September 8, 2023

This Week in Illinois

CGFA Releases August Monthly Briefing, State Revenue Update

In its latest publication of the monthly briefing, CGFA staff provided an update on the status of FY24 general revenue funds. Author Eric Noggle notes that general receipts Fell slightly in August, but FY 2024 is still off to a solid start Provided below is an excerpt from the publication with the full article found here.

August base revenues deposited into the State’s General Funds slowed from July’s strong start, with a slight decline of $34 million. However, when combined with July’s base growth of $396 million, revenues are up a combined $362 million to start the fiscal year, perhaps indicating a timing element to the first two month’s collection activity. The value of the August decline falls to -$214 million when factoring in last August’s $180 million in ARPA reimbursements. August had the same number of receipting days as last year. 

Overall, the value of the increases/decreases in August were relatively modest. Personal Income Tax receipts experienced the largest decrease with a decline of -$38 million or -$36 million when accounting for distributions to the Refund Fund and the Local Government Distributive Fund (LGDF). Corporate Income Taxes also slowed from its strong July numbers with a decline of -$23 million, or -$17 million on a net basis.  Other State tax sources with declines include Other Sources [-$26 million]; Public Utility Taxes [-$14 million]; and the Corporate Franchise Tax [-$5 million]. 

The August declines were mostly offset by gains in several other State revenue sources. The largest year-over-year improvement came from Interest on State Funds & Investments, which grew $23 million thanks to comparatively higher interest rates. Insurance Taxes bounced back from its low July numbers with a gain of $20 million. In addition, Inheritance Tax receipts were $18 million higher. Sales Tax receipts saw modest improvement with growth of $15 million. But this growth falls to only +$3 million when accounting for the non-General Funds distributions to the Road Fund and certain other transportation funds. 

CMAP Releases Draft Plan of Action for Regional Transit

The Chicago Metropolitan Agency for Planning (CMAP) has released its draft Plan of Action for Regional Transit (PART) fulfills the requirements of Illinois Public Act 102-1028 tasking the Chicago Metropolitan Agency for Planning (CMAP) with developing legislative recommendations on the northeastern region's transit system. Throughout the document, greater participation from the State for both funding and governance is present in the recommendations.

Both nationally and in the northeastern Illinois region, the COVID-19 pandemic drastically shifted transit ridership and operation. There is an anticipated funding gap that will arise for the RTA in 2026 after COVID-related federal funding has been exhausted. The budget deficit is projected to be $730 million to reach pre-pandemic service levels. To address this shortfall and other general needs of the transit agencies, the report provides a series of recommendations for the General Assembly to consider.

Provided below are some of the funding and governance-related proposals offered in the plan.

·   Broaden the state sales tax base to services

·   Restructure/expand vehicle registration fees to assist in funding of transit operations

·   Add $0.05 per gallon surcharge to the MFT imposed in the RTA region

·   Increase parking fees

·   Increase existing tolls, expanded tolling, and an introduction of cordon pricing

·   Option 1: Integrate RTA and the service boards into one regional transit entity

·   Option 2: Strengthen a re-envisioned RTA to coordinate transit across the service boards

The report requires adoption by the CMAP Board and the Metropolitan Planning Organization Policy Committee, who will have joint meetings on Wednesday, September 13, and Wednesday, October 11. View the draft plan of action here.

In Case You Missed It...Illinois Legislative Update from Epstein Becker & Green: Big Changes for Employers

Our friends at Epstein Becker & Green, P.C. have created a detailed summary of the most significant employment-related legislation recently enacted in Illinois. The piece is co-authored by Member of the Firm, Peter Steinmeyer, and Associate Carolyn Boucek.

Applying these new laws involves a fact-specific inquiry, especially in light of the many statutory ambiguities discussed more fully below, as well as the inherent uncertainty surrounding the interplay of new and existing authorities and the current lack of interpretive guidance from the Illinois Department of Labor (IDOL).

Unless otherwise noted, all new laws and amendments discussed in the article will take effect on January 1, 2024; however, employers should take measures now to ensure that they are prepared to comply with the new laws come the new year.

The publication has nine sections extensively covering the changes for employers. The sections are as follows.

