With Strongest State Budget in Memory,    Gov. Pritzker Delivers Fourth Balanced Budget Proposal that Pays Down Debt and Delivers Tax Relief for Families

Gov. Pritzker Proposes Unprecedented Supplemental Pension Payment, Tripling Rainy Day Fund 

 

Balanced Budget Provides $1 Billion in One-Time Relief for Grocery, Gas and Property Taxes  

 

After years of working with the General Assembly to make fiscally responsible choices, protect working families and pay down Illinois’ debt, Governor JB Pritzker on Wednesday proposed his fourth balanced budget, delivering $1 billion in relief from grocery, gas and property taxes as well as making unprecedented payments to state pensions and the rainy day fund.

 

With revenues from corporate taxes, cannabis, online sales taxes and income far exceeding initial projections, the proposed budget provides significant one-time relief to families, while continuing the responsible fiscal decisions that led to two credit upgrades for the state.

 

Building on the administration’s previous efficiencies, the budget invests in critical areas of growth and services, including education, public safety and small businesses.

 

Select highlights include:

 

Family Relief Plan  

  • $475 million in property tax rebates for families, with a one -time property tax rebate payment to homeowners of 5% of property taxes paid, up to $300 for those eligible for a state income tax credit
  • $360 million by freezing the state’s tax on groceries, one of the most regressive taxes
  • $135 million by freezing the planned increase in the gas tax, which will not jeopardize any planned projects

 

Fiscal Responsibility  

  • Additional $500 million directly to the Pension Stabilization Fund, reducing long-term liabilities by $1.8 billion
  • Adds nearly $900 million to the Rainy Day Fund over FY22 and FY23
  • Eliminates the $898 million owed for employee health insurance
  • Saves $2 billion through strong fiscal management

 

Investing in Education  

  • $350 million increase for Evidence Based Funding for K-12 schools
  • $96 million increase for transportation and special education
  • $54 million increase for Early Childhood Education
  • $300 million to Strengthen and Grow Childcare Grants
  • Increase MAP funding to $600 million, a one year $122 million increase, increasing the max award to 50% of tuition at public universities and expands eligibility to students enrolled in short-term certificate programs
  • Pays off the $230 million unfunded liability for College Illinois!
  • Increases funding for minority teacher scholarships

 

Strengthening Healthcare  

  • Waives licensing fees for nearly 470,000 frontline healthcare workers
  • $180 million to preserve and expand the healthcare workforce, through Medicaid providers – focusing on underserved and rural areas
  • $140 million to mental health care providers through rate enhancements
  • $70 million to 9-8-8 call centers and crisis response services for mental health issues
  • $25 million to expand the pipeline of nurses through the Illinois Community College Board

 

Support for Small Businesses and Employers 

  • One-year waiver of retail liquor license fees to aid restaurants, bars, and liquor license holders 
  • $38 million to Employer Training and Investment Program to assist with workforce and employee training efforts 
  • $5 million to develop minority entrepreneurship programs and support small, minority owned businesses 
  • $35 million in new capital appropriations to Rebuild Main Streets and Downtown Commercial Corridors to promote new investment and bring jobs to communities 

 

Public Safety & Violence Prevention  

  • Over $800 million for violence prevention appropriations, which will more than triple State violence prevention funding since FY19.  Includes appropriations for Reimagine Public Safety and R3 grants
  • 300 new state troopers, the single largest investment in state history to expand cadet classes
  • $50 million increase directly from cannabis revenues to support communities harmed by violence, excessive incarceration and economic disinvestment
  • $20 million to support Gang Crime Witness Protection Program
  • $20 million for non-profits for security investments to prepare for hate crimes
  • $5.4 million for increased staffing and equipment at new forensic lab in Decatur, after expanding state forensic capacity in Chicago and Joliet

 

Protecting the Most Vulnerable  

  • $2 billion for services for people with developmental disabilities, including implementation of 2nd phase of Guidehouse recommendations
  • $250 million to hire additional DCFS staff, increase rates for private partners and create new residential capacity.

Press Release