Illinois Governor Highlights Fiscally Responsible Budget

Illinois Governor Highlights Fiscally Responsible Budget

SPRINGFIELD, IL (STL.News) As the 2021 legislative session comes to a close, Governor JB Pritzker discussed progress for Illinois families: particularly a historic and fiscally responsible state budget that pays down debt, closes loopholes for wealthy corporations, and invests in rebuilding our economy.

“I came into this office two sessions ago with a promise to always meet our most basic responsibility: a REAL balanced budget.  For the third straight year, I’ll sign into law another balanced budget for Illinois that demonstrates fiscal responsibility works with a progressive vision of governance,” said Governor JB Pritzker.  “All of these achievements collectively mark a significant turning point for our state. I want to thank my partners in the General Assembly for making this trajectory possible.  Together, we’ve worked to solve the problems of the past while managing the challenges of the present and keeping a sharp eye on the future.”

FY22 Balanced Budget

• FY22 General Funds Budget totals $42.3 billion, holding the operating budget roughly flat
• Closes $655 million in corporate loopholes to protect the middle class while the wealthiest corporations pay their fair share
• Stronger state FY21 revenues accelerate repayment to the federal government of $3.2 billion in emergency borrowings, saving the state tens of millions of dollars
• Allocates Year 1 of ARPA money, including a $570M investment in economic recovery and small businesses.

Key Priority Investments

• Additional $350 million for K-12 education, bringing the total to $9.2 billion.
• $7.7 Billion in federal funds to schools
• $28.2 million more for MAP grants to a total $479.6M for need based college financial aid
• $3.4B for Child Care Assistance Program (CCAP)
• $170 million in additional investment in services for people with developmental disabilities
• Fully funds FY22 pension contribution of $9.4 billion

Ending Corporate Loopholes (SB 2017)

Closes four tax loopholes worth $655 million to the state and $42 million to local governments.

• $314 million: Cap Corporate Net Operating Loss Deductions at $100,000 Per Year For the Next 3 Years
• $214 million: Roll Back Federal Tax Cut and Jobs Act 100% Accelerated Depreciation Deduction
• $107 million: Align Domestic & Foreign-Source Dividend Deduction
• $20 million: Freeze Phase Out of Corporate Franchise Tax

ARPA Focus: Pandemic Recovery

• $1.5 billion for crucial investments in Illinois businesses, families, and communities, including:

o $570 million for small businesses and impacted industries, including the $450M Economic Recovery plan outlined below
o $350 million for public health response, pandemic assistance to health care industry and behavioral health investments
o $100 million for violence prevention and summer youth employment efforts across the state
o $100 million for affordable housing, supportive housing and homelessness initiatives

ARPA Economic Recovery Plan: $450M initial investment

• $300 million for Back to Business Grants, with 40 percent of the funds going to communities that were disproportionately impacted by the pandemic
• $10 million for Tourism promotion and Main Street festival grants
• $50 million for Workforce Recovery efforts
• $20 million for Community Navigators and targeted business support services
• $25 million for the DCEO RISE program for local economic recovery planning and partnerships
• $45 million in capital for commercial corridors and downtowns that have experienced disinvestment.

About Maryam Shah 5784 Articles
Maryam Shah is a teacher, mother, and wife. She is dedicated to publishing news provided by the US Department of State, State Governors, and more. She constantly monitors the web for the latest news updates, quickly publishing stories to help keep the public informed.