Prairie State Wire

After Illinois Gov. J.B. Pritzker’s budget address for the 2021 fiscal year, the Illinois Policy Institute spoke out about what they see as a better option. 

In Pritzker’s budget proposal presentation the IPS envisions painful tax hikes and cuts to the services that residents need most. 

“Despite two historic income tax hikes that have taken billions of dollars out of family budgets, Illinois has not had a balanced budget since 2001, its finances have worsened dramatically, and the state is actually spending less on services for the poor and  disadvantaged,” said Adam Schuster, Director of Budget and Tax Research at the Illinois Policy Institute. “History shows Pritzker’s $3.7 billion progressive income tax hike would not only fail to solve the state’s biggest problems, it would make them worse.”  

“This is like a doctor offering a choice to her patient with a broken leg: amputation or bloodletting. Neither solve the problem. In fact, they make it worse,” Schuster said. "Illinoisans should reject this false choice altogether. Leaders should fight for a cure.”

Last week, the Illinois Policy Institute published a 5-year budget plan, called “Illinois Forward.”

The plan pays down the bill backlog, puts extra funds into core services, a rainy day fund, or a tax cut for Illinois residents—all through reforms that have seen bipartisan support in the past. Some of those reforms include:

• A pension reform amendment to the state constitution. No retiree would see the size of their current check decrease and no current worker would lose core benefits.The guaranteed three percent compounding post-retirement raise would instead be replaced with a true cost-of-living adjustment tied to inflation. This would save $8.9 billion in five years and $50 billion in 25 years.
• Realignment of pensions, which includes accountability for negotiating compensation for school and university employees. This would save $8.7 billion over five years, says the Illinois Policy Institute.
• Investment in K-12 education. By reducing administrative bloat at the district level and allowing state aid to grow more slowly, but still increasing resource for classrooms. The state could see a savings of $3.6 billion over five years.

To read the full plan, “Illinois Forward: A 5-year plan for balanced budgets, declining debt and tax relief,” follow this link.