Illinois

Analysis: Illinois governor's revenue plan faces enough opposition to prompt cut talks

Published

2 years ago

May 11, 2024

Analysis: Illinois governor's revenue plan faces enough opposition to prompt cut talks

SPRINGFIELD, Ill. — When Gov. J.B. Pritzker proposed his budget for the upcoming fiscal year in February, he sought authority from lawmakers to raise more than $1 billion in revenue through various changes to the state tax code.

Among other things, he sought to raise $526 million through extending an expiring cap on losses that corporations can claim on taxes, and $200 million by increasing the tax on sportsbooks’ revenues from 15% to 35%.

But, one of his lead lieutenants this week sent a letter to the head of the state’s agencies instructing them to identify $800 million in collective budget cuts if lawmakers don’t deliver on Pritzker’s tax requests.

“As we continue to work with our General Assembly partners to pass our sixth consecutive balanced budget, it has become clear that opposition to proposed revenue is significant enough to direct agencies to prepare for the possibility of reductions to proposed spending,” Deputy Gov. Andy Manar wrote in the letter to agency directors dated May 7.

While Manar’s letter was addressed to “Agency Directors,” it was just as much a message to rank-and-file lawmakers – particularly those within the supermajority Democratic party. While ideologically aligned on the major points, Democrats have not been immune to intraparty squabbles throughout Pritzker’s tenure.

The letter comes at a time when lawmakers are entering the final two-week negotiating stretch for the budget before their scheduled May 24 adjournment. (It’s a self-imposed deadline, and that date could be extended a week without changing the number of votes needed to pass a budget).

But it doesn’t mean cuts are definitely coming, or that revenues are cratering amid late-year tax season filings.

To the contrary, Manar’s letter came on the heels of positive news – the Governor’s Office of Management and Budget increased its base General Revenue Fund estimate for the upcoming fiscal year 2025 by $295 million, to $53.3 billion.

Normally, that type of revision, at this time of year – coupled with the GOMB’s $250 million increase for the current fiscal year that ends June 30 – would have lawmakers thinking about new spending.

Source: Governor’s Office of Management and Budget

A table from the latest Governor’s Office of Management and Budget report shows how revenue projections have increased from previous estimates. The highlight was added to signify the current revenue estimates.

But in noting there’s at least some question as to whether lawmakers would approve the governor’s February revenue proposals, Manar presented a scenario where the opposite could be true.

“And finally, as your agency prepares for the impact of $800 million in potential spending reductions, please focus on grant programs and other discretionary spending that has increased in recent years,” Manar wrote.

Grant programs are some of the most popular spending areas for lawmakers, many of whom are accustomed to celebrating the impact of the dollars in their districts through celebratory news conferences and media releases.

In other words, the letter lays out a dueling reality for lawmakers who are on the fence: curtail popular program spending or get in line with Pritzker’s proposed plan to make the money available.

Manar’s letter was a subject for discussion on the latest episode of “Illinois Lawmakers” – the longest-running Illinois government-focused program in the state’s history that is now a production of Capitol News Illinois.

Sen. Elgie Sims, D-Chicago, the lead budget negotiator in his chamber, told “Lawmakers” host Jak Tichenor Thursday that Manar’s letter was “a good plan” and not cause for alarm as the session nears its end.

“You always have to have contingencies A, B and C,” Sims said, adding that the governor’s plan is option A, but negotiations must also be a “reflection of the caucuses’ priorities.”

“So I just saw the memo as part of that process – part of the planning process to make sure as we get ready for the final passage, we have all the options before us,” he said.

House Assistant Majority Leader Jay Hoffman, D-Swansea, echoed Sims, noting Democrats have come together to pass a balanced budget each year since Pritzker took office, resulting in nine credit rating upgrades from the major New York-based rating agencies.

“So we have to continue to work to get that balanced budget,” Hoffman said. “Now – I don’t know that I agree with the deputy governor on having to have all these revenue enhancements in order to have a balanced budget. But we if we have to make some reductions, we’ll make them.”

<i>Jak Tichenor (left), host of “Illinois Lawmakers” talks with House Assistant Majority Leader Jay Hoffman, D-Swansea. </i> — *Jak Tichenor, host of “Illinois Lawmakers,” talks with House Assistant Majority Leader Jay Hoffman, D-Swansea.*

Because Pritzker’s revenue generators would pull in an estimated $1.1 billion, there’s room for his plan to pass in part without requiring cuts as drastic as Manar outlined in his Tuesday letter.

Deputy Minority Leader Norine Hammond, R-Macomb, told Tichenor she’s unsurprised by Manar’s letter. The budget ask, she said, has been driven up by competing interest groups all vying for a limited pool of funds.

“And as we know, that becomes a Christmas tree and the revenue needs just become greater and greater,” Hammond said.

