State’s revenue picture improves as economy recovers
By PETER HANCOCK
Capitol News Illinois
phancock@capitolnewsillinois.com
SPRINGFIELD – Illinois budget officials said Thursday that revenues are flowing into state coffers at a faster pace than previously estimated, meaning lawmakers will have more money to work with as they try to finalize a new budget for the fiscal year that begins July 1.
The Governor’s Office of Management and Budget officially raised its revenue estimate for the current fiscal year by more than $1.4 billion and by $842 million for the upcoming fiscal year.
Those figures are similar to the latest revised estimates from the General Assembly’s budget monitoring agency, the Commission on Government Forecasting and Accountability, which said last week that revenues for the current year would go up about $2 billion while next year’s revenues would be $792 million more than previously forecasted.
That came as good news to state lawmakers who are trying to finalize the next fiscal year’s budget before their scheduled adjournment day on May 31, but it still was not enough to completely close the looming deficit in next year’s budget, which House Majority Leader Greg Harris, D-Chicago, estimated at around $1.3 billion.
“The choices are really clear,” Harris said during a news conference Thursday. “We’re either going to have to find ways to cut to fill that hole, or we’re going to have to review the proposals that the governor made to close corporate tax loopholes on wealthy individuals and corporations. Some mix of those will be required.”
In February, Pritzker proposed filling the budget hole with about $1.5 billion in revenue enhancements that included closing what he called “corporate tax loopholes,” but which Republicans prefer to call “business incentives.”
So far, however, lawmakers have not appeared anxious to take up Pritzker’s tax proposals, at least until they have a clearer idea of how big of a budget hole needs to be filled.
“I think there’s a number of things that the governor has proposed that we’ve asked members to take a deep dive and to be mindful of to think about how it would affect their constituents vis-à-vis the overall state budget…We remain very, very invested in trying to get a responsible budget to the governor’s desk,” said Rep. Michael Zalewski, D-Riverside, who chairs the House Revenue Committee.
Pritzker’s budget plan was drafted before Congress passed the American Rescue Plan, which will send about $8.1 billion in fiscal relief to the state. But the U.S. Treasury Department is still in the process of finalizing rules for how that money can be spent, and on Thursday, Harris cautioned against trying to use it to fill the state’s ongoing structural budget deficit.
“We know that this is an amount of money that can be spent over the course of four years, so we have to be very thoughtful as how we spend it over a period of time,” he said. “We know it’s largely one-time money. So I think we’re all going to want to look at it really carefully to be sure that we’re not building this into a base that then there would be a cliff when this money expired.”
State and local governments also stand to receive significant federal aid. According to Harris, the federal law will send about $5.9 billion to Illinois cities and towns, $5 billion to public schools, $1.3 billion to colleges and universities, $1.7 billion for public health programs, and $1.35 billion for child care and Head Start programs.
The Treasury Department has published interim rules that outline general categories of spending that qualify under the law. They include responding to the public health emergency or its negative economic impacts; providing premium pay to essential workers during the pandemic; making up for revenue lost due to the pandemic; and investing in water, sewer or broadband infrastructure.
The interim rules also say the funds may not be used for funding pension plans or paying down debt.
Pritzker and Comptroller Susana Mendoza have said Illinois should be allowed to use the money to repay short-term loans the state took out from the Federal Reserve during the pandemic, and they have urged federal officials to make that change when the final rules are published in July.
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
College Report: McAuley grad Swiatek plays hero for St. Francis
Spread the loveBy Jeff Vorva Staff Writer Hannah Swiatek comes off the bench for the University of St. Francis and is averaging 3.1 points per game. But when called on for the biggest shot of her college career, the 5-foot-8 junior guard from Oak Lawn delivered. Swiatek scored the winning basket in a wild 99-97…
Evans, Adams lead Argo past Shepard on Alumni Night
Spread the loveBy Steve Metsch Corrspondent Argo’s Davonte Evans and Will Adams both knew it was just a matter of time before the Argonauts would find a way to beat Shepard. That time came in the third quarter of a South Suburban Red matchup, when Argo outscored Shepard en rout to a 61-52 on Jan.…
Cruz booted from SD 229 school board in Oak Lawn
Spread the loveBy Dermot Connolly There is a vacancy on the Oak Lawn Community High School District 229 School Board, after members voted 6-1 last week to remove Robert Cruz for allegedly violating his oath of office, school board policy and state statutes. Cruz, a property developer, was elected to the District 229 board in…
Tax exemptions will be automatic, Kaegi says
