Today, Illinois Democratic leaders have reached a deal on the FY23 budget, which will include $1.83 billion in largely temporary tax relief, $1 billion for the state’s rainy-day fund, and an additional $200 million in payments for pension obligations. Click HERE for the proposed agreed FY23 budget outline. The press release is silent on the matter of the Local Government Distributive Fund.
A joint press conference was held this afternoon. Gov. J.B. Pritzker, Senate President Don Harmon (D-Oak Park), and House Speaker Chris Welch (D-Westchester) detailed their agreement, which includes many of the provisions proposed by both the House and Senate earlier this week.
“Over the last few weeks, and especially over the last 48 hours, we engaged in a true give-and-take, which led to genuine compromise. It honestly helped that we all came into this process, committed to a fiscally responsible spending plan that improved our state's finances and help our people in an hour of genuine need. I'm not sure how far back in Illinois contentious budget making history you would have to go to find a process and a product quite as good as this one,” Pritzker said.
The final budget bill will include the following:
- A one year suspension of the sales tax on groceries.
- A six-month freeze on the motor fuel tax.
- A $300 property tax rebate for homeowners.
- A permanent expansion of the earned income tax credit.
- Income tax rebates amounting to $50 per individual and $100 per dependents (up to $300).
- A back-to-school sales tax holiday amounting to $50 million in taxpayer savings.
“This is a great budget that reflects the needs and priorities of the people of this great state. We've gone through some unique times and together the last couple of years. It's perhaps fitting that we have a unique budget. That is the result of working together like never before,” said Harmon.
Welch said that he hopes for Republican support of the bill.
“It's totally up to them. But they have certainly been a part of a very accessible and transparent process that has taken place and we're proud of where we are and where we're going to continue to go,” Welch said.
A bill number has not yet been assigned but Harmon said he expects the bill to be passed Friday. We are expecting it to be HB 900 but will report it as soon as it is announced.
In response to the budget announcement Senate Republican Leader Dan McConchie released the following statement:
“What is most unfortunate about the Democrats’ budget plan is we have an opportunity right now to provide permanent tax relief for the people of Illinois, yet instead, the Democrats are choosing to provide one-time checks and other temporary relief just before the election which expires right after the election. Additionally, we are significantly increasing government spending. Evidently, they think they know how to better spend your money better than you do.”
Taylor Anderson
