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'The proof's in the details': Suburban mayors, business leaders react to Pritzker budget

Suburban officials and experts had mixed reactions to Gov. J.B. Pritzker's budget proposals Wednesday.

In his speech, Pritzker advanced an "Illinois Family Relief Plan" that included a one-year reprieve from the tax on essential groceries and suspending an annual cost-of-living tax increase on gasoline instituted every July.

"Everyone is feeling the crunch of rising prices for goods and services," Pritzker said. The one-year gas tax freeze "will bring immediate relief at the gas pump and still allow us to upgrade our infrastructure."

It sounds good especially with inflation driving up prices everywhere, but there's a lot of ambiguity that must be explained, local mayors said.

In Hanover Park, the village's annual share of the grocery tax is about $690,600, Mayor Rod Craig said. Pritzker said the state will reimburse municipalities for any revenues lost, but "we collect those receipts quarterly. How's the state going to process that? The proof's in the details," Craig said.

Likewise with tweaks to motor fuel tax revenues, "for us, we use a lot of that for road resurfacing," Grayslake Mayor Rhett Taylor said. "The details are important."

But Taylor said he was pleased Pritzker indicated there would be no cuts to the Local Government Distributive Fund, municipalities' share of income taxes that have been chipped away over the years.

"What was very positive is there appears to be a commitment to not continue to cut the distributive fund," Taylor said.

Craig, however, was disappointed the budget speech didn't offer a promise of raising the municipal share.

At the local level, "we seem to struggle with getting our fair share of state taxes," Craig said.

Pritzker also proposed a property tax rebate of up to $300 for eligible homeowners.

"It sounds like a nice election year strategy but will only provide relief one time," Naperville Mayor Steve Chirico said. "If the governor really wants to make a meaningful long-term impact on property taxes, he should focus on the elephant in the room ... an unsustainable public safety pension system funding formula."

Other experts saw economic advantages in the tentative budget.

Regarding postponing the gas tax increase, "anything that helps people deal with the inflation they're seeing right now is important," said Dave Sloan, president of the Oak Brook-based Chicago Auto Trade Association. "I think it will help."

Pritzker also advanced waiving liquor license fees for one year for bars and restaurants, which will help local small business owners, Illinois Restaurant Association President Sam Toia said.

The restaurant association applauded the governor for "outlining a budget plan that includes a waiver of state liquor licensing fees for restaurants and bars. We will continue to advocate for enhanced relief and support for Illinois' hospitality and tourism community," Toia said.

Meanwhile, the state will direct more money to workforce training, which is crucial, said Greg Bedalov, president of Choose DuPage Economic Development Alliance.

"Training dollars are so important to economic opportunity" for businesses ranging from manufacturing to white-collar firms, Bedalov said. For example, "if you want to take a bunch of your people and train them on different piece of machinery, or if you want to train office workers on new software," the additional funding is crucial.

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Gov. J.B. Pritzker issued a budget proposal Wednesday that includes tax breaks on gas. Daily Herald File Photo
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