But the House GOP’s lead budgeteer also noted her caucus has not been intimately involved in any cross-party budget negotiations thus far.

There are other revenue generators in the governor’s plan as well. It seeks to generate $101 million by capping a sales tax discount claimed by retailers, and to transfer some mass transit costs to the state’s Road Fund to generate $175 million.

Read more: Pritzker agency heads questioned on $1.1 billion revenue proposals

The governor’s office gives far less fanfare to two other proposals: a cap on a widely used personal income tax deduction and a redirection of some tax revenue away from parks and recreation programing.

The former is a $2,550 cap on the standard deduction claimed by millions of Illinoisans to generate $93 million. It was scheduled to grow to $2,775 if lawmakers don’t change the law. The latter would move a portion of real estate transfer taxes to GRF instead of the Open Space Land Acquisition and Development Fund – one of the most popular of all grant programs – to raise $25 million.

<i>Gov. JB Pritzker speaks at an event at the Governor’s Mansion in Springfield on Tuesday, May 7. On the same day, his office sent a memo to state agency directors asking them to identify $800 million in budget cuts. </i> — Illinois Gov. J.B. Pritzker speaks at an event at the Governor’s Mansion on Tuesday in Springfield. On the same day, his office sent a memo to state agency directors asking them to identify $800 million in budget cuts.

While Manar’s memo lays down a marker for the final two weeks of budget negotiations, it doesn’t drastically change the state’s fiscal landscape from where it was a week ago, when the legislature’s Commission on Government Forecasting and Accountability reported April revenues came in about as expected.

In fact, the GOMB’s new estimate is nearly identical to COGFA’s latest projection.

But the letter does indicate that Pritzker’s budget proposal appears to be facing some turbulence as the plane nears its landing – again, not an uncommon occurrence in Springfield.

Jerry Nowicki is the editor-in-chief of Capitol News Illinois, a nonprofit, nonpartisan news service covering state government that is distributed to hundreds of print and broadcast outlets statewide. It is funded primarily by the Illinois Press Foundation and the Robert R. McCormick Foundation, along with major contributions from the Illinois Broadcasters Foundation and Southern Illinois Editorial Association.

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Illinois

2 men shot, 1 fatally, outside bar in Morris, police say

Published

55 minutes ago

March 2, 2026

Press Room

2 men shot, 1 fatally, outside bar in Morris, police say

MORRIS, Ill. (WLS) — A man was killed and another was injured in a shooting outside of a bar in Grundy County.

The shooting happened early Saturday outside of Clayton’s Tap in the 100 block of West Washington Street in Morris, Illinois, officials said.

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The Grundy County Sheriff’s Office responded to the scene, where they found two men with gunshot wounds. One was pronounced dead at the scene and the other was taken to a hospital in critical condition.

The victim who died was identified by the Grundy County Coroner’s Office as 35-year-old Julian Rosario of Channahon.

A suspect in the shooting, 22-year-old Marshall Szpara of Seneca, was arrested and “initially charged with two counts of aggravated battery with a firearm, pending further review from the Grundy County States Attorney’s office,” Morris police said.

No further information was available.

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Illinois

Firefighter faces arson charges after Illinois wildfire burns hundreds of acres

Published

13 hours ago

March 1, 2026

Press Room

Firefighter faces arson charges after Illinois wildfire burns hundreds of acres

A volunteer firefighter is facing arson charges after he allegedly set a fire in a Lee County wildlife preserve, scorching hundreds of acres.

According to authorities, 21-year-old Trent Schaefer, a volunteer firefighter in Ohio, Illinois, was charged with one count of arson in connection to a fire that occurred in the Green River State Wildlife Management Area Friday.

On that date, temperatures had soared into the 60s, winds were whipping at more than 30 miles per hour, and humidity plunged below 30%, leading the National Weather Service to issue warnings on the danger of wildfires in Illinois.

It is alleged that Schaefer was seen by witnesses getting out of a vehicle and igniting multiple small fires within the nature preserve, which then coalesced into a larger blaze.

Those witnesses were able to restrain the suspect until Lee County sheriff’s deputies arrested him.

Image taken by Lee County Sheriff’s Office

By the time firefighters arrived on scene the blaze had already spread, and multiple departments were called in to assist with the fire, including the Illinois Department of Natural Resources.

Firefighters were able to bring the blaze under control by the late afternoon, but not before it burned more than 700 acres, according to authorities.

Schaefer is also a suspect in several other arsons around Lee County, but he has not been charged in any other fires at this time.

Illinois State Police are assisting with the investigation, and no further information was immediately available.

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Illinois

Who is running for Illinois governor in 2026? What to know as primary Early Voting sites open

Published

1 day ago

March 1, 2026

Press Room

Who is running for Illinois governor in 2026? What to know as primary Early Voting sites open

With Election Day for the 2026 Primary quickly approaching, many voters are considering who to mark their support for when they cast their ballot.

