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Gov. JB Pritzker said Monday that Illinois faces the prospect of having to make deep spending cuts over the rest of the fiscal year if Congress does not pass an economic relief package that helps states make up for the massive loss in revenue they’ve seen since the start of the COVID-19 pandemic.
“I continue to do my part to make calls, to make sure that people understand that Republican-led states and Democratic-led states all have this challenge of revenues that fell off a cliff because of COVID-19,” Pritzker said during a news conference in Springfield. […]
Without federal aid, however, Pritzker said Monday that there will be significant cuts and job layoffs in Illinois and throughout the country.
“But this is going to be up to the Congress. They’re the ones who have the ability to help us and to help all 50 states with the challenge we all have. But there are going to be layoffs across the country, not just related to state government, but when you don’t fund state and local governments you’re going to see, and you’ve already seen to some degree, layoffs,” Pritzker said. “Not to mention those who provide services to state and local governments, private companies whose contracts no doubt will be put aside because the money isn’t flowing, because we don’t have the ability to balance the budget in the way that we had originally intended to.”
There’s a raging debate in this country about whether to “defund the police” (and about what that phrase even means). Well, if the federal government doesn’t step in, lots of states and local governments are gonna have to make cuts, and those cuts will almost definitely include first responders. So, the same DC people arguing against defunding the coppers will actually accomplish that very goal through inaction. Funny how that works.
* WLDS…
According to data collected by the Urban Institute’s State and Local Finance Initiative, from March to May, Illinois’ tax revenue was down 23% compared to last year, or a total of $1.1 billion. That percentage is 6 points better than the 29% average across the country.
Texas revenues were off by 29 percent in the same period. Florida’s were down by 26 percent, Arizona’s dropped 27 percent and Indiana’s decreased by 23 percent, the same as Illinois.
posted by Rich Miller
Tuesday, Aug 4, 20 @ 12:30 pm
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Previous Post: 1,471 new cases, 19 additional deaths, 3.9 percent positivity rate
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Look we were just talking about this the other day. Less state workers equals less employees paying into the system making it even less viable.
It’s exactly the situation Rauner wanted.
The destruction of the pension system.
Wow… the old “burn it down, to build it back up”
is back.
Rauner must be so happy.
Remember though
It’s gonna hit the fan hard this winter.
the state is just not going to be there for its people.
Willy Wonka didn’t make the candy folks.
Oompa Loompa’s make the candy.
State worker jobs underpin
so many communities.
Comment by Honeybear Tuesday, Aug 4, 20 @ 12:45 pm
What is the State doing to cut / eliminate EDGE grants and other tax breaks to large, wealthy corporations? Also, what are localities doing to cut / eliminate sales-tax rebates, property-tax abatements, TIFs, and other corporate incentives? A conversation / debate on these is way overdue, at all levels of government.
Comment by Ares Tuesday, Aug 4, 20 @ 12:48 pm
Echoing what Ares said.
Welcome back Honey Bear. A commenter was asking where you have been or if anyone has heard from you.
Comment by Big Jer Tuesday, Aug 4, 20 @ 12:55 pm
has he said when money is needed by before layoffs would happen? With the Fed loan the budget is “balanced” assuming income/sales tax receipts remain to plan. It seems like there is plenty of time for states before layoffs would happen but local governments likely don’t have much time.
Comment by 1st Ward Tuesday, Aug 4, 20 @ 1:02 pm
I can’t stop thinking about how the GOP is so conditioned to reflexively despise anything that can be construed as “big government”, even when it runs counter to their electoral prospects.
I also can’t stop thinking about Don Harmon’s misguided pension bailout request. A big unforced error.
Comment by The Doc Tuesday, Aug 4, 20 @ 1:03 pm
We need the Gov and the legislators to come back to Session now to address this. Easier now before the virus ramps up in the fall. Even more importantly, we need to get the budget cuts made early in the fiscal year to have the most affect on the budget. If layoffs and furloughs are happening, let us know now, not a month before Christmas. If people need to retire so others can keep their job, again say so now.
Comment by thoughts matter Tuesday, Aug 4, 20 @ 1:09 pm
“We need the Gov and the legislators to come back to Session now to address this”
What’s there to address regarding the budget at this point? Congress passes money for states and Illinois sends some to local governments. Illinois doesn’t get money and layoffs occur.
