Pritzker: Tax cuts on the table if state revenues continue to exceed expectations

Pritzker: Tax cuts on the table if state revenues continue to exceed expectations
Spread the love

By JERRY NOWICKI
Capitol News Illinois
[email protected]

SPRINGFIELD – With two months to go before the legislature adjourns and current-year revenues continuing to smash expectations, Gov. JB Pritzker said he and legislative leaders are considering tax cuts.

His comments came one week after the legislature’s nonpartisan Commission on Government Forecasting and Accountability, or COGFA, increased its revenue estimates by about $1 billion for the current and upcoming budget years combined.

“I would like to see – as we feel comfortable with these new revenues coming in and their stability; and I think we’re seeing a few years in a row now of the stability of that revenue – that we should be talking about whether there are tax cuts that we can implement,” he said at an unrelated news conference at a Springfield community college.

The governor did not say whether tax cuts would be permanent or which taxes he and lawmakers are considering cutting. And tax cuts were one of several potential uses of excess revenues the governor said he would like to consider. Others include contributions to the state’s “rainy day” fund and added payments beyond required amounts to the state’s pension system.

The conversation about what to do with excess revenues that show year-over-year stability is one Pritzker said has involved both Democrats and Republicans.

House Minority Leader Tony McCombie, R-Savanna, told Capitol News Illinois in a statement that the House GOP stands ready to work with the governor.

“To hear the governor mention any tax cuts is an exciting prospect for families across our state. At the first meeting I had with Gov. Pritzker, we discussed the cumbersome franchise tax on small businesses and high estate taxes that unfairly target family farms,” she said. “The governor recognizing conversations with Democrats and Republicans gives me hope that we will reinstitute the bipartisan budget working group with our budgeteers and appropriation teams leading the way.”

McCombie also noted the House Republicans oppose a graduated income tax, which Pritzker has said he has no interest in reviving as a legislative proposal this year.

Senate Minority Leader John Curran, R-Downers Grove, referred to business-related tax incentives that Pritzker and lawmakers approved on bipartisan lines in 2019 but which Democrats froze in future budget years.

“Initial discussions on tax relief have been receptive,” Curran said in a statement. “We will continue to call for implementing the business incentives that the governor agreed to in the Blue Collar Jobs Act, along with additional tax relief for Illinois families and small businesses.”

He said the Senate GOP is hopeful Pritzker will “include Republicans at the table of substantive budget meetings,” and they are “willing to negotiate in good faith.”

In their budget approved last summer for the current fiscal year, lawmakers included an array of mostly temporary tax relief. That included direct checks of $50 or more to most Illinoisans depending on income and number of children, a permanent expansion of the state’s earned income tax credit to 20 percent of the federal credit, a six-month pause on a 2-cent gas tax increase that ended Jan. 1, a one-year suspension of the state’s 1 percent grocery tax that ends June 30, and a property tax rebate up to $300 for some Illinoisans.

The governor’s office estimated those measures amounted to about $1.8 billion in tax relief overall. The state approved legislation bringing its rainy day fund balance to an estimated $1.9 billion by the end of the fiscal year and contributing $500 million beyond statutory requirements to its pension fund over the past two years.

The revenue update announced by COGFA last week represents just the latest in a remarkable stretch for state government revenues that have boomed nationwide over the course of the past two years. In Illinois, the growth has been driven by wage growth, corporate profits, inflation, changes to the corporate and online sales tax structures, revenues from marijuana sales and other factors.

“You can see in every single month so far this fiscal year we’ve actually had a gain where we’ve generated more revenue in this fiscal year compared to the same time a year ago,” Eric Noggle, senior revenue analyst for COGFA, said at the commission’s March meeting last week.

COGFA’s new estimate of $51.9 billion in revenues for the current fiscal year that ends June 30 is $545 million beyond the amount assumed by the Governor’s Office of Management and Budget in Pritzker’s budget proposal. And its $50.4 billion estimate for the fiscal year that begins July 1 is $465 million beyond GOMB’s initial estimate.

All told, COGFA now expects the state to end the fiscal year with revenues surpassing their initial estimates by more than $5 billion. While that’s partially because base sales and income tax receipts continue to produce at record levels, it’s also because the state’s estimates approved last summer were conservative, Pritzker said.

