Posted on 02/05/2022 10:01:00 AM PST by KeyLargo
Juiced Up Budgets In Other States Attributed To Federal Aid, But Pritzker Claims Credit In Illinois – Wirepoints
By: Mark Glennon*
This claim by Gov. JB Pritzker in his State of the State speech on Wednesday just might be his biggest whopper yet, which is saying something: “Let me set the record straight for you — our state budget surpluses would exist even without the money we received from the federal government.”
To show why that’s untrue, in this column, we will look at Pritzker’s claim in relation to what’s happening and what is being said in other states.
Countless stories from around the nation are easy to find about state and local governments so flush with cash from federal handouts that their challenge is “too much money,” as the Associated Press put it.
“The ultimate effect of the pandemic was a net positive,” said a city manager in California where sales tax revenues are soaring. “Isn’t that unbelievable? It’s just crazy to think of that.” Despite its problems, the State of California has a budget surplus of $45 billion, enough to send a check for $1,125 to every person in the state.
“I just wish I could close my eyes and wake up back in the mansion and be [current Governor] Kathy Hochul,” said former New York Gov. David Paterson, referring to the cash windfall.
Total state tax revenues from last April through November rose 20% compared to the same period in pre-pandemic 2019, according to the Urban Institute. “States are swimming in cash,” said a Wall Street Journal headline. “Massive cash flow…Rolling in revenue,” wrote the Pew Institute. “Governors across the country are sitting on mounds of cash just when they need it most: election season,” wrote Politico.
Why?
Because of federal assistance, as most of those reports describe, both direct and indirect.
About $200 billion of federal cash went directly to the states, of which Illinois got at least $8 billion.
That’s just the tip of the iceberg, however. Tax revenue spiked up for a number reasons that are also often discussed. Inflation drove up prices bolstering sales tax revenue. Consumers spent their stimulus checks. A strong stock market drove up capital gains taxes.
But all those were driven by the absurdly excessive total federal pandemic relief, which is about $10 trillion and still growing. Nobody can deny that ten trillion dollars didn’t create inflation, increase incomes, stimulate the economy and bolster the stock market, all of which increased state revenue.
The same story played out in Illinois. We recently documented in detail how the total pandemic relief for Illinois drove up state tax collections. Total pandemic relief in Illinois is now nearly $200 billion. As a result, compared to pre-pandemic 2019, individual income tax revenues are up 23 percent. Corporate tax revenues are up 101 percent (72 percent when you back out the corporate tax hike) and sales tax revenues are up 20 percent. In all, the big three taxes are adding $8 billion more in revenues.
I can find no other governor denying the role of federal assistance in their cash bonanza. To the contrary, most recognize it or even express thanks. Vermont’s Governor Phil Scott, for example, said in his budget address that “we have to remember this is one-time economic recovery money,” and he worked that concept through the entire speech.
California Governor Gavin Newsom went further, thanking his friends in Washington. “It’s a deep point of pride to see someone that’s a beneficiary of a stimulus check or young child tax credits,” Newsom said in his budget speech. “It’s a point of pride when California leads the nation and you see those policies reflected in proposals coming out of the White House.”
No such magnanimity from Pritzker, who claims his supposed $1.7 billion surplus is all thanks to him and his colleagues.
After denying that federal assistance had anything to do with it, he explained who he thinks should get credit: “Painstaking work has been done in coordination with the General Assembly and Comptroller Susana Mendoza over the last 3 years to diligently and meticulously reverse the irresponsible decisions of the past and ensure that responsible budgeting would become the rule, not the exception.”
What he should have said, instead, is what every governor should be saying: “Thank you, federal taxpayers.” We will all be paying mightily for this for decades through higher federal taxes and inflation.CONTINUED...
Prickster lies about everything else, this is no exception.
What keeps woke-progressives and their deep-state strong and in power is printed, fiat money and massive Fed.gov debt. That’s all.
Act accordingly.
I saw thru this right away when I saw his first re-election campaign commercial. Illinois’ Moody bond rating score has been improved, according to Pritzger, and the State has a surplus, according to him, because of his fiscal policies.
He’s a bald-faced liar. Bastard.
I'm hoping that the governor has his cousin Jennifer campaign for him in the upcoming election. Wide-angle lens will be required.
They can only think of asking for more federal funds to address "emergencies" of their own making.
-PJ
Yes, Jelly Belly was/is a Trust Baby.
Like all such politicians he never had a real job.
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