In this issue:
- Revenue estimate comes in below expectations
- Proposed legislation would study Illinois higher education funding
- Visit with Streator FFA
- New equipment for Emington-Campus Fire Department
Revenue estimate comes in below expectations
The first step in putting together a state budget is for the state’s fiscal watchdog agency, the Commission on Government Forecasting and Accountability (CGFA), to issue an official revenue estimate for the upcoming fiscal year. This will inform policymakers of how much money the state will have available to meet its needs in the coming year.
The estimate for the upcoming fiscal year came in $458 million lower than a previous estimate, and well below the figure which the Governor proposed to spend when he delivered his budget address last month.
CGFA expects the state to receive $55.525 billion in the upcoming fiscal year, down from an earlier projection of $55.983 billion. The Governor based his proposed budget – which would be the biggest spending budget in Illinois history – on a higher revenue figure because he included $728 million in tax increases and revenue shifts in his plan.
The Commission was especially worried about sales tax revenue, which it expects to increase by less than 2%, even though inflation is expected to be well above that rate. True sales tax activity in Illinois could actually end up being negative. Corporate income tax receipts are expected to be sharply negative as well. Any economic downturn which results in significant job losses, with the resulting reduction in income tax revenue, would have a serious negative effect on the state budget.
Illinois is already one of the highest-taxed states in the nation. These projections, and the Governor’s proposal to keep the spending spree going, suggest that Illinoisans might be looking at even higher taxes in the months to come.
Proposed legislation would study Illinois higher education funding
Legislation has been filed at the Capitol this spring to address concerns about the long-term sustainability of Illinois’ public universities.
House Bill 5037 would direct either the Illinois Board of Higher Education or a third party to study Illinois’ public universities and develop a ten-year plan to improve the accountability, sustainability and affordability of the system. Illinois’ higher education system has seen its enrollment decline by 29% since 2009, losing more than 100,000 full-time students. Supporters of the bill argue that these challenges will only grow, and that the state needs a review of how the university system operates and how it is funded.
The state provided public universities $24,562 per full-time student in 2023, which is more than double the national average and ranks as the second-most of any state in country, in spite of the declining enrollment. This suggests that the problem is not the funding level, but rather the way in which the funds are distributed. Three universities (University of Illinois at Urbana-Champaign, University of Illinois Chicago, and Illinois State University) have seen enrollment increase over the last 20 years, yet they also saw the largest declines in per-student state funding.
The bill, which is currently assigned to the House Higher Education Committee, would create a study to identify cost drivers and ensure that funding supports education outcomes rather than waste. It would seek to improve accountability and transparency, and align higher education with the state’s current and future workforce needs.
Visit with Streator FFA
I had a great visit with the Streator FFA Intro to Ag classes last week!
We talked about the importance of agriculture advocacy and how each of us can help share the story of agriculture with our communities. I’m always encouraged by the passion and curiosity of the next generation in ag. Thanks for the warm welcome, Streator Agricultural Department & FFA Chapter!
New equipment for Emington-Campus Fire Department
A big congratulations to the Emington-Campus Fire Department on receiving a grant to purchase two AED (Automated External Defibrillator) machines for their department!
These life-saving devices will help provide even faster emergency care for our community and make a real difference when every second counts.
Thank you to the dedicated firefighters and volunteers who continue to serve and protect our area. We appreciate all that you do!
Our current bill backlog
When a vendor provides the state with goods and services, they submit the bill to the Illinois Comptroller for payment. The Comptroller processes the paperwork and pays the bill when funds are available in the state’s checking account. Currently the total amount of unpaid bills is $2,362,322,647. This figure changes daily. Last year at this time the state had $2.6 billion in bills awaiting payment. This only includes bills submitted to the Comptroller for payment, not unfunded debts like the state’s pension liability, which is well over $100 billion.
Illinois headlines
New IDOT map celebrates Route 66 in Illinois
Illinois taxpayers urged to mail returns early due to USPS changes
IDNR releases bobcat hunting & trapping figures
4 Illinois State Police vehicles hit Tuesday, 3 due to Scott’s Law violations