization hopes the governor remains ambivalent about a service tax.

“From our position, taxing Illinois’ service businesses — especially our smallest businesses — to close a budget gap is a non-starter. The tax would negatively impact the smallest of businesses: service-based small businesses and startups — especially businesses in counties that border other states as customers can save just by crossing the state line,” the Chamber spokesperson said.

One issue with a service tax is implementing it would take time. Many of the businesses that would be covered are not currently set up to pay sales taxes, for example. The Chamber predicted it could take “several years” to implement a service tax, so it won’t solve “short-term gaps.”

“As the voice of Illinois business, we would welcome sitting down with the governor’s team to discuss pragmatic ways to address the budget gap, but taxing services is not one of them,” the Chamber spokesperson said.

Rich Miller also publishes Capitol Fax, a daily political newsletter, and CapitolFax.com.

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Illinois

Kasparas Jakucionis scores a season-best 23 points as Illinois tops No. 19 Arkansas

Published

2 hours ago

November 29, 2024

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Kasparas Jakucionis scores a season-best 23 points as Illinois tops No. 19 Arkansas

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KANSAS CITY (AP) — Freshman Kasparas Jakucionis scored a season-high 23 points, Tomislav Ivisic had 21 points and 10 rebounds and Illinois beat No. 19 Arkansas 90-77 on Thursday in the Thanksgiving Hoops Showcase.

Jakucionis hit two free throws to give Illinois a double-digit lead with 3:49 remaining in the game. Arkansas had a turnover and a missed jumper on its next two possessions and Jakucionis hit an open 3-pointer to make it 85-71 at 2:42.

Kylan Boswell added 18 points for Illinois (6-1). Head coach Brad Underwood broke a tie with J. Craig Ruby (1922-36) for fifth place in program history with 149 wins.

Adou Thiero went 12 of 21 from the line and scored 26 points for Arkansas (5-2). Zvonimir Ivisic had 13 points, six rebounds and two blocks.

Takeaways

Tomislav Ivisic won the battle against his twin brother, Zvonimir. Along with his double-double, Tomislav Ivisic made 6 of 9 3-pointers and blocked three shots. The 7-foot-1 center, playing his first college season, had 13 points and seven rebounds in the first half.

Key moment

Illinois stated the game on a 21-6 run and maintained at least a nine-point lead the rest of the way. Ben Humrichous made the Illini’s fifth 3-pointer with 12:36 left in the first half while Arkansas was 3 of 9 from the field.

Key stat

Illinois made 55% of its shots in the first half, including 9 of 16 from 3-point range, while Arkansas was 0 for 7 from long distance and shot 44% overall. The Illini finished 15 of 31 from distance. Arkansas shot 5 of 17 beyond the arc.

Up next

Arkansas plays at Miami in the second SEC/ACC Challenge on Tuesday. Illinois plays at Northwestern on Dec. 6 to begin Big Ten play.

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Illinois

Park Ridge, Illinois house left uninhabitable after fire

Published

9 hours ago

November 28, 2024

Press Room

Park Ridge, Illinois house left uninhabitable after fire – CBS Chicago

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There were reports of victims trapped inside, but firefighters confirmed the home was empty when they arrived.

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Previewing the Illinois high school football state championship games

Published

17 hours ago

November 28, 2024

Press Room

Previewing the Illinois high school football state championship games

Top-ranked Loyola’s offense has three primary plays: running with Drew MacPherson, passing to MacPherson and running with quarterback Ryan Fitzgerald.

The key blocker on most of those Fitzgerald runs? MacPherson.

“[MacPherson] has breakaway speed,” Ramblers coach Beau Desherow said. “He’s also a really good receiver. His ability to block isn’t talked about enough. He’s a devastating blocker. He is a totally selfless player that will do whatever it takes to win.”

MacPherson leads Loyola (11-2) in touchdowns (19), rushing yards (1,038) and receiver yards (678). The Iowa recruit will be a major focus of York’s defense in the Class 8A state championship game at ISU’s Hancock Stadium on Saturday at 7 p.m.

On the other side, the key is Bruno Massel. The Dukes’ quarterback may be the fastest in the state. The senior qualified for the Class 3A state track finals last spring in the 100 meters and 4×100 relay, earning a medal in the latter.

Massel vs. Loyola’s stout run defense is the matchup that could decide the game. Mount Carmel and Lincoln-Way East, programs that pride themselves on consistent running attacks, didn’t even attempt to succeed on the ground against the Ramblers this season.

The Griffins called just four rushing plays in the semifinals against Loyola and the Caravan ran nine rushing plays in a Week 9 loss to Loyola.

