Pritzker: Tax cuts on the table if state revenues continue to exceed expectations
By JERRY NOWICKI
Capitol News Illinois
jnowicki@capitolnewsillinois.com
SPRINGFIELD – With two months to go before the legislature adjourns and current-year revenues continuing to smash expectations, Gov. JB Pritzker said he and legislative leaders are considering tax cuts.
His comments came one week after the legislature’s nonpartisan Commission on Government Forecasting and Accountability, or COGFA, increased its revenue estimates by about $1 billion for the current and upcoming budget years combined.
“I would like to see – as we feel comfortable with these new revenues coming in and their stability; and I think we’re seeing a few years in a row now of the stability of that revenue – that we should be talking about whether there are tax cuts that we can implement,” he said at an unrelated news conference at a Springfield community college.
The governor did not say whether tax cuts would be permanent or which taxes he and lawmakers are considering cutting. And tax cuts were one of several potential uses of excess revenues the governor said he would like to consider. Others include contributions to the state’s “rainy day” fund and added payments beyond required amounts to the state’s pension system.
The conversation about what to do with excess revenues that show year-over-year stability is one Pritzker said has involved both Democrats and Republicans.
House Minority Leader Tony McCombie, R-Savanna, told Capitol News Illinois in a statement that the House GOP stands ready to work with the governor.
“To hear the governor mention any tax cuts is an exciting prospect for families across our state. At the first meeting I had with Gov. Pritzker, we discussed the cumbersome franchise tax on small businesses and high estate taxes that unfairly target family farms,” she said. “The governor recognizing conversations with Democrats and Republicans gives me hope that we will reinstitute the bipartisan budget working group with our budgeteers and appropriation teams leading the way.”
McCombie also noted the House Republicans oppose a graduated income tax, which Pritzker has said he has no interest in reviving as a legislative proposal this year.
Senate Minority Leader John Curran, R-Downers Grove, referred to business-related tax incentives that Pritzker and lawmakers approved on bipartisan lines in 2019 but which Democrats froze in future budget years.
“Initial discussions on tax relief have been receptive,” Curran said in a statement. “We will continue to call for implementing the business incentives that the governor agreed to in the Blue Collar Jobs Act, along with additional tax relief for Illinois families and small businesses.”
He said the Senate GOP is hopeful Pritzker will “include Republicans at the table of substantive budget meetings,” and they are “willing to negotiate in good faith.”
In their budget approved last summer for the current fiscal year, lawmakers included an array of mostly temporary tax relief. That included direct checks of $50 or more to most Illinoisans depending on income and number of children, a permanent expansion of the state’s earned income tax credit to 20 percent of the federal credit, a six-month pause on a 2-cent gas tax increase that ended Jan. 1, a one-year suspension of the state’s 1 percent grocery tax that ends June 30, and a property tax rebate up to $300 for some Illinoisans.
The governor’s office estimated those measures amounted to about $1.8 billion in tax relief overall. The state approved legislation bringing its rainy day fund balance to an estimated $1.9 billion by the end of the fiscal year and contributing $500 million beyond statutory requirements to its pension fund over the past two years.
The revenue update announced by COGFA last week represents just the latest in a remarkable stretch for state government revenues that have boomed nationwide over the course of the past two years. In Illinois, the growth has been driven by wage growth, corporate profits, inflation, changes to the corporate and online sales tax structures, revenues from marijuana sales and other factors.
“You can see in every single month so far this fiscal year we’ve actually had a gain where we’ve generated more revenue in this fiscal year compared to the same time a year ago,” Eric Noggle, senior revenue analyst for COGFA, said at the commission’s March meeting last week.
COGFA’s new estimate of $51.9 billion in revenues for the current fiscal year that ends June 30 is $545 million beyond the amount assumed by the Governor’s Office of Management and Budget in Pritzker’s budget proposal. And its $50.4 billion estimate for the fiscal year that begins July 1 is $465 million beyond GOMB’s initial estimate.
All told, COGFA now expects the state to end the fiscal year with revenues surpassing their initial estimates by more than $5 billion. While that’s partially because base sales and income tax receipts continue to produce at record levels, it’s also because the state’s estimates approved last summer were conservative, Pritzker said.
The current fiscal year still has three and a half months left, so COGFA noted in its recent report that the revenue estimate could be bumped even higher if final income tax receipts are stronger than expected as taxpayers file their returns for the year.
But it could also move downward, the commission noted, if those revenues come in lower than expected due to weakening market conditions. They noted other factors could change the state’s revenue outlook, including the possibility of another COVID-19 resurgence, a worsening of the war in Ukraine, or a potential recession.
Capitol News Illinois is a nonprofit, nonpartisan news service covering state government and distributed to more than 400 newspapers statewide. It is funded primarily by the Illinois Press Foundation and the Robert R. McCormick Foundation.
