Illinois’ Office of Management and Budget says the state’s economic outlook is looking up.
The O.M.B. announced yesterday that a robust rebound in state tax revenues is up by a billion dollars.
The five-year fiscal forecast by the Governor’s Office is still marred by budget deficits in the out years, indicating a continued fundamental imbalance in revenues and expenditures.
According to the Associated Press, projected revenue has jumped so much that the Democratic governor intends to use more than $1 billion to pay down overdue bills and re-establish an emergency fund.
The current year, which ends June 30, 2022, should see an increase in revenue of $1.7 billion, including healthy increases in the big two revenue generators: Income taxes, up $837 million and a $596 million jump in sales tax revenues. Despite the gains, 2023 projects a budget deficit between $400 million and $1 billion.
Governor J.B. Pritzker is expected to seek legislative approval for $913 million to pay back-due bills to health care providers and $300 million to reload the rainy day fund.
The Commission on Government Forecasting and Accountability, the legislative counterbalance to the governor’s OMB, will issue their multiyear report in the spring. The Associated Press reports that a monthly report released last month by the commission noted similar revenue increases for the current year’s first quarter.