SPRINGFIELD (ILLINOIS CAPITOL BUREAU) -- State lawmakers are discussing how to craft a budget based on Governor JB Pritzker's new revenue projections following the impact of COVID-19. As Pritzker explained during a briefing Wednesday, Illinois could face a $7.4 billion budget gap for Fiscal Year 2021.
Senators Steve Stadelman (D-Rockford) and Dale Fowler (R-Harrisburg) are members of the economic revitalization working group. The group is tasked with creating the best options to restart the state's economy following the pandemic. Sen. Fowler recognized work already done behind the scenes to alleviate some of the pain for local governments. "I do applaud the fact that the Governor has asked the Executive Branch to look at their budget, and there's gonna have to be cuts," Fowler said. "Anytime you have a decrease in revenues and increased expenditures, some tough decisions have to be made."
"Now this hits"
Pritzker says state agencies could help save at least $25 million for the 2020 general funds by halting nonessential purchases and hiring. But both lawmakers hope agencies will still get sufficient funding in the budget, as many struggled throughout the state's budget impasse from 2015 to 2017.
"A lot of these nonprofit social service agencies are finally getting back on their feet after the budget impasse, and now this hits," Stadelman said. "I think the Governor indicated he doesn't want to see human services affected in the same way this time around. I got the impression that he really wants to look out for these important services that help our most vulnerable."
The state is expecting to lose a significant amount of income, similar to the start of the budget impasse. "Our income dropped 25% and that was a struggle. We had no budget, but the state kept operating - not under the best circumstances," explained Stadelman. "But, fortunately we've had a situation with a dramatic reduction in revenue and trying to continue services and state government operating." Fowler hopes the budget cuts don't interfere with the state's economic development projects, specifically those creating jobs for work on roads, bridges and the Cairo River Port Terminal. "It's gonna be an economic endeavor for job creators in our state," Fowler added.
Large declines in economic activity
The Governor's Office of Management and Budget says the updated forecast for FY21 assumes large declines in economic activity for the second and third quarters of 2020, followed by a very gradual recovery that may not conclude until after 2021. Pritzker's team says the main determinant of the anticipated poor performance is the weak employment outlook for the fiscal year.
"I think the virus will determine when the economy starts reopening and customers and consumers feel comfortable resuming normal routines. That will determine what our revenues are when it comes to our state budget," said Stadelman.
Lawmakers are constantly hopping in and out of conference calls and video conferences within their working groups. Yet, a timeline for their return to the Capitol Complex is still to be determined. House Democrats have canceled scheduled session next week, and the Senate will likely follow suit. Fowler feels lawmakers may need to work into the summer in order to pass a budget. "We'll do whatever it takes to ensure we have a fair, balanced budget," Fowler said. Lawmakers would need a supermajority (3/5) vote in order to pass a budget after the May 31 deadline.
"I've heard situations where we will get something done by May 31. But, I don't think there's a clear answer yet," added Stadelman.
