The State of Illinois’ bills are piling up again. The Governor’s Office of Business Management released a 5-year forecast yesterday saying the state will face significant financial challenges unless the Fair Tax Amendment is passed by voters. The annual Economic and Fiscal Policy Report said the bi-partisan budget that was passed in May has helped Illinois to pay down some of its bills and has increased the state’s projected surplus by $30 million since then. However, the conclusion that the report draws is grim for fiscal years 2021 through 2025.
According to the report, few alternatives exist for the state unless the Fair Tax Amendment is passed. The report says that budget cuts of approximately 15% to essential services like education and public safety would likely occur as well as a tax hike on all residents by 20% would have to happen if the flat tax were to remain.
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. To read the full report, visit here.