Rep. Tipsword’s Weekly E-Newsletter: Flood Relief, Unclaimed Property, State Budget, and More

UNCLAIMED PROPERTY

Up to 600,000 Illinoisans will receive surprise checks in the mail from the State of Illinois as part of the Treasurer's office I-Cash Enhanced Money Match Program. The checks come from unclaimed property that is being held by the Treasurer's office.

STATE BUDGET

CGFA report on State cash flows for Fiscal Year 2025

The June revenue report from the Commission on Government Forecasting and Accountability (CGFA) was the final summary of State cash flows for fiscal year 2025, which ended June 30, 2025. The State of Illinois took in higher revenue in FY25, which was needed to pay for billions of dollars in new spending implemented by the Democratic majority. Exclusive of transfers in, which are payments to the State from outside sources such as the federal government and the Illinois State Lottery, Illinois took in almost $55.1 billion in general funds receipts in FY25. This included $5.6 billion in June 2025 general funds revenues to close out FY25.

It should be noted, however, that the June 2025 State general revenue total and year-end general revenues overall totals were both dependent on significant State personal income tax payments to the Illinois Department of Revenue (IDOR). Personal income tax payments to IDOR in June 2025 were $3.077 billion, up $445 million from one year earlier in June 2024, and personal income tax payments to IDOR for FY25 as a whole were $33.154 billion, up $3.02 billion from FY24.

CGFA's June 2025 and yearend FY25 report reveals that these net increases in IDOR/Illinois personal income tax revenues were the only line item that kept the State's budget afloat in FY25. All other major State-controlled general revenue sources put together - this list includes corporate income tax payments, sale tax payments, public utility tax payments, estate tax payments, and excise taxes paid by suppliers and distributors of tobacco and alcohol - collectively generated stagnant or declining revenue streams in FY25. The State tax system has become a one-industry environment that is dependent on a single revenue stream.

Trends in State corporate income tax receipts and personal income tax receipts have been affected by changes in federal and worldwide income tax structures. These changes have led many tax advisors to move a growing share of private-sector taxable income from an institutional setting and environment to a pass-through individual income setting and environment. This is one of the items that has led to significant changes in State income tax revenue structure, including increasing dependence on personal income tax receipts. In addition, a growing share of Illinois personal income is spent on services, rather than tangible goods that are subject to the State sales tax.

These changes have also affected certain forms of State revenue sharing and fiscal interaction with Illinois local governments and municipalities, including sales tax moneys forwarded to local governments as their 'local share," and corporate income surtax moneys traditionally collected by the State for forwarding to local governments through the corporate personal property replacement tax or PPRT. Many counties and municipalities have expressed concern about these trends, and these trends have been blamed in some quarters for rising local property tax rates to try to make up for alleged lost income.

HIGHER EDUCATION

Rollout of direct admission to most Illinois public colleges and universities

Admissions to Illinois public higher education institutions will be primarily triggered by a student's high school record, including grade-point averages, rather than initiated by filling out an admissions form. For eligible students, the process will be initiated by Illinois public colleges and universities, which are now authorized to send out preliminary offers of acceptance to qualified students. These students will receive an electronic notice informing them that they are eligible to continue a direct admissions process that has already been initiated for them.

While the direct-admission triggers will operate themselves, the public institutions are not calling this program an "automatic" admission to college. The new process, which will become effective for the Class of 2030, will continue to require active participation by a student after the direct admissions process has been initiated. The student groups eligible for the new direct admissions process will also include community college students; their two-year community college grades will be scanned for four-year college eligibility.

The University of Illinois Urbana-Champaign (UIUC), and the University of Illinois-Chicago (UIC) have chosen not to participate in the direct admissions process created by this new program. Students seeking admission to UIUC or UIC will be required to initiate an admissions application as they have in the past. The direct admissions program was enacted by HB 3522, which was approved by the Illinois House on May 30 by a vote of 103-10-0 and was signed into law as Public Act 104-15.

TEXAS FLOOD RELIEF

We continue to pray for the victims and victims' families following devastating flooding in Texas this past weekend as the death toll has continued to rise. If you are interested in helping, there are several ways to contribute. Donations can be made to the San Antonio Area Foundation - Kerrville Flood Relief Fund and the Community Foundation of the Texas Hill Country - Kerrville Flood Relief Fund.

https://cftexashillcountry.fcsuite.com/erp/donate/create/fund?funit_id=4201

or

https://saaf.fcsuite.com/erp/donate/create/fund?funit_id=1625

SUMMER MEALS

Children who receive free or reduced-price school meals can still get meals when schools are closed for summer break through the USDA's Summer Nutrition Programs for Kids. Visit https://www.fns.usda.gov/summer/sitefinder to find a summer meal site near you.

DONATING FOOD

Families maintain and grow a number of fruits and vegetables in their own gardens in Illinois, and in many cases they produce more food than what they can consume. Once the harvest is complete, instead of letting this excess food go to waste, families can consider donating their fresh food to a local food pantry. Learn more here.

AFFORDABLE HOUSING UPDATE

The Illinois Housing Development Authority (IHDA) has shared the 2026 Qualified Allocation Plan (QAP). IHDA's QAP sets the evaluation criteria and process for awarding Low-Income Housing Tax Credits (LIHTC), a critical funding tool for the State of Illinois that is utilized to support affordable housing development.

Updates to the 2026 QAP include:

• Increasing the maximum credit award from 1.5 million to 1.7 million.
• Formalizing the universal PPA process in the QAP.
• Allowing carryover of 2024 and 2025 approved PPAs into the 2026 round.

QAP-related document updates include:

• Removing the 1.5 bath requirement for two-bedroom units.
• Clarifying the development team requirements in the FAQs.
• Updating the QAP supplemental documents to build in automations to improve transparency in the QAP requirements.
• Creating a mapping tool to overlay the AHPAA communities with the Affordability Risk Index and Quality of Life Index developer tools.