Illinois just saw a $1.76 billion drop in state income tax collections, proving what a new study just showed: state tax policies give it the nation’s eighth-most volatile revenues. That also makes Illinois very vulnerable when a recession hits.

Illinois Gov. J.B. Pritzker wants to spend $440 million for universal preschool and other initiatives for low-income young children. But shouldn’t Illinois pay its old bills before taking on new expenses?

After years of enhanced revenue from federal aid, a return to the basic principles of budgeting can put Illinois on the path to long-term financial stability

Published Jan. 30, 2022

An investigation found $4 billion in funds to be doled out by politicians at their discretion, with Gov. J.B. Pritzker controlling half of it. The extra pork was packed into Illinois’ $45 billion infrastructure plan, including $144 million for Madigan friends – some who never asked for it.

From 2005-2019, Illinois revenues totaled just 94% of expenses. The state ran deficits in each of the 15 years prior to the COVID-19 pandemic. Only New Jersey overspent more.

A Volcker Alliance report on truth and integrity in state budgeting finds Illinois lacking. Debt, budget gimmicks and thin reserve funds gave the state poor marks.

The first step of passing a budget is to determine how much is available to spend. Illinois routinely misses the mark in estimating future revenues. There is a solution.

Illinois has a chance to fix its state finances, thanks to federal relief. But unless pension growth is brought under control, both retirees and taxpayers will be at risk as debt continues to consume state services.