Pritzker says head tax signals employers to not hire
(The Center Square) – Gov. J.B. Pritzker has reiterated his opposition to Chicago Mayor Brandon Johnson’s proposal to impose a monthly head tax on employers.
The governor also said on Thursday he does not expect the state to provide supplemental funding to Chicago Public Schools this fall.
Flanked by several state lawmakers, Pritzker spoke on the city’s South Side and said the mayor’s Equitable Employer Tax is not a great way to provide revenue.
“It sends a signal. It’s just the most direct signal to employers. Don’t hire more people,” the governor said.
Johnson’s $17.6 billion budget proposal for 2027 includes a monthly $25 per employee tax on employers with 125 workers or more.
Pritzker said he’s not making news by not supporting the tax.
“What we really want is to make sure that more people get hired and then, by the way, that provides tax revenue, that very thing. We have income taxes in the state, and people will move to Illinois or live in Chicago,” the governor said.
Johnson’s office did not immediately respond to The Center Square’s request for comment on Pritzker’s remarks.
The mayor has said several times over the last two years that Illinois owes CPS more than a billion dollars.
On Thursday, a reporter asked Pritzker about discussions for more funding.
“That hasn’t really been an ongoing discussion. To the extent someone wants to propose something, they can in the veto session. I will say this, I think we all agree on one thing. We need more funding for education in the state of Illinois,” Pritzker said.
The governor said he increased public education funding by $3 billion a year.
“But as far as supplemental funding, I have not heard that there will be a move to do that,” Pritzker said.
CPS enrollment has fallen by nearly 100,000 students over the last 15 years.
“I am not certain that mid-year we’ll be able to do something that will meet only one school district’s needs,” the governor said.
Although enrollment at Illinois public schools dropped 10% from 2014 to 2024, Pritzker said more teachers are working in Illinois than ever before.
Fall veto session is scheduled Nov. 17-19 and Dec. 1-3.
Pritzker said discussions about the next fiscal year will be held from now until the end of May.
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