Seven days into new fiscal year and still no state budget

July 7, 2015

Speaker Madigan insists “non-budget issues” should be left out of discussions, but Illinois Policy Institute analysis shows failure to enact economic reforms is hurting the state’s bottom line

CHICAGO (July 7, 2015) – Today marks the seventh day of Illinois’ budget stalemate. A new analysis by the nonpartisan Illinois Policy Institute takes a look at how lawmakers’ refusal to enact significant economic reforms has hurt the state’s bottom line.

Illinois Gov. Bruce Rauner says he won’t sign an unbalanced budget and is seeking economic reforms. But House Speaker Mike Madigan refuses to adopt those reforms, insisting that “non-budget” issues should be left out of the discussions. An analysis by the Illinois Policy Institute found that the state’s high taxes and burdensome regulatory environment have cost Illinois government more than $7 billion in annual state and local tax revenue since 1995. Incorporating economic policy changes to the budget discussion would grow jobs and generate billions of dollars in tax revenue for the state.

Key findings:

  • Since 1995, Illinois has lost 1.3 million residents on net to other states, this is after accounting for those who have moved into Illinois, according to the U.S. Census Bureau.
  • Since 1995, Illinois residents leaving the state have taken with them $45.6 billion in taxable income.
  • Illinois has suffered a net loss of $7.6 billion in annual state and local tax revenue to other states since 1995 because of people and businesses leaving Illinois.
  • There are 240,0000 fewer Illinoisans working today than in 2007, before the Great Recession, the worst recovery record in the nation.

“Illinois’ failure to enact significant economic reforms has cost the state money, jobs and people,” said Michael Lucci, director of jobs and growth at the Illinois Policy Institute. “Economic reforms such as workers’ compensation reform, local property-tax reform and many other proposed economic reforms can improve Illinois’ economy, and thus generate new tax revenue through growth.”

For more details, check out: illinoispolicy.org/hey-speaker-madigan-illinois-no-1-budget-problem-is-taxpayers-fleeing-the-state/

Experts are available to discuss the budget impasse by phone, Skype or in-person in Chicago and Springfield.

MEDIA CONTACT: Nathaniel Hamilton or Diana Rickert (312) 607-4977