Connect with us

Illinois

Penny shortage causes headaches for retailers in the Land of Lincoln

Published

on

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.

Advertisement

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.

Advertisement

“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.”

Advertisement

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.”

Advertisement

penny box

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.”

Advertisement

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.

Advertisement

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



Source link

Illinois

To reach the Final Four, Illinois needed to think outside the box. And country.

Published

on

To reach the Final Four, Illinois needed to think outside the box. And country.


Illinois head coach Brad Underwood knew something needed to change. Before this season, he had taken nine different teams to the NCAA Tournament, yet none had advanced past the Elite Eight. His teams were always championship contenders but not good enough to get over the hump.

Then he made a call to Miško Ražnatović.

Ražnatović, a 59-year-old Serbian, is one of the most powerful agents in basketball. He represents many of the best amateur and professional European players, including Denver Nuggets superstar Nikola Jokić, a three-time NBA MVP. Ražnatović told Underwood he had some players from the Balkans he might be interested in.

Underwood didn’t want just one. He wanted them all.

“It’s pretty unusual to have five, six guys from eastern Europe,” Ražnatović told NBC News. “[Underwood] said, ‘In the NBA, eastern European players, and in general European players, the last couple of years are dominating, like Jokić or [Luka] Dončić, so why shouldn’t we do something similar in college?’”

“Of course I liked this idea. … I prioritized Illinois in choosing the direction for the guys. At the end of the day, we ended up with all five there,” Ražnatović said.

Advertisement

He’s referring to David Mirković, Mihailo Petrović, Zvonimir Ivišić, Tomislav Ivišić and Toni Bilić, his five clients who all chose to attend Illinois. Alongside Andrej Stojaković, the Greek Serbian American son of legendary NBA sharpshooter Peja Stojaković, Underwood’s roster has an international makeup unlike any other in college basketball history.

On-court action during an NCAA basketball game.
Tomislav Ivišić grabs a rebound against Houston in last weekend’s Sweet 16. Jack Dempsey / NCAA Photos via Getty Images

And on Saturday, they’ll face UConn for a spot in the national championship.

“It’s a great marriage and a great fit,” Underwood said at a recent news conference. “So we’ll continue it. I would think others will continue to migrate over there and keep trying to recruit those guys.”

Though they aren’t the only factors in Illinois’ success this season — star freshman Keaton Wagler (from Shawnee, Kansas) and senior Kylan Boswell (Champaign, Illinois) have had major impacts — it’s safe to say the arrival of the “Balkan Five” has made a major difference. That group accounts for 53.9% of the team’s scoring and 57.4% of its rebounding this season.

It never would have happened five years ago.

For decades, the top teenage European players often bypassed American colleges to play professional basketball before they entered the NBA draft. When one pathway offered money and the other offered scholarships, it was a fairly easy choice at the time.

Advertisement

But thanks to the introduction in 2021 of NIL, which allows student-athletes to be compensated for their names, images and likenesses, everything changed.

“The NIL has opened the floodgates up for international players to come over here because they literally can make more money,” ESPN basketball analyst Fran Fraschilla told NBC News. “They can make more money in one or two years than some of them will make in their professional careers over a 10-year period in Europe.”

He added that at FIBA Europe under-18 and under-20 tournaments, “you’ll find upwards of 100 Division I schools” watching the players.

On-court action during an NCAA basketball game.
David Mirković dribbles against Houston in the Sweet 16 last weekend.Logan Riely / NCAA Photos via Getty Images

College boosters have no problem footing the bill to bring elite international talent to their campuses, especially with the recent success of programs like Illinois. Fraschilla pointed out that many players from eastern Europe are also more prepared than the typical American student because they have a higher level of experience at the same age.

“These guys are all young players who have come up through club systems where they play with pros,” he said. “So they’re much more mature than your typical 18- or 19-year-old because they’ve been around professional basketball players in their former country since they were 16.”

Petrović, Mirković and both Ivišić brothers competed with veteran players in the highly touted Adriatic League before they came to Illinois. Mirković, for example, played for SC Derby in Montenegro last year as an 18-year-old. The leading scorer on the team was Erick Neal, who was 29 at the time.

Advertisement

“They play against grown men, players who are 30 or 32 years old, who have NBA experience,” Ražnatović said. “After fighting with all those guys, you get experience. And after, when you play with people of your age, you have an advantage.”

