By: Ted Dabrowski and John Klingner
When the covid bailouts hit Illinois, we predicted it would take several years before the state’s financial problems would rear their ugly heads again. Now the covid money is finally running out and the problems are back. The city of Chicago, Chicago Public Schools, Chicago’s transit authorities and the state of Illinois are all warning of near-$1 billion deficits in the coming years.
Predictably, politicians are counting on tax hikes or bailouts – meaning tax hikes on someone else – to fill those holes. Chicago Mayor Brandon Johnson is increasingly likely to hike property taxes to fix the city’s budget hole. Stacy Davis Gates is demanding for CPS an additional $1.1 billion from the state. The Regional Transit Authority wants a new billion-dollar-plus sales tax on services to cover its deficits. And softer revenues and record expenses have already led Gov. J.B. Pritzker to hike taxes by $1 billion for the current fiscal year.
With all these governments clamoring for more revenue, both downstate and Chicago taxpayers should expect tax hikes in their future.
Prior to the pandemic, CPS and the City of Chicago were already junk rated and Illinois faced the threat of becoming the first state to ever get a junk rating. Those governments were all running out of options. Then came covid and the federal government’s unprecedented spending spree. Nearly $200 billion in public and private bailout dollars helped Illinois governments hide their fiscal cracks.
All that money, spent by individuals, companies and agencies, burgeoned tax revenues and resulted in credit upgrades. In every case, it allowed governments to balloon their operational spending while avoiding pension and spending reforms for the last four years.
Take the state of Illinois. Its big-three tax revenues have jumped by nearly 50%, or $14.4 billion, compared to pre-covid 2019. That’s far more than the 27% inflation expected over the five-year period. Despite that massive windfall, Gov. Pritzker didn’t pursue any structural pension or spending reforms that would result in relief for Illinoisans. Nor did he pursue any tax cuts like half the states across the country did, including all of Illinois’ neighbors.
Instead, his record $53 billion spending budget resulted in another $1 billion in various tax hikes.
The City of Chicago experienced a huge windfall, too. The city’s all-in budget has ballooned by 56% since 2019 – a near $6 billion jump. But as we’ve reported, the city’s operating budget remains more than $200 million short this current fiscal year and the hole could be as big as $1 billion next year.
And the Chicago Public Schools benefited from a big inflow of money as well, even as student enrollment dropped by almost 10%. All-in spending per student at CPS jumped by 43% between 2019 and 2025 – now totaling more than $30,000 per student. Nevertheless, CPS too is warning of its own $1 billion mess.
For governments, the boost in cash flows has been a bonanza. But now that the federal money is drying up, the spending binge is over and the hangover begins. Unfortunately, politicians won’t pay the price, but Illinoisans will – through tax hikes.
And here’s the kicker: While the government was getting richer, Illinoisans were getting poorer.
The latest numbers from the census show that Illinoisans 2023 median household incomes after adjusting for inflation haven’t grown at all after four years. In fact, they’re smaller. In 2023, real household incomes were $87,820 compared to 2019’s $87,950.
The government has a lot more money to spend…and you don’t. Yet you’re expected to pay for politicians’ greed.
Read more from Wirepoints:
- Chicago Public Schools is in dire financial straits, yet Chicago Teachers Union blocks closing of near-empty, failing schools.
- Chicago’s 2025 budget fiascos. First up, Chicago Public Schools.
- Detroit’s bankruptcy offered key lessons. Chicago has ignored them all.
- Illinois’ Gov. Pritzker delivers Democrats’ national economic pitch at DNC. A look at his own record is revealing.
- States across the country are cutting taxes. Illinois just raised theirs by nearly $1 billion.
Audio and summary 
If this bill passes, say goodbye to local control over all Illinois parks and expect to see open drug and alcohol use, needles, no sanitation and fire hazards, but no ordinary park users.
There will be more and more taxes as Dems have continued stranglehold over Illinois. This is primarily due to Illinois becoming more and more of a 3rd world based population. The abortion issue does play a role but a very minor one.
In 1980 Illinois had 8.9 million Whites, 1.6 million Blacks, 685,000 Hispanics, and 159,000 Asians/
As of July 2021 these figures are 7.7 million, 1.85 million, 2.2 million and 747,000. The Hispanics and Asian vote usually runs about 70+ % for DEMS, at least at the national level.
