Did Federal Bailout Help Illinois Budget Or Not? Pritzker And Congressman Krishnamoorthi Tell Congress A New Story – Wirepoints

By: Mark Glennon*

Governor JB Pritzker has told Illinoisans that federal bailout money has nothing to do with Illinois’ recent fiscal progress. That progress, he has said, included a supposed budget surplus, a reduction in the state’s unpaid bill backlog and credit upgrades. Read how emphatic he was about that last month in his Budget Address:

I’m pleased to announce Illinois will end this fiscal year with a $1.7 billion surplus, the first of its kind in more than 25 years. Now, I know that the same tired old characters who are always so desperate to bad-mouth Illinois will falsely attribute our fiscal success to the federal American Rescue Plan Act. As usual, they’re wrong. Let me set the record straight for you — our state budget surpluses would exist even without the money we received from the federal government.

But on Monday it was time to defend that very American Rescue Plan in Congress against growing criticism that it was unaffordable, fueled inflation and vastly exceeded losses states sustained because of the pandemic.

Pritzker was among the witnesses from various states and localities called on by Democrats on the House Committee on Oversight and Reform to praise the rescue plan.

Congressman Raja Krishnamoorthi questioning Gov. Pritzker on Monday

That required a different tune, so Pritzker and Congressman Raja Krishnamoorthi did a singalong. Krishnamoorthi, in his questions for Pritzker, ticked through the very points points Pritzker claims prove his budget prowess — the supposed surplus, reduction in unpaid bills and credit upgrades — and Pritzker affirmed each. You can see the text of some of the questions and answers below and the video is here.

If it sounds familiar, it’s because those are the same things Pritzker bragged about in his Budget Address and recent campaign ads.

But the purpose of the hearing was “Examining the Impact of the American Rescue Plan’s State and Local Fiscal Recovery Funds.” Which is it? Did the rescue plan help on fiscal matters or not? Yes, it clearly did, as we detailed here.

What happened, it appears, is Pritzker and Krishnamoorthi didn’t get their story together before the hearing. In his opening statement at the hearing, Pritzker seemed careful not to talk about things like a budget surplus, unpaid bills or credit upgrades. He focused instead on one-time spending items that were enabled by federal money (though rescue money far exceeded those items). Notice that at one point Pritzker interjected respecting the unpaid bill reduction, saying, “Actually even before the ARPA dollars or support from the federal government.”

But Krishnamoorthi didn’t get the hint, apparently being unaware of what Pritzker said in his Budget Address, and continued with his list. So Pritzker played along, probably figuring the folks back home don’t listen to what happens in Congress.

Krishnamoorthi also asked Pritzker to affirm that Illinois now has budget “surpluses projected for years to come.”

“Yes sir, answered Pritzker.

Whoa. Where’s the support for that? The last five-year budget projection provided by Pritzker, which was in November, shows deficits growing each year from now forward.

The truth is that federal bailout money, from both ARPA and other sources, indeed went far beyond harm sustained by states because of the pandemic. That has spiked inflation and the federal deficit and led to huge budget surpluses in many other states. For Illinois, that federal help won’t last long and the state will be left in a position similar to where it was before the bailout.

*Mark Glennon is founder of Wirepoints.

Excerpt of questions at House hearing:

Congressman Krishnamoorthi: Governor Pritzker before you became governor the state faced a $17 billion backlog of unpaid bills, correct?

Governor Pritzker: That’s correct.

Congressman Krishnamoorthi: You’ve eliminated this backlog of bills, right?

Governor Pritzker: That’s correct. Actually even before the ARPA dollars or support from the federal government.

Representative Krishnamoorthi: And before you became governor, state did not have a surplus right?

Governor Pritzker: That’s correct.

Congressman Krishnamoorthi: And now you almost have a $2 billion surplus with surpluses projected for years to come right?

Governor Pritzker: Yes Sir.

Congressman Krishnamoorthi: And before you became governor the credit rating agencies downgraded Illinois credit multiple times, right?

Governor Pritzker: That’s correct.

Congressman Krishnamoorthi: And now you’ve seen Illinois’s credit upgraded at least twice, right?

Governor Pritzker: Exactly.

13 Comments
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David F
2 years ago

What about that 4.2 BILLION the state owes the fed this year for the loan for unemployment. Any cash and then some is gone if they pay if, if not what the employers head for the border in droves because they have to.

Wolfnight
2 years ago

Time to drive this political hack Pritzker out of office. For good.

Never to hold political office ever again.

Better still Madigan sings like a canary and Freddie faces jail time, even only for his toilet scam.

In God I Trust.

BHummel
2 years ago

What!? Pritzker being so hypocritical. I can’t believe it. Say it ain’t so.

Thee Jabroni
2 years ago

Imagine that,Putzker lying,”no mommy,i didnt eat the entire cake,someone broke into the house and stole it”!!!-as hes got frosting all over his three chins!-what a freaking joke this clown and this state is!

Marie Gardner
2 years ago

Well, Governor Pritzker when you begin your statement by trashing those “tired old characters” who question your numbers and not with positivity and explanations for those numbers, yes, we suspect something isn’t right. You’re the “tired old character” trying to get us to drink the same old koolaid year after year. It’s not working. We know exactly who you are.

Eugene from a payphone
2 years ago

There is no escaping Gulag Illinois. If you choose to move elsewhere in the USA, the next Democratic President will generously give federal tax dollars to this place to offset the mismanagement.

debtsor
2 years ago

The budget talking points are twitter/crapfux discussion. No one talks about this in the real world and no one really believes it. This moves the typical voter back towards JB exactly zero – maybe even less – because while the budget is an important issue, we expect the budget to be taken care of, but the high taxes and ridiculous covid mandates are far more impactful on our daily lives.

debtsor
2 years ago
Reply to  Mark Glennon

I’m glad WP covers this but my comment was just specifically towards talking point geared towards Democrats and independent voters. The ‘budget surplus’ talking points seemingly pop up in IL political discussions but it’s low on the list compared to the other problems they ignore.

nixit
2 years ago
Reply to  Mark Glennon

I’m loving the news bits when they show people spending $90 filling up their gas tanks and being lectured by Prius drivers and CTA stans to take public transportation. I couldn’t think of a more effective way to turn off voters.

nixit
2 years ago

I have a transcript the original interview: Congressman Krishnamoorthi: Governor Pritzker before you became governor the state faced a $17 billion backlog of unpaid bills, correct? Governor Pritzker: That’s correct. The Democratic-controlled Legislature voted to sunset the state income tax hike in 2015, directly leading to a $17 billion backlog of unpaid bills. Congressman Krishnamoorthi: You’ve eliminated this backlog of bills, right? Governor Pritzker: Close. My predecessor took out a $6 billion loan to pay off a portion of the backlog. We still haven’t paid that back yet. Congressman Krishnamoorthi: Right, but other than that, the problem’s solved? Governor Pritzker: Pretty much. After all, I inherited… Read more »

Bross
2 years ago
Reply to  nixit

Thanks for the corrected dialog!

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