* Subscribers were given a heads up about this earlier today…

Members of the media,

Please see the attached one-pager that outlines the relief package Leader Harris and House Democrats outlined in this morning’s press conference, which also includes proposed new funding for public safety. These items are in addition to the Governor’s proposed Family Relief Plan and public safety funding levels.

These House-led proposals were filed last night. HB 1497 is the House’s proposed relief package, HB 969 is the House’s proposed budget.

* The proposal…

House Democrats
Illinois Family Recovery Act – Fact Sheet April 5, 2022
House-proposed Assistance Package
Governor’s Proposed Illinois Family Relief Plan

We propose funding the Governor’s Illinois Family Relief Plan, including the proposed relief plans on gas, groceries, and property taxes. Estimated cost: $1 billion.

Additional House Proposals for Family Recovery

• Create the FY 2023 Low-Income Family Tax Rebate (LIFT Rebate). Estimated cost: $165 million.
o $100 per EITC-eligible filer
o $50 per child in an EITC-eligible household
• Permanent Expansion of the Earned Income Tax Credit (EITC). Estimated cost: $103.5 million.
o Expand to include ages 18-24 and 65+
o Expand to include ITIN filers; refundable and with same age expansion
o Add 2% of federal EITC level, inclusive of age and ITIN expansion
• Create the FY 2023 Reducing Inflation Impact Fund (RIIF Fund) to give a one-time add-on to the Local Government Distributive Fund (LGDF). Estimated cost: $100 million.

House-proposed Teacher Support

We propose doubling the tax credit for teachers purchasing classroom materials. Estimated cost: $15 million. Total Illinois Family Recovery Act Cost: $1.38 billion, paid for with higher than expected revenues.

House-proposed New Public Safety Funding

In addition to public safety funding in the Governor’s budget, including the $250 million for the Reimagine Public Safety Act, we are proposing an additional $236M for public safety:

• $124M will go to support local police and reduce violent crime
o This includes funding for body cameras, automatic license plate readers, ballistics testing and
forensics, and non-lethal equipment to subdue suspects with less risk to life
o This includes funding for mental health screenings for local police departments, funding for a
co-responder pilot program, and law enforcement retention grants.
• $48M is allotted to prevent carjacking with funding for local safety councils, youth summer jobs
programs, YouthBuild Illinois, Teen REACH, Youth Redeploy Illinois, Parents Too Soon, and
Comprehensive Community-Based Youth Services
• $12M to fund a program for neighbors to actively assist in reporting crime. This will include money for
witness protection, a tip line and a pilot program to use ring cameras to help solve crime.
• $50M will go towards domestic violence
• $2M will go towards expanding trauma recovery centers

* React from the Coalition to Make EIC Work…

Leaders in the House of Representatives unveiled a $1.38 billion tax relief proposal on Wednesday morning. The proposal called the “Illinois Family Recovery Act” answers advocate calls to expand eligibility of Illinois’ Earned Income Credit (EIC). It would include nearly one million Illinoisans who are currently excluded from the refund—namely, childless workers aged 18-24 and over age 65, as well as immigrants who file taxes with an Individual Taxpayer Identification Number (ITIN). In addition to newly eligible filers, it would benefit the existing 3.6 million EIC recipients by increasing the credit amount available for each family, raising the match of the federal Earned Income Tax Credit (EITC) from the current 18% to 20% of the EITC value. House Democrats also propose $165 million to fund a one-time cash transfer for all EIC eligible families at the value of $100 plus $50 for each child dependent.

The Coalition to Make EIC Work has been leading the charge in advocating for tax relief that directly benefits Illinois’ low-income families (see details below). Amber Wilson, Statewide Campaign Manager at Economic Security for Illinois issued the following statement on behalf of the Coalition to Make EIC Work:

“We are thrilled to see House leadership take seriously the need to expand the Earned Income Credit and put cash directly into our neighbors hands. The impact of the House proposal is huge: It would reach over 4.5 million Illinoisans across every single zip code in the state and offer hundreds more to low-income families at a moment when relief is sorely needed.

Based on similar estimates of our proposal, we know this is a wise investment that can create hundreds of millions in local and state economic benefits, far exceeding the cost of implementation.

Most importantly, an expansion to the Earned Income Credit is permanent, and will continue to benefit ITIN filers and childless workers for years to come.”

…Adding… Gov. Pritzker commented on the HDem plan this morning…

My early observation is that House Democrats took a comprehensive approach and adhered to my goals of achieving a fiscally responsible, balanced budget, and delivering tax relief to families that need it most. My team and I are still in the process of reviewing the details of their legislation. But I’m certainly pleased to see more ideas in the mix to cut taxes and give working families a break.

I also want to commend them for including a responsible expansion of the Earned Income Credit, which is something that I’ve supported for quite some time.

During my tenure as governor, I’ve worked to support local governments and have delivered more than a billion dollars more to them so far, in this latest House budget proposal, I want to ensure that what’s being provided to local governments continues to be affordable within a balanced budget framework.

I look forward to working with legislators to provide relief to working families while continuing to strengthen our state’s fiscal foundation. It’s particularly important to put away money in the rainy day fund, maintain a responsible bill payment cycle and make an extra payment into our pension systems. My partners in the Statehouse and I are having productive conversations about how to ensure that relief prioritizes those who need it most. Putting working families first has been a hallmark of my time in office. And I have full confidence in our ability to further that mission in these final days of the legislative session.