Do the Math.
No politician is singularly responsible for the Illinois plight, but the Godfather is Michael Madigan. The 1990 legislation that established the ability of public sector employees to double dip pensions, retire with full bene’s and inflation protection and basically created the public vs. private sector financial rape job has doomed Illinois. With its proliferation of government entities, and no effort to reform, well the math doesn’t work. Meanwhile Priztker and Johnson smile for the camera and promote socialist policies because this is their only way out. Serious people are ashamed of what’s happening but they are in the minority. This… Read more »
Jeffrey, and that is everything wrong with Illinois Summed up in one paragraph. Excellent. The political answer; more taxes.
To all Illinoisans “ Don’t be fooled by the “Statewide Advisory Question (3% Tax). No tax should be part of the State Constitution.
“Here come the tax hikes on Illinoisans.” That’s disappointing but not surprising from a state that routinely mismanages taxpayer money.
Anyone who doesn’t have a strategy for leaving Illinois with actionable steps for achieving that goal will regret it later. It can be done, even if you need to remain in Illinois for a few years yet. There are no magic beans to save Illinois. It continues to self destruct before your eyes.
Some WP readers that stay in Illinois don’t like being reminded they can leave. They prefer to make excuses as to why they are stuck.
Got my 2023 SC tax bill today,October 2. One payment, due January 15. Went down $67, to $1414, down $54 year before that. Meanwhile, our old home in DuPage has gone up $1100 in the two years to $10K. Saving $8500 per year. If that doesn’t motivate you to move, esp with a governor like Pritzker, I don’t know what would.
Specifically, how much of all the COVID funds city, state and municipalities (7,000 units of gov) spent on– new hires, pay raises, increased benefits, work requirement changes for are public hero class is what the machine will make #1 priority for more TAXES$$$$$$$$$$$$$$$$$$$$.
Can one of you lemmings or leeches extoll on the virtues of Illinois and Chicago. Please tell me what is there that makes you afraid to throw off the ropes of your bondage. And please don’t give me the bread and circuses crap.
This is nothing that a few more democrats can’t fix. Watch what Illinois does in the next election. It won’t be close. I’m sure that people who exist to separate you from your earnings will change their spots and lower your taxes. Many of you will extoll the virtues of having your money taken from you to pay for services you don’t get, handouts that do nothing and corruption that benefits your democrat masters. You don’t like your existence there. You dislike paying all these taxes for bad schools, unfunded pensions and high crime. You complain but you obediently comply.… Read more »
‘Stockholm Syndrome’ is a big part of many people staying in IL.
With no more COVID $bucks$, Martire’s going to have his work cut out for him spinning all the systemic under-funding, EBF’s, etc, etc to dopey taxpayers
The long term debt for the next 25 years for the various entities (Chicago, CPS, O’Hare, Cook County, state of IL) is terrifying. Mark could gather the info easier than I can, but I’m sure businesses already have. Primarily the ones that pass Illinois by for other states. It’s all in the bond offerings.
We’ve been told countless times by pundits and the ‘political class’ in IL that Leftist Democrats keep winning elections due to women in IL demanding late term abortion and infanticide, when near every poll shows it’s not that important to most taxpayers. I offer a different explanation – a lot of our neighbors are comfortable with the Democrat regime as they believe someone else will pay their bills, and they get a monthly check from the taxpayers with ‘free stuff’. This psychology applies at the national level also. It’s why the phony ‘millionaires tax’ is on the ballot for ‘property… Read more »
The abortion issue is real. My sister in law said she was voting for Pritzker because of it. She is not in favor of late term abortions but it just shows how little some people understand Illinois politics. I don’t think she realizes what a majority the D’s have in Illinois and that abortion rights here will only expand. I think she’s typical of most AWFL voters.
Yeah, for a long time people also voted based solely on segregation.
So her most important issue is the ability to murder her child? I will never understand why that disgusting act is so important to so many women. It tells you how sick our society has become.
No, no. It’s worse, much worse. Her priority is to murder the child at birth with the head outside of the birth canal. Collapsing / crushing the head or twisting it off will do. Democrats like Daddy Pritzker, Kamala Wala Bala, Stolen valor Waltz, and Sorenson say that’s the neighborly thing to do.
