Tax relief is political gimmick. Take the $1 billion and put to pensions to save billions more.
Pritzker has made fiscal strides no doubt but to say the federal money had nothing to do with it is a joke. It’s almost like a two-assist goal in the NHL (Hossa and Kane assisted Toews). In this case, two federal stimulus packages assisted Pritzker.
The scorer can take credit but the stats book will show the assist.
Pritzker benefits from the fed help and the positive market performance and returns. He didn’t directly cause either, but he does deserve some credit for how the administration has focused on financial management, realized bond and credit ratings improvements, etc. They played a part in improving their hand, while also being dealt some good cards. You still need to play the hand.
- Cool Papa Bell - Wednesday, Feb 2, 22 @ 1:24 pm:
Solid plan put forth today. I’m in the camp of take all the extra cash and throw it at the pension problem but I also understand the realities of doing just that.
The temporary cuts are just that - but if they go a long way of getting JB reelected they served their purpose and the state will be better off for it. I wonder what the budget address would look like with graduated income tax. The forward progress of the state would be impressive.
All generally positive. Given that JB’s reelection theme is going to be about competence, this will be hard to beat using facts. However, I would echo comments that excess funds should go toward debt (pension and other) rather than gimmicky tax relief or saved for rainy days. It is still raining.
- Give Us Barabbas - Wednesday, Feb 2, 22 @ 1:27 pm:
He’s got a great speechwriter, anybody have a name? Proposal hits all the right notes and will be mined for pull quotes for his campaign spots, I’m sure. It’s always in the execution where the problems arise. Would have liked to hear more about un-(blank)ing IDES and DCFS. He’s right you have to throw more bodies and sets of eyes on the problems there, but where will those people come from, and will they be any good?
But a very good presentation that should leave folks feeling positive about the direction we’re going in. He also takes a good swipe at the carnival barkers who have memes but no plans.
Lots of election-year gimmicks, in particular, the one-year delaying of the pain on his gas tax increases. But I will say cheers to his proposed one-year fee waiver for liquor licenses fees.
Who will protect the surplus from overeager legislators wanting to “fund” a pet projects? My spouse can spend an extra 1K 4x over…I suggested they run for office, fit right in.
A well-crafted political document. He was smart to make the tax relief provisions one time items. Next year, which fortunately for him or his successor will be after the election, will be a much more difficult budget year.
“Tax relief is political gimmick. Take the $1 billion and put to pensions to save billions more.”
It is and it isn’t. Just like we keep hearing that belief that inflation is happening drives inflation to happen, belief that you are getting relief also helps fuel positive activity. We do better as a state when people feel like they have more money in their pockets and they are being looked out for. You don’t get with a bigger pension contribution.
Generally, a good speech and budget. While the list of things he shared around how Illinois is protecting the right to vote, a woman’s right to chose, etc. spoke to me, there’s a good chunk of folks out there that saw it as being provided a check list of reasons to vote him out of office.
Rich, delete if this isn’t germane, but I found his hat tip to Delia Ramirez, who’s running for Congress, interesting.
- Grandson of Man - Wednesday, Feb 2, 22 @ 1:38 pm:
Great speech. He said opponents are “spelunking” for bad news, or something like that. Ran to look up that word, and what he said is quite true about the professional Illinois doom pushers.
About crime he said opponents shout “lock them up” but cut funding to help them, or something like that. That we know, yes.
- Take a Closer Look - Wednesday, Feb 2, 22 @ 1:49 pm:
Are we better off today than we were four years ago? He answered that one quite clearly.
I am old enough to remember Governors who would have used the one time fed emergency money to create a bunch of new programs that blew new holes in the structural deficit. Paying down debt is a refreshing change.
So how does the loss of the graduated income tax play into this?
- Back to the Future - Wednesday, Feb 2, 22 @ 2:02 pm:
Pretty nice graphics.
Thinking about the $300 or so bucks I may get and reflecting on the tax system the Governor benefits so handsomely from.
