Reports

It Is All About the Revenue: Why Both Current FY2016 General Fund Budget Proposals Fall Short

It Is All About the Revenue: Why Both Current FY2016 General Fund Budget Proposals Fall Short

RELEASED: 

August 12, 2015

This Report provides a detailed analysis of both Governor Bruce Rauner’s and the General Assembly’s two very different proposals for the FY2016 General Fund budget. Both budget proposals would cut services and increase the state’s deficit due to the phase down of the temporary tax increases in the state’s personal and corporate income tax rates that became effective on January 1, 2015. Collectively, those income tax rate cuts will cause Illinois’ General Fund to lose $4.6 billion in recurring revenue over the course of the full fiscal year.

While Governor Rauner’s budget proposal would cut spending by $5 billion, CTBA analysis found that $3.2 billion of his proposed spending cuts will likely not be realized in FY2016 for legal, constitutional, and related reasons, and therefore, would increase the state’s General Fund deficit to $9.2 billion. Meanwhile, the General Assembly’s proposed FY2016 budget would cut spending by $590 million, but, without the sufficient revenue needed to cover the higher level of spending it authorizes, it would increase the projected accumulated General Fund deficit to nearly $10 billion.

Topics:Tax and Budget, Illinois Budget

Tags:99 General Assembly, Pensions, Governor Rauner, State Revenue, Taxpayer Accountability and Budget Stabilization Act, Income Tax

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