The current fiscal year still has three and a half months left, so COGFA noted in its recent report that the revenue estimate could be bumped even higher if final income tax receipts are stronger than expected as taxpayers file their returns for the year.

But it could also move downward, the commission noted, if those revenues come in lower than expected due to weakening market conditions. They noted other factors could change the state’s revenue outlook, including the possibility of another COVID-19 resurgence, a worsening of the war in Ukraine, or a potential recession.

The Democratic budget leaders in the House and Senate – Rep. Jehan Gordon-Booth, D-Peoria, and Sen. Elgie Sims, D-Chicago – issued a statement Wednesday as well.

“By building fiscally and socially responsible budgets, we’ve managed to create surpluses and save for the future while also investing in what families need now – that includes more funding for our schools, affordable health care, and tax relief for working families. This process has also earned us eight credit rating upgrades. We’re going to continue rebuilding Illinois’ fiscal house and using the flexibility we achieve to deliver for hardworking Illinoisans,” the lawmakers said in the statement.

Capitol News Illinois is a nonprofit, nonpartisan news service covering state government and distributed to more than 400 newspapers statewide. It is funded primarily by the Illinois Press Foundation and the Robert R. McCormick Foundation.


Spread the love


Illinois News


State’s high court opens new interactive learning center
State’s high court opens new interactive learning center
As state Supreme Court weighs another BIPA lawsuit, lawmakers mull child data privacy framework
As state Supreme Court weighs another BIPA lawsuit, lawmakers mull child data privacy framework
Biden administration responds to calls from Pritzker, other leaders, for help in migrant crisis
Biden administration responds to calls from Pritzker, other leaders, for help in migrant crisis
Former Illinois State Police trooper who pleaded guilty in relation to deadly crash postpones hearing
Former Illinois State Police trooper who pleaded guilty in relation to deadly crash postpones hearing
As SAFE-T Act goes live, murder suspects previously eligible to post bond are held in jail
As SAFE-T Act goes live, murder suspects previously eligible to post bond are held in jail
New State Police rules for assault weapons permits will take effect Oct. 1
New State Police rules for assault weapons permits will take effect Oct. 1


Classifieds


USF is rated a top university in the Midwest by The Princeton Review for 10th consecutive year.

USF Hosting Blood Drive October 3

Spread the love

Spread the loveThe University of St. Francis (USF) is hosting an American Red Cross blood drive on Tuesday, October 3, from 1 to 6 p.m., in the Assembly Hall Gymnasium at USF’s St. Clare Campus, 1550 Plainfield Road in Joliet. The drive is open to the community. For an appointment, call 1-800-RED CROSS (1-800-733-2767) or…


Spread the love
–Photo submitted.

Locavore Farm Holding Inaugural Autumn Farm/Art Experience; Collaborates with LB Market

Spread the love

Spread the loveOn Saturday, October 21, from noon to 8 p.m., Locavore Farm, 11588 N. 17500E in Grant Park, will host its inaugural Autumn Art and Farm Experience – a curated event, connecting the creativity of handmade art and design with the development of agricultural ecosystems that inspire sustainable and self-sufficient food systems and lifestyles.…


Spread the love
Kankakee library

Kankakee Public Library News

Spread the love

Spread the loveKankakee Public Library, 201 E. Merchant Street, in Kankakee, recently announced its October programs. For additional information, call the library at 815-939-4564 or visit them on Facebook. Landscape Painting – A Learning Series: The library is pleased to offer “Landscape Painting: A Learning Series” on the first three Tuesdays in October – October…


Spread the love
Crete Area Chamber of Commerce

October Crete Area Chamber Events

Spread the love

Spread the loveMark those calendars for the following up-coming events that are sure to be of interest. Garage Sale Days will be held October 13 and 14. Sign-up at www.cretechamber.com/events or pick-up an application at Old Plank Trail Bank, Crete Library, or village hall. To be included on the address list, information must be received…


Spread the love
Crete Library

Crete Library News

Spread the love

Spread the loveThursday, September 28 Manga Club for Teens, from 3 – 4 p.m., grades sixth/12th: Join us to discuss “Haikyu!!: Vol. 1.” Register. STEAM Tots – Brain Games, from 6 – 7 p.m., ages three/five: Join us as we test our brains through fun experiments and activities involving the senses! Register. Friday, September 29…


