Quick budget preview
Tuesday, Feb 19, 2019 - Posted by Rich Miller
* Tina Sfondeles at the Sun-Times…
In his first budget address, Democratic Gov. J.B. Pritzker plans to pitch an “austere” spending blueprint with no increase in the state income tax rate, a bump in education funding and new revenue from business licenses he hopes the state will create to sell recreational marijuana.
Pritzker told the Chicago Sun-Times he will also push for taxes on e-cigarettes and vaping, and for the legalization of sports betting to help bring in more money for state government. […]
Pritzker’s first budget plan will recommend pumping $375 million more into the school funding formula, which is a $25 million increase over what the state is required to fund. His budget also proposes $21 million in funding in special education grants; $5 million more for career and technical education programs for high school students and $2 million for assistance to help low-income students pay for Advanced Placement testing.
The plan also includes a $100 million increase in the Early Childhood Block grant, an increase of $7 million for early intervention programs and $3.8 million more for a pre-school to age five grant. And it will include $55.2 million in additional funding for public universities; $13.9 million for community colleges and $50 million for MAP grants.
* Illinois News Network…
Pritzker has an estimated $3.2 billion deficit to deal with in a budget address he’s set to deliver Wednesday in front of a joint session of the House and Senate. House Revenue and Finance Committee Chair state Rep. Mike Zalewski, D-Riverside, said he expects two different paths to be laid out.
“‘Here’s what happens if we don’t act with some revenue, here’s what happens if we try to be creative with some revenue,’ so I’ll be interested in those two scenarios,” Zalewski said. […]
Zalewski said while Pritzker and others continue to push for changing the state’s flat income tax to one that taxes you more the more you make, he doesn’t think there will be any change in the income tax rate proposed for the coming budget.
“Advocating for what’s in place now though will require some out-of-the-box thinking, some unconventional sources of revenue, recreational cannabis, recreational sports betting,” Zalewski said. “Those are the two golden oldies I think we’ll hear about.”
Zalewski said lawmakers could move fast enough to capture some revenue from cannabis and gambling expansion for the coming fiscal year that begins July 1, but the estimated revenue in the hundreds of millions from cannabis and gambling isn’t expected to fill the $3.2 billion hole, or a little less than 10 percent of the current $36 billion budget.
* Finke…
Sen. Andy Manar, D-Bunker Hill, said he thinks a successful speech by Pritzker will be the presentation of “a frank and honest budget to the people of the state for consideration by the legislative branch.”
“There’s going to have to be sacrifice across the board, I believe, at the end of the day,” said Manar, whose district includes Decatur. “There is undoubtedly a set of challenges facing this governor that hasn’t been faced by any governor. Are there going to be disappointed individuals? Ask me next Thursday and then ask me on May 31. My guess is there probably will be.”
* From the governor’s stop in Peoria…
And, 40 hours before taking the lectern to propose his first budget, Pritzker said the situation inside many state agencies is “tough,” with a “depressed” state government in need of repair.
“We’ve got to make sure that we … truly turn state government into a delivery mechanism for the services you all expect it to deliver,” he said, citing the need to be efficient and effective in that delivery to spend taxpayer money wisely.
- Anon - Tuesday, Feb 19, 19 @ 10:18 am:
It will be interesting to see how the conversation around new taxes changes once people file their taxes in April and see how hard they are going to get hit because of salt deduction being capped at the federal level.
That will be a big tax increase on much of the middle- upper middle class in this state.
To make the budget work with JB’s spending goals that same group is going to have to be targeted by a progressive tax as well, because contrary to what many believe there is not enough revenue generated by just going after the top 1% to fill billions of dollars in deficits the state is looking at even if we didn’t spend one new dollar (which clearly isn’t happening).
- Not It - Tuesday, Feb 19, 19 @ 10:20 am:
Whatever happened to the rule that Governors can only introduce a budget using existing revenues?
- Grandson of Man - Tuesday, Feb 19, 19 @ 10:23 am:
Pritzker is holding out for a graduated income tax. If that fails, we can then look at raising the income tax rate. I support his not wanting to raise the income tax at this time.
- RNUG - Tuesday, Feb 19, 19 @ 10:27 am:
== support his not wanting to raise the income tax at this time. ==
Unfortunately, that most likely means the State just muddles along with a payment backlog for the next 2 years.
- striketoo - Tuesday, Feb 19, 19 @ 10:28 am:
A Chicago casino near McCormick Place and slots at both airports makes sense too.
- RNUG - Tuesday, Feb 19, 19 @ 10:32 am:
So …
Is there money in there to bring the agencies up to adequate staffing levels?
Is there money appropriated to cover the owed union back pay? And money to make the matching retirement fund contributions?
- Collinsville Kevin - Tuesday, Feb 19, 19 @ 10:42 am:
Can anybody explain to me why the schools need more money?
