SE Illinois News

Illinois Chamber President and CEO Todd Maisch said Gov. J.B. Pritzker may finally be on the right path with his economic vision for the state, but quickly added the administration still has a way to go as evidenced by Pritzker’s recent State of the State and Budget Address.

"We support the governor’s proposals that will temporarily lessen the tax burden on Illinois taxpayers, but we believe that his proposed array of tax cuts needs to be revised,” Maisch said in a statement soon after Pritzker’s address. “Of greatest concern is the Governor’s call to disregard a bipartisan commitment to adequately fund our vital transportation infrastructure. We join our friends in labor in expressing our concern that the governor’s proposal on the gas tax is an end- run around the transportation lockbox amendment.”

With the new budget set to become policy on July 1, Pritzker outlined plans for a $112.5 billion spending plan that includes providing up to $1 billion in tax relief, steering more than minimum payments into public sector pensions and putting hundreds of millions into the state's ravaged rainy day fund.

As much as $45.5 million would come from the state's general revenue fund with the other funds being federal pass-through dollars.

For the previous fiscal year's budget, Pritzker proposed a total budget of $95.5 billion, with $41.6 billion derived from state funds.

“We support the Governor’s efforts to move Illinois from the 49th worst-funded public pension system but there is much work to be done to achieve this modest goal and policies that grow our economy are essential to success," Maisch said. "We are encouraged that to be on a path towards fiscal stabilization, it is important we understand the context of Illinois’ fiscal situation.”

With the state’s unfunded pension liability having already soared in the neighborhood of $140 billion, the administration is also proposing fully funding the required contribution of $9.6 billion with an additional $500 million infusion. The move is expected to reduce unfunded liability by a shade under $2 billion.

On the tax front, Maisch said he was hoping to see more of what the governor came to touch on.

“We hope the administration and the legislature will demonstrate a longer-term commitment to tax relief by enacting the maximum amount of property tax relief that the state can afford over a period of the next five years," he said. “We are encouraged with the governor’s confidence in our fiscal future, but his current tax proposals run the risk of being viewed as a one-time election year gimmick."