Children were the organizing principle of Illinois Gov. JB Pritzker's sixth State of the State and budget address Wednesday, in which he said his "one line in the sand" is that he will only sign a "responsibly balanced" budget that does not derail the state's credit standing or the nine
The speech comes several months after the Governor's Office of Management and Budget
Proposing the creation of a Department of Early Childhood and outlining a 2025 budget that invests in maternal mortality equity, early childhood education, child protective services, teachers, school transportation and higher education, the governor also previewed a far-reaching healthcare safety net bill, the Healthcare Consumer Access and Protection Act, called for medical debt relief and demanded the permanent repeal of the state's 1% tax on groceries.
Pritzker's $52.7 billion proposed budget would increase Smart Start early childhood education funding by $150 million and aim to achieve universal preschool by 2027. It would direct another $45 million into the teacher pipeline grant program, fully fund special education and increase funds for school transportation by $30 million.
His budget also calls for a more than $30 million increase in direct operating support for higher education, in addition to funds from the Rebuild Illinois capital program.
Additionally, Pritzker said he's asking for a $10 million appropriation to relieve medical debt, working in concert with a nonprofit called RIP Medical Debt. And he's seeking an additional $50 million to address housing insecurity for Black Illinoisans.
Speaking in the Illinois House chambers in Springfield to a joint session of the General Assembly, as well as to state dignitaries including Illinois Supreme Court Chief Justice Mary Jane Theis, Treasurer Michael Frerichs, Comptroller Susana Mendoza, Auditor General Frank Mautino, Attorney General Kwame Raoul and Secretary of State Alexi Giannoulias, Pritzker pulled no punches in his address.
He rebuked Illinois Republicans who voted against the bipartisan federal immigration bill that failed in Congress earlier this month, and he had sharp words for Texas Gov. Greg Abbott, who continues to ship busloads of migrants to northern states
"This state values the dignity of human life," Pritzker said. "Not so all states." Abbott has willfully planned the bus arrivals to "engender maximum chaos," sending groups of migrants that include small children to Illinois in the dead of night, in freezing temperatures, and to dropoff points "far from our designated welcome centers," he said.
"Think about that the next time a politician from Texas wants to lecture you about being a good Christian," he said, to loud applause.
Pritzker said his office has been working with "our partners in Cook County and the city of Chicago on a comprehensive response plan over the next 12 months." As part of that plan, he said, he had promised to come to the General Assembly and ask for $181.7 million to address the crisis.
"Chicago's shelter system is near capacity," he said, noting they've moved 9,000 people from temporary shelters to independent housing thus far.
Pritzker also pointed to individuals in Evanston, who have fixed up bicycles for migrants; Chicago, who have taught English to the migrants; and Oak Park, who have hosted more than half a dozen migrants in their home, as doing "what decent Midwesterners do."
The fiscal 2024 general funds revenue forecast was revised to $52.2 billion, a $199 million revision upwards from the November 2023 forecast, according
Fiscal 2025 general revenues are estimated to rise 1.5% above fiscal 24 estimates to $52.99 billion. Individual income tax collections are forecast to grow $979 million, or 3.8%.
The budget would fully fund the certified contribution to state employee pensions of $10.1 billion required by law, though it does not call for any additional payments such as the $700 million made in fiscal 2022 and 2023. The legally certified contribution is below
"Illinois' executive budget includes several interesting proposals to address the state's biggest credit challenge, its pension funding issues," Eric Kim, head of state government ratings, said in a statement Wednesday afteronoon. "Importantly, the pension proposals are long-term in nature with the biggest changes coming in 2030 and later. Upon our initial review, If implemented and adhered to over the long-term, the proposals to target 100% funding and allocate several hundred million dollars more annually could help reduce risks associated with the state's pension obligations and improve credit quality. Ultimately, any rating implications will be based on Fitch's review of the enacted budget and any related legislation, which could look materially different than the governor's proposals."
Pritzker also took a swing at health insurance companies, saying he will introducing a bill to "curb predatory insurance practices," the HCAP Act, which has three planks. The first cracks down on "utilization management" – an insurance industry term for practices such as prior authorization and step therapy, which frequently results in insurance company denials of doctor-prescribed treatments – and bans short-term, limited insurance plans known as "junk insurance."
"Any doctor will tell you how much they loathe these practices," Pritzker said. "Almost everyone has a horror story about prior authorizations and step therapy."
The second plank of the bill strengthens protections around "network adequacy," Pritzker said, punishing insurers for "ghost networks" that feature directories of supposed in-network doctors, many of whom aren't actually accepting patients. And the third plank reins in "unchecked rate increases," he explained, banning insurance companies from unfairly raising rates on consumers.
"I know how hard the insurance industry will fight me on this," Pritzker said, after relating the story of a man who was denied coverage for open-heart surgery days before the procedure was to take place. "But I'm willing to spend serious political capital on this."
Overall, his 2025 budget required some "hard choices," he added, but: "It's important to note that while this budget is tight, our fiscal house is in order. Because of the responsible actions we took in the last few years… we are not facing the budgetary challenges that other big states are."