Local News
Mother Mac unveils new lights and scoreboard
Spread the loveBy Kelly White Across the nation, women’s sports are on the rise in terms of viewership, enthusiasm, sponsorship and excitement. Mother McAuley is no stranger to the impact that women’s athletics has on the development of an individual, strengthening of a team and key skills and attributes developed along the way. South Side…
Cicadas in the park in Palos Park
Spread the loveBy Kelly White Cicadas are coming and the Village of Palos Park is ready. The village hosted its 31st annual Arbor Day Celebration on Sunday, May 5, themed, “The Wonder of Trees” at The Center in the Lodge, 12700 Southwest Highway, with featured speaker, Tricia Bethke of The Morton Arboretum who presented, “Cicadas…
Palos Heights SD 128 sees enrollment boom
Spread the loveBy Kelly White Over the past few years, Palos Heights School District 128 has experienced an explosive growth among incoming students. There has been a significant increase particularly at Indian Hill Early Learning Center, 12800 S. Austin Ave. Chippewa Elementary School, 12425 S. Austin Ave; Navajo Elementary School, 12401 S. Oak Park Ave;…
Comings & Goings: Orange’s Pancake House now open in Palos Heights
Spread the loveBy Kelly White Palos Heights is the home of a popular new breakfast café. Orange’s Pancake House, 11845 Southwest Highway, held a ribbon-cutting event on April 18. Owners, Elvia Briones, of Virgina, and Fernando Cruz, of Evergreen Park, said they were very excited to be in the heart of the Palos Heights community.…
Sisters make Chicago Lawn a world destination
Spread the love. Kathy Headley Your correspondent in Chicago Lawn and Marquette Manor 6610 S. Francisco • (773) 776-7778 . Earlier this month was the Fifth Lithuanian Documentary Film Festival, with distinguished guests from Lithuania and other parts of the United States visiting the neighborhood. They held a photo session in the editorial office of…
Happy Mother’s Day to everyone, everyone
Spread the love. By Mary Stanek Your correspondent in Archer Heights and West Elsdon 3808 W. 57th Place • (773) 517-7796 . Yet another Mother’s Day is upon us. I wish everyone a happy day. By everyone I do mean everyone. There are a lot of dads who do it alone, along with important mother…
Mother’s Day is truly a day to be celebrated
Spread the love. Peggy Zabicki Your correspondent in West Lawn 3633 W. 60th Place • (773) 504-9327 . Mother’s Day happens on Sunday, May 12. If this isn’t something to celebrate, I don’t know what is. Motherhood means new life, new beginnings, new possibilities. Even if you won’t be seeing your mom, you can still…
Saint Xavier men’s volleyball finishes historic season in nation’s top 4
Spread the loveBy Jeff Vorva Correspondent The Saint Xavier men’s volleyball team made history by advancing to the semifinals of the NAIA Men’s Volleyball National Championship. But the Cougars fell to eventual national champion Georgetown (Kentucky), 25-21, 25-23, 22-25, 21-25, 15-10, on May 3 at Alliant Energy PowerHouse in Cedar Rapids, Iowa. Although there was…
Neighbors
Landek urges slower driving near emergency vehicles
Spread the loveBy Ray Hanania State Senator Steven Landek expressed his concerns over reports that three Illinois State Troopers were struck by motorists in three different incidents during recent heavy snowstorms. In two separate incidents on Interstate 72, a state trooper had pulled over to the side of the road in Springfield to help a…
Evergreen Park High students collect blankets for the homeless
Spread the loveBy Kelly White Students at Evergreen Park Community High School started up an effort to keep the homeless warm as cold temperatures and frigid air have hit the Chicagoland area this winter. The Service Club at the high school, 9901 S. Kedzie Ave. in Evergreen Park, is hosting a blanket drive through Friday,…
D230 goes yellow and relaxes mask mandates after judge’s ruling
Spread the loveBy Jeff Vorva In the wake of a judge’s decision, District 230 has gone yellow. The district, which serves Stagg, Sandburg and Andrew high schools, on Monday switched its COVID-19 status from orange to yellow. Sangamon County Judge Raylene Grischow ruled in favor of parents who took 145 Illinois school districts to court…
Bridget Ferriter, you will be missed
Spread the loveBy Kathy Headley Your correspondent in Chicago Lawn and Marquette Manor 6610 S. Francisco • (773) 776-7778 Last week I had the sad experience of attending the funeral of a good friend, Bridget Ferriter. We were neighbors for more than 30 years. We did things long-time neighbors do, like pop over for coffee…
To receive City services, you must ask
Spread the loveBy Mary Stanek Your correspondent in Archer Heights and West Elsdon 3808 W. 57th Place • (773) 284-7394 The CHI311 website is the way to go, or a simple 311 phone call can help keep our neighborhoods clean and safe! To quote from an article written by Mike Kovac in the Archer Heights…
Winter Olympics bring back fun memories
Spread the loveBy Peggy Zabicki Your correspondent in West Lawn 3633 W. 60th Place • (773) 504-9327 Have you been watching the Winter Olympics? My favorite sport is figure skating. It is beautiful and athletic. The athletes are so inspiring. I love to watch all the sports. I remember my family gathering around the TV, watching the Olympics in the early…
Area wrestlers advance to sectionals
Spread the loveFrom Staff Reports The following wrestlers have qualified for sectional competition after placing in the top three at their respective regional tournaments. (Name, class, finish at regional) Class 3A Marist Regional Marist George Marinopoulos, Fr, 2nd at 106 Michael Esteban, Fr, 1st at 113 Will Denny, Fr, 2nd at 120 Jesse Herrera,…
Mayor ‘out of control,’ hero says
Spread the lovePolice ranks ‘thousands’ short, dispatcher tells Scottsdale By Tim Hadac It’s not every day that a City worker has the courage to attend a public meeting and call a mayor “out of control.” But Keith A. Thornton Jr. did exactly that earlier this week on the Southwest Side. A 911 dispatcher hailed as…
Rockie is the new kid on the block
Spread the love While some folks see heavy snowfall and curse the skies, children across the Southwest Side seemed thrilled with last week’s winter windfall. Schools cancelled classes, and kids like 9-year-old Rosie Arroyo showed her creativity by working with her father, Raul, to build a snowman in front of their home near 49th and…