Pritzker Budget Boosts DCFS, Schools; Provides One Year Tax Breaks on Gas, Groceries
Governor JB Pritzker proposed his Fiscal Year 2023 budget Wednesday at the Old State Capitol in Springfield after legislators canceled their scheduled session day over a winter storm. (Photo: State Journal-Register)
Despite blizzard conditions, closed interstates, and a legislature that stayed away from Springfield, Governor JB Pritzker Wednesday proposed his Fiscal Year 2023 budget anyway.
First, from John O’Connor of the Associated Press:
With inflation soaring and snow falling, Gov. J.B. Pritzker on Wednesday offered tax relief on groceries, gasoline and property as part of a $45.4 billion budget unveiled in a speech that also served as a warmup for this fall’s gubernatorial election.
In the fiscal outline combined with the annual State of the State address, Pritzker proposed a spending plan for the year beginning July 1 that represents a 3.4% decrease from the current year.
Typically, members of both House and Senate would gather in the House chamber to receive the governor’s spending ideas, but the three-day winter storm forced legislative leaders to cancel all three scheduled session days this week.
“Painstaking work has been done ... over the last 3 years to diligently and meticulously reverse the irresponsible decisions of the past and ensure that responsible budgeting would become the rule, not the exception,” Pritzker said.
Pritzker’s office countered that the $8 billion in federal aid — the current budget uses $1.5 billion and there’s $535 million in the proposed plan — has been used for pandemic-related expenses, not ongoing programs, and that they’ve adjusted for a federal funding dropoff.
There’s no question the plan shows substantial investments in debt long haunting the state. Pritzker intends to eliminate this year the $898 million in past-due bills for the employee health insurance program. What in recent years has been a monstrous backlog of bills due state vendors — $7 billion on Wednesday — will be reduced to $2.7 billion, putting it on a 21-day payment schedule. There’s even $900 million socked away in a rainy day fund for unanticipated emergencies.
There is additional program spending as well. The Department of Children and Family Services would get $200 million, in part to hire 360 more employees to deal with increasing caseloads of troubled children, a problem given extra attention by the stabbing death of a caseworker in the field last month.
The Department of Human Services would get $95 million more to care for residents with intellectual or developmental disabilities in a continued effort to provide equitable funding.
The $350 million annual increase for K-12 education promised in a 2017 public education overhaul is there and the needs-based Monetary Award Program to assist with college education will increase to $600 million, a 28.5% increase.
Rising crime will be a major issue in the campaign. Pritzker would put $800 million into prevention programs, recruit 300 additional state police officers, put $50 million in cannabis tax revenue toward communities with crime problems and increase funding to prevent gang crimes, hate crimes and increase staff at forensic crime labs.
Via Andrew Adams of the State Journal-Register:
The governor celebrated several financial wins that have happened since he took office. During his tenure, Illinois has received two credit upgrades and reduced a backlog to pay bills. At its worst, the state had $16.7 billion in unpaid bills, with some being unpaid for more than 500 days. He said the average bill now sits unpaid for about 15 days.
“Today, I’m pleased to announce that the state of Illinois will end this fiscal year with a $1.7 billion surplus,” Pritzker said.
The budget plan includes $4 billion in debt paydowns, which the governor's office said will repay all COVID-19 related borrowing, pay $900 million in delayed health insurance bills and $392 million to other bills, among other things.
The governor's proposed budget projects decreases from last year in both money coming into the state, down about 4.2%, and money being spent, down about 3.5%.
And more on the one-time tax breaks, via the Chicago Tribune:
In an appeal to voters, Pritzker’s plan would suspend the 1% sales tax on grocery items, a tax that goes to local governments, with the state making up the $360 million lost to municipalities. It also would suspend a scheduled 2.2 cents per gallon inflation-based increase in the gasoline tax at a cost of $135 million, and would provide $475 million in property tax rebates.
Already, the politically powerful International Union of Operating Engineers Local 150 has come out against the gas-tax freeze, contending it would short-circuit a state constitutional guarantee to use highway related taxes for infrastructure repairs. It argues instead for a reduction in the state sales tax on gas, but those revenues go to the state’s general bankbook. Pritzker said an influx of federal infrastructure funds will allow projects to go on without delay.
Republicans ridiculed Pritzker’s tax relief proposals as “election-year gimmicks” and noted they would come only after voters rejected the governor’s major agenda item — shifting the state from a flat to graduated-rate income tax — amid fears raised by opponents that it would lead to higher taxes for everyone.
In advance of his address, the Republican minority in the state Senate proposed the complete elimination of the local sales tax on food and drugs, a reduction in the state sales tax on gasoline while increasing the share of dollars that go into the road construction fund, a permanent boost in the property-tax credit to homeowners and doubling the $1,000 senior citizen income tax exemption.
Pritzker’s proposal was, of course, praised by Democrats and panned by Republicans.
From House Speaker Chris Welch:
“The governor’s budget address lays out a clear path to continue moving our state toward financial stability and surety while prioritizing hardworking Illinoisans. I could not be more proud of this state and the significant progress we’ve made in such a short amount of time.
It’s hard to imagine, but just a few years ago under the previous Republican administration we had a bill backlog of $17 billion, human service programs were decimated, our credit rating reached near junk status and Illinoisans were suffering because of it. It is thanks to hard work and responsible fiscal management that we are now in the position to discuss property tax relief, tax cuts for everyday necessities, millions in new spending for education, major investments in public safety and nearly eliminating our bill-payment backlog.
Our future is much brighter and our fiscal outlook is strong. This proposal by Governor Pritzker is an excellent starting point for our legislative budget negotiations. We cannot lose sight of the fact that we are still very much in the midst of an unprecedented pandemic and we must continue providing relief to people who are struggling. I have full confidence in Leader Greg Harris, his budget team, our appropriations committees and our Democratic Caucus to produce a final product that continues to build a better Illinois for all.”
From Senate President Don Harmon:
“I’m not accustomed to good news in a budget speech.
This is a budget proposal unlike any I’ve seen in my time in the Senate.
It speaks to the work we’ve done, together, to bring stability to our state finances.
That stability allows us to invest back in our state and provide relief to those hit hardest by the pandemic and associated economic downturn.
There’s a lot to like with this plan, and I look forward to working with the governor to produce a final product.”
From House Republican Leader Jim Durkin (R-Western Springs):
“The governor’s budget address is always a wish list, and this year it’s clear that the governor wishes to be reelected. The budget laid out by Governor Pritzker today is packed with gimmicks and one-time tricks, but no structural reforms. The people of Illinois deserve a governor who will be honest and work to actually fix things like property taxes and out-of-control crime.”
From Senate Republican Leader Dan McConchie (R-Hawthorn Woods):
“Alongside with a significant, permanent expansion of state government, the Governor is offering taxpayers a limited one-time election year tax reduction instead of the long-term tax relief Illinois families desperately need.
Until we make Illinois an affordable and safe place for families to live, work, and raise their kids, we are going to continue down the path of financial struggle and will continue to see tens of thousands of residents leave the state for a lower cost of living elsewhere.
The Senate Republicans have the ideas needed to provide long-lasting solutions that will ultimately result in people moving back to Illinois and putting us on the path of growth once again. If we can tackle the issues of taxes, crime and instill trust in our government again, all our other problems will become easier to solve. But until Illinois can be a net importer of people again, we will continue to see families continue to struggle.”
