Springfield, IL- (Radio Mattoon)- With the latest $100 million deposit into the Fiscal Stabilization Fund, the state’s “Rainy Day” fund, Illinois now has more than $850 million in the bank to weather potential economic turbulence. Governor Pritzker and the General Assembly worked together to ensure the state would have a record $1 billion in the account this fiscal year, and today Comptroller Susana A. Mendoza announced the filing of $100 million of this commitment.
The enhanced Fiscal Stabilization Fund, which now stands at $854 million, is one of many steps toward fiscal responsibility that has resulted in six recent appropriation increases for the state.
“I am thrilled to announce that we have deposited an additional $100 million into our state’s Rainy Day Fund,” said Governor JB Pritzker. “It’s just one of the ways we’re building long-term financial sustainability, and we’re seeing tangible results in real time. From tax relief for Illinoisans to our six credit rating improvements, we’re creating an economically prosperous Illinois for everyone. I want to thank Comptroller Mendoza for filing this funding quickly at the start of the fiscal year.
Illinois’ Fiscal Stabilization Fund had been decimated by budget stalemates and mismanagement. At one point, the fund held less than $60,000, an amount that would have sustained state operations for less than thirty seconds. Beginning in FY24, state law requires that minimum payments of $45 million per year be required in each state budget to continue to stabilize the fund.
Credit rating agencies have cited the Fiscal Stabilization Fund as a key reason for Illinois’ six ratings increase during Governor Pritzker’s tenure. Both S&P Global Ratings and Fitch Ratings cited the fund’s improvement in their decision to raise its rating, as well as responsible payments to pension funds and up-to-date bill payments. These upgrades allow the state to borrow money at a lower interest rate, which saves taxpayers’ money.
The Rainy Day Fund, also known as the Fiscal Stabilization Fund, protects state services that Illinois rely on every day. It is in place to meet the needs of the government in the event of deficits or gaps in a budget, provide credit stability and reduce the need for short-term borrowing. Its increased balance provides Illinois with protection in times of immediate need while establishing a stable, long-term financial foundation for the state.
In addition to the recent $100 million deposit and additional payments to the pension fund, the fiscal year 2023 budget passed by the General Assembly and signed by Governor Pritzker provides fiscally responsible assistance to working families in Illinois. On July 1, residents began receiving more than $1.8 billion in tax relief, including tax relief for gas, property, groceries and school supplies. Direct payments to Illinois families are expected this fall, according to the Comptroller’s Office. The budget also made unprecedented investments in college affordability, the Illinois State Police, and proven statewide violence prevention programs.