I would rather see a political person make suggestions and propose radical changes in the tax avoidance schemes folks like the Governor and Trump use to avoid supporting our revenue needs.
As a percentage of net worth these two examples show how little is paid to support the needs of Illinois residents that don’t have inherited wealth. We are burdened by a system that benefits some and punishes others.
Of course, neither party is going to do anything to make a significant change in how we get revenue to support government.
As a Dem it more than a little embarrassing. Perhaps the Governor could start by stepping away from the Trump model and disclosing his complete tax returns so voters could see how the current tax system works against their interests.
It’s nice to have someone in charge who isn’t trying to break things.
- NonAFSCMEStateEmployeeFromChatham - Wednesday, Feb 2, 22 @ 2:10 pm:
==I am old enough to remember Governors who would have used the one time fed emergency money to create a bunch of new programs that blew new holes in the structural deficit.==
e.g., Ryan (IL First), Blago (his entire administration)
Found his comment about how local governments should take a long hard look at reducing the burden of high property taxes interesting. Public education makes up two-thirds of the average property tax bill. If the State adequately supported public schools, the property tax burden would not be so high.
“We are burdened by a system that benefits some and punishes others.”
Thank you for summarizing every system that has ever existed. To the post, it was a good speech. I need to take a deeper dive into the numbers. But overall, I am supportive, simply because having a governor that conducts business like an adult is still refreshing after three years.
Good point on the progressive tax, I’d love to see what impact it would have had on pension obligation reductions. Especially interested considering a primary beneficiary of shooting it down is happily spending his money to back a slate of candidates.
=I would rather see a political person make suggestions and propose radical changes in the tax avoidance schemes folks like the Governor and Trump use to avoid supporting our revenue needs.=
I think they call that a “fair tax.” If memory serves me correctly, the governor did have a thought or two on that topic. But alas one of the other billionaires in this state did a really good job of convincing people that it would be bad for him.
GA Watcher, IL has ramped up spending on education quite a bit the last few years. JB’s budget is adding $350 million to the EBF. If the state is shoveling more money into schools then yeah, it makes sense for local government to ask if their levy is still needed. The answer may be yes, different districts have different funding streams.
Interesting how political opponents are stuck between crediting Gov. Pritzker or Pres. Biden for Illinois’ improved economics, more revenues, and better fiscal health.
Truth is the fiscal turnaround was occuring even before COVID, and before Fed funds were committed. They then added to it.
Does giving back $1 billion in one-time tax breaks help to restore trust in government for those who voted against the graduated rate income tax? Or does it just squander an opportunity to lower the pension debt and brace for the cliff that is coming when the federal money runs out? Does it make it harder or easier to pass a graduated tax next time it is on the ballot?
- Friendly Bob Adams - Wednesday, Feb 2, 22 @ 4:02 pm:
My take is that Pritzker is a serious guy trying to solve serious problems. Individual details may or may not be great, but this is overall a strong proposal.
One struggles to imagine what Governor Bailey would come up with.
If the governor didn’t give up the $1B of tax cuts and put it towards debt we’d be hearing about the fragility of our post pandemic economy and inflation. So regardless of what he did he would have been criticized by the GOP. But that goes with the territory. The larger frustration for his opponents is that he muted one of their primary talking points. But he did it by doing the doable as opposed to a meaningless placeholder of “working together on a grand bargain.” I still vividly remember those days. They weren’t fun. And today’s critics were yesterday’s enablers.
“Tax relief is political gimmick.” Then the Republican’s perennial “we need tax cuts” is also a gimmick.
- Former Merit Comp - Wednesday, Feb 2, 22 @ 5:25 pm:
As a former state employee (30 years) who dealt with budgeting quite a bit for my department, this is probably the best budget proposal I’ve ever seen, from either side of the aisle.
Best higher education budget by far in 20 years. What impact will that have on the Republican legislators who represent Macomb, Charleston, DeKalb, Carbondale, Bloomington, and Springfield?