Spread the love
Monee's Wildflower Garden will feature their first Fall Fest, running through Sunday, October 22. Pictured is owner, Anna Carmine, whose vision for a U-Pick wildflower space became reality in July 2021 and has blossomed into a play-space for kids, with a grain-bin-turned-slide, a chicken-coop-themed jungle gym, jump pillow, and more. Check their website for hours or call 708-966-3021. –Photos by Melanie Holmes

Visit Fall Fest at Monee’s Wildflower Garden

Spread the love

Spread the loveSpread the love


Spread the love
Beecher Library Logo

Beecher Community Library News

Spread the love

Spread the loveCall the library at 708-946-9090 for programs that require registration. During the Penfield construction project, the library’s Penfield Street parking lot entrance is closed, but its Maxwell Street entrance still will be open. Turn north on Maxwell from Indiana Avenue to get to the library. WiFi hotspots and Rokus now are available for…


Spread the love
Peotone Library Logo

Peotone Library News

Spread the love

Spread the loveThe annual Friends of the Library Fall Book Sale will be held Thursday through Saturday, October 5-7. Dates and hours include: Thursday, October 5, from 3 – 7 p.m.; Friday, October 6, from 10 a.m. to 4 p.m.; and Saturday, October 7, from 10 a.m. to 2 p.m. Don’t forget to stop by…


Spread the love
–Graphic submitted.

ECDA Hosting Educational Workshop: Home Health Hazard Reduction

Spread the love

Spread the loveThe City of Kankakee’s Economic and Community Development Agency (ECDA) will host a workshop on Tuesday, September 26, at 5:30 p.m., in the ECDA Office, 200 E. Court Street, Suite 410, Kankakee. This workshop will review home maintenance checklists to begin building a plan that keeps one’s home safe and healthy for the…


Spread the love
Vedette logo

Beecher 200U Finances Not Out of the Woods Yet

Spread the love

Spread the loveBy Jeff Vorva Beecher School District 220-U’s financial picture is looking a little better after a referendum passed in April but it is not out of the woods yet. During a finance meeting following the school board’s Sept. 11 regular meeting, Superintendent Jack Gaham presented a lay of the land for the board…


Spread the love
Vedette logo

Beecher Road Projects Taking Longer Than Expected

Spread the love

Spread the loveBy Jeff Vorva Beecher Public Works Superintendent Matthew Connor didn’t bring good news to the September 11 village board meeting regarding two big road projects. He preached patience and said, when the projects are finished, all will be good. But for now, there will be a few more headaches and inconveniences. The Penfield…


Spread the love
Vedette logo

Peotone Village Board Approves Another Liquor License

Spread the love

Spread the loveBy Andrea Arens The Peotone Village Board unanimously approved a liquor license for the Corner Cafe, at 102 N. Second Street, at the September 11 board meeting. The Corner Cafe intends to extend their hours and offer liquor to patrons. The license was approved pending provisions of the code are met and approval…


Spread the love
Rep Haas

Haas Appointed to Critical Public Safety Task Forces, Working Groups

Spread the love

Spread the loveIn 2023, House Assistant Minority Leader Jackie Haas was appointed to three different task forces to improve public safety in Illinois. This year, she has been appointed to the 988 Suicide and Crisis Lifeline Workgroup, the Task Force on Missing and Murdered Chicago Women, and the Recruiting and Retaining Public Employee Firefighters and…


Spread the love
Dr. Kara Coglianese speaks to the crowd at the Toast To Crete. Photo by Jim Piacentini

Fully Staffed Crete Police Department Will Focus on Traffic Enforcement

Spread the love

Spread the loveCrete Police Chief Scott Pieritz told the village board last week that, with a fully staffed department, more attention will be focused on traffic enforcement issues. During his report at the September 11 meeting, Pieritz said focus has been turned back to proactive traffic enforcement as one of the village’s objectives. He noted…


Spread the love
Vedette logo

Monee Looking to Purchase Immediate Care Facility

Spread the love

Spread the loveBy Karen Haave Monee officials last week authorized Village Attorney Larry Gryczewski to begin negotiations with Riverside Healthcare to purchase their property at 25711 S. Egyptian Trail. The one-time immediate care facility closed permanently on August 31. No reason was given for the closure. The facility opened in July 2012. “We learned a…


Spread the love