CHICAGO, March 7 Illinois could be $657 million
short on revenue for the current fiscal year due to falling tax
collections, according to a revised forecast released on Tuesday
by a legislative commission.
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
"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
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
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
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)