A disastrous state revenue report reveals only a portion of the financial damage caused by the coronavirus pandemic.
State officials this week replaced generalities with specifics of what has become the rolling disaster of the coronavirus pandemic and economic lockdown designed to limit its spread.
“The perfect storm slams into April receipts as base revenues drop $2.7 billion: FY 青鹏棋牌 now down $1 billion as earlier gains released,” states the headline of a recent report prepared by the state’s Commission on Government Forecast and Accountability.
If that sounds deeply concerning, it’s because it is.
The report documents the decline in economic activity — and the revenue it generates for the state — that will make it extremely difficult for the state to meet its financial obligations.
Like Humpty Dumpty, Illinois sat on a wall and then took a great fall. How long it will take to put it back together again — assuming that’s even a possibility — is impossible to say.
The decline in reported revenue was reflected by reductions in the big three of state sources — personal and corporate and sales taxes.
State personal income taxes dropped by nearly $2 billion. Corporate income taxes fell by nearly $500 million. Sales taxes dropped by $143 million.
The state will get some of that money back because Gov. J.B. Pritzker, following the lead of President Trump, pushed the income tax filing deadline from April 15 to July 15.
At the same time, Pritzker has made it clear that he has no choice but to re-write the proposed 青鹏棋牌-21 budget he released in February and do so in a way that reflects a financial reality that is even more grim than before the pandemic.
The governor, obviously, is praying for a federal bailout, and Illinois, like other states, will get help.
But it’s hard to imagine the federal government, which has to borrow to raise the money it intends to pass along, can provide enough support to avoid a hard budget landing in Illinois.
Further exacerbating the state’s problems is that its dire financial standing — debts, deficits and underfunded pensions — left it uniquely vulnerable to the kind of disaster state officials were betting would never happen.
Indeed, budget planning was based on the continuation of a record strong economy that has been driven into recession, perhaps even depression, by the lockdown put in place throughout much of the country.
Illinois’ fiscal year expires June 30, and questions abound.
The commission noted that “with two months remaining in the fiscal year, gross personal income taxes are now down $1.113 billion, or $913 million net. Gross corporate income taxes are off $377 million, or $273 million net. While gross sales taxes are clinging to a $61 million gain ($102 million net), it is also expected to soon fall into negative territory.”
If those numbers are not bad enough — they’re plenty bad — they’ll get worse even if Pritzker decides to try to thaw the economic freeze he’s ordered.
“As we move forward over the remaining months of the fiscal year, (the impact of the coronavirus is) expected to continue as job losses, impacts on business and severely curtailed economic activity will add to the state’s fiscal stress,” commission analysts stated.