Illinois Gov. JB Pritzker | JB Pritzker/Facebook
Illinois Gov. JB Pritzker | JB Pritzker/Facebook
Illinois Gov. JB Pritzker recently reported a decrease in the estimates of revenue for the ongoing year, as the projections of revenue continue to drop.
The Governor's Office of Management and Budget adjusted its projection by $616 million, bringing the new total to $50.7 billion, a Capitol News Illinois report said. This new figure is down from the $51.2 billion previously forecast.
"We're talking about approximately 1 percent of the entire budget," Pritzker said in the report.
The revised estimate represents a decline of approximately 1.1%, with the move being made to align with an increased revenue projection for the upcoming fiscal year. The new estimate for the fiscal year is $532 million higher, representing a growth rate of approximately 1%.
The decision to revise the revenue projection was made in response to the poor performance of April's revenues, which came in $849 million below what was previously forecast. The underperformance is a strong indicator that the pandemic-era revenue spikes that Illinois has experienced are beginning to slow down.
The revised revenue projection will have significant implications for Illinois' budget and financial planning. The state will need to adjust its spending plans to accommodate for the lower projected revenue, which could mean cuts to some programs or services.
"So knowing that this might be coming, we've ramped down some of the spending here and there within all of our agencies to make sure that we could cover that 1 percent difference," Pritzker said.
Illinois does not stand alone. Numerous states are facing revenue deficits, as the pandemic left a disruptive mark on the economy.
But the revised revenue projection for Illinois is a particularly noteworthy downward revision for the state. Revenue projection relates to ongoing challenges facing state governments as they navigate the uncertain economic landscape created by the pandemic. Prudent financial management and careful planning will be critical for Illinois to emerge on the other side in a strong financial position.
Alerts Sign-up