CHICAGO – Illinois should take a more cautious approach to how much taxpayer money the state plans to spend in the new fiscal year, according to a group of state economic forecasters. Gov. J.B. Pritzker’s proposed budget spends just under $55 billion of taxpayer funds. That’s the most expensive spending plan for taxpayers in state history.
The Illinois House Revenue and Finance Committee heard from the Illinois Commission on Forecasting and Accountability’s Eric Noggle that their estimate is lower revenue than the governor’s estimate.
“I know that $737 million sounds like a lot of money, and it is, but … from an overall standpoint it’s a difference of about 1.3%,” Noggle said.
The main reason for the 1.3% difference is the governor’s proposed budget would require tax increases and legislative changes, like a progressive income tax on casinos or a tax amnesty program.
“This $492 million would have to be passed by you guys in the General Assembly and signed into law,” Noggle said.
There are other factors at play, including forecasters expecting the state’s economy to grow, but at a slower rate than the national average.
“At this time, the commission feels that a more cautious approach is warranted given the economic uncertainties related to the current volatile geopolitical climate, potential tariffs, changes in the federal workforce and outcomes of other potential policy changes at the federal level,” Noggle said.
The next fiscal year begins July 1. Legislators have a May 31 deadline to approve a plan with simple majorities.
