Illinois’ state-funded commission for diversity business contracts saw a 9% drop in participating businesses last fiscal year, even as it reduced its measurable goals by half amid a troubled computer system rollout, a new report reveals.
In 2022, Illinois lawmakers established the Commission on Equity and Inclusion with a clear mandate: increase state contracts for businesses owned by racial minorities, women, and people with disabilities. The commission was funded generously—each of its seven governor-appointed commissioners receives about $150,000 annually, supported by a staff of roughly 30. Yet, new data shows the program is moving backward, not forward.
The commission’s own annual report for fiscal year 2025 reveals that only about 1,500 certified businesses received payment for state construction and service contracts. This represents a 9% decrease from the previous year, directly contradicting the commission’s core mission.
More alarmingly, the total number of certified businesses has plummeted to 2,869 as of June 2025. This figure is roughly half of its historical peak and is actually lower than the certification count when the commission first formed. The state has devoted millions in recent years to support these businesses, yet the pipeline of eligible contractors is shrinking dramatically.
A primary culprit is the commission’s implementation of a new computer system that has been operational for over a year. This system has reduced the number of businesses receiving help navigating state contracting processes and being prioritized for awards. The technological transition appears to have created barriers rather than removing them.
State leaders have set a goal of awarding between 20% and 30% of eligible state contract dollars to certified diverse businesses. The commission reported progress toward these percentages for 2025, but this “progress” is misleading. The total pool of money measured for compliance—known as “dollars subject to goal”—collapsed to about $15 billion in 2025, less than half of the more than $30 billion measured in 2024.
This drastic reduction in the measured pool means the same amount of spending with diverse businesses now represents a much higher percentage. The commission reported that about 11% of eligible money went to certified businesses in 2025, up from about 4% in 2024. However, this increase is an artifact of a shrinking denominator, not a genuine expansion of opportunity. The annual report does not explain why the “dollars subject to goal” decreased so dramatically, noting only a “revised formula” and a new data input requirement for agencies.
Executive Director Alexandria Wilson described the situation as showing “meaningful progress in where the dollars are going,” noting high contract amounts in architectural, engineering, and computer services. Yet, this money is flowing to fewer businesses, concentrating benefits while the overall ecosystem of certified contractors withers.
Commissioner Bruce Montgomery called the reduction in “dollars subject to goal” a “tremendous improvement” and “a win for this community,” without clarifying how a smaller pool of measured spending constitutes a win for businesses seeking contracts. None of the commissioners have responded to interview requests in recent months, raising questions about accountability.
The commission’s $5.6 million proposed budget for the next fiscal year is now the subject of a state Senate committee hearing. Lawmakers must decide whether to continue funding an agency whose own metrics show a declining number of businesses served and a contracting process hampered by technological failure.
This case study reveals a critical paradox: a well-funded government commission tasked with equity has overseen a decline in both participation and transparency. The combination of a botched IT rollout and a manipulated compliance metric creates a facade of progress while the underlying program deteriorates. For Illinois businesses in the diversity-preferred group, the state’s promise of equitable contracting is increasingly out of reach.
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