SE Illinois News

Fiscal reform backers believe that the chance to revamp Illinois financial health faded with the state slated to receive billions of dollars in federal relief funds.

Illinois is receiving at least $25 billion in federal aid from the American Rescue Plan and other federal sources, Wirepoints reported.

The federal bailout is enough to cover state revenue losses from the COVID-19 pandemic by more than 116 times, according to the Tax Foundation. In response, credit rating agency Moody's revised the state's outlook rating from negative to stable.

Illinois Sen. Darren Bailey (R-Louisville) | Courtesy Photo

"Affirmation of the state's rating and the revision of its outlook to stable reflect the state's financial performance through the pandemic, in combination with increased levels of federal support that will moderate near-term fiscal and economic pressure," Moody's said, according to Wirepoints. "State and local government funds expected under the latest federal aid package may help the state repay deficit financing loans, support its financially pressured local governments and spur employment, income and tax revenue growth."

This is all short-term, though and just allows the state to "kick the can further down the road," according to Wirepoints. Even with the bailout, Illinois still needs fiscal reform to address the pattern of spending and deepening unfunded mandates.

Illinois state Sen. Darren Bailey (R-Louisville), who is running for governor, said he plans to "reform a state that has been broken and abandoned by career politicians who have lost touch with the needs of hardworking Illinoisans" and took to Facebook to voice his opinion on this issue.

"Springfield continues to kick the can, and taxpayers continue to pay the price," Bailey said in a March 27 Facebook post. "It has to stop. We have to #FirePritzker and work together to #RestoreIllinois! #standingwithyouin2022."

According to an Illinois Policy article, Illinois Gov. J.B. Pritzker recently signed the 2020 state budget plan that will cost up to $1.3 billion more than the state will bring in for the upcoming fiscal year.

Bailey went a step further and criticized the budget proposal for being "at least $1.7 billion out of whack," according to the Chicago Sun-Times.