Governor JB Pritzker on Wednesday unveiled a budget of $ 95.5 billion for the coming fiscal year, which will fill or minimize some corporate income tax gaps to fill a budget gap.
The state budget for 2022 is missing the “painful cuts” that Pritzker was warned about after his planned transition to a tiered income tax failed in November.
Instead, officials said they closed the budget deficit of $ 2.6 billion by keeping spending flat. Implementation of spending cuts in some departments; and a mixture of closing or minimizing nine “corporate tax loopholes” that could generate $ 932 million if approved by the General Assembly.
The corporate tax changes include the waiver of corporate tax waiver and a cap of $ 100,000 on the company’s net operating loss for three years. Officials said the cap would not affect 80% of companies with net operating loss allowances, but generate $ 314 million in revenue for the state.
The budget for 2022, which goes into effect July 1, continues to be issued unchanged, although 100 agencies, including the state’s Justice Department, will see cuts in their budgets, officials said.
Meanwhile, the Department of Child and Family Services will see a 7.9% increase in its budget for 2022 to continue hiring and growing case numbers in nursing homes, the intact family services program, and facilities and group homes can cover.
State budget officials set the budget as a budget that is balanced and protects vital services without adding to families in Illinois.
Pritzker’s office said earlier this month an economy “performing better than expected” had helped the state avoid some of the “grave and frankly painful” cuts the first-term governor warned residents about after the Voters had decidedly rejected his proposed move to graduate income tax.
In December, Pritzker approved fiscal 2021 budget cuts of more than $ 711 million in offices he controlled as revenues were hit hard by the coronavirus pandemic.
Last month, Pritzker froze the introduction of new corporate tax credits, which should go into effect in early 2021. This move has been described by Republican lawmakers as “just another hit” for businesses in trouble.
Budget officials said Wednesday they hope the General Assembly will vote by early March to separate state and federal tax codes. This could save the state about $ 500 million in tax revenue.