- Candy Dogood - Wednesday, Feb 2, 22 @ 1:13 pm:
I can’t find the “working together to get things done” line item anywhere.
- 4 percent - Wednesday, Feb 2, 22 @ 1:13 pm:
Positive. Moving in the right direction.
Tax relief is political gimmick. Take the $1 billion and put to pensions to save billions more.
Pritzker has made fiscal strides no doubt but to say the federal money had nothing to do with it is a joke. It’s almost like a two-assist goal in the NHL (Hossa and Kane assisted Toews). In this case, two federal stimulus packages assisted Pritzker.
The scorer can take credit but the stats book will show the assist.
- Bruce Rauner - Wednesday, Feb 2, 22 @ 1:17 pm:
I had a working together in my budgets to craft a budget.
- 47th Ward - Wednesday, Feb 2, 22 @ 1:19 pm:
Budget speeches are easy when you’re flush with cash. Despite that, I thought his optimistic vision and tone were great and much needed.
- Give Me A Break - Wednesday, Feb 2, 22 @ 1:20 pm:
Some positive news for behavioral health providers, rate increases and some steps being taken to address workforce issues.
- Lincoln Lad - Wednesday, Feb 2, 22 @ 1:22 pm:
Pritzker benefits from the fed help and the positive market performance and returns. He didn’t directly cause either, but he does deserve some credit for how the administration has focused on financial management, realized bond and credit ratings improvements, etc. They played a part in improving their hand, while also being dealt some good cards. You still need to play the hand.
- Cool Papa Bell - Wednesday, Feb 2, 22 @ 1:24 pm:
Solid plan put forth today. I’m in the camp of take all the extra cash and throw it at the pension problem but I also understand the realities of doing just that.
The temporary cuts are just that - but if they go a long way of getting JB reelected they served their purpose and the state will be better off for it. I wonder what the budget address would look like with graduated income tax. The forward progress of the state would be impressive.
- Jibba - Wednesday, Feb 2, 22 @ 1:25 pm:
All generally positive. Given that JB’s reelection theme is going to be about competence, this will be hard to beat using facts. However, I would echo comments that excess funds should go toward debt (pension and other) rather than gimmicky tax relief or saved for rainy days. It is still raining.
- Give Us Barabbas - Wednesday, Feb 2, 22 @ 1:27 pm:
He’s got a great speechwriter, anybody have a name? Proposal hits all the right notes and will be mined for pull quotes for his campaign spots, I’m sure. It’s always in the execution where the problems arise. Would have liked to hear more about un-(blank)ing IDES and DCFS. He’s right you have to throw more bodies and sets of eyes on the problems there, but where will those people come from, and will they be any good?
But a very good presentation that should leave folks feeling positive about the direction we’re going in. He also takes a good swipe at the carnival barkers who have memes but no plans.
- Donnie Elgin - Wednesday, Feb 2, 22 @ 1:28 pm:
Lots of election-year gimmicks, in particular, the one-year delaying of the pain on his gas tax increases. But I will say cheers to his proposed one-year fee waiver for liquor licenses fees.
- Gordon Willis - Wednesday, Feb 2, 22 @ 1:30 pm:
Who will protect the surplus from overeager legislators wanting to “fund” a pet projects? My spouse can spend an extra 1K 4x over…I suggested they run for office, fit right in.
- Facts Matter - Wednesday, Feb 2, 22 @ 1:36 pm:
A well-crafted political document. He was smart to make the tax relief provisions one time items. Next year, which fortunately for him or his successor will be after the election, will be a much more difficult budget year.
- Montrose - Wednesday, Feb 2, 22 @ 1:37 pm:
“Tax relief is political gimmick. Take the $1 billion and put to pensions to save billions more.”
It is and it isn’t. Just like we keep hearing that belief that inflation is happening drives inflation to happen, belief that you are getting relief also helps fuel positive activity. We do better as a state when people feel like they have more money in their pockets and they are being looked out for. You don’t get with a bigger pension contribution.
