Third Reading Consulting Group
On February 21, Gov. J.B. Pritzker proposed his FY 2025 budget. The FY 2025 proposal raises $52.993B and spends $52.695B, for a surplus of $289M. $170M of the projected surplus revenues would be set aside to put into the Budget Stabilization Fund at the end of the fiscal year. The budget contains $827M in new taxes but removes approximately $400M in annual revenue by eliminating the state’s 1% grocery tax. Additionally, it fully funds the state’s $10.1B FY 2025 statutorily required pension contribution.
Gov. Pritzker proposed a new pension ramp that would change the existing pension funding plan from 90% in FY 2045 to 100% in FY 2048. This would be achieved by allocating half of the funds currently being used to pay off bonds until FY 2030 and FY 2033 to make additional pension contributions after the bonds are retired. If this commitment is made now, it will save taxpayers an estimated $5.1B by FY 2045 and decrease the annual pension payment growth rate from 2.6% per year under the current 90% in FY 2045 ramp to 1.85% under the proposed 100% in FY 2048 ramp.
Important Upcoming Dates – Statewide
March 15 – Senate Committee Deadline
March 19 – 2024 Primary Election
April 5 – House Committee Deadline
April 12 – Senate Third Reading Deadline
April 19 – House Third Reading Deadline
May 3 – Opposite Chamber Committee Deadline
May 17 – Opposite Chamber Third Reading Deadline
May 24 – Adjournment
May 25-31 – Contingent Session Days for Budget
November 5 – 2024 General Election