Day: February 17, 2021

Mayors Pan Pritzker’s Income Tax Grab – WGLT (NPR at Illinois State University)

The governor has proposed taking 10% of the income tax money it currently shares with cities, towns, and counties through the Local Government Distributive Fund. “This on top of years and years and years of pension enhancements and unfunded mandates that the state legislature hands us that we have to come up with the money to fix,” said Normal Mayor Chris Koos.

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Pritzker’s proposed budget keeps Illinois school funding flat for a second year – Chalkbeat Chicago

Pritzker’s proposal to keep the state education budget flat comes at a critical time for schools. Last month, the Illinois State Board of Education recommended that the state increase the almost $9 billion budget by $412 million for the next school year to adequately fund schools statewide and help districts deal with potential learning loss from school shutdowns and uneven remote learning experiences.

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Business Groups Oppose Pritzker Plan to Eliminate Tax Breaks – The Illinoize

From Illinois Manufacturers’ Association President & CEO Mark Denzler: “In the midst of a global pandemic that has caused widespread economic disruption, the Governor’s repeated attempts to hike taxes on small businesses and job creators is unacceptable…Meanwhile, other states have embraced policies to grow the economy by cutting taxes, reducing regulations and adopting liability protections.”

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Pritzker defends his handling of the pandemic, attacks Republicans in budget speech. ‘In a normal year, I might have more patience for their hypocrisy.’ – Chicago Tribune*

The governor quickly shifted into attacking Republicans nationally and on the local level over their response to the pandemic, though the Illinois GOP holds no statewide offices and is in a super-minority in the General Assembly, leaving Democrats in control to act without their input…“In essence, they eliminated the fire department, burned down the house and poured gas on the flames — and now they’re asking why we’re not doing more to prevent fires,” Pritzker said of Republicans.

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Black Caucus reacts to governor’s budget address – Capitol News IL

New Black Caucus House Chair Rep. Kam Buckner praised the proposed budget, particularly that it does not call for an increase in the state’s flat tax while increasing funding for the Department of Children and Family Services. However, he had several indirect criticisms for Pritzker’s administration surrounding its handling of medical and recreational marijuana licenses.

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Months after progressive tax loss, Pritzker proposes budget with nearly $1 billion in business taxes – Center Square

“I had bolder plans for our state budget than what I am going to present to you today. It would be a lie to suggest otherwise,” he said. “It reflects $400 million in additional cuts to appropriations, a hiring freeze, flat operational spending, full required pension payments, and the closure of unaffordable corporate loopholes. All in all, it reduces spending to meet projected revenues.”

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Ahead of Budget Address, A Look at Fiscal Pressures Facing Illinois – WTTW (Chicago)

“Even if the federal government comes forward under the best case scenario right now of $7.5 billion in new revenue support for the state of Illinois as part of the new (president Joe) Biden and new federal Congress relief package, it’s short-term money. It’s going to be spent and then there is going to be again a structural hole,” said Laurence Msall, the head of the nonpartisan Civic Federation.

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Expected $7.5 billion in federal aid won’t fix Illinois budget crisis without structural reforms – Illinois Policy

“Springfield lawmakers are about to receive an estimated $7.55 billion lifeline from Congress. It represents a chance to prevent tax increases during an economic crisis and to cancel any previously planned cuts in government programs for vulnerable Illinoisans. It is also an opportunity to enact pension reform and other structural spending reforms needed to improve Illinois’ long-term financial health.”

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Pritzker to propose reversing tax changes agreed to with Republicans in 2019 budget deal, sources say – Journal Gazette Times-Courier (Mattoon)

The proposed tax policy changes include: reversing a phaseout of the state’s corporate franchise tax, eliminating an additional tax credit for companies receiving other state incentives that create construction jobs, lowering the deduction for taxpayers who donate to private school scholarship funds, capping a discount for retailers that collect state sales tax, and ending a sales tax exemption for manufacturers.

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