Week in Review: Proposed service tax, summer energy costs, Safe-T Act reform & more

TAXES

House Republicans Raise Alarm on New Service Tax Proposal. Deputy House Republican Leader Ryan Spain and State Representative Joe Sosnowski joined with small business owners this week to decry a new proposal making the rounds in Springfield that would establish a new sales tax on services across the state. This new service tax would cover almost all services consumers rely on, ranging from streaming services to dry cleaning, haircuts to vehicle repairs, and everything in between. Proponents are pushing the new tax as a bailout to fill the void for years of mismanagement in the Chicago region's mass transportation system, which is facing nearly a billion-dollar budget shortfall in 2026.

“Let’s call this proposal what it is, the Brandon Johnson bailout for Chicago mass transit,” said Rep. Spain. “At a time when high prices are still hurting family budgets and stifling small businesses, the last thing Illinoisans need is a new tax on the basic services we all rely on. Even worse, if this new tax is adopted at 6.25%, it would be the highest service tax in the country. Illinoisans are already taxed to the max. Families, seniors and small businesses can’t afford another tax. It will only force more people to leave our state.”

As Spain noted, the 6.25% proposal being floated in Springfield would be the highest tax of its kind in any state in the nation. Depending on the analysis, Illinois already consistently ranks as having one of the highest overall tax burdens of any state in the country.

“Illinois families cannot afford and should not have to pay service taxes on top of the enormous tax burden they already pay,” said Rep. Sosnowski. “Illinois has a priority and spending problem, not a revenue problem. Spending is out of control in the State of Illinois. Under the six years that JB Pritzker has been Governor, the state budget has exploded from just over $39 billion in his first year in office to more than $53 billion this year. The spending priorities of this Governor and the supermajority in the Illinois House are out-of-step with the needs and concerns of Illinois families.”

The lawmakers also noted that over 73% of the Illinois economy is service-producing industries, and most are not currently set up to pay sales tax. Rushed implementation under this proposal will lead to many businesses choosing not to operate in Illinois.

Dean Graven, Owner and Operator of Dean’s Landscaping and Handyman Services, and a former President of the Springfield Home Builders Association and past board member of the Home Builders Association of Illinois, said the tax would have a major impact on housing costs.

“A new service tax will have a terrible impact on housing affordability in Illinois and will serve to stifle new construction rates,” said Graven. “Home builders rely on contractors and subcontractors providing services. Think of all the services that go into building a home - carpenters, electricians, plumbers, HVAC, roofers - under a new service tax, all of these additional taxes will be passed along to consumers. Let’s be clear, a tax hike on services is a tax hike on all Illinois families.”

More than eighty services appear in the new tax proposal, including car washes, streaming services, landscaping, home repair/handyman services, employment staffing agencies, camping, dry cleaning, carpet cleaning, fitness centers, pest control, dog grooming, retirement/investment advising, moving services, and many more.

Kayla Edwards of Express Employment Professionals noted that Illinois is one of the largest users of temporary employment services in the country and this new tax could cripple the industry.

“Every year, thousands of businesses and tens of thousands of people across Illinois rely on the services provided by temporary staffing firms like mine to connect people to jobs and employers to their workforce,” said Edwards. “The employees we service pay nothing for our services, and because we operate on such thin margins, adding a new tax on top of the various regulatory burdens that already exist in Illinois will literally cripple the Illinois staffing agency industry. This tax will dramatically raise the cost of doing business, force employers to close or leave Illinois, and cost jobs across industries. Please reject this service tax.”

For a complete list of the services included in the tax proposal and to express your opposition to this major tax expansion, go to StopILServiceTax.com.

Watch the Capitol press conference.

ENERGY
House Republicans warn of summer energy cost crisis, offer solutions to expand energy production capacity. House Republican members of the Illinois House Energy & Environment and Public Utilities Committees held a Capitol news conference on Tuesday to warn of a coming summer energy cost crisis and offer solutions to expand energy production capacity.

