Current News

/

ArcaMax

Gov. J.B. Pritzker's 'pragmatic progressive' approach being put to the test

Olivia Olander, Dan Petrella and Jeremy Gorner, Chicago Tribune on

Published in News & Features

“There is a bunch of stuff focused on the Black caucus, including addressing maternal mortality,” Pritzker wrote to Gordon-Booth in the message, obtained through an open-records request. “But there really isn’t room for other spending this year.”

Indeed, Pritzker’s plan both dabbles in progressive priorities — a child tax credit and a sales tax measure that will skim some funds away from big retailers — while also keeping an annual increase in school funding to the minimum amount required by law and steering clear of more structural tax changes pushed by progressives.

A few points the governor made in his proposal seemed tailor-made for bipartisan appeal: a $12 million child tax credit for low- and moderate-income families and the elimination of the state’s 1% sales tax on groceries.

While also popular with Republicans, elimination of the grocery tax has progressive appeal because Pritzker has framed it as an effort to abolish a regressive tax that hits those on the lowest rungs of the economic ladder the hardest. It’s also a tax cut that is easier on the state’s bottom line in a tight budget year because revenue from the tax flows not into the state’s coffers but to local governments.

The day after Pritzker’s budget address in February, state Sen. Donald DeWitte, a St. Charles Republican, said he was “thrilled” Pritzker proposed scrapping the grocery tax, but he said the governor should also be devising a way to ensure local governments don’t pass the burden of the lost revenue onto residents. While it’s possible Pritzker could be trying to appease the GOP, the proposal doesn’t go far enough, DeWitte said.

“Any opportunity to take stress off of Illinois families is a good thing,” said DeWitte, a former mayor of St. Charles who also serves as one of the Senate GOP’s budget negotiators. “But there are always ramifications that have to be dealt with, and so far, I don’t think the administration has been willing to deal with the ramifications of simply removing that tax without considering the other side of that revenue equation, which is the hit that will go to local governments.”

 

The Civic Federation still is evaluating the governor’s budget proposal, including the idea of eliminating the grocery tax, but Ferguson said it’s important to look at that idea in the full context of all the state funds that flow to local governments.

“You have to do the math on what additionally has been sent to the local level with what is essentially being taken away with the grocery tax and see what it amounts to,” Ferguson said. “It amounts to a far less dire situation than the localities appear to be projecting.”

Another idea with the potential to attract Republican support is the child tax credit. But both DeWitte and some progressives find themselves in the odd position of agreeing with each other in supporting the idea but also thinking it could be more ambitious. “The governor has allocated $12 million for this, and that just doesn’t get you very far,” said state Rep. Will Guzzardi, a Chicago Democrat who co-chairs the House Progressive Caucus.

Democratic state Sen. Mike Simmons of Chicago has introduced a more robust tax credit than the one pitched by Pritzker; it would cover families with children up to age 17, rather than age 3.

...continued

swipe to next page

©2024 Chicago Tribune. Visit chicagotribune.com. Distributed by Tribune Content Agency, LLC.

Comments

blog comments powered by Disqus