- The Dude - Tuesday, Feb 19, 19 @ 10:47 am:
A good start would be removing all of Rauners Anti-union employees at the Dept of Labor. They are all still in their offices as of right bow
- Honeybear - Tuesday, Feb 19, 19 @ 10:52 am:
Thanks for saying that RNUG. Thank you from the bottom of my heart.
It really strengthens me when frontline workers are not forgotten.
- Deadbeat Conservative - Tuesday, Feb 19, 19 @ 10:54 am:
@CK =Can anybody explain to me why the schools need more money? = Yes.
To relieve upward pressure and reliance on property taxes and local sales taxes.
- wordslinger - Tuesday, Feb 19, 19 @ 10:56 am:
Seems geared for a push for the graduated tax amendment.
Nothing on a capital plan?
- Huh? - Tuesday, Feb 19, 19 @ 11:00 am:
“A Chicago casino near McCormick Place and slots at both airports makes sense too.”
There was a recent news report that for the first time video gambling revenue has exceeded that of the casinos. The report also indicated that casino attendance is falling year over year.
It would make more sense to increase the State’s cut of video gambling.
- RNUG - Tuesday, Feb 19, 19 @ 11:05 am:
Reposting part of my comments from the pension thread because they are applicable here also …
As Rich noted, what really needs to be done is no new spending. Realistically, that is impossible. Just getting the agencies back up to adequate staffing levels will be expensive.
We have to staff up; the agencies are clearly not doing their jobs. To pick on ISP as an example, they failed on vetting the Aurora workplace shooter. Plus the Legislature just added to the ISP workload with the gun shop regulation bill. Staffing up is not an option; one of the State’s primary jobs is public safety.
Then there is the whole social welfare safety net. You can pick your issue there: mental health, public health, housing, food security, veteran support, etc. It will all cost money. But even with these issues we have been playing kick the can. Failure to provide small assistance on the front end costs more on the back end.
So we’re going to be spending a lot more money than during the Rauner years. But, and this is where I think Rich is trying to go, we don’t need any fancy NEW programs. What we need right now is professional planners and competent administrators to maximize the impact of every dollar the State does spend.
I’m hoping that will happen but I don’t think it will. I’m afraid the political lure of new programs with new costs will overrule common sense and fiscal restraint.
- Rich Miller - Tuesday, Feb 19, 19 @ 11:08 am:
===As Rich noted, what really needs to be done is no new spending===
That’s not what I wrote. I wrote that Illinois needs to match its revenues to its spending.
- Honeybear - Tuesday, Feb 19, 19 @ 11:09 am:
Dude- There are Raunerites everywhere
Still
I get that nobody wants to work for the state
but still
The good ones haven’t been contacted.
The Raunerites are still in charge in a lot of agencies/departments/critical functions.
and everyone
is
Nervous
anxious
waiting for the other shoe to drop.
I love seeing JB as Illinois Promoter in Chief
I wish he’d use some of that energy
to promote and stabilize his own workforce.
Find/promote the loyal
expel the Raunerites
and attract new talent
We are an abused and traumatized workforce
neglect is harmful too.
respectfully submitted
- RNUG - Tuesday, Feb 19, 19 @ 11:14 am:
== I wrote that Illinois needs to match its revenues to its spending ==
I stand corrected …
But do you think we can realistically raise THAT much revenue without a graduated income tax, or including retirement income, or seriously expanding sales tax to lots of services?
- Perrid - Tuesday, Feb 19, 19 @ 11:15 am:
“Can anybody explain to me why the schools need more money?”
To lower property taxes, both as a form of relief to taxpayers and also as a way to increase equity among different school district. Right now if a school is in a well off neighborhood they spend more than poorer district. That will still be true but it will be LESS true if the state puts more into the pot under the new formula.
- Blue Dog Dem - Tuesday, Feb 19, 19 @ 11:18 am:
Has anyone heard what state revenues are looking like in regards to the new federal returns?
- Anon - Tuesday, Feb 19, 19 @ 11:22 am:
Feel free to take all the pot shots at the ratings agencies you want.
They are our only hope though as they can save us from anymore can kicking by telling the state we will see our credit rating become junk if we try to in any way short the pension funds going forward from what they are scheduled to receive.
That would cut all of these smoke and mirror schemes off at the knees, as a junk rating would cripple our ability to to issue debt at anything even slightly resembling an affordable interest rate, as well as make it impossible for institutional investors to hold our debt (many of the larger funds are prohibited from investing in junk).
They have the power to impose discipline on us from the outside if we refuse to do it ourselves.
- Steve - Tuesday, Feb 19, 19 @ 11:27 am:
“Austere” means spending isn’t going up as much as we’d like.
- A 400lb. Guy on a bed - Tuesday, Feb 19, 19 @ 11:32 am:
=can anyone explain to me why the schools need more money?=
Win or lose, Lovie Smith gets his $8 million.
- Informed Mom - Tuesday, Feb 19, 19 @ 11:45 am:
Pritzker said little of substance about human services during his campaign & transition phase and virtually nothing about services for people with intellectual and/or developmental disabilities. Hope springs eternal that our time will eventually come.
