CHICAGO – Governor JB Pritzker celebrated the $42.3 billion Fiscal Year 2022 General Funds operating budget, a responsible spending plan that is balanced, protects the state’s most vulnerable Illinoisans, pays down the state’s debts, and rebuilds the state stronger than ever as Illinois comes out of the pandemic.
Get The Latest News!
Don't miss our top stories and need-to-know news everyday in your inbox.
“The Fiscal Year 2022 budget is a responsible balance — addressing the pain of the pandemic, while investing in a thriving future for the people of Illinois,” said Governor JB Pritzker. “Business relief, housing stability, childcare support, these are the pillars of a recovery that is inclusive of working families. After the most difficult year in memory, Illinois is making a major comeback – and doing so with a level of fiscal prudence not seen in our state for two decades.”
The comprehensive bill (SB2800) approved by lawmakers contains the FY22 operating and capital budgets. The major components of the FY22 budget invest in the governor’s key priorities of education, healthcare, public safety, human services, criminal justice reform and ongoing pandemic relief, while fully funding the state’s pension contributions.
The FY2022 budget also directs billions of dollars in federal aid from the American Rescue Plan Act (ARPA) and other federal aid packages to schools, public health, social services, small businesses, local governments and households, including funding targeted to communities disproportionately impacted by the pandemic.
At the height of the COVID-19 pandemic, the state borrowed $3.2 billion from the Federal Reserve for cash management and to pay for essential state operations. The General Funds budget plan includes early repayment of the remaining $2 billion of that emergency borrowing, saving millions of taxpayer dollars.
Illinois is expected to receive more than $8.1 billion in federal relief through the ARPA Coronavirus State Fiscal Recovery Fund to assist the state in recovering from the impact of the COVID-19 pandemic over the next three and a half years. The state’s FY22 budget allocates $2.8 billion of the funds, including $1 billion in capital projects, toward pandemic-recovery-related government programs, services and projects. Additional spending plans will be developed once final guidance is received from the federal government. It is expected that $2-3 billion will be utilized to replace lost state revenues due to the pandemic and ensure continued funding of essential government services and minimal payment delays to the state’s vendors.
The fiscal year 2022 capital budget, included in SB2800, represents a continuation of the historic Rebuild Illinois program and other ongoing capital initiatives, allowing the state to keep investing in projects for statewide transportation, environment, education, and community and economic development infrastructure. The FY22 capital budget also utilizes $1 billion in ARPA funds to prioritize critical infrastructure projects for statewide broadband and water and sewer projects.
The budget will go into effect on July 1, 2021, the beginning of the state’s 2022 fiscal year.
More like this:
