House Republicans have repeatedly urged Illinois, one of the lowest-ranked U.S. states in terms of credit ratings, to change its budgetary ways in preparation for harsh times ahead. In March 2023, House Republican Leader Tony McCombie became one of the chief voices in Illinois calling for Illinois to build up a pool of money for future Illinois budget stabilization.
Comptroller Susana Mendoza announced the payment of $150 million into the State’s Budget Stabilization Fund, a rainy-day fund intended to create a cash cushion in preparation for future changes in the State’s cash flow. With this deposit, the rainy day fund will now have $1.22 billion in it.
Although this is a significant sum of money, Illinois’ high spending could outrun this resource in the next recession. With vast cash flows demanded for health care, education, pensions, and many other spending programs, the current $1.22 billion rainy day fund balance is equal to less than six days of Illinois general funds spending.
“While I’m glad to see investments being made into our state’s Rainy Day Fund in light of a possible recession, we need to do more,” Rep. Friess stated. “We must reduce spending to create a responsible and sustainable budget for Illinois. We will outspend our Rainy Day Fund in light of our current spending habits and the threat of an impending recession. I am committed to fighting for financial stability in Illinois.”