Courtesy of Mish
Illinois’ fiscal condition is in bad shape and worsening. Jim Muschinske, Revenue Manager, notes a “February Freefall."
Compared to last year, February income taxes are down 12.1%; Sales taxes are down 7.5%, and public utility taxes are down 34.3%.
For fiscal 2017, general revenues are down a whopping 8.1%, and the state is two-thirds through the fiscal year.
Overall base revenues fell $423 million in February. Like a broken record, monthly declines reflected weaker income taxes along with poor federal sources. Unfortunately, February’s lackluster performance was widespread with only a couple sources managing to show gains. One less receipting day likely contributed to the decline, though certainly not the primary culprit.
Through the first two-thirds of the fiscal year, base receipts are off $1.453 billion, or 7.5%. Weakness is widespread, and has resulted in year over year losses in key areas such as income taxes and federal sources. With renewed uncertainty of sales tax performance, and with only four months left in FY 2017, it will be very difficult to alter the trajectory of what has turned into a dismal year for revenues.
February 2017 vs February 2016
Fiscal Year 2017 vs Fiscal Year 2016
Unfunded Stabilization Fund
It’s fitting that Illinois has an “unfunded budget stabilization fund.”
