Daywatch: What to expect ahead of Gov. JB Pritzker’s budget address

Good morning, Chicago.

Democratic leaders who had been bracing for a deficit of more than $3 billion expressed confidence yesterday that the outlook had improved, a day before Gov. JB Pritzker is set to unveil what he has promised will be a balanced budget.

No tax increases are expected in the governor’s proposed budget, which is set to include a small surplus, House Speaker Emanuel “Chris” Welch of Hillside said.

While projections inevitably change over time, the possibility of a surplus is surprising given that the governor’s budget office in November said it expected a deficit of about $3.2 billion. With billions of dollars in federal pandemic money no longer available to Illinois, the next spending plan has promised to be a test of fiscal discipline for a Democratic governor who was forced to raise taxes by hundreds of millions of dollars last year to balance the budget. Pritzker has said in recent weeks that tax hikes are a last resort as he prepared for this year’s proposal.

The governor’s budget speech today doubles as his annual “State of the State address” to offer new initiatives, and it comes as Pritzker gets closer to making a decision on whether to seek a third term next year, while also pondering a potential post-Trump presidential bid.

Here are the top stories you need to know to start your day.

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