And once they are in college, with NIL money in their pockets, they don’t want to leave.

Ražnatović, an agent for more than 30 years, said he has noticed a major shift with his clients.

He said the NBA draft used to be a major deal for his company. In 2016, for instance, he represented six players who were selected, including Ivica Zubac, the current center of the Indianapolis Pacers. But for the second year in a row, he doesn’t even expect to attend the event.

The Final Four is more important.

Advertisement

“Nobody really wants to go to the draft,” Ražnatović said. “Everybody is postponing, postponing, postponing and wants to stay in college. So even my business style has changed.”

On-court action during an NCAA basketball game.
Andrej Stojaković drives to the basket against Kael Combs of the Iowa Hawkeyes in Houston last weekend.Alex Slitz / Getty Images

He said college coaches have always reached out about individual prospects. The difference now is they want a package of players, like Illinois received.

“It will be my strategy to try to put two or three guys together on the team because I believe that it will help their adjustment,” he said. “There is already one college that is getting three of our guys [next season], so it could be the trend in the future.”

Mirković echoed his agent’s sentiments.

“When you move to the other side of the world, having someone that speaks your native language and that’s already had the college experience means a lot,” he told The Associated Press. “It’s much, much easier. You feel like home.”



Source link

Advertisement
Continue Reading

Illinois

Tornadoes confirmed in Illinois as severe weather outbreak continues

Published

on

Tornadoes confirmed in Illinois as severe weather outbreak continues


There have been multiple tornado warnings in Illinois Thursday, including at least one confirmed tornado near Dixon.

According to the National Weather Service, that tornado was confirmed by spotters and radar at approximately 6:15 p.m.

The storms that produced the tornado are moving to the northeast at 45 miles per hour.

More tornado warnings were also reported by NWS near the Quad Cities, according to officials.

Advertisement

Those storms are part of a system that is pushing toward the Chicago area, with a tornado watch in effect for McHenry, DeKalb, Kane, LaSalle, Kendall and Grundy counties until 8 p.m.

The entire Chicago area is at an enhanced risk of severe weather, with large hail and gusty winds also possible, officials warn.

We will update this story with more details as they become available.



Source link

Advertisement
Continue Reading

Illinois

From AI to Surgical Robotics: Illinois MD/PhD Students Are Tackling Medicine’s Toughest Challenges

Published

on

From AI to Surgical Robotics: Illinois MD/PhD Students Are Tackling Medicine’s Toughest Challenges


Carle Illinois College of Medicine’s MD/PhD program is preparing an elite group of Physician Innovators equipped to lead the fight against disease in the research lab and at the bedside. The Medical Scholars Program (MSP) offers unique engineering-informed medical training through CI MED’s MD program, and world-class scientific research experience through the PhD programs at the University of Illinois Urbana-Champaign. The program’s earliest trainees are already building solutions to advance how we diagnose and care for patients with heart and kidney disease, neurological injury, and limited access to care.

“We want graduates who don’t just adapt to the future of health care; they help design it.”  — Dr. Dan Llano

MD candidates interested in pursuing a dual degree may apply to become MSP candidates any time after their first year of medical school. For the PhD portion of their program, students must be admitted to one of the U. of I.’s more than 70 doctoral programs. After completing their PhD program, students return to CI MED to complete the requirements of the MD program. This includes the major clinical training phase. Starting in 2027, applicants will be able to apply directly to the MD/PhD program during the medical school application process.

“CI MED’s location within a premier research university is a major differentiator: trainees can learn medicine while simultaneously gaining the technical depth to invent what medicine needs next,” said MSP Director Dr. Dan Llano, a Carle Health physician who earned his MD/PhD from the University of Illinois College of Medicine, which ended its operations on the Urbana-Champaign campus in 2022. 

Parallel Preparation

Llano says cross-disciplinary training produces innovative clinicians who are also trained as research scientists. Their unique skillset will equip them to build solutions ranging from new devices and diagnostics to data-driven clinical tools and scalable health innovations.

Advertisement

“Dual-degree trainees gain the ability to identify unmet clinical needs at the bedside and then develop mechanistic or technological solutions to those needs. I expect CI MED’s MSP trainees to become clinicians who are also builders — people who can practice excellent medicine while driving discovery and innovation in parallel,” Llano said.



Source link

Continue Reading

Trending