Less than two weeks until its scheduled adjournment, state lawmakers and Gov. JB Pritzker appear to be at-odds in budget negotiations.
The Democratic governor is requesting legislative approval of a $52.7 billion budget for the upcoming fiscal year, accompanied with approximately $800 million in tax increases. Those increases, namely extending an expiring cap on losses that corporations can claim on taxes to gain $526 million and increasing the tax on sportsbooks’ revenues from 15% to 35% to collect another $200 million, are meeting resistance in Springfield.
During a May 13 news conference, Pritzker said Democrats and Republicans — often clashing with the governor — were both raising concerns. Mathematically, however, he just needs Democratic backing since the party holds super-majorities in both the House and Senate.
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The governor and Democrats have often been in lockstep throughout his first five years in office, yet tweaks to his budget proposals have occurred in prior budget negotiations. Pritzker said at an unrelated event in Chicago that he welcomes changes as long as they keep spending in-check.
"My one principle around this budget is its got to be balanced," he said. "We’re not going to overspend, we’re not gonna start sweeping dollars from accounts that had been done before I became governor. And we’re not gonna go back to the old practices of, you know, making us a credit unworthy state."
In preparation for legislative resistance, Deputy Gov. and former local state senator Andy Manar sent out a letter to department heads last week requesting their help in identifying $800 million in collective budget cuts. Their focus, he wrote, should be on items such as "grant programs and other discretionary spending that has increased in recent years."
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Others leading counter efforts to Pritzker’s spending plan include the Sports Betting Alliance, a nationwide advocacy group representing gaming interests such as DraftKings and FanDuel. The alliance claims the new rate will lead to an uptick in illegal offshore sports betting.
Last year, Illinois collected $150 million in tax revenues from sports wagering meaning the increased rate would bring in $350 million to the state’s coffers. Pritzker said the 35% is subject to the sportsbooks themselves and not on those placing bets, a point that he’s had to clarify with lawmakers.
Scheduled adjournment for the spring session is set for May 24, but lawmakers have built a contingent schedule tacking on a week in case negotiations are still ongoing. If negotiations are not wrapped up by the end of the month, a three-fifths vote in both chambers will be necessary. FY25 starts on July 1, 2024.
Jerry Nowicki of Capitol News Illinois contributed to this report.
Contact Patrick M. Keck: 312-549-9340, pkeck@gannett.com, twitter.com/@pkeckreporter.
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May 14, 2024 at 04:19AM
