Governor J.B. Pritzker’s office of Management and Budget says that 69% of the state’s total expenditures within 6 years will go towards the back log of state bills. The OMB says that COVID-19 has blown a $4 billion hole into the state’s FY21 budget, causing flat funding coming to preK-12 education, higher education, public safety and health care costs, and reduced funding for government services.
The OMB projected that the state would have received an estimated additional $1.274 billion in revenues under the Graduated Income Tax Amendment had it passed during the General Election. Currently, the state sits at $4.874 billion over budget for FY21. Under adjusted numbers released on Friday, the base general funds revenue has been revised upwards by $2.2 billion and without any further federal stimulus, the general deficit is $3.918 billion.
Sizable deficits in the general funds budget are projected for fiscal years 2022 through 2026, ranging from $4.8 billion in fiscal year 2022 and falling to $4.2 billion by fiscal year 2026. Currently, the state has a backlog of bills of $6.2 billion. The OMB projects that backlog to grow to $32 billion over the next 5 years. Read the full report here.