K-12 Tax & $pending Climate: “Pritzker’s new budgets forecast $3 billion to $5 billion deficits”
Ted Dabrowski and John Klingner:
On Tuesday’s Nov. 5 ballot there’s a nonbinding referendum that asks voters if they want the state to tax millionaires a 3% surcharge on the money they make over and above $1 million. In exchange for agreeing to target millionaires, Illinois voters can expect property tax relief, the referendum reads, though the referendum is noncommittal as to how much relief, if any, it would actually provide. The state says the 3% surcharge on millionaires will give the government about $4.5 billion in new revenues.
For the state to provide property tax relief, however, it would have to actually take some of those new tax revenues and commit them to property tax relief. And that’s where Illinoisans should be highly skeptical, we warned a week ago: “Given the upcoming budget deficits…there won’t be any money left over for tax relief.”
Sure enough, it only took a few days for Gov. J.B. Pritzker and his budget office to announce that billion-dollar deficits are on their way.
Pritzker’s team on Friday released its five-year budget forecast and said it expects a whopping $3.2 billion deficit for next fiscal year (2025-2026), a $4.3 billion deficit for the following year, and $5 billion-plus deficits in each of the years 2028 through 2030.
More.
Curiously, Illinois Governor Pritzker has appeared and funded a number of Wisconsin political events and programs.