Illinois has a chance to fix its state finances, thanks to federal relief. But unless pension growth is brought under control, both retirees and taxpayers will be at risk as debt continues to consume state services.
Even subtracting COVID-19 deaths, Illinois still suffered its largest population drop in modern history in the first year of Gov. J.B. Pritzker’s fiscal policies, including 20 new tax and fee hikes, as well as his pandemic response.
Illinois politicians are already talking about taxing retirees, adding “surcharges” and city income taxes if they can convince voters to abandon the Illinois Constitution’s flat tax protection and give lawmakers greater taxing power.
State workers represented by AFSCME Council 31 will see pay increases averaging $1,343 starting July 1. Total cost of the raises is $261 million as COVID-19 continues depleting state revenues.
How fair is it that some of the highest-paid state employees in the nation are getting a raise that must be funded by an economically wounded bunch of taxpayers?
Illinois’ self-employed workers have been unable to receive assistance since the pandemic began. Now the state wants them to apply, be denied, and apply again for help.
Chicago’s $1.15 billion projected budget gap is the latest in a decades-long string of structural deficits. Making Chicago’s high taxes worse is not the solution.