On Wednesday, Governor Pritzker gave his second budget address, striking a note of optimism and progress. He cited the reduction in the bill backlog, lower interest rates on bonds, significant savings in employee healthcare costs as a result of respectful negotiations with state employee unions. He also highlighted the reestablishment of a state “rainy day” fund as significant improvements in our state’s fiscal health while obviously cautioning that in every budget process we face difficult choices and that this year is no exception.
Governor Pritzker has agreed to only include funds in his budget that we can count on and put emphasis on the need to pass the constitutional amendment to adjust our tax system from a flat tax to a progressive tax structure but will not be relying on that. He has promised to defer spending by reserving $1.4 billion in case the amendment is not approved by voters in November since that is the total amount that is estimated to be generated in revenue, should the amendment pass. The Governor promised to use the funds from the fair tax to pay down our pension requirements and will continue to push the pension buyout program that has saved the state significant dollars.
Our college enrollment numbers have continued to increase from in and out of state residents and Pritzker would like to continue that trajectory by adding another 20,000 MAP grant scholarships on top of the 10,000 new scholarships we funded last year.
The Governor also shared his goals of addressing the education funding and child welfare needs of the state. His goal is to continue the expansion of the child care assistance program to maximize federal funding offered for copays to families that are eligible for assistance. The budget also includes a $40 million increase to mental health and addiction treatment services. Some of the funds for this will be generated by the revenue produced through cannabis sales.
In response to several Trump administration cuts, Pritzker is also proposing $4.5 million to restore the vital healthcare navigator program that assists individuals and businesses seeking health insurance via the Marketplace, restoring funding to the senior home delivered meals program and replacing family planning funding through the Department of Public Health that the Trump administration’s anti-choice gag rule decimated.
Governor Pritzker stressed the importance of tackling our child welfare program. Under this budget proposal, every staff person at the department from top to bottom will be retrained to better handle new policies set in place to ensure that we are providing the best care we can provide to youth in care. He highlighted the need for DCFS to move into the future by adopting new programs from experts in the industry to transform the agency. His administration is in the process of opening additional training centers all over Illinois. He is also projecting a 10% staff increase directed to DCFS coupled with $147 million in new funds.
Other key takeaways from Governor Pritzker’s address:
- In this fiscal year there has been a decrease in the amount of unpaid bills from an $8 billion deficit to $1 billion deficit
- Late payment penalties to the state have also decreased from $950 million to $100 million this fiscal year alone
- Over the course of the next 16 months $100 million will be placed in the “rainy day fun”
- State agencies that had been hollowed out during the budget impasse will see an increase in staffing levels with a projected rise of 2.5% in employees or 1,377 positions
- $32 million was saved by the continued expansion of the pension buyout program
After last year's productive session I am enthusiastic to move into this Spring session. I truly look forward to working with the Governor and his administration to make the needs and wants of our constituents a reality by passing a timely, balanced and progressive budget that addresses the needs of our state.
In an upcoming update I will share more insights on my legislative priorities this session.
