CHICAGO — The Center for Tax and Budget Accountability (CTBA) released a new report, “It Is All About the Revenue: Why Both Current FY2016 General Fund Budget Proposals Fall Short,” which provides a detailed analysis of both Governor Bruce Rauner’s and the General Assembly’s two very different proposals for the FY2016 General Fund budget.
Both budget proposals would cut services and increase the state’s deficit due to the phase down of the temporary tax increases in the state’s personal and corporate income tax rates that became effective on January 1, 2015, says the report. Collectively, it says, those income tax rate cuts will cause Illinois’ General Fund to lose $4.6 billion in recurring revenue over the course of the full fiscal year.
While Governor Rauner’s budget proposal would cut spending by $5 billion, CTBA’s analysis found that $3.2 billion of his proposed spending cuts will likely not be realized in FY2016 for legal, constitutional, and related reasons, and therefore, would increase the state’s General Fund deficit to $9.5 billion.
Meanwhile, the General Assembly’s proposed FY2016 budget would cut spending by $590 million, but, without the sufficient revenue needed to cover the higher level of spending it authorizes, it would increase the projected accumulated General Fund deficit to nearly $10 billion.
You can read the full report here.