Two months into the state’s new fiscal year, Illinois state government base revenues have dropped by $279 million from the previous year, according to the latest report from the General Assembly’s Commission on Government Forecasting and Accountability (CoGFA).
The drop in revenues was not unexpected, according to CoGFA, because revenues last fiscal year benefitted from a one-time boost related to the state’s tax Refund Fund.
Still, the state’s tax receipts for the beginning of the fiscal year could raise concerns. Although state sales taxes grew by $48 million the first months of the fiscal year, there were drops in other taxes.
Gross personal income taxes declined $14 million, corporate income taxes were down $17 million, public utility taxes were off by $16 million and corporate franchise taxes were down $1 million.
The lower income tax collections raise concerns that job gains are occurring in fields where employees are likely to earn less money.
At the same time, strong sales tax receipts show consumer spending is up. But, while rising sales tax receipts can indicate that consumers are spending more due to increased confidence in the economy, it can also be an indicator of higher prices due to inflation.