Generally, a good speech and budget. While the list of things he shared around how Illinois is protecting the right to vote, a woman’s right to chose, etc. spoke to me, there’s a good chunk of folks out there that saw it as being provided a check list of reasons to vote him out of office.
- chito - Wednesday, Feb 2, 22 @ 1:37 pm:
Rich, delete if this isn’t germane, but I found his hat tip to Delia Ramirez, who’s running for Congress, interesting.
- Grandson of Man - Wednesday, Feb 2, 22 @ 1:38 pm:
Great speech. He said opponents are “spelunking” for bad news, or something like that. Ran to look up that word, and what he said is quite true about the professional Illinois doom pushers.
About crime he said opponents shout “lock them up” but cut funding to help them, or something like that. That we know, yes.
- Take a Closer Look - Wednesday, Feb 2, 22 @ 1:49 pm:
Are we better off today than we were four years ago? He answered that one quite clearly.
- Wondering - Wednesday, Feb 2, 22 @ 1:52 pm:
After hearing that speech, what do the Republicans want to take us back to? A budget impasse? Junk bond status?
- SAP - Wednesday, Feb 2, 22 @ 1:53 pm:
I am old enough to remember Governors who would have used the one time fed emergency money to create a bunch of new programs that blew new holes in the structural deficit. Paying down debt is a refreshing change.
- BigLou - Wednesday, Feb 2, 22 @ 1:57 pm:
So how does the loss of the graduated income tax play into this?
- Back to the Future - Wednesday, Feb 2, 22 @ 2:02 pm:
Pretty nice graphics.
Thinking about the $300 or so bucks I may get and reflecting on the tax system the Governor benefits so handsomely from.
I would rather see a political person make suggestions and propose radical changes in the tax avoidance schemes folks like the Governor and Trump use to avoid supporting our revenue needs.
As a percentage of net worth these two examples show how little is paid to support the needs of Illinois residents that don’t have inherited wealth. We are burdened by a system that benefits some and punishes others.
Of course, neither party is going to do anything to make a significant change in how we get revenue to support government.
As a Dem it more than a little embarrassing. Perhaps the Governor could start by stepping away from the Trump model and disclosing his complete tax returns so voters could see how the current tax system works against their interests.
- Cheryl44 - Wednesday, Feb 2, 22 @ 2:05 pm:
It’s nice to have someone in charge who isn’t trying to break things.
- NonAFSCMEStateEmployeeFromChatham - Wednesday, Feb 2, 22 @ 2:10 pm:
==I am old enough to remember Governors who would have used the one time fed emergency money to create a bunch of new programs that blew new holes in the structural deficit.==
e.g., Ryan (IL First), Blago (his entire administration)
- GA Watcher - Wednesday, Feb 2, 22 @ 2:22 pm:
Found his comment about how local governments should take a long hard look at reducing the burden of high property taxes interesting. Public education makes up two-thirds of the average property tax bill. If the State adequately supported public schools, the property tax burden would not be so high.
- Ducky LaMoore - Wednesday, Feb 2, 22 @ 2:34 pm:
“We are burdened by a system that benefits some and punishes others.”
Thank you for summarizing every system that has ever existed. To the post, it was a good speech. I need to take a deeper dive into the numbers. But overall, I am supportive, simply because having a governor that conducts business like an adult is still refreshing after three years.
- Lincoln Lad - Wednesday, Feb 2, 22 @ 2:37 pm:
Good point on the progressive tax, I’d love to see what impact it would have had on pension obligation reductions. Especially interested considering a primary beneficiary of shooting it down is happily spending his money to back a slate of candidates.
- Pundent - Wednesday, Feb 2, 22 @ 2:39 pm:
=I would rather see a political person make suggestions and propose radical changes in the tax avoidance schemes folks like the Governor and Trump use to avoid supporting our revenue needs.=
I think they call that a “fair tax.” If memory serves me correctly, the governor did have a thought or two on that topic. But alas one of the other billionaires in this state did a really good job of convincing people that it would be bad for him.
