Details of Gov. Pritzker's Budget Proposal
Governor JB Pritzker enters the House chamber for his State of the State and Budget Address Wednesday. (Photo: Governor’s Office)
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Governor JB Pritzker is proposing $52.7 billion in General Revenue Fund spending, up from $52.4 billion in the current year, in his budget presented to the General Assembly Wednesday in Springfield.
Pritzker’s budget projects revenue of $52.993 billion, up $777 million from the latest revision to the FY24 budget.
The budget fills a projected hole in revenue by proposing an increase in the sports wagering tax from 15% to 35%, increasing the corporate net operating loss deduction cap from $100,000 to $500,000, and by reducing the 1.75% retailer's tax discount, though they didn’t say how much (we’re looking into it.)
One issue that will likely cause a stir is a proposal to shift some mass transit funding from the state sales tax (i.e. GRF) to the road fund. Though, the Governor’s people say they believe it falls within the rules of the road funding lock box passed a few years ago. Lawmakers were told that’s a $175 million shift.
The Medicaid-style health care program for undocumented/illegal immigrants was budgeted at $550 million this year. The ask in the proposal is $440, which the Governor’s people say they can afford. Though, Republicans will clamor that they want the program eliminated.
The DHS budget includes new money proposed last week for the migrant crisis in Chicago.
Pritzker chastised Republicans for their opposition to asylum seekers in the country legally who have been sent here from Texas.
“Children, pregnant women, and the elderly have been sent here in the dead of night, left far from our designated welcome centers, in freezing temperatures, wearing flip flops and t-shirts,” Pritzker said. “Think about that the next time a politician from Texas wants to lecture you about being a good Christian. Our immigration system has been broken for a long time. No doubt, the current migrant crisis is a problem of the federal government’s making, and I mean both political parties.”
The proposal gives DCFS a $76.2 million increase to add 400 new positions.
They’re proposing an increase in K-12 spending by $449 million.
In higher ed, MAP grants get a $10 million bump and a $30.6 million increase to public universities, far short of their ask.
The Governor’s new Early Childhood agency has a startup cost of $13 million.
The Governor is going to propose shifting portions of retired state debt into ramping up the pension ramp, but it wouldn’t begin until FY30, at the tail end of his (potential) third term. He’s proposing ramping pension funding up to 100%, but potentially pushing the pension ramp even farther (from FY45 to FY48…or longer.)
It also appears Democrats are not planning to address (or at least haven’t addressed so far) the move that stops increasing the standard deduction to inflation. Republicans will be calling it a $1 billion tax increase. Expect that to be their main message coming out of the speech.
“The Governor just proposed raising taxes on every Illinois family struggling to make ends meet to fund the non-citizen welfare state he created,” Senate GOP Leader Joh Curran (R-Downers Grove) said after the address. “We have made it clear that the citizens of this state are our priority, while today, the Governor made it clear they’re his piggy bank.”
Pritzker also proposes spending $10 million to fund a non-profit that helps eliminate medical debt.
Little action will take place on the budget, at least publicly, until May.