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
Fire knocks out Orland’s UFC Gym
Spread the loveFrom staff reports A fire last Thursday afternoon practically destroyed an Orland Park gym and knocked out neighboring businesses, as well. Orland Park firefighters received a call at 2:31 p.m. June 20 for a reported fire in the UFC Gym located at 66 Orland Square Drive Unit C. Multiple 911 calls were received for a…
Chicago Ridge Fire Chief Bonnar retires
Spread the loveStarted his 50-year career as Orland Park cadet By Dermot Connolly Chicago Ridge Fire Chief William Bonnar officially announced his retirement from a nearly 50-year career at the June 18 Village Board meeting. Mayor Jack Lind made the announcement “with great regret,” joking that “he doesn’t have the age to retire but he…
Stagg tabs Allee Hernandez to guide girls hoops
Spread the loveBy Randy Whalen Correspondent Allee Hernandez has accrued many years of basketball experience as a player and as an assistant coach. She will soon embark on a new experience as a head coach at Stagg, where she will be the Chargers first new head coach in 16 seasons. She succeeds Bill Turner, who…
Shepard’s yearbook wins national recognition
Spread the loveBy Kelly White Shepard High School students have worked tirelessly to create a yearbook for this academic year that was nationally recognized. The high school, 13049 S. Ridgeland Ave. in Palos Heights, was chosen as a Yearbook Excellence Contest recipient from Walsworth Publishing Company, a family-owned printing company based out of Marceline, Missouri.…
Hickory Hills man charged in grandfather’s murder
Spread the loveBy Nuha Abdessalam A 32-year-old Hickory Hills man has been charged with first-degree murder in the June 21 death of his 90-year-old grandfather. Dean J. Faulk was charged on June 22 with the June 21 murder of Dean L. Faulk. Police said they responded to a call at 9:45 a.m. June 21 at…
Orland Park Public Library kicks off summer
Spread the loveBy Kelly White Summer is nearly here and the Orland Park Public Library is ready for it. On June 8, the library, 14921 S. Ravinia Ave., hosted its second annual Summer Reading Challenge Kick-Off event themed, Read, Renew, Repeat. “There are multiple interpretations to this theme,” Jackie Boyd, Communications Manager at the Orland…
llinois VFW names Porfirio Senator of the Year
Spread the loveIllinois Veterans of Foreign Wars recently selected state Senator Mike Porfirio as the Senator of the Year. “I’m deeply honored to receive this prestigious award from the Illinois VFW,” said Porfirio (D-Lyons Township). “I am committed to ensuring our veterans receive the protections, care and dignity they deserve. This recognition is a testament…
Niego Real Estate salutes America again
Spread the love. Popular flag program underway . By Tim Hadac Clearing and Garfield Ridge residents who want to decorate their blocks in red, white and blue this Independence Day are encouraged to contact Niego Real Estate and reserve a supply of U.S. flags at no charge. The popular program to promote patriotism and community…
Lyons Mental Health Commission pulls LeaderShop funding
Spread the loveExecutive director accused of harassment From staff reports The local nonprofit service community was jolted when nearly $300,000 in mental health funds was withdrawn by a Lyons Township agency from the Western Springs LeaderShop, a social service agency that has provided youth programs for nearly 40 years. The Lyons Township Mental Health Commission…
Neighbors
Strus tops former coach in Stagg’s win over Sandburg
Spread the loveBy Jeff Vorva Staff writer Marty Strus has nothing but good things to say about his former high school coach, John Daniels. “He’s meant a ton to me,” Strus said of the coach he faced off against last week when his Stagg Chargers took on Sandburg. “He meant a lot to me as…
Palos Area Chamber dedicated to promoting area
Spread the loveBy Kelly White Dedicated to helping local area businesses strive is the Palos Area Chamber of Commerce. The chamber was formed in 1949 when a small group of merchants joined together for the purpose of advancing economic, industrial, professional, cultural, and civic welfare of the Palos Heights area. For 68 years, the Palos…
We need real solutions to crime
Spread the loveBy Peggy Zabicki Your correspondent in West Lawn 3633 W. 60th Place • (773) 504-9327 Crime and safety concerns are the number one topic of all the calls and texts I receive. It seems that many politicians offer no solutions except the usual lists of ways to keep safe. I think everyone knows about locking…
Icy spill yielded plenty of good will
Spread the loveBy Mary Stanek Your correspondent in Archer Heights and West Elsdon 3808 W. 57th Place • (773) 284-7394 Here is a giant shout out to our first responders in the community. On Jan. 9, when a sheet of ice descended on Chicago, I was walking the dog. Walking around Peck School was great.…
It’s a busy January in Gage Park
Spread the loveBy Joan Hadac Neighborhood correspondent at large Greetings, Gage Parkers! I’m pleased to be filling in this week for Karen Sala. It’s fun for me to report on Gage Park, the neighborhood where I lived for the first 26 years of my life. There’s always something happening in this big, exciting part of…
You can bank on good service here
Spread the loveBy Kathy Headley Your correspondent in Chicago Lawn and Marquette Manor 6610 S. Francisco • (773) 776-7778 In this world of corporate takeovers, it is kind of hard to feel safe in the hands of big business. First, we have to supply some of our personal information to the automated system. Then there’s…
Palos Park police to hold active shooter drill
Spread the loveFrom staff reports Palos Park Police will fine tune their strategies for dealing with an active shooter to ensure the safety of both officers and citizens later this month. The end goal of the January 30 drlll is to test the department’s active shooter response plans and fine tune them. “Palos Park effective…
Richards’ Principal walks 24 hours for a cause
Spread the loveBy Kelly White Most people spend New Year’s Day relaxing. Richards High School Principal Dr. Mike Jacobson spent it on the treadmill. For the second year in a row, Jacobson inspired generous donations of more than $20,000 on New Year’s Day by walking 24 hours on a treadmill without stopping. All of the money raised goes directly…
Victress Women’s Wellness Center sets goals for 2022
Spread the loveBy Kelly White Empowering women in the new year is Victress, a wellness center for women, in Palos Heights. The center opened in October at 7120 W. 127th St. and welcomed in the new year with a goal-setting seminar open to women in the local community called, Achieve 2022: This year set goals,…