State spending outpaces personal income in Illinois

J. Scott Moody

J. Scott Moody is currently CEO of State Budget Solutions, a national think tank focusing on state pension reform and state dependency on the federal government.

J. Scott Moody
June 30, 2015

State spending outpaces personal income in Illinois

State-government spending is exceeding taxpayers’ ability to pay.

Growth in state-government spending outpaced Illinoisans’ income from fiscal years 1992-2013, according to the most recent data from the U.S. Census Bureau.

unnamed

Over this time period, state-government spending grew to $59.8 billion from $20.1 billion – an increase of 197 percent. In contrast, personal income grew to $598 billion from $256 billion – an increase of 134 percent. Clearly, state-government spending is exceeding taxpayers’ ability to pay.

As a result, the burden of state-government spending has grown tremendously. In fact, if state spending had grown along with personal income, then state spending would have been $12.8 billion lower in fiscal year 2013 – or $2,596 lower for every Illinois household.

This data only counts spending that actually occurred. It does not factor in the chronically underfunded public pension system and other liabilities. Had the state government fulfilled its obligations, total spending would have been higher or spending in other areas, such as roads and education, would have been lower.

Want more? Get stories like this delivered straight to your inbox.

Thank you, we'll keep you informed!