Dupage Policy Journal

Illinois Gov. JB Pritzker is tapping down current-year revenue estimates and state spending as revenues projections continue to slip, Capitol News Illinois reported recently.

The Governor's Office of Management and Budget adjusted its projection by $616 million, bringing the new total to $50.7 billion, the report said. This new figure is down from the $51.2 billion previously forecast.

"We're talking about approximately 1 percent of the entire budget," Pritzker said in the report.

The revised estimate represents a decline of approximately 1.1%, with the move being made to align with an increased revenue projection for the upcoming fiscal year. The new estimate for the fiscal year is $532 million higher, representing a growth rate of approximately 1%.

The decision to revise the revenue projection was made in response to the poor performance of April's revenues, which came in $849 million below what was previously forecast. The underperformance is a strong indicator that the pandemic-era revenue spikes that Illinois has experienced are beginning to slow down.

The revised revenue projection will have significant implications for Illinois' budget and financial planning. The state will need to adjust its spending plans to accommodate for the lower projected revenue, which could mean cuts to some programs or services.

"So knowing that this might be coming, we've ramped down some of the spending here and there within all of our agencies to make sure that we could cover that 1 percent difference," Pritzker said.

The revised revenue projection for Illinois is a particularly noteworthy downward revision for the state. Revenue projection relates to ongoing challenges facing state governments as they navigate the uncertain economic landscape created by the pandemic.

"We understand that the broader economy is slowing down a bit," Pritzker said. "And we also understood that the benefit to the economy of some of the stimulus that was put into it in prior years will also wane."

But revenue estimates are up for the fiscal year that begins July 1, the governor said. The estimates predict revenue growing by $840 million in fiscal year 2024. Part of the increase is linked to changes in state and federal tax codes.

At the same time, expansion of health care to noncitizen immigrants who are ineligible for Medicaid benefits could add approximately $1.1 billion to the budget, the report said.