By: Mark Glennon*
Revenues remain firm and better than last fiscal year for the State of Illinois. That’s according to the most recent monthly report from COGFA, the state’s Commission on Government Forecasting and Accountability.
Through the first third of this fiscal year, which started July 1, total General Funds receipts are up $611 million or 3.8% over the same period last year. For the “big three” revenue sources, personal income tax receipts are particularly strong, up 7.6% for the fiscal year. Sales taxes are up 1.5%, though corporate income tax receipts are down 0.9%.
For just the month of October, total General Fund receipts were up $572 million or 14.8% over last October. However, that includes a big, special federal reimbursement to the state that was $531 million higher than last October. That was to correct for a computer programming error by the state that led to incomplete federal Medicaid match claims for service dates between the end of 2020 and June 2022.
It’s worth keeping in mind that prices, generally, are up over the past year at a pace nearly identical to the state’s improved revenue. The most recent Consumer Price Index shows a 3.7% year-over-year increase.
Salute to COGFA. For years, it has published timely, salient financial information about the state in a consistent, readable form, without political spin.
-Mark Glennon
Expect no retraction or apology. This what they do.
The state’s existing buyout program for its own pensions is the precedent for Chicago, which should be a warning: Look out for similar exaggerated claims and shoddy analysis.
I see that the usual suspects believe what they hear and trust the source of Illinois financial treasury data. I absolutely don’t trust the data and completely have no faith from the governor on down. The entire system exists to protect itself and it will be certain that no facts will see the light of day. This is why the entire state is on borrowed time. You think they will start to manage finances with better stewardship? Not sure what you are smoking but believing Illinois politicians and bureaucrats is your first mistake. Thankfully all of this has been caused… Read more »
Since the price of goods and services have gone up it would be expected that taxes collected would go up as well.
All the doom and gloom but revenue continues to grow greater than expectations. Perhaps the death of Illinois is greatly exaggerated.
Ever since the Fair Tax tanked, the state has been doing great.
I’m glad the “fair tax” failed. Every voter has kicked the debt can down the road so it only makes sense that everyone should pay the same percentage. The state will definitely try to get a progressive tax in the future but for the time being, we are collecting more revenue when we were expected to decline by almost 3%. Plenty of tax revenue left for the state to collect.
You do know about that inflation thing don’t you? Sweet Jesus Christ.
Yes I do. You do know the forecast was that Illinois tax revenue would decline by 2.9% and instead it grew 3.8% even when factoring in inflation? I know I know, you guys just love any negative news and can’t handle anything that is positive for Illinois.
It’s not about positive or negative, it’s about facts. The cumulative effect of three years of Bidenomics and rampant spending, and the resulting historic inflation is driving every bit of the income tax revenue increase. The Federal government is faced with overwhelming debt which is going to be refinanced at significantly higher rates. No more trillions from Joe is going to be very difficult on the economy. But hey, you want to call that good news, so you do you.
Of course revenue increased. How many taxes were raised to achieve this great accomplishment by the current administration. State income taxes/corporate tax rate/gas taxes/license plate fees/gambling taxes/pot sales/etc to name a few. Now how many reforms were attached to the tax increases that raised revenues? Property tax reform-No/expenditure in waste and fraud-No/Pension reform-No. This list goes on. Here is some info on tax increases since Rauner was in office. https://www.illinoispolicy.org/illinois-passed-a-record-breaking-income-tax-hike-3-years-ago-heres-where-the-money-went/ If you double the price of a widget on paper your sales are up 100% but not due to the fact you made twice as many widgets employing more people.… Read more »
Income taxes were increased over 6 years ago so your idea that revenue only increased because of income/corporate income tax rates were increased doesn’t make any sense.
Good. Now I can cut back on the gambling and eat fewer gummies. Just in time. My wife was starting to ask about the balance in the bank account. But I still bet the Bears will win every week!