The Illinois General Assembly adjourned in the early morning hours of Saturday, April 9, and adopted a $46.4 Billion FY23 budget for next fiscal year. This was based on projected revenue of $46.5 Billion. The revenue projection is $2.6 billion less than actual revenues this year, but 5.4 percent over last year’s projected revenue.
The General Assembly focused a great deal of the increased spending ($3.0 Billion) on debt payments, pension payments, and temporary (six-month or 1-year) tax relief. This is rightfully being called “an election year budget”.
This budget includes $1.0 Billion in “savings” into a Budget Stabilization Fund (Rainy Day Fund). It includes an extra $500 million in state pension contributions, over and above the fully-funded, annual contribution, and resulting in an estimated $2 billion in future savings. In addition, this budget includes $1.8 billion in temporary, short-term, tax relief.
The $1.8 Billion in temporary tax relief, includes:
- Suspends the 1 percent sales tax on groceries for one year – saving consumers $400 million
• Freezes the 2.2-cent motor fuel tax increase for six months
• Doubles the property tax rebate – up to $300 per household
• Permanently expands the earned income tax credit – an additional $100 million for working families
• Provides direct checks (up to $200) to working families
-$50 per individual
-$100 per child, up to three children per family
—Income limits: $200,000 for individuals and $400,000 for joint filers
• Back to school tax relief for families and teachers – $50 million
