From Governor JB Pritzker:
GOMB Releases Five-Year Forecast Showing Significant Long-Term Challenges Without Fair Tax
Despite making substantial progress on Illinois’ fiscal challenges this year, Illinois will continue to face significant financial challenges until it finds a long-term solution to its structural deficit, the annual Economic and Fiscal Policy Report from the Governor’s Office of Management and Budget concludes.
The bipartisan, $40.1 billion fiscal year 2020 budget enacted by the Governor and the Legislature – the state’s first truly balanced budget in years – begins to pay down Illinois’ debt and sets Illinois on a path to return the state to fiscal stability, while making key investments in long-term programs.
In fact, the state’s projected surplus has increased by $30 million since the budget was enacted, and projected deficits into the coming years are improved from the past administration.
But the state must continue to grapple with a multi-billion-dollar structural deficit in nearly all of the out years, which would further exacerbate the state’s bill backlog and payment delays.
Because of the state’s unfunded pension obligations, the deficit is projected to grow faster than the economy, even in good years, diverting revenues away from critical investments in areas such as an educated workforce and strong infrastructure.
As a result, the Governor’s Office of Management and Budget is projecting sizeable deficits in the General Funds budget for fiscal years 2021 through 2025. Without changes to the current trajectory of the state’s finances, year-end accounts payable will continue to grow year by year, the report states.
“Without structural changes like the Fair Tax, Illinois will continue to struggle to make ends meet, pay our bills on time and deliver vital services, like public education and public safety,” said Governor JB Pritzker. “While years of mismanagement has created these issues, we have a strong path forward and solution with the Fair Tax, which will ask the wealthiest 3 percent to pay more while 97 percent of Illinoisans will pay the same or less. Thanks to the bipartisan efforts of the General Assembly, we’ve already made fiscal progress, and I’m committed not only to stabilizing our budget but also making sure that Illinois grows and creates an economy that works for everyone.”
There are few alternatives if the Fair Tax amendment is not enacted, according to the report. Illinois would need to consider dramatic budget cuts of approximately 15 percent to many essential services such as education funding and public safety, or the state would need to raise taxes on all households – not just the wealthiest Illinoisans – by 20 percent under the existing flat tax.
Since taking office in January 2019, Governor Pritzker has taken several steps to control state spending and has ordered agency directors to continue to responsibly manage the limited resources of state government by proposing reductions in their maintenance operations funding for the coming fiscal year, identifying significant efficiency and savings ideas, eliminating or consolidating duplicative programs, reducing funding for underutilized or inefficient services and making improvements in service delivery that streamlines costs.
The Governor’s Office of Management and Budget (GOMB) is required to annually submit an Economic and Fiscal Policy Report to the General Assembly outlining the long-term economic and fiscal policy objectives of the state, along with the economic and fiscal policy intentions for the upcoming fiscal year and for the subsequent four fiscal years.
The reports are available to the public online and can be found here:
https://www2.illinois.gov/sites/budget/Pages/PolicyReports.aspx
A novel idea in Illinois cutting expenses.
I vote for that along with entitlement reform.
But I thought gambling and cannabis was going to end these deficit problems??
Maybe prostitution will end the deficit since the others didn’t…
All of you lemmings who supported these efforts are nothing but a stain on the moral decay of our state.
For once in your life do a little research before corrupting our society.
Shame on you Jack Franks and JB!!
How about just cutting off all welfare and public services from the illegal alien Mexican instead?
I’d bet this would save double what this liberal imbecile would save by increasing taxes and which the American taxpayer deserves more than the illegal Mexican.
Permanent haircuts for those on government pensions in Illinois. Percent of haircut rises with higher yearly pension amounts. $400K per year a much bigger haircut than $100K per year. This is totally fair and would be in line with Cherokee Liz proposing to put yearly tax amounts on net worth of rich people. Alternatively, rather than a one-time haircut, use Liz’s idea of a special yearly tax in Illinois for high yearly government pension amounts.
Another idea would be a special tax on professional sports players in Illinois who make $1 million or more per year. Again, this would be OK to target this group just as Cherokee Liz wants to single out high net worth individuals for a special yearly tax on net worth.
Bring on the budget cuts.
It would be a win-win.
If we cut the headcount, the former state employees would have to start contributing instead of taking.
Real Fair Tax = no state income tax whatsoever.
End it and end the gravy train.
Seven states—Alaska, Florida, Nevada, South Dakota, Texas, Washington, and Wyoming—levy no personal income tax. Two (New Hampshire and Tennessee) don’t tax wages, but do currently tax investment income and interest.
Both are set to eliminate those taxes soon…
Mary Mahady says we aren’t taxed enough!
She’s the McH Township ASSessor.
Look at her own assessment sometime.
Replacing those 70,000 selfless Gov. Employees that make $100 K per year would be a start. That’s a savings of $12 B per year.
How much could 70,000 mannequins possibly cost?