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Pritzker joins Mayor Johnson regarding economically illiterate and strategically unsound budgets
In his February 19 State of the State address, Governor JB Pritzker got the national headline he desired: He labeled Trump a Nazi. Pritzker got local media to ignore the fact his budget is based on a sudden revision in revenue forecast and new, half-a-billion dollars in primarily one time and questionable revenues. Meanwhile, Pritzker's budget speech ignored long-term financial issues as well as such critical issues of slow economic growth, massive out migration, and an abysmal public education system.
Pritzker, as he does seemingly daily, lashed out at President Trump, spending a substantial portion of his address criticizing the White House’s early fiscal maneuvers and calling Trump — and, in effect, Trump’s 77-million supporters — Nazis, drawing parallels between the president and the rapid rise of Germany’s Third Reich.
Seeing his road to the White House paved through attacks on Trump — and needing a scapegoat for Illinois’ failings — Pritzker seems determined to compete with Mayor Johnson for who is most ignorant of history and who can deliver the most outrageous and divisive statements. Equating the Trump administration with the rise of Nazism is on par with Johnson’s claim that Trump supporters have yet to reconcile with the outcome of the Civil War.
Pritzker criticized those who disagree with his policies and his political opponents who will likely criticize this budget as “professional bellyachers” pushing “magic bean fixes” to Illinois’ problems. This from a governor who increased the budget by $16.7 billion—or 41 percent —since 2019, fully aware the billions in federal COVID money would be one time. Unfortunately, Pritzker’s proposed budget is all “magic beans.”
First, it arrived with an eleventh-hour revision from original revenue estimates. Pritzker's magic beans budget proposal now claims Illinois expects revenues to increase by more than $1.5 billion compared to current-year revenues — a substantial increase compared to the revenue reports earlier this year from the governor’s office.
Second, Pritzker's budget proposes almost a $469 million in “revenue adjustments.” These include $198 million in revenue from a Delinquent Tax Payment Incentive Program which of course is reliant on uncertain voluntary taxpayer participation. It robs from $171 million from the state’s Road Fund by $171 million. It counts an additional $100 million in hoped for tax revenue from casinos from the “realignment” of taxes on table and electronic games. More magic beans.
Third, the budget shortchanges pension funding while pretending the state is meeting its obligations. Illinois Policy Institute reports that the state’s statutory requirements dictate Illinois spend $11.72 billion on pensions the next fiscal year, which is insufficient on an actuarial basis. The plan’s own actuaries state that Illinois needs to spend $16.82 billion to fully fund pensions — a $5.1 billion shortfall. So much for the claims of “balanced budgets,” Illinois approach to pensions has been nothing but magic beans.
Illinois is perhaps the worst-run state east of California. It received $54 billion in COVID assistance with the almost $14 billion being funneled directly into state coffers. Yet Pritzker still raised taxes $1 billion last year in contrast to every neighbor state which lowered their income taxes, all but Michigan permanently. Despite this and the fact that Illinois raised taxes in 2020 by $4.2 billion before COVID hit, as late as November, Pritzker's office was estimating a $22 billion, 5-year budget shortfall.
Illinois consistently ranks among the least tax-friendly states for middle-class families. The state has the second-highest property taxes in the nation, eighth-highest combined sales tax and above-average income taxes. WalletHub reported Illinois’ low- to middle-income earners see the highest tax burden in the U.S. Yet, residents may face another round of taxes and fee hikes as Pritzker rushes to fill a significant budget shortfall during the next five years.
Meanwhile, Chicago, the economic engine of the Prairie State, mandates residents pay among the highest property taxes, sales taxes, fees, and fines in the country —with property taxes continuing to rise. The Lincoln Institute of Land Policy found that Chicago businesses are burdened with the highest commercial property taxes among large cities.
Despite boasting a progressive agenda, Illinois ranks dead-last in equity. In a study by WalletHub on racial equality who are well credentialed, looked at the differences between blacks and whites on eight basic measures of prosperity — poverty rate, homelessness rate, share of unsheltered homeless, labor-force participation rate, homeownership rate, share of executive positions, median annual household income and unemployment rate.
Wirepoints documents that Illinois’ post-pandemic economic recovery has lagged the nation as the states continues to trail its Midwestern neighbors. Illinois ranks near the bottom for state job growth the past decade, with most growth coming from government employment as Illinois’ private sector added just 500 jobs since 2020 and 14,900 government jobs were added. The Governor’s budget book (page 98) shows Illinois adding 7,000 government jobs in the last two budgets alone.
Crime is on the rise across Illinois and Chicago. Illinois has the third-highest robbery rate among all states — the highest in the Midwest — and ranks second in the region for its murder rate. Chicago remains one of the most violent cities in the country, leading the nation in murders, school age youth murders and mass shootings. If Chicago were a state, it would rank second only to California in mass shootings.
Illinois spends the most yet gets the least from its public schools. According to recent Nation’s Report Card results, fewer than one-third of Illinois public school children are proficient in reading and math. This comes despite the state spending $43.6 billion on education in 2024, up from $35 billion in 2019, and employing some of the highest-paid teachers in the U.S.
Illinois residents are voting with their feet as the state’s exodus of residents is exceeded only by California and New York. Wirepoints reports Illinois was one of only three states to see population shrink from 2010 to 2020 losing more than 1 million residents. After losing net population every year the last decade, Illinois gained population last year only because of a massive influx of illegal aliens. Meanwhile, Chicago has its lowest population in 100 years having lost population for nine straight years before the 2024 illegal migrant surge.
Photo courtesy: Antonio Perez/ Chicago Tribune.
