Pritzker agency heads questioned on $1.1 billion revenue proposals
By JERRY NOWICKI
Capitol News Illinois
jnowicki@capitolnewsillinois.com
SPRINGFIELD – Gov. JB Pritzker’s revenue and budget directors took questions from a legislative panel Thursday on his proposals to generate another $1.1 billion in the upcoming fiscal year through various tax changes.
Pritzker’s proposed spending plan anticipates $52.9 billion in revenue, with new funds raised by increasing certain corporate tax rates, lowering personal and business income tax deductions and making other tax changes.
Corporate net operating losses
Pritzker’s main revenue-generating proposal looks to raise $526 million by extending a cap on corporate net operating losses that businesses can claim on taxes.
Current law allows businesses to claim up to $100,000 in losses on taxes, but it’s set to expire this year. Pritzker proposes extending the cap in fiscal year 2025, which begins July 1, but also increasing it to $500,000.
“The idea is that they will not be able to use those losses to reduce revenue,” Illinois Department of Revenue Director David Harris told the House Revenue and Finance Committee on Thursday. “So they’re limited. And thus, since they’re limited in terms of using those losses to reduce revenue, that revenue is going to be now taxed.”
Harris said roughly 1 percent of corporations, or 1,175, are likely to be affected by the cap. That means the rest of the roughly 101,000 businesses would not have claimed enough losses for the cap to have affected their tax liability.
Sports betting tax hike
The governor proposed raising another $200 million by upping the tax rates paid by sportsbooks to 35 percent from 15 percent. When the General Assembly legalized sports betting in 2019, lawmakers dedicated all revenue from it to building infrastructure projects. But the governor’s plan would direct all extra revenue generated by the increase to the state’s General Revenue Fund.
Rep. Bob Rita, D-Blue Island, one of the architects of the original sports betting legalization plan, questioned the logic of the move.
“Wouldn’t it make more sense to keep this under the capital fund, so that we fully fund the projects that we’ve been trying to get out the door?” he asked.
Pritzker’s Office of Management and Budget Director Alexis Sturm responded that video gambling and cigarette taxes that also fund infrastructure have outperformed expectations.
“The revenues that are coming into the capital projects fund have been sufficient to cover the debt service needs out of that fund,” she said, adding that new casino licensing fees and other casino revenues fund “pay-as-you-go” projects that don’t require borrowing.
Cap on retailers discount
Another proposal would generate $101 million by capping Illinois’ so-called “retailers discount.” Under state law, retailers receive a discount of 1.75 percent of the sales tax they collect as reimbursement for their efforts to collect them. The governor’s change would cap the amount claimed at $1,000 per month.
“We are currently – in terms of the amount of money that is provided under the vendors discount allowance – we are the most generous in in the nation,” Harris said, later noting that “virtually every state has some sort of a limit.”
Harris said only “2 to 3 percent” of retailers would be affected by the cap. But upon questioning from Rep. Tim Ozinga, R-Mokena, he added the change would have “a significant impact on very large retailers.”
The Illinois Retail Merchants Association, however, has pushed back against the administration’s assertions.
“Contrary to claims, this proposal does not just target large retail stores but would impact retailers of all sizes, from independent grocers to the corner hardware store,” Illinois Retail Merchants Association President and CEO Rob Karr said in a news release.
The proposal would also generate $85 million for local governments.
Road fund transfer
The governor also proposes raising $175 million by transferring some public transit expenses to the Road Fund, freeing up money in the state’s General Revenue Fund.
Sturm assured committee chair Rep. Kelly Burke, D-Chicago, that the use of Road Fund money for public transportation is allowable under the state’s “lockbox” amendment. Voters approved the lockbox amendment in November 2016, limiting the state to spending revenues generated by the motor fuel tax and transportation-related fees for transportation-related purposes.
Pritzker’s other revenue proposals include:
Raising $25 million by distributing a portion of a tax on real estate transfers to the general fund instead of the Open Space Land Acquisition and Development Fund, which funds parks and recreation projects.