There are several big races on the ballot, including the gubernatorial race that has the potential to make history.

Though rumors are swirling that sitting Governor J.B. Pritzker has his eyes on a potential run for president in 2028, he’s still in the running for re-election. If he retains his seat, he’ll be the first Democratic governor to secure a third term in office in Illinois history.

While Pritzker is the only Democrat aiming for governor on the ballot, there is a slew of Republican candidates vying for a face-off with the incumbent in November.

Voters with their mind made up on which candidate they support can head to their local early voting site to cast their ballot before Election Day.

Though downtown sites and some across the suburbs have been open since early February, early voting sites will open in all 50 of Chicago’s and in several suburb on Monday, March 2.

For those still deciding how to mark their ballot, here’s a look at the gubernatorial candidates.

Democrats:

Governor J.B. Pritzker and Christian Mitchell

Current Governor of Illinois J.B. Pritzker is taking aim at a third term, promising to continue building on the work of his first two terms. According to his campaign website, some of his intentions for a third term include “[tackling] the affordability crisis,” continuing to protect access to reproductive health care in Illinois, and investing in education.

Chrisitan Mitchell is running alongside Pritzker for lieutenant governor. After representing the 26th District in the Illinois House of Representatives from 2013 to 2019, Mitchell served as deputy governor to Pritzker from 2019 to 2023. Mitchell led efforts to ban assault weapons, make Illinois a leader in clean energy and create jobs through infrastructure projects as deputy governor, according to his campaign bio.

Republicans:

Ted Dabrowski and Dr. Carrie Mendoza

Ted Dabrowski is a Wilmette resident and former president of Wirepoints, a media outlet focused on conservative economic policies and financial data. From 2011 to 2017, Dabrowski worked as a spokesperson and Vice President of Policy at the Illinois Policy Institute, a right-leaning think tank.

Dabrowski, who has never previously held political office, aims to cut and cap property tax rates, veto any and all tax increases, and repeal both Illinois’ sanctuary laws and zero-emissions energy policy, according to his campaign website.

“We must return power to the people, remove barriers to prosperity, embrace educational freedom, push political power down to its lowest level and restore the rule of law,” his campaign website says.

Dr. Carrie Mendoza, a Chicago-native with more than 25 years of experience as a physician, is running to be Dabrowski’s lieutenant governor, according to her campaign biography. Like Dabrowski, Mendoza has never held political office. Her campaign biography says she is “driven by innovation and a passion for justice.”

James Mendrick and Dr. Robert Renteria

The first Republican candidate to enter the race, DuPage County Sheriff James Mendrick is campaigning on a push for public safety initiatives.

Sheriff since 2018, Mendrick has partnered with DuPage County Health Department to provide Medicated Assisted Treatment to inmates fighting opioid addiction and advocated for the use of a drug deactivation pouch system to protect people and the state’s waterways from dangerous medications, according to his campaign website.

“He is committed to ending soft-on-crime policies, defending parental rights, and delivering quality education to every child in the state,” his campaign website says.

Dr. Roberta Renteria veteran of the U.S. Army and is a prolific author and activist, according to his campaign biography.

“Dr. Renteria uses his personal story, business acumen and leadership skills to address bullying, gangs, violence, drugs, suicides and school dropout,” his campaign biography says. His books and curriculums are taught in 25 countries around the world, and he has given many Ted Talks.

Darren Bailey and Aaron Del Mar

Former state senator Darren Bailey, who unsuccessfully ran for governor of Illinois in 2022, is giving another go at assuming the political seat. A third-generation downstate farmer, Bailey’s campaign is focused on reducing government spending, cutting taxes, and cracking down on crime, according to his campaign website.

In addition to his farm work, Bailey founded a private Christian school with his wife Cindy.

He fought against spending, raising taxes and sanctuary state policies while in the Illinois House and later in the State Senate.

Aaron Del Mar is an entrepreneur who became the youngest-ever Councilman for the Village of Palatine at 29 years old in 2016. He oversees public safety and infrastructure and guides community organizations in the position, according to his campaign biography.

Rick Heidner and Christina Neitzke-Troike

Though businessman Rick Heidner has never held office, he has led several notable companies, including Gold Rush Gaming, Ricky Rocket’s Fuel Centers, Prairie State Energy, and Heidner Properties, according to his campaign website.

A lifelong Illinoisian, Heidner is “running to make Illinois safe again, affordable again, and full of opportunity again,” his website says.

Christina Neitzke-Troike is looking to step up into the lieutenant governor seat from her current role as Mayor of Homer Glen after nearly two decades in several elected positions.

Neitzke-Troike hopes to bring her “unparalleled understanding of how state mandates affect local budgets, property taxes, and public services” to Springfield, according to her campaign biography.

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