Pritzker Administration Asks Agencies to Prepare for $800 Million in Cuts
The Governor’s office in the Illinois Capitol.
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Governor JB Pritzker’s top budget negotiator is warning state agencies of up to $800 million in cuts if the General Assembly doesn’t approve Pritzker’s proposed tax increases in a new state budget.
In a memo to agency directors Wednesday and obtained by The Illinoize, Deputy Governor Andy Manar says the state must “prepare to implement a potential balanced budget scenario with $800 million less in available revenue.”
There have been rumors in recent days that some House Democrats were leery of some of Pritzker’s proposed tax increases, like raising 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, which has been in place for decades. But many Democrats we spoke to this week played down any controversy over the Governor’s proposed budget.
“While we do not know which specific programs would be impacted should the General Assembly choose to not pass the revenue package, we think it is prudent to prepare for the possibility,” Manar wrote.
One legislative Democrat we spoke to Wednesday called Manar’s memo “saber rattling” in an attempt to “scare” Democrats into enacting Pritzker’s proposed tax increases.
House Republican Leader Tony McCombie (R-Savana) recorded our podcast this afternoon. She had not seen the memo at the time of the recording, but said she thinks Democrats actually want more tax increases.
“The problem will be that there won’t be any capital or member initiative dollars, so they’re probably upset that there’s not a higher tax increase so they can have some fluff. That’s probably the real issue,” she said. “It doesn’t surprise me.”
McCombie criticized the growth in Democratic spending and the size of Pritzker’s proposed $53 billion budget.
But Manar’s memo emphasized the administration’s efforts to limit the growth of spending and commitment to passing a balanced budget.
“The Governor's FY25 budget proposal increases spending a mere 1.5% over the current fiscal year,” Manar wrote. “This helps illustrate how tight this budget truly is. It also helps illustrate how revenues must be part of the balanced budget conversation.”