Due to its poor financial health and lagging economy, Illinois carries unique economic and fiscal risks from a prolonged market downturn or recession. The state must act now to mitigate harm from COVID-19.View Report
The last thing Illinois needs is more bad news for the sake of it. But ignoring this reality threatens to make this crisis worse.
Springfield needs to pull policy levers to mitigate harm. And they should do so as quickly as possible.
Despite Gov. J.B. Pritzker touting growth in “every major region,” Illinois shed jobs in three metropolitan areas and lagged the national average in seven more.
Illinois’ uneven recovery reflects national trends, but also raises important questions about the state’s economic future ahead of a key tax hike vote.
Nearly half of the 20 tax and fee hikes passed to support a record $40 billion state budget and $45 billion infrastructure plan hit on New Year’s Day.
The elections scheduled for November 2020 are already injecting uncertainty into the economy, and the progressive income tax ballot question will make matters worse.
Facing down a $3 billion deficit, Illinois Gov. J.B. Pritzker offered an unbalanced budget including more tax hikes, borrowing and spending. He claimed severe cuts were the only alternative, but another option exists.
The worst years of the Great Recession are in the rear view. But if the latest gloomy fiscal forecast is any indication, Illinois' persistent policy mistakes will drag down its economic performance well into the future.
The October briefing from the Commission on Government Forecasting and Accountability outlines Illinois’ weak growth, and projects more of the same.
Since the end of the recession, only 5 out of Illinois’ 13 metro areas – Carbondale-Marion, Chicago, Kankakee, Lake County-Kenosha County and Springfield – have recovered all the private-sector jobs lost from the Great Recession.