- Anonymous - Tuesday, Feb 19, 19 @ 12:13 pm:
Austerity needed in matching spending and revenue. The other side of the coin is an increase in the outflow of population from the state.
- Generic Drone - Tuesday, Feb 19, 19 @ 12:16 pm:
As a state employee, I am beginning to get concerned about our new contract. Looking like more belt toghtening
- Honeybear - Tuesday, Feb 19, 19 @ 12:40 pm:
Generic Drone- exactly
- RNUG - Tuesday, Feb 19, 19 @ 12:43 pm:
== Looking like more belt tightening ==
That was a given regardless of who won the election. Just won’t be squeezed quite as hard by JB. I’ve said before that a good AFSCME contract now would continue the existing health insurance schedule, resolve all the step and backpay issues, and, MAYBE, provide a COLA in one or two years of the contract. That type of contract is the fiscal reality.
AFSCME would have gotten none of that under a re-elected Rauner … and been probably had the health insurance costs doubled.
- Anon - Tuesday, Feb 19, 19 @ 12:47 pm:
Generic Drone-
Considering the state’s fiscal position any raise above basic inflation would be irresponsible and make the pain on tax payers that much worse.
With tax increases on the horizon belt tightening is the least we can do as shared sacrifice is going to be the order of the day in Illinois.
- wordslinger - Tuesday, Feb 19, 19 @ 12:53 pm:
–They have the power to impose discipline on us from the outside if we refuse to do it ourselves.–
Huh. And I thought the purpose of rating agencies was to gauge likelihood of bond payments on time and in full.
Do you know Illinois’ track record on that? Do you know all of the 50 states’ track record on that?
If so, can you explain to me why they all aren’t rated AAA?
- Honeybear - Tuesday, Feb 19, 19 @ 12:57 pm:
Anon-
for the millionth
fricking time.
State workers
are
tax payers
- Generic Drone - Tuesday, Feb 19, 19 @ 1:06 pm:
I can live with a little belt tightening. But man its been gettin tough since 2011.
- NorthsideNoMore - Tuesday, Feb 19, 19 @ 1:19 pm:
Collinsville Kev=== Illinois ranks in the bottom for funding education at pretty much all levels…One reason your property taxes are so high (if you live up north even more so) Education Mandates are another reason.
- Power House Prowler - Tuesday, Feb 19, 19 @ 3:05 pm:
Rauner and his Raunerites have done a number on state property and state facilities. No money. No budget. Underfunded since Rauner took over. Incompetence at all levels. The state properties will not recover. Did I hear someone say “every building neess a roof”.
- Ron - Tuesday, Feb 19, 19 @ 3:32 pm:
Why doesn’t the state institute a spending freeze on everything other than pensions?
- Mama - Tuesday, Feb 19, 19 @ 5:31 pm:
=can anyone explain to me why the schools need more money?=
I live in a school district that gets a very small amount of revenue from property taxes because there are only a couple of businesses to speak of. Plus it is a double whammy due to a huge amount of trailer courts with very low property taxes. The type of education the students get in this district is not good by any means. Most of their teachers are part-time plus they need up to date school books, computers, library, etc., etc…
- Last Bull Moose - Tuesday, Feb 19, 19 @ 6:07 pm:
More state money for education will have little or no effect on property taxes here in Naperville. At least the property tax provides services to the taxpayers.
State revenues generally leave DuPage county.
- It Doesn’t Have to Be This Way - Tuesday, Feb 19, 19 @ 8:42 pm:
We have 852 school districts in IL. That puts us fourth behind CA, TX, and OH. Honestly, do we really need so many districts?
Truly, for those who would call for “belt-tightening”, what of a single school district to serve, say, all of Lake County, or, all of DuPage County? IL is not devoid of county-wide districts, but rarely is the topic ever discussed in the six-county Chicago metro area?
- wordslinger - Tuesday, Feb 19, 19 @ 10:56 pm:
–Truly, for those who would call for “belt-tightening”, what of a single school district to serve, say, all of Lake County, or, all of DuPage County? –
Go sell it. Believe it or not, Lake Forest might not thrill to merge its schools with Waukegan, or Naperville with West Chicago.
- It Doesn’t Have to Be This Way - Wednesday, Feb 20, 19 @ 3:25 am:
@wordslinger
“Go sell it.”
Ultimately, I agree with you. Bannockburn has a K-8 school district (#106) with an annual graduating class of somewhere around 14 kids.
But, then again, a home in Bannockburn would be worth a fraction of its same value in Gurnee.
So it goes for Stevenson HS, a one-school school district, which single-handedly anchors the housing market in the district it serves.
My point: the call for “universal belt-tightening” only goes so far - as does frustration around property taxes - when local consolidation of school districts in the Chicago metro area is almost always immediately ruled out - at any scale - as a starting point in the discussion. It feels a bit dualistic to me.