Peoria Standard

The Commission on Government Forecasting and Accountability (CGFA) has released its latest report, highlighting concerns about Illinois’ economic outlook. The CGFA, in collaboration with the Illinois Department of Revenue and other state agencies, monitors incoming revenues and publishes monthly updates on the state's fiscal health. These reports compare current tax and fee collections to previous years and project future revenue performance.

According to the Labor Day report from CGFA, there are indications that both global and national economic trends could result in stalled employment growth and renewed inflationary pressures for Illinois.

In August 2025, Illinois saw modest growth in tax and fee collections. Personal income tax receipts increased by 3.7% compared to August 2024, rising from $1.804 billion to $1.87 billion. This uptick helped offset stagnant or declining revenues in other areas such as corporate income taxes and cigarette taxes.

The report also examined a decade-long trend in cigarette tax rates and revenues, noting ongoing declines due to reduced conventional cigarette smoking. While some of this decline is offset by increased consumption of alternative nicotine products like e-cigarettes and nicotine pouches, traditional cigarette taxes still far outpace those from other tobacco-related products—$191 million versus $65 million in fiscal year 2025.

A significant development noted was the passage of a major tax increase on non-cigarette tobacco products by majority Democrats in May 2025. Governor Pritzker signed this measure into law as P.A. 104-6. The new law is expected to narrow the revenue gap between cigarettes and other tobacco products but will also represent an additional tax burden for residents.

Spain, a Republican, was elected to the Illinois State House in 2017 to represent the state's 73rd House District, replacing previous state representative David R. Leitch.

"CGFA’s August 2025 report tracks Illinois cigarette tax rates and revenues over a 10-year period and describes the pressure on this cash flow exerted by long-term declines in conventional cigarette smoking. To some extent this has been counterbalanced by Illinoisans who consume other taxed nicotine products, such as e-cigarettes and nicotine pouches. However, in the recently concluded FY25 (ended June 30, 2025), State tax revenues from cigarettes continued to be almost three times as high as the tax revenues garnered from all other tobacco-related products ($191 million vs. $65 million). In May 2025, majority Democrats in the General Assembly enacted a major tax increase on non-cigarette tobacco products. Signed by Gov. Pritzker as P.A. 104-6, this tax increase may partly close this gap but will also serve as another “hidden” tax increase on Illinoisans."

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