“We take away the run pretty early,” Desherow said. “Our defensive line has done an amazing job and our linebackers have stepped up. They are players. Max Mendoza had an amazing game [vs. Lincoln-Way East].”

This is the first title game appearance for York (11-2) The Ramblers, Mount Carmel in 7A and Nazareth in 5A are attempting to three-peat and all are favorites.

Batavia’s Nathan Whitwell (28) carries the ball against St. Charles North.

Allen Cunningham/For the Sun-Times

Class 7A: Batavia (12-1) vs. Mount Carmel (10-3), 4 p.m. Sat.

This is a rivalry, but one-sided. Mount Carmel has ended Batavia’s last four seasons.

“The first time was a war,” Bulldogs coach Dennis Piron said. “The last three we had things happen in the first quarter and it got out of hand.”

The Caravan is young overall but has solid veteran leaders on both sides, including quarterback Jack Elliott and linebacker Matt Mucha.

“I’m the head coach but it is Jack Elliott’s team,” Mount Carmel coach Jordan Lynch said “It is not what I’m comfortable with it is what the kids see and what the kids trust. He comes with his own game plan on what we should run.”

Mucha has led the Caravan in tackles the last two seasons.

“Our defense is peaking at the right time,” Lynch said. “Mucha is the best linebacker in the state and will be one of the best players on the field Saturday.”

Batavia’s top weapon is senior running back Nathan Whitewell, who has rushed for 1,669 yards and 27 touchdowns. The Caravan is allowing 22 points a game this season and the Bulldogs’ best chance at an upset may be to get in a high-scoring shootout.

Geneva's Taylin Taylor (1) catches a pass and turns up field as the Vikings play Batavia. — Geneva’s Taylin Taylor (1) catches a pass and turns up field as the Vikings play Batavia.

Class 6A: Geneva (12-1) vs. East St. Louis (12-1), 1 p.m. Sat.

The Flyers dominated Loyola in Week 1 and their only loss was 14-13 to IMG Academy, a prep school powerhouse from Florida. East St. Louis is the best team in the state.

Flyers’ quarterback Kendrick Lyons has thrown for 2,402 yards and 31 touchdowns. Keandre McClendon leads the team with 12 sacks.

Geneva counters with perhaps the most talented player in the state, Georgia recruit Talyn Taylor. The senior wide receiver has scored 27 touchdowns.

Joliet Catholic’s Larry Stringham (24) carries the ball against Mount Carmel.

Class 5A: Nazareth (11-2) vs. Joliet Catholic (10-3), 10 a.m. Sat.

This could be the best game of the weekend. Nazareth is loaded with stars including quarterback Logan Malachuk and linebacker Gabe Kaminski. The Roadrunners have a special group of receivers in Garrett Reese, Jake Cestone, Trenton Walker and James Penley.

“Kaminski is a four-year starter and an awfully fun kid to watch,” Nazareth coach Tim Racki said. “He plays football the way it is meant to be played.”

The Hilltoppers don’t have a major star, just a lot of experience. It’s a testament to the strength of the program, which is tied with Mount Carmel for the most state titles, that it has advanced to another title game.

“This is probably the toughest schedule that I’ve been around as a coach or when I played here,” Joliet Catholic coach Jake Jaworski said. “We have definitely learned from those three losses.”

Running backs Larry Stringham (14 TDs) and Nate Magrini (13 TDs) lead the Hilltoppers’ attack.

DePaul's Juju Rodriguez (2) looks to pass during the Rams' 21-14 semifinal win against Coal City. — DePaul’s Juju Rodriguez (2) looks to pass during the Rams’ 21-14 semifinal win against Coal City.

Class 4A: DePaul Prep (10-3) vs. Mt. Zion (10-3), 7 p.m. Fri.

The Rams’ Cinderella run to state is the best story of the playoffs. DePaul Prep has a daring offense, led by daring quarterback Juju Rodriguez, running back Nick Martinez and receiver Braden Peevy.

Mt. Zion is a regular playoff contender but this is its first title game as well.

Montini’s Louis Corpora (38) carries the ball against North Lawndale’s Trevion Anderson (21).

Class 3A: Montini (11-2) vs. Monticello (11-2), 4 p.m. Fri.

Montini’s losses this season are to larger Catholic League powers Marist and Fenwick. The Broncos, led by quarterback Israel Abrams (1,778 passing yards, 24 TDs) are heavy favorites.

Class 2A: Chicago Christian (12-1) vs. Maroa-Forsyth (12-1), 1 p.m. Fri.

The school from Palos Heights led by first-year coach CJ Cesario could have its hands full with the Maroa-Forsyth, one of the state’s traditional small school powers. The Knights’ offense is well-balanced with Christian Flutman throwing for 23 TDs and Kenny Jager rushing for 27.

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