Illinois Passes Fifth Straight Balanced Budget
SPRINGFIELD, Ill. – Illinois lawmakers last week sent Governor JB Pritzker a balanced budget that prioritizes financial stability and makes investments in early childhood and higher education, public safety, behavioral and mental health services, and more.
"For another year, Democrats have delivered a fiscally responsible, balanced budget that puts hardworking Illinoisans first,” said House Speaker Emanuel “Chris” Welch. “With this budget we're building a stronger economy and putting our state back on sound fiscal footing, while also making smart investments in priorities like education, healthcare, and local communities.
“This budget reaffirms our shared commitment to fiscal responsibility while making transformative investments in the children and families of Illinois that will be felt for years to come,” said Governor JB Pritzker. “I look forward to signing this budget making childcare and education more accessible, healthcare more affordable, and our state’s business and economic position even stronger.”
“This state budget is balanced in every sense,” said Rep. Jehan Gordon-Booth, D-Peoria, the House Chief Budgeteer. “We’re rebuilding Illinois’ fiscal house, while responsibly saving for the future and creating greater flexibility to address the challenges of tomorrow. This balanced plan delivers critical funding that ensures every student has access to a quality education, helps more people access the health care they deserve and invests in career and technical training to prepare our young people for high-wage jobs across Illinois.”
Budget Highlights:
This budget builds on recent years of historic fiscal progress that earned Illinois eight credit rating upgrades and eliminated a bill backlog of roughly $16 billion.
Allocates $200 million in additional pension payments, bringing total pension stabilization investments to $700 million.
$350 million for K-12 evidence-based funding formula.
$100 million in additional MAP grant funding, ensuring everyone at or below the median income can go to community college for free.
$250 million to fund Smart Start IL, which will help eliminate preschool deserts, stabilize the childcare workforce, expand the Early Intervention Program and Home Visiting programs, and more.
$100 million increase for public universities and community colleges.
$85 million increase to support homelessness prevention, affordable housing, and other programs.
$20 million investment in a new Illinois Grocery Initiative to expand grocery access to underserved rural towns and urban neighborhoods.
$22.8 million in funding to begin implementing the new Children’s Behavioral Health Transformation Initiative.
$18 million to increase support for reproductive health initiatives.
$24 million for a rate increase for home workers who assist the elderly.
Over $500 million in new state and federal funds to support the state’s healthcare system.
Another step in phasing out the corporate franchise tax.
$400 million to close major economic development deals and attract businesses to Illinois.
$20 million to Rebuild Illinois Downtowns and Main Streets Capital Program.
In the News
Bloomberg: “The state’s relatively uneventful budget season, especially compared with past budgets and its continued commitment to fiscal responsibility bodes well for the state’s credit,” Dora Lee, director of research at Belle Haven Investments, which owns the state’s debt, said via email. “The hardest part with the upcoming fiscal year will probably be responding to the economic realities and actual revenue receipts.”
Chicago Tonight: “The state budget makes investments in education, universities, and anti-violence programs; raises the wages of those who work directly with individuals with developmental disabilities; and more.”
The Pantagraph: “An additional $112.5 million is being transferred into the Local Government Distributive Fund, which is the share of the state income tax reserved for cities and counties.”
WAND: “House Bill 579 could help Illinois become the 19th state to create a state-based health benefits exchange. Sponsors said this would allow Illinois to expand healthcare access by identifying uninsured communities, having effective outreach for residents, and helping people enroll in plans best suited for them.”
WCIA: “This year’s budget makes investments in ending homelessness a top priority.”