I. New Job Posting Disclosure Obligations

II. New and Expanded Leave Benefits

III. New Commuter Benefits

IV. Extension of Liability to Employers Under the Gender Violence Act

V. Expanded Protections for Temporary Workers

VI. New Protections for Freelance Workers

VII. Further Access to Personnel Records / Electronic Distribution of Employee Notices

VIII. Limitation on Damages Available Against Striking Workers / New Penalties for Interfering with Labor Disputes

IX. What Illinois Employers Should Do Now

View the full update from Epstein Becker & Green P.C. here.

Release: New $2 Billion Electric Vehicle Battery Gigafactory Announced in Kankakee County

Governor Pritzker and Gotion today joined local Illinois leaders and officials to announce the company’s decision to locate its new state-of-the-art $2 billion electric vehicle (EV) lithium battery manufacturing plant in Manteno. Bolstered by a REV Illinois (Reimagining Energy and Vehicles) incentive package and the new Invest in Illinois fund, Gotion’s decision to locate its new gigafactory in Illinois speaks to the state’s growing reputation as an EV manufacturing powerhouse and represents a significant step forward in growing its EV ecosystem and supply chain. The plant is expected to begin production in 2024. 

The facility will focus on lithium-ion battery cell, battery pack production, and energy storage system integration. Once completed, the facility in Manteno is expected to produce 10 GWh of lithium-ion battery packs and 40 GWh of lithium-ion battery cells, which will strengthen the American EV battery supply chain. The site will cover approximately 150 acres. 

Read more here.

Session Update

The General Assembly adjourned in the early morning of Saturday, May 27th. Per SJR 42, the House and Senate have adjourned until the call of the Speaker and the Senate President. The 2023 fall veto session has been announced for October 24th-26th and November 7th-9th. View the calendar here.

Illinois Chamber 2023 Annual Luncheon - Register Today!

We at the Illinois Chamber are thrilled as we look forward to our 2023 annual meeting taking place on September 28th in Oak Brook. As every year, we invite you to join us for a wonderful lineup of speakers and activity in support of the Illinois business community.

We are thrilled that Illinois State Comptroller Susana Mendoza will help us kick off the annual meeting with a fireside chat with Secretary of the Chamber Board, Kelly Edwards - State Counsel for Illinois and Indiana at State Farm Insurance Companies. After lunch has been plated, our keynote speaker, Vice Chair of Inland Real Estate Group and President of Inland Real Estate Acquisitions, Joe Cosenza will address attendees. The event will conclude with a time of remembrance and a tribute to Illinois Chamber President and CEO Todd Maisch who we sadly lost earlier this summer. 

When

• Sep. 28th, 10:30am - 2:00pm

Where

• Doubletree by Hilton Hotel Chicago in Oak Brook

Register HERE - we can't wait to see you at the luncheon!

BIPA Is Turning 15 - Register Today

Date/Time: Friday, October 6, 2023 | 10:00 am – 3:00 pm

Location: The Security Innovation Hub | 1302 South Kilbourn Ave. Chicago, IL 60623

What will you learn? Delve into the present legal, political, scientific, ethical, and technological aspects of BIPA. Acquire insights from industry experts on how to proactively maintain and oversee your onboarding, access control, data and compliance protocols, ensuring their ongoing effectiveness to help avert a BIPA lawsuit.

Who should attend? Businesses of all sizes – small, medium, enterprise, and mega-tech – can gain valuable insights into BIPA compliance. We suggest that individuals with the following roles consider attending: Owners, CISOs, CSOs, Human Resources personnel, Legal departments, Accounting professionals, IAM staff, Operations and Facility Managers.

Why participate? With class-action payouts surpassing 1 BILLION dollars (and still rising), Illinois has earned the reputation of being “a cottage industry for BIPA lawsuits.” Now is a pivotal juncture for businesses across diverse sizes and sectors to grasp the significance of BIPA and actively engage in discussions. BIPA's impact has been felt across a wide spectrum, cases range from chicken processors, roofing distributors, retailers, restaurants, and amusement parks to mega tech corporations. It's imperative for all of these entities to comprehend the intricacies of the BIPA law, which encompasses both digital and physical implications.

More information here: bipabuzz.com (squarespace.com)