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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.
“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.
[Office of the Governor JB Pritzker]
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