The Republicans held the press conference after last week sending the House’s Energy & Environment Committee Chair and Vice Chair a letter explaining the urgent need for hearings into the recent results of the Midcontinent Independent System Operator (MISO) capacity auction which returned a shocking $666.50 per Megawatt-day price across all zones in the summer. That same price just one year ago was $30.

State Representative Dave Severin serves as the House Republican ranking member and spokesman on the House Energy & Environment Committee. Severin says Illinois' energy policies are to blame for the recent huge spikes in energy costs for Illinois utility customers.

“House Republicans are concerned for the financial future of our constituents and our businesses, and for the future security, reliability, and affordability of our energy grid. We need answers. The numbers don’t lie. We don’t have enough energy production capacity,” Severin said. We have artificially and prematurely stifled our coal, oil, and natural gas industries in Illinois. Summer is coming. Weeks and months of 90-degree weather are coming soon. With that weather, we know big energy price spikes are coming.”

State Representative Brad Halbrook is also a member of the House Energy & Environment Committee. Halbrook, who has sounded the alarm on Illinois’ flawed energy policies for several years, says the 2021 Climate and Equitable Jobs Act (CEJA) CO2 emissions caps are largely to blame for capacity shortages and energy price spikes. Halbrook likened Illinois’ current energy crisis to the country of Spain’s energy emergency.

“Last week, I spoke on the House floor about the energy crisis unfolding in Spain—and the warnings it carries for us here in Illinois. Spain's embrace of extreme climate policies and premature base load closures led to the collapse of its electrical grid. Elevators stopped mid-floor, businesses shut down, and people died. This is what happens when you ignore energy fundamentals in the name of ideology,” Halbrook said. “We're facing increasing costs, decreasing reliability, and growing dependence on imported energy. This is energy we used to generate ourselves here in Illinois. CEJA has led to the premature closure of base-load coal and natural gas plants and the loss of good-paying jobs and reliable local energy.”

State Representative C.D. Davidsmeyer detailed price, capacity, and reliability consequences that have saddled energy producers and customers since the 2021 passage of the Climate and Equitable Jobs Act.

“Due to misguided public policy like the Climate and Equitable Jobs Act, as well as market factors, Illinois’ power generation capacity has taken a significant hit. CEJA opponents, including myself, warned of rising prices and reduced supply when the law was passed nearly four years ago,” Davidsmeyer said. “Under current law, all electricity in the state of Illinois will be required to come from zero-emission sources and nuclear power by 2045. We have literally tied our hands and turned our backs on abundant Illinois coal.”

Davidsmeyer explained the impacts electricity customers in the Ameren Illinois region will experience this summer.

“Prices have skyrocketed in the downstate MISO grid for the Ameren service territory. The most recent MISO auction for the summer months resulted in capacity prices that are 22 times higher than last summer’s prices,” Davidsmeyer said. “Capacity prices for the upcoming summer season jumped to $666.50/MW-day from $30/MW-day last year. As a result of the increase in summer capacity charges, Ameren Illinois’ supply price will increase by roughly 50 percent, from around 8 cents per kilowatt hour to around 12 cents per kilowatt hour. This will result in an approximately 18% to 22% total bill increase for residential Ameren customers.

“Governor Pritzker and the majority party in the legislature - where is your plan to maintain a reliable and affordable energy grid for Illinois families and businesses?”

House Republicans have bills to roll back CEJA provisions and keep Illinoisans working:

HB 4050 - Restores provisions in the Act regarding greenhouse gases to their form before Public Act 102-662. Repeals a provision defining "clean energy."

HB 1544 - In a provision regarding greenhouse gases, extends deadlines by 5 years for reduced or zero carbon dioxide equivalent and copollutant emissions by certain electric generating units and large greenhouse gas-emitting units.

HB 1545 - In a provision regarding greenhouse gases, extends deadlines by 10 years for reduced or zero carbon dioxide equivalent and copollutant emissions by certain electric generating units and large greenhouse gas-emitting units.

HB 1546 - In a provision regarding greenhouse gases, extends deadlines by 5 years for reduced or zero carbon dioxide equivalent and copollutant emissions by certain electric generating units and large greenhouse gas-emitting units that use coal as a fuel.

HB 1547 - Extends deadlines for reduced or zero carbon dioxide emissions by 10 years for certain EGUs and large greenhouse gas-emitting units.

CRIMINAL LAW
House Republicans Call for SAFE-T Act Reform, Justice for Megan Bos. State Representative Tom Weber was joined by House Minority Floor Leader Patrick Windhorst, State Representative Patrick Sheehan, and Megan Bos’ mother, Jennifer, at a press conference Thursday to call for reforms to Illinois’ criminal justice system, especially to the SAFE-T Act. Megan Bos’ death and the events that followed have raised serious concerns regarding cashless bail and limitations placed on law enforcement and judges, illustrating an urgent need for reform.

Megan Bos, a 37-year-old woman from Antioch, Illinois, was reported missing in February, leaving her family desperate for answers. Her mother, Jennifer Bos, spent weeks searching for her, distributing flyers, and pleading for any information. Heartbreakingly, Megan’s body was discovered in April, concealed in a trash bin behind a home in Waukegan. Jose Luis Mendoza-Gonzalez, the suspect in Megan’s case, admitted to police that she died in his residence. Instead of alerting authorities, he broke her phone, kept her body in his basement for two days, and then hid it outside for over 50 days. Despite these disturbing admissions, Mendoza-Gonzalez was released from custody one day after his arrest under the SAFE-T Act, which classifies the charges against him as non-detainable offenses.

“We are still waiting for answers,” said Jennifer Bos during the press conference. “I don’t know how my daughter died. I don’t know what will show up on the toxicology report. I don’t know what went on during my daughter’s final moments on this earth. But what I do know is that under the umbrella of the Safe-T Act, the man who hid her body in a bleach-filled trash can for seven weeks still got out of jail free. We never got to see her, to hold her hand, or give her one last kiss goodbye…He robbed us of that. He very literally treated her like garbage and may have destroyed the very evidence that could explain her final moments to us.

“If one person had called 911 instead of hiding the truth, Megan might still be here today,” said Rep. Weber. “If one person had respected her life instead of disposing of her body, her family wouldn’t be grieving. If one person had sought help instead of breaking her phone, justice wouldn’t be slipping away. If one person had taken responsibility instead of keeping her in a basement, this tragedy wouldn’t be unfolding. If one person had told the truth instead of covering it up, our community wouldn’t be asking how this happened. If one person had valued her life instead of treating her like she was disposable, we wouldn’t be demanding change today.”

As all participants noted, the SAFE-T Act has stripped judges of their ability to detain individuals before trial, weakened law enforcement’s ability to detain dangerous individuals before trial, and left communities exposed to unnecessary risk. The SAFE-T Act’s guidelines have led to many instances where criminals can evade proper legal consequences, leaving the families of victims, like Megan’s, in tremendous pain and suffering.

“The SAFE-T Act was supposed to enhance fairness, but instead, it has done the opposite,” Weber continued. “It has removed critical discretion from judges and allowed dangerous offenders to walk free. Families are paying the price for this failed legislation, and it’s time for lawmakers to act before more lives are destroyed. Megan Bos’ family deserves better. Every family in Illinois deserves better.”

“The SAFE-T Act has failed the people of Illinois,” Rep. Sheehan said. “It has stripped law enforcement of critical tools, tied the hands of officers, and prioritized criminals over victims. Who is this law protecting? Obviously not victims like Megan and her family.”

FIREARMS
House Republicans stand firm in defense of Second Amendment. Illinois House Republican lawmakers gathered at the Capitol this week to show their support for law-abiding gun owners. State Representatives Charlie Meier, Regan Deering, and Patrick Windhorst spoke on the importance of preserving their Constitutional Right to Bear Arms.

State Representative and House Republican Floor Leader Patrick Windhorst serves as the ranking member on the House Judiciary Criminal Law and Gun Violence Prevention Committees. The 117th District State Representative says policies passed by Illinois Democrats have harmed the rights of law-abiding citizens to practice their Constitutional Rights.

