Springfield – In an effort to address the massive economic disruptions caused by the COVID-19 global pandemic, Governor JB Pritzker signed into law a $42.9 billion Fiscal Year (FY) 2021 General Funds operating budget (SB 264, HB357) that maintains funding for critical programs, such as education, health care, and human services while advocating for a national program to support state and local governments. SB2099, providing authorization for Illinois to directly access the Federal Reserve Bank’s Municipal Liquidity Facility program was signed May 29th.
“Since taking office, my administration has prioritized effective and efficient government as we’ve worked to undo years of financial mismanagement while rebuilding our hollowed out state government,” said Governor JB Pritzker. “The COVID-19 pandemic highlighted the enormous role government plays in keeping communities safe and providing the tools people need to build better lives. While the pandemic has had a devastating impact on our state revenues, investing in our people will allow the state to rebound and recover from this pandemic as we safely re-open. I will continue to advocate for a national program to support state and local governments to make up the difference in the revenues that fund vital services like hospitals and salaries for teachers and first responders.”
“This budget buys the state time to get to a better tomorrow, one in which medical science helps us push back against this disease and Washington steps up to help jump start the economic recovery of Illinois and every other state in the country,” said Senate President Don Harmon. “I want to thank Senators Heather Steans, Andy Manar, Omar Aquino, Elgie Sims and Laura Ellman for their efforts to confront so many unknowns and find a way to bring needed stability to the budget.”
“It’s important for Illinois to stand strong with our neighbors right now,” said House Majority Leader Greg Harris. During all the stress and increased need in our communities, this budget helps support and stabilize our schools, colleges and universities, human services and healthcare systems. We prioritized funding for communities that have long suffered disparities and that now have been hardest by COVID-19, and focused our resources where the need is greatest.
The major components of the FY21 budget invest in the governor’s key priorities of education, healthcare, public safety, vital human services, criminal justice reform, and, ongoing COVID-19 relief, while fully funding the state’s pension contributions.
The FY 2021 budget also directs more than $5 billion in federal aid from the Coronavirus Aid, Relief, and Economic Security (CARES) Act and other federal aid packages, to public health, social services, small businesses, local governments and households, including funding targeted to communities disproportionately impacted by COVID-19.
The FY 2021 budget reflects reductions in operations appropriations of $200 million and another $140 million at the Department of Transportation from introduced levels and includes savings from an ongoing partial hiring freeze and restricted operations expenditures.
If Congress fails to enact funding for states and local governments in the near term and additional revenue from Public Act 101-8 doesn’t pass, the governor and his administration will work with the newly created Legislative Budget Oversight Commission and the Illinois General Assembly to identify solutions for addressing any financial gaps.
The budget will go into effect on July 1, 2020, the beginning of the state’s 2021 fiscal year.
