PRESS RELEASE from the
ILLINOIS POLICY INSTITUTE

CONTACT: Melanie Krakauer (312) 607-4977

Illinois Policy Institute: Federal funds must go to fill unemployment fund

CHICAGO (Feb. 2, 2022) — Adam Schuster, senior director of budget and tax research for the Illinois Policy Institute, released the following statements in response to Gov. J.B. Pritzker’s State of the State and Budget address today:

On fiscal year 2023:
“Gov. Pritzker’s own numbers don’t show a balanced budget for fiscal year 2023. Worse, the state projects deficits every year that will return the bill backlog to $6.5 billion within five years. This means future tax hikes are all but guaranteed without serious reforms that balance future budgets.”

On tax credits:
“Illinoisans deserve tax relief, there’s no question about that. The key is to ensure it’s long-lasting and meaningful. Pritzker increased taxpayers’ burden by $5.24 billion in his first three years through 24 tax and fee hikes. A one-year reduction of $1 billion gets us back just a fraction of the new taxes he’s imposed.

“Pausing this year’s gas tax hike is fine as a first step, but Illinoisans deserve better than election-year froth. Automatic annual increases should be repealed and banned, so no politician gets more of Illinoisans’ money without having to vote on it and be held accountable.”

On what happens next:
“The governor must commit to using the last of the federal aid to pay back the state’s bankrupt unemployment trust fund. Without this, the state will soon be forced into tax hikes on businesses and job creators. Illinois needs to do the right thing and pay back this money to catch up to the national recovery, not play politics with relief funds and its economic future.

“Pritzker is playing election year politics with short-lived relief that barely dents the taxation he’s built over three years. The goal should be to see an Illinois future with sound state finances, reasonable tax burdens that don’t hold back the economy and high-quality government services. Responsible leadership might not generate the best election ads, but it is what Illinois needs.”

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