Gov. JB Pritzker signs $46 billion budget plan for 2023, providing $1.8 billion in tax relief

CHICAGO (CBS)-- Governor JB Pritzker signed the 2023 Illinois state budget into law Tuesday, delivering $1.83 billion in tax relief, as well as a $1 billion deposit into the state's so-called "rainy day fund."

The budget suspends the tax on groceries for one year, freezes the gasoline tax for six months, doubles the property tax rebate of up to $300 per household, and permanently expands the earned income tax credit. It also provides direct checks to working families – $50 per individual and $100 per child for up to three children per family. The income limits for these direct checks are $200,000 for individual filers and $400,000 for joint filers.

The budget also provides back-to-school tax relief for families and teachers.

Pritzker also touted that the budget provides $1.2 billion for long-term fiscal stability – with $1 billion for a Budget Stabilization Fund, also known as the "rainy day fund," and another $200 million pension payment. This pension payment brings the total state pension fund over what is required to $500 million and saves taxpayers more than $1.8 billion, Pritzker's office said.

The budget further invests more than $200 million in support for public safety measures, so police can prevent and solve crimes and strengthen investments in violence prevention programs, Pritzker's office said.

However, Illinois Republicans have criticized the Democratic governor's budget plan, calling his tax relief programs "insulting temporary election-year gimmicks."

"What Pritzker's budget doesn't do is give permanent tax relief to overtaxed Illinoisans, fully replenish the unemployment trust fund, or construct a path to budget stability for when the federal bailout cash runs out soon," Illinois Republican Party chairman Don Tracy said in a statement. "Pritzker approved a cynical budget that positions Democrats to push for tax hikes in the future and attempts to buy votes instead of providing financial stewardship and meaningful tax relief to working families."