Raising $93 million by adjusting the standard deduction amount to a lower level than would be used under current law. The deduction claimed by millions of Illinoisans would be capped at $2,550, rather than increasing to $2,775 as it was slated to, due to inflation.
Capitol News Illinois is a nonprofit, nonpartisan news service covering state government. It is distributed to hundreds of newspapers, radio and TV stations statewide. It is funded primarily by the Illinois Press Foundation and the Robert R. McCormick Foundation, along with major contributions from the Illinois Broadcasters Foundation and Southern Illinois Editorial Association.
Local News
Intense dance performance nets Evergreen Park sixth place at state finals
Spread the loveBy Jeff Vorva Staff Writer Actual competitive dancing returned to the state level this year and Evergreen Park’s dancers couldn’t be happier. The Mustangs are on the rise, and the team enjoyed its highest state finish by placing sixth in Class 1A in the IHSA state meet held Jan. 28-29 at Grossinger Motors…
Cool customers: Chicago Christian snaps losing streak with tight win over Shepard
Spread the loveBy Jeff Vorva Staff Writer Chicago Christian’s players acted cool after the game. No yelling. No jumping around. No histrionics. It was a subdued celebration after a 44-40 road victory over Shepard on Jan. 26 in the Battle of Palos Heights. The Knights acted like they had been there before, even though the…
Setting the standard: Sandburg seniors show underclassmen how it’s done
Spread the loveBy Randy Whalen Correspondent Erin O’Connor has a nose for the ball. The determination of O’Connor was demonstrated on one play midway through the second quarter in Sandburg’s 46-45 win over Lockport on Jan. 27. The Eagles had just missed a shot and the ball looked to be going out of bounds. But…
A long time coming: Oak Lawn wins first conference title in 39 years
Spread the loveBy Steve Millar Correspondent After a 39-year wait and some near-misses in recent seasons, Oak Lawn is finally bringing home a conference championship. The Spartans sealed their first South Suburban Red title, and first conference championship of any kind since winning the SICA West in 1982-83, by pulling out a dramatic 48-45 road…
Trying to see the sunny side of life
Spread the loveBy Joan Hadac Your correspondent in Clearing and Garfield Ridge (708) 496-0265 • joan.hadac@gmail.com Hi everyone. I hope you’re doing well. Coming up is one of my favorite months, and it’s not for the reason you think. Yes, Valentine’s Day is special, but I like the fact that I see more sun, more daylight…
Newman backs Starbucks unionization
Spread the love U.S. Rep Marie Newman (D-3rd) recently stood with those who support unionization of Starbucks workers, outside its shop in nearby La Grange. She called unionization “the moral, correct and right thing to do.” Workers are attempting to organize under the banner of Chicago and Midwest Joint Board, Workers United, an affiliate of the…
A new look for an old friend
Spread the loveBy Peggy Zabicki Your correspondent in West Lawn 3633 W. 60th Place • (773) 504-9327 The West Lawn Branch Library, 4020 W. 63rd St., is finally open. I visited on their re-opening day. The library has a more open and airy feel. It is fresh and clean. The walls have been painted and there is new carpeting. The…
So long, and see you around
Spread the loveBy Karen Sala Your correspondent in Gage Park (773) 471-1429 • karen.sala@hotmail.com Baby, it’s cold outside. It’s almost the end of January. I am so ready. I can’t wait for spring to get here. The only good thing about winter is when it’s over. However, I do like cooking and baking in the winter.…
It truly is a small world
Spread the loveBy Kathy Headley Your correspondent in Chicago Lawn and Marquette Manor 6610 S. Francisco • (773) 776-7778 I have been attending St Rita Church for many years now. In that time, I have come to know many people who are now or have been a part of the parish. Some I knew because…
Jobs opportunities abound