- Perrid - Wednesday, Feb 2, 22 @ 2:40 pm:
GA Watcher, IL has ramped up spending on education quite a bit the last few years. JB’s budget is adding $350 million to the EBF. If the state is shoveling more money into schools then yeah, it makes sense for local government to ask if their levy is still needed. The answer may be yes, different districts have different funding streams.
- Arsenal - Wednesday, Feb 2, 22 @ 3:02 pm:
==Lots of election-year gimmicks, in particular, the one-year delaying of the pain on his gas tax increases. ==
“Spelunking for misery.”
- walker - Wednesday, Feb 2, 22 @ 3:21 pm:
Interesting how political opponents are stuck between crediting Gov. Pritzker or Pres. Biden for Illinois’ improved economics, more revenues, and better fiscal health.
Truth is the fiscal turnaround was occuring even before COVID, and before Fed funds were committed. They then added to it.
- Wensicia - Wednesday, Feb 2, 22 @ 3:21 pm:
It’s a good budget plan for a state going through recovery from the pandemic.
Pritzker earned the right to brag about the positive turnaround in the state (since Rauner) while realizing more needs to be done.
- NonAFSCMEStateEmployeeFromChatham - Wednesday, Feb 2, 22 @ 3:28 pm:
==But alas one of the other billionaires in this state did a really good job of convincing people that it would be bad for him.==
As well as Frerichs thinking it would be a good idea to expand the fair tax to cover retirement.
- Pro Bono - Wednesday, Feb 2, 22 @ 3:52 pm:
Does giving back $1 billion in one-time tax breaks help to restore trust in government for those who voted against the graduated rate income tax? Or does it just squander an opportunity to lower the pension debt and brace for the cliff that is coming when the federal money runs out? Does it make it harder or easier to pass a graduated tax next time it is on the ballot?
- Friendly Bob Adams - Wednesday, Feb 2, 22 @ 4:02 pm:
My take is that Pritzker is a serious guy trying to solve serious problems. Individual details may or may not be great, but this is overall a strong proposal.
One struggles to imagine what Governor Bailey would come up with.
- Pundent - Wednesday, Feb 2, 22 @ 4:05 pm:
If the governor didn’t give up the $1B of tax cuts and put it towards debt we’d be hearing about the fragility of our post pandemic economy and inflation. So regardless of what he did he would have been criticized by the GOP. But that goes with the territory. The larger frustration for his opponents is that he muted one of their primary talking points. But he did it by doing the doable as opposed to a meaningless placeholder of “working together on a grand bargain.” I still vividly remember those days. They weren’t fun. And today’s critics were yesterday’s enablers.
- Rich Miller - Wednesday, Feb 2, 22 @ 4:05 pm:
=== Does it make it harder or easier to pass a graduated tax next time it is on the ballot? ===
Probably not in my lifetime.
- Another perspective - Wednesday, Feb 2, 22 @ 4:06 pm:
I think JB Pritzker gave the best speech he’s ever given today.
- Stormsw7706 - Wednesday, Feb 2, 22 @ 4:53 pm:
Sounds like we have a grown up in the Governors office
- Skeptic - Wednesday, Feb 2, 22 @ 4:56 pm:
“Tax relief is political gimmick.” Then the Republican’s perennial “we need tax cuts” is also a gimmick.
- Former Merit Comp - Wednesday, Feb 2, 22 @ 5:25 pm:
As a former state employee (30 years) who dealt with budgeting quite a bit for my department, this is probably the best budget proposal I’ve ever seen, from either side of the aisle.
- Oldtimer - Thursday, Feb 3, 22 @ 9:45 am:
Best higher education budget by far in 20 years. What impact will that have on the Republican legislators who represent Macomb, Charleston, DeKalb, Carbondale, Bloomington, and Springfield?
- Woody - Thursday, Feb 3, 22 @ 11:25 am:
Have serious concerns about freezing the gas tax increase. Roads and bridges keep deteriorating. Need repair. That won’t stop.