Prior to the COVID-19 pandemic, Illinois’ financial health was the worst in the nation. An unprecedented influx of federal stimulus and bailouts, combined with stronger-than-expected rebounds in tax revenues, saved Illinois from financial ruin. If state lawmakers do not take advantage of this incredibly rare opportunity and pursue structural financial reforms, then state finances will return to their pre-pandemic status quo.
After years of enhanced revenue from federal aid, a return to the basic principles of budgeting can put Illinois on the path to long-term financial stability
Amendment 1 would stop voters and lawmakers from curbing government unions’ ability to demand more from taxpayers, including platinum health insurance the average Illinoisan doesn’t enjoy.
Despite claims Illinois’ budget was “balanced,” a closer look shows federal stimulus money propped it up. Only long-term reform on pensions, taxes, health care and school district consolidation can balance state finances and end 21 years of deficits.
Despite claims during Gov. J.B. Pritzker’s speech, his budget documents show a flood of federal COVID-19 aid temporarily shrank Illinois’ deficit but failed to balance its budget. His next budget will not end well.