Gov. JB Pritzker and Lt. Gov. Juliana Stratton
By Mark Glennon* | Wirepoints
Both Gov. JB Pritzker and Lt. Governor Juliana Stratton cite their fiscal accomplishments in Illinois in their campaigns for higher office. Among many reasons to reject those claims is the unsustainability of what’s been put onto taxpayers’ backs during their administration. That total, which very roughly is $162 billion, has provided some degree of stability to state finances and garnered bond upgrades.
However, the consequence is unaffordable government and a cannibalized tax base that is fleeing.
Three buckets go into that $162 billion estimate. Some of it is imprecise, for the reasons indicated, but the big picture is clear.
First, 57 separate state tax and fee increases a raised $77 billion in total since Pritzker took office in January 2019, That number is quite precise and is detailed in a recent report by the Illinois Policy Institute.
Total tax and fee increases: $77 billion
Second, Illinois governments received some $40 to $54 billion (depending on who is counting) of federal Covid pandemic relief.
That figure includes assistance to local governments that did not all go directly into the state budget. However, that local relief helped take the burden off the state for many of the myriad obligations shared by the state and localities. Moreover, the state also got a huge boost in income tax revenue thanks to the surge in private sector Covid relief. According to Pew Research, Illinois was among the biggest beneficiaries. It was one of 17 states where above-trend revenue accounted for more than half of their total growth during that period. A separate study by University of Illinois researchers also documented the surge as well. We will ignore that surge and just go with the lower number for direct Covid payments to government, which is $40 billion.’
Report continues here.
*Mark Glennon is founder of Wirepoints.
