Illinois’ pension crisis has been a growing problem for decades, and its negative effects on state residents are well documented.1 Economic fallout from the COVID-19 pandemic and related government shutdown orders threaten to bring that long-running crisis closer to its breaking point. The state’s five pension systems collectively held nearly $139 billion of debt at...View Report
The severe economic downturn brought on by the coronavirus outbreak and measures taken to contain it could cause state personal income tax revenues to fall by 14.7% to 33.8% this year.
With economic challenges driven by the coronavirus ahead, Illinois finds itself missing an important financial tool.
Illinois suffered its sixth consecutive year of population decline in 2019, driven entirely by residents leaving for other states.
Financial stress testing shows Illinois and New Jersey are the most unprepared for the next recession. Both states lack sufficient rainy day funds and struggle with large pension debt.
While the governor has touted his plan as a way to stabilize state tax revenues, it would actually do the opposite.