Spread the loveBy Mary Stanek Your correspondent in Archer Heights and West Elsdon 3808 W. 57th Place • (773) 284-7394 “Heigh-ho, Heigh-ho, it’s off to work we go…it ain’t no trick to get rich quick,” as the dwarfs sang in Snow White and the Seven Dwarfs. If you are looking for employment, there seems to…
Neighbors
Golf is for all at Marquette Park
Spread the love. Kathy Headley Your correspondent in Chicago Lawn and Marquette Manor 6610 S. Francisco • (773) 776-7778 . Last week we began by talking about how golf season is in full swing at Marquette Park. What if you have thought about playing, but have never played before? There are three programs at Marquette,…
Legislation to acquire new police district facility on Southwest Side passes General Assembly
Spread the love. Porfirio, Guerrero-Cuellar measure heads to Pritzker’s desk . From staff reports State Senator Mike Porfirio (D-11th) and State Rep. Angelica “Angie” Guerrero-Cuellar (D-22nd) recently passed legislation in the General Assembly to acquire a new police district facility representing their districts on the Southwest Side. The bill passed both chambers with veto-proof margins.…
Lyons water polo teams splash to state
Spread the loveBy Jeff Vorva Correspondent Both of Lyons water polo team qualified for the state quarterfinals. Lyons’ girls water polo team won its own sectional by beating Mother McAuley, 13-9, in the title game on May 11. The Lions will face York in the state quarterfinals on May 17 at Stevenson High School in…
IHSA announces postseason assignments for baseball, softball, girls soccer
Spread the loveBy Jeff Vorva Correspondent The IHSA has announced the Class 3A and 4A baseball seeds were revealed and Nazareth, which is seeking its third straight state championship will have to do it in Class 4A after winning two straight in 3A in 2022 and 2023. The Roadrunners drew the top seed at the…
Red Stars win at home again, Naeher hurt
Spread the loveBy Jeff Vorva Correspondent The NWSL released a fun fact that is pretty darn fun for Chicago Red Stars fans. This year’s version of the Red Stars opened the season 3-0-1, scoring 10 points in the first four road games. They were the fourth team in league history to do that. According to…
Hall of Fame volleyball coach Anna Marassa coach calls it a career
Spread the loveBy Jeff Vorva Correspondent Hall of Fame volleyball coach Anna Marassa is retiring. Marassa is the only girls volleyball coach in De La Salle’s history as she headed up the program in 2002 and racked up 538 victories, 10 regional championships and four sectional titles. She is also the boys coach and wraps…
Girls Track | Shepard’s Kyla Motley wins three titles at Lyons Sectional
Spread the loveBy Jeff Vorva Correspondent Shepard junior track star Kyla Motley was a sectional champion in three events for the second year in a row. Motley won the 100 high hurdles with a time of 15.31, the long jump with an 18-2.5 effort, and the triple jump with a 36-9 at the Class 3A Lyons…
Boys Tennis | Stagg takes third at final SWSC Red tourney
Spread the loveBy Xavier Sanchez Correspondent Saturday blue skies cleared the way for the final SouthWest Suburban Conference boys tennis matches as Stagg hosted Andrew, Lincoln-Way Central, and Lincoln-Way West at Moraine Valley Community College. The Chargers started the season losing five of their first games but finished the regular season 10-10-1. They finished third…
UPDATE: Bedford Park man, girlfriend charged with plotting Bridgeview father’s murder
Spread the loveBy Bob Bong A Bedford Park man and the victim’s girlfriend have been charged in the shooting death of Arturo Cantu last Wednesday. Bridgeview police arrested Anthony Calderon, 20, of the 7700 block of 65th Place, Friday night. He allegedly confessed to the murder and reportedly led police to the weapon used in…
Stickney celebrates Cinco de Mayo
Spread the loveBy Carol McGowan The Village of Stickney didn’t disappoint this year with its annual Cinco de Mayo celebration. Village Trustee Leandra Torres, who is the Co-Chaiman of the Parks and Recreation Commission along with Trustee Jim Hrejsa, said it was a fun-filled day. “We had 774 people attend this year,” she said. “It…