"The people I represent take their responsibility to care for, store, and use their firearms very seriously. Sadly, that fact is often ignored as the supermajority in both chambers of this General Assembly have time and again passed legislation that erodes their Constitutional Right to Bear Arms," Windhorst said. "I believe that Illinois law runs afoul of the US Supreme Court’s 2022 Bruen Decision, which held that gun regulations must align with the nation’s historical tradition of firearm regulation. Illinois laws, such as the ban on assault weapons and high-capacity magazines, likely fail this test. Laws that go beyond federal firearm restrictions make for a confusing patchwork of laws that stand in direct conflict with the US Constitution, and we are here today to defend Illinois citizens’ rights to lawfully abide by our Second Amendment and to defend your Right to Bear Arms."

“Where I come from, defending the Second Amendment is not just about talking points, it’s about protecting our very way of life,” said Rep. Charlie Meier. “While Democrats push stricter laws on law-abiding citizens, they also support abolishing cash bail and push soft-on-crime policies that put repeat offenders back on our streets, endangering our families. Illinois Democrats are soft on crime, but tough on gun owners.”

Rep. Regan Deering spoke about the importance of advocacy, as hundreds of supporters of the Second Amendment rallied in Springfield during Illinois Gun Owner’s Lobby Day (IGOLD).

“To the advocates, House Republicans see you, support you, and will tirelessly defend you and your constitutional rights,” said Rep. Deering. “By continuing to come after constitutional rights, we are trekking down a treacherous path. The Democrats know this and yet continue to introduce legislation that deteriorates the remaining trust in our government and infringes on our rights. That is wrong. These anti-Second Amendment policies were introduced under the guise of safety, but make no mistake, they are really about controlling more and more of our lives. House Republicans will not stop defending your Second Amendment rights.”

BUDGET
Pritzker’s 2026 budget proposal is $500 million short. Republicans argue for cuts, pointing out that state budgets have grown from $40 billion in 2019 to $55 billion for fiscal year 2026

The new FY26 revenue numbers, presented to the House Revenue and Finance Committee this week, signal the end for Gov. Pritzker’s FY26 budget proposal. This spending plan, presented to the General Assembly in February 2025 for the fiscal year starting July 1, was based on projected cash flow numbers that are no longer sustainable.

The February 2025 Pritzker budget optimistically set forth plans to spend all the money that the Governor’s Office expected to come in through June 30, 2026. These spending plans included money that we now know is unlikely to flow to Springfield during this period. In a revised estimate, Gov. Pritzker’s office admitted that the State of Illinois is now at least $500 million short of the revenue estimate previously presented to the General Assembly.

House Republicans have repeatedly called for budget restraint and no new taxes. However, political pressures within the Democratic caucuses and the Pritzker administration may lead to the imminent enactment of yet another major tax increase.

The new FY26 budget numbers were presented by the Governor’s Office of Management and Budget (GOMB) to the House Revenue and Finance Committee on May 15. It should be noted that this severe FY26 budget shortfall had already been largely predicted by the General Assembly’s own in-house budget arm, the Commission on Government Forecasting and Accountability.

JOBS
April unemployment rate remains unchanged at 4.8%. The Illinois Department of Employment Security (IDES) announced Thursday that Illinois’ unemployment rate remained unchanged at 4.8 percent in April.

321,700 Illinoisans were classified as unemployed and looking for work in April 2025. States that neighbor Illinois have significantly lower rates of unemployment. For example, Indiana’s current unemployment rate is 4.1%, and the parallel rate in Iowa is 3.4%.

Compared to numbers posted one year ago, Illinois has lost jobs in two key categories. Manufacturing, which has been a consistent sore spot in Illinois throughout the Pritzker years, was down 5,300 jobs from one year earlier. Professional and Business Services, which centers on skilled work in the private sector, was reduced by 11,500 jobs from April 2024. However, the Government sector was up by 16,800 jobs in the same period.