Governors State of the State & Budget Adress for FY2023

On Wednesday, February 2, 2022, Governor Pritzker presented a combined State of the State Address AND his $45.4 billion Budget Address from the Old State Capitol. The State of the State address allows the Governor to highlight the good conditions of the state and perhaps suggest areas where improvements should be made. Most Governors use this time to laud the past year’s accomplishments. The Budget address is required by law to be given on a precise date and details the Governor’s spending PROPOSALs for the year.

Today, the Governor’s address had some interesting items that would affect state retirees. The Governor’s proposal would contribute an additional $500 million to the Pension Stabilization Fund for the State pension systems. He said that this would reduce future interest payments by $1.8 billion. He also wants to pay additional money to eliminate nearly $898 million owed for employee health insurance costs. His proposal spends nearly $900 million to the Rainy-Day Fund over FY22 and FY23.

Other items in his proposed budget are tax relief in the form of:
-$360 million by suspending the state’s tax on groceries;
-$135 million by freezing the planned gas increase;
-$475 million for property tax rebates in the form of up to a 5% rebate up to $300 for those homeowners who use property tax deductions on their state taxes.

From here, the General Assembly will begin analyzing his proposals and holding Appropriation committee hearings where many will come to testify. (The Senate has one Appropriation committee and 16 appropriation subcommittees. The House has five Appropriation committees with an additional 4 subcommittees.) Testimony will begin with each agency, who will outline the budget it needs to do its work and fund its various programs. Citizens, lobbyists, and all interested parties are also able to testify at the committee hearings and give input into how much should be spent on what programs.

If the General Assembly likes one of his proposals, agrees it is a priority, includes it in their budget, passes that budget by May 31, 2022, and the Governor approves that proposal in the budget, it will become law. Now comes the weeks/months of negotiations.

To hear the Governor’s speech, go to: Illinois State of the State Speech 2022

To view the proposed budget via a PowerPoint Presentation, go to: FY2023 Budget Book