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During a House Revenue and Finance Committee hearing, David
Harris, director of the Illinois Department of Revenue, said the
outlook for revenue estimates for the state in 2023 are
positive, but there could possibly be a so-called “Black Swan”
event, a rare occurrence that could be a major disruption, like
the COVID-19 pandemic.
“Will Russia’s invasion of Ukraine be a Black Swan event that
causes disruptions that ripple across revenue streams?” Harris
said. “We do not know but the forecasts presented today for FY
2023 are positive ones.”
An
economist from the Illinois Department of Revenue said revenues
from income taxes, sales taxes and corporate taxes should remain
steady. Also included were federal American Rescue Plan Act (ARPA)
funds in the forecast, a fact that State Rep. Steven Reick,
R-Woodstock, noted is a mistake.
“I really have a problem with the use of this money in any
budget projections as being considered revenue for any purpose
other than paying down the unemployment debt,” Reick said.
Illinois borrowed billions of dollars from the federal
government to make mandatory unemployment payments after Gov.
J.B. Pritzker shut down large swaths of the state's economy at
the beginning of the pandemic in 2020. The move led to massive
unemployment numbers.
During his budget address earlier this month, Pritzker said he
believed in paying off the state’s debt, but did not mention the
state’s $4.5 billion unemployment trust fund debt.
If the unemployment debt is not paid by the end of the year,
Illinoisans will be on the hook for up to $100 million in
interest. House Majority Leader Greg Harris, D-Chicago, said
they hope to get a deal done quickly, but didn't say if that
would be before the April 8 scheduled end of session.
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