Illinois Budget: FY17

State Senate passes five “grand bargain” bills. The measures were passed on Tuesday, Feb. 28. House consideration could be delayed, however, by the insistence of many proponents that the bills be discussed as part of an overall package of spending and budget reforms. The Senate has not approved several of the key elements of the “grand bargain” reform package, including changes to future public-sector pension plans and benefits. Senate President John Cullerton, as the keeper of the Senate clerk’s desk, may choose to exercise his right to delay moving the bills over to the House for further action.

The Senate bills, if enacted into law, would appropriate some emergency spending lines for the second half of FY17, ending June 30, 2017. The bills are intended to raise money for these spending needs through various means, including a major expansion in legal gambling in Illinois. SB 7 would allow for the licensure of major new casino operations in Chicago and various locations in Downstate Illinois and Chicago’s suburbs. The familiar “video gaming” machines installed in many Illinois taverns and restaurants would be allowed to make jackpot payouts.

The Aurora Chamber remains opposed to gambling expansion and works in partnership with other regional and local chambers to oppose this effort.

Budget challenges continue to affect the State of Illinois. The February 2017 monthly revenue report and estimate released by the nonpartisan Commission on Government Forecasting and Accountability (COGFA) indicated a continued decline in State general funds tax revenues in February 2017. Personal income tax revenues decreased in February 2017 by $129 million from the same levels of taxes paid in one year earlier. Illinois corporate income tax revenues have practically dried up, with only $9 million (down 81 percent) received from this source in February 2017.

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