Comment by 1st Ward Tuesday, Aug 4, 20 @ 1:34 pm
We need our leaders to work together now more than ever. They don’t seem too inclined to do so, being more interested in trying to score political points.
No doubt the Federal Government needs to take an even handed approach to providing relief. All states may not have suffered as greatly in the Covid nightmare, but we’re one country.
Remember when we would talk about how a recession would crush Illinois. A simple recession would be a walk in the park compared to what we have now.
Comment by SSL Tuesday, Aug 4, 20 @ 1:44 pm
Doesn’t help when Democrats make out huge wish lists or tie nonrevenue items, such a mail in voting, carbon emissions and pension bailouts, instead of targeted help to states. Especially when Pelosi and Schumer publicly state how they want to use the crisis to reshape things in the country.
Comment by Iowa City Tuesday, Aug 4, 20 @ 2:10 pm
Comptroller Mendoza’s take:
https://capitolnewsillinois.com/NEWS/mendoza-warns-of-dangers-ahead-for-illinois-budget
Comment by Chatham Resident Tuesday, Aug 4, 20 @ 3:14 pm
@iowa city money for mail in voting is needed. Look at NY primary. It has not been good. I haven’t heard Congressional Dems providing money for pensions and emissions. Please cite or be more accurate with your complaints.
Comment by 1st Ward Tuesday, Aug 4, 20 @ 3:17 pm
How many government employees were sent home and paid. Many are still “working” from home. Some employees got additional pay from the Governor, 12% on top of their salary. And now, we have a budget issue.
Comment by Doop Snoggy Snog Tuesday, Aug 4, 20 @ 4:55 pm
This is a national issue and hopefully red and blue states will put enough pressure on DC to get something accomplished. If not, it might be up to the Democrats to clean up more of this mess if they take control in January. Because surprise, surprise the GOP forgets any history that isn’t beneficial to their narrow ideological worldview. Read up on the drag government budgets had on the post 2008 recovery.
As for Ares and Doop Snoggy Snog we are talking about over a billion dollars, one quarter of Illinois’ budget gone, and that’s just on the state level. Your “fixes” are a drop in the bucket. I’m always reminded of the line about simple solutions being neither in situations like this. As for Doop…, do you have any evidence of your assertions or do you just rely on lazy tropes about government employees?
Comment by MyTwoCents Tuesday, Aug 4, 20 @ 5:36 pm
From Tara Molina at CBS 2’s Twitter:
“More than a dozen Secretary of State employees walked off the job today after their co-worker tested positive for COVID-19, but the state only closed HALF of their building down. The other half is still open to the public.”
https://twitter.com/TaraMolinaTV/status/1290815388360548352/photo/1
SOS has been open completely since June 1.
Comment by Chatham Resident Tuesday, Aug 4, 20 @ 8:30 pm
== Snog - Tuesday, Aug 4, 20 @ 4:55 pm:
How many government employees were sent home and paid. Many are still “working” from home. Some employees got additional pay from the Governor, 12% on top of their salary. And now, we have a budget issue.==
I worked from home for 2.5 months. I actually accomplished more at home than at my desk because of fewer interruptions and a quieter surrounding. I had things to do and people to report to. My work was monitored. I’m back at work and resent your wink, wink assumption that I didn’t work while at home. I didn’t make a dime extra for that work either. There no reason why I couldn’t continue to work from home other than the private sectors’ assumption that only they are capable of doing that. Trust me a good majority of private sector office workers are still working from home. Done permanently.
Comment by thoughts matter Tuesday, Aug 4, 20 @ 8:57 pm
I meant some permanently, not done.
Comment by thoughts matter Tuesday, Aug 4, 20 @ 8:59 pm
== Doesn’t help when Democrats make out huge wish lists or tie nonrevenue items, such a mail in voting,==
Mail in voting is related to Covid-19 because 1. Who wants to go to a crowded room on voting day with a pandemic involved? 2. Some voting locations won’t be available because of Covid-19, schools and nursing homes. 3. Poll workers would be in danger. It’s safer for them to stay away.
Comment by Muddy trail Wednesday, Aug 5, 20 @ 6:28 am
free coupons for pointsprizes
Comment by Cristy Pehler Monday, Aug 10, 20 @ 10:14 pm