Those democrats are murdering pigs. A society that murders the innocent but coddles criminals is doomed.
The majority of IL residents favor some type of abortion restrictions. But ask any Democrat what restrictions they might support, they avoid the question and parrot “woman’s choice.” IL has no restrictions, does your sister in law favor that?
But, it bad enough yet to throw the bums out & vote (R)…?
The insanity of doing the same thing over & over & over, expecting different results must end…
Voting (D) = insanity…
Many races won’t even have R’s on the ballot, especially in deep blue areas.
The “Gang of Four “ pictured don’t care how high your taxes go. They only care about their self-interests and those of their cabal. IL residents are nothing besides a means to line their pockets, whether white, black, brown, Dem or Republican. They are beyond disgusting.
It’ll never improve. It’ll just get worse. The only answer is to move out of state. You’re the fool if you don’t.
I left 12 yrs ago already. I am better off financially than in my whole life living in that sick sewer state. Could see already way back then there was no hope or light at the end of the tunnel. Y’all enjoy the hell you have created with your votes. NO SYMPATHY !!!
At this rate if you don’t move soon, your house value will be comparable to firewood.
Best hope is pray for a natural disaster or your coffee pot to start on fire.
Raise Taxes >>> Taxpayers Leave >>> Raise Taxes More >>> More Taxpayers Leave …………..
You can leave Illinois now, or you can leave later, or you can ride the death spiral all the way down to the septic tank. I just find it incomprehensible that an informed WP reader would choose to bend over and take the Illinois abuse indefinitely? Maybe I have too high an opinion of most of you.
You should get off your soapbox. What do you know about the individual needs of residents, children, aging parents, medical conditions, doctors, treatments, etc? The answer is nothing.
Yes, there are advantages to staying in IL, but many feel the disadvantages outweigh the advantages. Anyway, since I’m staying in the Chicago area for the foreseeable future, I’m keenly aware of the advantages, one of which is not having extreme weather, in general. Even the tornadoes are typically EF-0s, aka windstorms. We also have a great drinking water resource and world-class medical care. Still, I hate paying even one dollar in taxes or fees to feed the mismanagement machine. It would be nice if the mismanagement machine would ease up on the taxpayers once in a while.
They won’t. We have to remove them! They are parasites and will bleed the State dry. At that point they will leave themselves with a fat bank account.
You just don’t seem to grasp what’s going to happen. You either leave very soon on your terms or you leave thru desperation later, assuming that you can get out at all. Do you think it was easy for all those that already left? Many of us also had medical issues, kids, and parents requiring assistance. We figured it out.
Former Illinois resident and conservative influencer @cernovich lives in California. People are fleeing California too. But several weeks ago, @cernovich said not only is he staying in California, he’s doubling down and buying land to make some sort of social club for like-minded conservative in Cali. I think about this a lot. He says he lives in California for the networking effects, the job opportunities and the weather. I suppose he’s OK with living as a conservative in a deep blue state. As some other conservative pundit I listen too, addressed this the other day (although not in response to… Read more »
A time may come when there will be an economic opportunity in Illinois, but definitely not in the foreseeable future.
Our DuPage neighbor moved both aging parents and three daughters to Scottsdale. Medical care at Mayo Clinic, top doctors, for parents. Daughters graduated AZ colleges, all employed, got married, (to exIL men) now eight grandchildren. Loss to IL, 18 residents. Entire family intact and employed. Can be done.
Scottsdale has an average high temperature of over 100 degrees in the summer. Therefore, Scottsdale would be too hot of a place to move to for many. Do you agree?
From a personal perspective, decisions to leave are based on a number of factors. I don’t live in Illinois, and live in a far more prosperous jurisdiction, but I live 7 miles from grandchildren and that is far and away the most significant factor in my life. And I would engage in economic malpractice to be near them. From a policy perspective it is numbers that matter. A ten percent outmigration of families with 200k and above would have a large impact. They are the group paying the bills, and they are the group which can service, but not necessarily… Read more »
It’s not the informed WP reader. Thanks to Mark and the entire WP team we are well informed. It’s the majority of citizens that don’t read this excellent publication. We all need to get this information out to our neighbors in social media, everyday interactions, to family, to everyone. Please.