The day before the governor delivered his proposed budget to lawmakers, rumors circulated among legislators that K-12 education would receive an additional $200 million. Some people assumed that money would be used to boost the state’s evidence-based funding law.
The governor’s budget proposal did indeed project $200 million in revenues from imposing a new “social media platform fee,” and the money was earmarked for education. But, as I noted above, evidence-based funding was given only an additional $5 million on top of its (mostly) usual $300 million annual increase.
According to a PowerPoint presentation from the governor’s budget office, that $200 million, if approved and if the fee survives a legal challenge, would be “dedicated to supporting education.”
My associate Isabel Miller asked Pritzker during his post-address news conference where that $200 million would go.
“Well, guess what? The Legislature has a lot to say about how the money would be spent, but I think the important thing is that our education system, our K-12 system across the state, needs that kind of support,” Pritzker said. Then he moved on before she could follow up.
But wait, this is Pritzker’s own budget proposal. And all the revenue from that new fee are included in his spending plan. The governor’s budget wouldn’t balance without it.
So, I followed up with the governor’s office to ask where, specifically, that money was going.
“The proposal is to deposit it into the Common School Fund — the same place the Lottery is deposited — to support the cost of K-12 education. The Common School Fund is one of the General Funds, so the deposit is reflected in the General Funds budget proposal.”
OK, but according to the governor’s budget book, the Common School Fund is expected to grow by $103 million in the coming fiscal year — roughly half of the $200 million it’s receiving. And the Lottery’s contribution to the fund is projected to grow by $17 million (to $832 million out of a $6.96 billion fund budget).
Ironically, this sort of thing used to happen with the Lottery all the time. The gambling cash didn’t really add new money to school funding, but it did help the state shift an equal amount away to the rest of the budget every year.
In this case, $200 million is being added to the school fund, but, in the process, $114 million appears to have been shifted out of the fund to the rest of the budget.
- Excitable Boy - Monday, Mar 16, 26 @ 9:39 am:
Confusion about the process aside, I’m surprised to see Sirota praising the governor. He’s typically pretty anti-Pritzker.
- Steve - Monday, Mar 16, 26 @ 9:54 am:
JB and Illinois could be pioneers for taxing what hasn’t been taxed. What a way to send a message to America’s business community.
- Think Again - Monday, Mar 16, 26 @ 9:56 am:
=it’s 200 million, that’s not much.”
So easy to count other people’s money, and as Forbes reports, JB’s is worth 3.9 billion, so from his perspective, that 200 million really isn’t much.
- Stix Hix - Monday, Mar 16, 26 @ 9:58 am:
–JB and Illinois could be pioneers for taxing what hasn’t been taxed.–
I guess you never lived in Virginia.
- B - Monday, Mar 16, 26 @ 10:01 am:
@steve
Do people like you think the business community is some sort of massive majority of Americans? You do realize 99% of people in this country arent the business community.
There is such thing as a common ground where both working people and the business community can prosper. Why do people like you continue to worship the business community and think we all benefit from the proven time and time again fake trickle down economics?
Chicago has now finished 1st in the country in corporate relocations and expansions I believe now 13 years in a row? I have lost count.
We used to have the 2nd most fortune 500 companies in this metro and after years of hand wringing by people like you, we are still 2nd in the nation.
Last I checked, all those major businesses are still generating billions in profits.
- Steve - Monday, Mar 16, 26 @ 10:01 am:
-I guess you never lived in Virginia.-
Illinois politicians are very innovative at taxing and regulating and not limited by one term governors.
- OBResident - Monday, Mar 16, 26 @ 10:21 am:
First, JB is incorrect that social media companies do not offer benefits to the 13 million people in the state. There are numerous benefits. Connecting willing buyers and sellers for numerous products & services is a clear benefit.
Secondly, why do NYTimes podcasters look like something out of an SNL skit? It’s a weird crossover between Portlandia & Hunger Games over there.
- Demoralized - Monday, Mar 16, 26 @ 10:30 am:
==JB is incorrect that social media companies do not offer benefits ==
The negatives of social media far, far, far outweigh any benefits.
- Sue - Monday, Mar 16, 26 @ 10:32 am:
Article in WSJ today- R run states all focused on reducing taxes and lowering costs for residents - D Run states arr all trying to outdo one another raising taxes and accelerating their population losses
- lake county democrat - Monday, Mar 16, 26 @ 10:35 am:
Fun fact about David Sirota: upon becoming part of Bernie Sanders’ presidential campaign team he deleted his entire history of (then-Twitter) posts.
- Demoralized - Monday, Mar 16, 26 @ 10:35 am:
Thanks for the talking points @Sue. I’m sure a campaign somewhere could use your services.
Same old, same old always from you.
- Montrose - Monday, Mar 16, 26 @ 10:41 am:
“=it’s 200 million, that’s not much.”
So easy to count other people’s money, and as Forbes reports, JB’s is worth 3.9 billion, so from his perspective, that 200 million really isn’t much.”
But he is right.
He put it in the context of the overall $56 billion state budget. It is less than 1/2% of the total budget. So it isn’t that much.
And for the social media companies that would be paying the fee, it is not that much for them either.
- City Zen - Monday, Mar 16, 26 @ 10:44 am:
Usually paying for “serious harms” means the harming actually stops. You impose a fine on the company that polluted the river but you also take measures to ensure that company is no longer polluting that river.
JB sold our well-being for 50 cents per month.
- Loop Lady - Monday, Mar 16, 26 @ 11:01 am:
I think the Govs most effective ad is when he points out what IL’s credit rating is now vs when he took office.
No small feat, and the voters should be happy about it.
I know IL still has fiscal challenges, but I think he deserves credit for this.
Totally off topic, but JB’s jowls have disappeared in this photo.
Despite all the crap he’s had to deal with, he looks healthier.