In Gov. J.B. Pritzker’s budget address yesterday, he said raising taxes is not on the table. But the state has faced a deficit, is running out of pandemic funds, and President Donald Trump’s administration is making cuts.
So what exactly is Pritzker’s plan? Here are four takeaways from his speech.
Closing the Gap
In the fall, the state projected a $3 billion budget gap for the next fiscal year beginning in July. New estimates indicate the state will be pulling in more revenue than initially expected. Still, the governor is proposing to limit spending increases outside of health care, education, and pensions. Plus, there could still be tax increases on casino gaming and fewer deductions for legal cannabis businesses, WTTW reported.
Threats Due to Federal Funding
Pritzker said potential federal cuts could impact the following:
- 700,000 Illinoians will lose coverage if Congressional Republicans gut the Affordable Care Act. Rural hospitals could also close.
- Around 70 meat and poultry facilities were negatively impacted after the Trump administration stopped funding food safety inspectors for nearly a month.
- Meals on Wheels, which helps feed seniors and those with disabilities, is on the chopping block. The program serves 100,000 people in Illinois.
Health Care: Making Cuts and Lowering Costs
Pritzker is proposing to eliminate a program that provides medical coverage for noncitizens ages 42-64. The governor faced significant pushback when he paused the program in 2023 due to cost concerns.
Other proposals, such as a plan to forgive medical debt and a Prescription Drug Affordability Act, seek to lower health care costs for Illinoisans. If passed, the prescription drug law would target pharmacy benefit managers. These middlemen negotiate drug costs with pharmaceutical companies, and they are tied to chain pharmacies and insurance companies, Crain’s reported.
Pritzker’s proposal would give the state the ability to audit pharmacy benefit managers. A separate bill reintroduced earlier this year would create a drug affordability board that could cap high prices.
Not Mentioned: Transit Merger
While Pritzker’s proposal closes the state’s budget gap, the governor did not talk about plans to stave off a $770 million fiscal cliff facing Chicagoland’s regional transit agencies.
Lawmakers last summer proposed a merger of CTA, Metra, and Pace along with the Regional Transportation Authority. A new proposal emerged earlier this month to give RTA more power over the other agencies.
