In his third budget presentation Wednesday, Governor JB Pritzker blamed members of the Republican superminority in the House and Senate, as well as struggles of the COVID-19 pandemic for many of the crises facing Illinois government.

In an unusually partisan speech in an unusual setting, taped Tuesday at the Illinois State Fairgrounds in Springfield, Pritzker railed into Republicans. Jabbing at the former Trump administration, blaming House and Senate Republicans for “hypocrisy,” at one point referring to them as “carnival barkers,” and the four Republican members of Illinois’ congressional delegation for not doing enough to bring more federal funds back to Illinois.

“If there is anything the last year should have taught us, it is that we need a reliably well-funded government,” Pritzker said. “Many on the far right have made their name in politics by touting cuts to unemployment programs and health insurance coverage. They called anyone who sought unemployment benefits “takers.” They demonize state employees. And they fought unrelentingly to eliminate any state or federal funds designed to make healthcare more accessible, equitable and fair.”

Pritzker says additional cuts to government are difficult because it has already been cut too much.

“I won’t pretend that these tough decisions don’t have a human impact, because we are operating within one of the most bare-bones government infrastructures in the country,” he said. “While the right-wing carnival barkers have used our state as a laboratory to undermine essential public investments, the fact of the matter is Illinois state government spends less money per person than the majority of states in this nation.”

Pritzker said his proposal reduces spending by $1.8 billion from the current fiscal year.

“It reflects $400 million in additional cuts to appropriations, a hiring freeze, flat operational spending, full required pension payments, and the closure of unaffordable corporate loopholes. All in all, it reduces spending to meet projected revenues,” Pritzker said.

Among the “loopholes” the administration is proposing eliminating are for operating losses and depreciation incentives for businesses.

They include:

• Capping Net Operating Losses at $100,000 per year

• Matching Foreign-source dividends to Domestic-source dividend rates

• Rolling back federal 100% accelerated depreciation

• Eliminating the state biodiesel tax credit

• Reinstating the corporate franchise tax, which was repealed in 2020

• Capping retail stores sales tax discount at $1,000 per month

• Reducing tax credits for private school scholarships

• Eliminating an add-on deduction for construction job hires

• Ending a sales tax exemption for manufacturing machinery

The Pritzker administration anticipates all of the loophole closures would add $930 million to the state’s checking account.

What Pritzker calls “loopholes,” Republicans refer to as “tax increases” on struggling businesses in the state.

Though GOP members in the super minority will likely be in no rush to work with Pritzker on a new budget, he will likely have to contend with factions of the Democratic caucuses in the House and Senate who want a state budget which spends more money.

Senate President Don Harmon even conceded in his statement Wednesday he expects his members to want to try to find more money for education.

“This will be one of the most challenging budgets this government has ever had to craft, but I know there are willing partners in the General Assembly,” Pritzker said. “In addition to the budget committee, I’ve spoken with members and committee chairs of the General Assembly, and incorporated their ideas, like cutting corporate loopholes that force the middle class to pay more.”

The legislature will, in the end, be in charge with composing the final state budget, but it is up to Pritzker to implement it.

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Patrick Pfingsten

@pfingsten1 patrick@theillinoize.com