Illinois House Democrats unveil $1.3 billion tax relief plan, $45.7 billion budget, but talks with Senate, Pritzker ongoing

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Illinois House Democrats unveil $1.3 billion tax relief plan, $45.7 billion budget, but talks with Senate, Pritzker ongoing
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Hewing closely to proposals from Gov. J.B. Pritzker, Illinois House Democrats on Wednesday made their opening public bid for a state budget and election-year tax relief.

Although the governor’s office was still reviewing the budget and tax proposals, Pritzker said at a Wednesday morning news conference that he liked what he saw upon his initial review.“My early observation is that House Democrats took a comprehensive approach and adhered to my goals of achieving a fiscally responsible balanced budget and delivering tax relief to the families that need it most,” Pritzker said.

Like the plan Pritzker laid out in his February budget address, the House Democrats’ proposal would suspend the 1% state sales tax on groceries for a year, give homeowners a one-time property tax rebate of up to $300, and pause an inflation-based increase in the gas tax. The House plan also includes direct payments to taxpayers, but on a much more limited basis than the Senate plan.

The House plan would freeze the gas tax increase — estimated at 2.2 cents per gallon — for six months rather than the year Pritzker proposed, and it would make up the lost road fund revenue by shifting money from a separate fund dedicated to cleaning up leaking underground storage tanks. Roughly $200 million of that additional spending would go toward new public safety and law enforcement programs, several of which were approved in the House this week and await votes in the Senate.

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