Monday, May 13, 2024 – Posted by Rich Miller

* Gov. JB Pritzker was asked today about the memo from his deputy governor to state agency directors last week telling them that opposition to the governor’s revenue proposals meant they should start preparing to make $800 million in cuts to next fiscal year’s budget…

Q: I’m wondering where you’re seeing that opposition…?

Pritzker: I don’t think it’s some faction or another. Yeah, there were just, there were some some talk in caucus meetings that were occurring in the House or the Senate, in which people had raised concerns or objections, some of which is misinformation or they don’t have the right information about what we’re doing.

For example, there’s some people who think that the increase in the sports betting percentage tax is against sports betters themselves. That’s not the case. It’s only on the sports betting companies, right DraftKings, FanDuel, other companies like that. And similarly on the other manner, which is somewhat complex, net operating loss carry forwards. Not everybody’s familiar with those but we actually have lowered the tax on that operating cost, net operating loss carryforwards from what it had been there’d been a limitation of 100,000 we raised that limitation to 500,000. So more companies could take deductions essentially on their taxes.

So, having said that, we realized that we may not be able to get to all of the members or explain it properly to all of them and just wanted to make sure that they understood, you know, that that, you know, our leaders of our agencies needed to understand, that if those new revenues don’t come through that we’ll probably be hearing from the legislature about cuts that they want to make. And so we wanted to put everybody on notice. That’s the real purpose of that memo.

Sounds like the governor could’ve been working members earlier.

* Back to the governor’s Q&A…

Q: You said within some caucuses.. what caucuses…?

Pritzker: Yeah, I think I couldn’t identify them for you. I think you know, more broadly, obviously, there are Republicans who objected to some of it. There are Democrats who’ve expressed some objection. We’re hoping that people come to a better understanding of it or, or they decide to make changes to the budget. Remember, I introduced a budget in February. This is the normal process, right? It’s a balanced budget. Then it goes to the legislature. It’s really up to the legislature at that point to make decisions about whether they like what was in that original budget, what they might want to change. For the most part, the legislature has accepted my budgets, you know, 90, 95% of them, and made tweaks to them that they’ve seen fit or that we’ve negotiated over time. And then at the end, there’s a vote on it. So, my one principle around this budget is it’s got to be balanced. So whatever happens here, we’re not going to overspend. We’re not going to start sweeping dollars from accounts that had been done before I became governor. We’re not going to go back to the old practices of making us a credit unworthy state. And so we’ve got to balance the budget. And that’s really the real message that I think everybody in the legislature knows that I’m sending.