Spread the loveFrom staff reports In response to the ongoing pandemic, the Cook County Assessor Fritz Kaegi’s office will continue the automatic renewal of the Senior Freeze, Veterans with Disabilities and Persons with Disabilities Exemptions. The Homeowner and Senior Exemptions will continue to auto-renew every year. If a homeowner received any of these five exemptions…
Oak Lawn officials rip governor, legislators over crime
Spread the loveBy Joe Boyle Two Oak Lawn officials are calling for Gov. J.B. Pritzker and local legislators to re-evaluate a police reform law that they say has resulted in a rise in crime. Trustee Alex Olejniczak (2nd) served as mayor pro-tem during the Oak Lawn Village Board meeting Tuesday night in place of Mayor Terry Vorderer,…
Troop 1441 Scout earns Eagle rank
Spread the loveFrom staff reports A journey that began years ago for Adrian Ayala recently culminated in Boy Scouting’s highest honor. Ayala, a member of Boy Scout Troop 1441 (sponsored by the St. Mary Star of the Sea Holy Name Society) was honored at an Eagle ceremony at Duggan Hall on Jan. 13. The Eagle rank…
Hog Wild to open Monday in Oak Lawn
Spread the loveBy Kelly White Dining choices will get a boost in Oak Lawn with the arrival of Hog Wild. The restaurant is scheduled to open Monday, January 17, at 4040 W. 111th St. That’s a week later than originally scheduled. “We are very fortunate here in Oak Lawn to have attracted Hog Wild,” Oak…
Neighbors
Lions Club District 1A Helen Keller race draws big field
Spread the loveBy Kelly White The damp weather from overnight rain did not deter more than 100 people on Sunday morning from getting some exercise. The 14th annual District 1A Helen Keller 5k Fun Run/Walk proudly took place along at Harold L. Richard’s High School, 10601 Central Ave., Oak Lawn. “This is a really great…
EPCHS students collect shoes for Christmas Without Cancer Sneaker Drive
Spread the loveFrom staff reports Students in Evergreen Park Community High School’s junior physical education leadership class teamed up with the non-profit organization Christmas Without Cancer to help local families battling the devastation of cancer. The class – taught by EPCHS physical education teacher Ree McDonald – helped gather donations for Christmas Without Cancer’s second…
Swallow Cliff Chapter, NSDAR, honors JROTC cadets
Spread the loveFrom staff reports Swallow Cliff Chapter, National Society Daughters of the American Revolution, participated in recent JROTC awards ceremonies held at Shepard High School in Palos Heights and Richards High School in Oak Lawn. The DAR JROTC award, consisting of a medal and certificate, was presented to Navy Cadet Emily Schrode at Richards…
Man charged with child abduction in Stickney Township
Spread the loveFrom staff reports A Chicago man was charged last week with child abduction and luring of a minor after Cook County Sheriff’s Police detectives found he attempted to lure a minor into his vehicle, said Cook County Sheriff Thomas J. Dart. According to police, about 4:43 p.m. on Monday, April 22, officers responded…
Worth Library celebrates 60th anniversary
Spread the loveBy Kelly White The Worth Public Library has been around for decades. Resting in the heart of the village at 6917 W. 111th St., the library held an event focusing on its rich background story on April 23 with a historical photo exhibit. “It’s amazing because this library is still so important to…
Rose Zubik, Woman’s Club veteran, installed as 3rd District president
Spread the love Rose Zubik, of Palos Heights, the new president of the 3rd District General Federation of Women’s Clubs-Illinois, lights a candle during the installation ceremony held April 27 at Fox’s Restaurant in Orland Park. Heather Linehan, the outgoing president, is beside her.By Dermot Connolly A longtime member of the Palos Heights Woman’s Club…
Shots fired in Chicago Ridge Commons parking lot
Spread the loveFrom staff reports Shots were fired Wednesday night in the parking lot at Chicago Ridge Commons mall. Police said they received reports of the shooting about 9:45 p.m. No injuries were reported. Multiple witnesses told police four men were walking through the parking lot from the XSport Fitness area. They approached two vehicles…
Hair salon with a ‘flair’ marks first year in Chicago Ridge
Spread the loveBy Joe Boyle Melissa Kowalski wanted to do something meaningful to mark the first-year anniversary of her Flair With Hair Salon in Chicago Ridge. “We did not have a grand opening last year so I wanted to do something really special,” Kowalski said. “We wanted to say thank you to our clients.” Kowalski,…
Palos East fifth-grader wins Scholastic Storyworks writing contest
Spread the loveGabriel Chowaniec, a fifth-grader at Palos East Elementary School, has been named a winner of the Scholastic Storyworks Magazine writing contest. Gabriel, who is a student in Cathy Casey’s fifth-grade classroom, was named one of only five winners nationally for the December 2023/January 2024 competition. Garbriel’s submission for the nonfiction story “The Shattered Land,” “showed a strong understanding of the text along with the ability to author a well-organized…
Shepard celebrates Autism Week
Spread the loveBy Kelly White World Autism Acceptance Week is organized by the National Autistic Society in the first week of April and aims to raise awareness about the challenges autistic people face across all areas of society. Not missing out the opportunity to celebrate all-inclusion was Shepard High School, 13049 S. Ridgeland Ave., Palos…