Local legislators gave their views on the state budget Thursday to the Joliet Region Chamber of Commerce and Industry.
The breakfast session with the Chamber came nearly a month after the state legislature approved a $53.1 billion budget in the early morning hours of May 29.
“It was a rough session, and it was a rough budget negotiation,” said Sen. Meg Loughran Cappel, D-Shorewood.
The state managed to maintain budget levels even as federal funding sent as COVID-19 pandemic relief faded away.
“We did have a lot of pressure that came from running out of COVID dollars that came from the federal government,” said Rep. Larry Walsh Jr., D-Elwood. “We have a lot of programs that our constituents don’t want to see go away.”
The panel included Sen. Rachel Ventura, D-Joliet, Rep. Harry Benton, D-Plainfield, and Rep. Dagmara Avelar, D-Bolingbrook.
The all-Democratic panel, a reflection of local voting patterns, was upbeat about the budget, which enjoyed support primarily from Democrats and was largely the work of Gov. JB Pritzker, a Democrat.
The budget included $1.1 billion in tax increases, although little of that is likely to be noticed by the average taxpayer.
About half of what is calculated as tax increases came in the form of extending a cap on what corporations can claim as operating losses. Nearly $250 million more came on increased tax rates on sports betting and video gaming.
“We wanted to make sure small businesses and working families were not carrying the burden,” Ventura said.
Only Benton suggested that spending cuts could be part of the preparations for the next state budget.
“The moderate caucus is talking about responsible cuts, too,” Benton said. “I think we’re all trying to stay away from the income tax.”
No one suggested an increase in the flat income tax, which applies the same tax rate to all Illinois residents regardless of income.
Ventura, however, spoke up for a progressive tax, which would use graduated rates to tax people of higher income at higher rates.
“We need to tax the rich,” Ventura said. “I think it’s about paying your fair share.”
Avelar defended a budget item that spends $182 million on services for migrants who come to Illinois, saying the support averts spending that otherwise would be used to help people who face homelessness and other issues.
“The $182 million sounds like a lot of money,” she said. “But what is the cost if we do nothing? I think it’s a lot higher.”
Legislators said there are no new taxes on the horizon. But there is some talk about a digital sales advertising tax, which would tax tax digital advertising to make up for the shift away from more traditional media.
Ventura has proposed a tax on cargo containers coming through the intermodals in Joliet and Elwood.
The tax would reflect trends in commerce that have moved away from traditional brick-and-mortar business, she said, “and we need to shift with the times.”