“I had bolder plans for our national budget than what I am about to present to you today. It would be a lie to suggest something else, ”said Pritzker. “But just like all of our families had to make difficult decisions last year, so did the state government.”
Senior budget officials, in a briefing prior to submitting the address, noted that the governor will continue to attempt to decouple state tax legislation from changes allowed in federal Coronavirus Aid Relief and Economic Security (CARES) law. This change would keep revenue steady year over year because the cuts to the CARES Act passed last year would not automatically reduce the Illinois state tax burden on corporations.
The measure failed at the Lame Duck session when Republicans blew it up as a corporate tax hike of more than $ 500 million. However, the Democrats at the time said it was a way to prevent loss of revenue by maintaining the status quo.
Total revenues for the year represent a 4.1% year-over-year decline. This is largely due to $ 2 billion in federal government liquidity facility loans, of which $ 690 million is due in fiscal year 2022 , but will be prepaid in fiscal year 2021, according to budget officials. Additional USD 1.2 billion MLF loans from June 2020 are expected to be repaid in the current fiscal year.
The state funding for K-12 education will remain unchanged compared to the previous year. This is the second year in a row that the state has waived the $ 350 million required under an evidence-based funding formula each year under state law.