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The Commission on
Government Forecasting and Accountability (COGFA) reported that
revenue from personal and corporate income taxes and sales taxes
was down 5 percent in the first eight months of fiscal 2017,
compared with the same period in fiscal 2016.
"That rate of decline was last seen during the previous
recession," the commission's report said, noting that federal
funding has also dropped.
Jim Muschinske, COGFA's revenue manager, said the revenue drop,
centered in income tax collections, was due in part to residual
effects of January 2015 rate hike expiration, as well as
possible underlying economic weakness and Illinois' ongoing
budget battle.
Illinois is limping through a second straight fiscal year
without a complete budget due to an ongoing impasse between
Republican Governor Bruce Rauner and Democrats who control the
legislature.
The state is operating on court-ordered spending for healthcare,
social services and payroll, as well as ongoing appropriations
covering pensions and debt service on bonds. A massive bill
package to end the stalemate is on hold in the state Senate.
Meanwhile, Illinois' finances are deteriorating with the state
ending fiscal 2016 with a $9.6 billion deficit, according to its
annual audit released on Tuesday.
For fiscal 2018, which begins on July 1, the commission
projected general funds revenue to total $31.14 billion, an
increase of $938 million from the revised fiscal 2017 forecast.
(Reporting by Karen Pierog; Editing by Matthew Lewis)
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