State Representative Chris Miller (il) | Representative Chris Miller (R) 101st District
State Representative Chris Miller (il) | Representative Chris Miller (R) 101st District
Illinois is set to implement another motor fuel tax increase on July 1. The state's tax on motor fuel has risen annually since 2019. The new levy will raise the rate from 45.4 cents per gallon to 47.0 cents per gallon. In the first half of 2019, the state levy was only 19 cents per gallon, marking an increase of almost 150% over five years. The 2024 Illinois tax on diesel fuel will also rise.
In addition to the state tax, Illinois buyers must pay a federal gasoline tax (18.4 cents per gallon) and often supplemental local taxes. The motor fuel tax is placed in a "lockbox" fund designated for transportation purposes, including non-highway expenditures such as passenger trains and city buses. Neighboring states have significantly lower motor fuel taxes; Indiana’s current rate stands at 18.9 cents per gallon.
The Illinois Department of Employment Security (IDES) reported an uptick in unemployment in May 2024, rising from 4.8% to 4.9%. Job losses were noted in manufacturing (down by 2,300 jobs) and leisure/hospitality (down by 1,200 jobs). The state's jobless rate was higher than the national average of 4.0% for the same month.
Despite these figures, some sectors saw net job creation: professional and business services added 7,100 jobs and government employment increased by 3,300 jobs in May. Overall, Illinois employers created a net total of 12,700 new jobs during this period. However, this figure is small compared to the estimated 317,400 unemployed individuals seeking work.
House Republicans have formed the Reigniting Illinois’ Strong Economy (RISE) working group led by Representative Dan Ugaste to address these issues through proposed legislation aimed at job creation.
Budget cuts have been imposed on Illinois Soil and Water Conservation Districts (SWCDs). For FY25 starting July 1, funding was reduced by nearly half to $4.5 million. This reduction could accelerate deterioration of vital drainage infrastructure critical for crop production in Illinois.
A study by the Illinois Policy Institute revealed that tuition costs at state-run colleges and universities are high for in-state students—averaging $14,993 annually—ranking third highest among U.S states behind New Hampshire and Vermont. These financial pressures contribute to many students opting for out-of-state education opportunities which can lead to population loss as graduates do not return.
Most other states charge less for in-state tuition; Florida averages $4,513 while North Carolina charges $7,337 annually.
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