Prairie State Wire

Illinois Gov. J.B. Pritzker's budget proposal, released on Feb. 19, 2020, calls for $42 billion in the general fund and a new rate structure for the state’s income tax. 

The Governor's proposal puts approximately $1.4 billion into a reserve fund while waiting for Illinois voters to decide on a graduated tax rate. In his 2021 fiscal year budget address, Pritzker suggested that graduated taxes might bring in $3.6 billion, according to a Feb.19 piece by Reuters.   

Following Pritzker's budget speech, Sheila Weinberg, CEO and Founder of Truth in Accounting, issued a statement in response.

Illinois Gov. J.B. Pritzker

“I was pleased to see Comptroller Mendoza issue an interim financial report before the budget address. Unfortunately, Gov. Pritzker did not mention her findings, such as the state needs $214.5 billion to pay the debt it has already incurred and the state had a $3.4 billion deficit despite claims that the previous year’s budget was balanced," said Weinberg.  

Reuters notes that the state’s $137.3 billion unfunded pension liability and chronic structural budget deficit have resulted in Illinois having the lowest credit ratings—just above junk. 

“Gov. Pritzker says the budget will fully fund the statutory contributions to the pension plans," Weinberg said. "These statutory contributions woefully underfund the plans. Last year, the state shortened the plans by more than $4 billion using this funding scheme, which has been called a 'balloon payment on steroids.'” 

According to Data-Z, a project of Truth in Accounting, Illinois needs $223.9 billion to pay its bills, equating to $52,600 for each taxpayer in the state.

“The governor boasted that he will build up a 'rainy day' fund and put $100 million into it this year,” Weinberg said. “This is like me touting that I am going to put $100 into my rainy day fund while I have $225,000 in credit card debt.”