Illinois Revenue Freefall: Fiscal Year-to-Date -8.1% and Worsening

IMG Auteur
Published : April 05th, 2017
566 words - Reading time : 1 - 2 minutes
( 1 vote, 5/5 )
Print article
  Article Comments Comment this article Rating All Articles  
Our Newsletter...
Category : Opinions and Analysis

Illinois’ fiscal condition is in bad shape and worsening.  Jim Muschinske, Revenue Manager, notes a “February Freefall“.

Compared to last year, February income taxes are down 12.1%; Sales taxes are down 7.5%, and public utility taxes are down 34.3%.

For fiscal 2017, general revenues are down a whopping 8.1%, and the state is two-thirds through the fiscal year.

Overall base revenues fell $423 million in February. Like a broken record, monthly declines reflected weaker income taxes along with poor federal sources. Unfortunately, February’s lackluster performance was widespread with only a couple sources managing to show gains. One less receipting day likely contributed to the decline, though certainly not the primary culprit.

Through the first two-thirds of the fiscal year, base receipts are off $1.453 billion, or 7.5%. Weakness is widespread, and has resulted in year over year losses in key areas such as income taxes and federal sources. With renewed uncertainty of sales tax performance, and with only four months left in FY 2017, it will be very difficult to alter the trajectory of what has turned into a dismal year for revenues.

February 2017 vs February 2016

Fiscal Year 2017 vs Fiscal Year 2016

Unfunded Stabilization Fund

It’s fitting that Illinois has an “unfunded budget stabilization fund”.

Politicians After Your Pocketbook Again

The state of Illinois, as well as Chicago and Cook County, have passed big tax hikes in recent years. The politicians are after your pocketbook again.

In addition to raising the state’s personal and corporate income taxes back near their all-time highs, the Illinois Policy Institute notes senators propose taxing businesses on the “privilege” of doing business in Illinois.

The Chicago Tribune Commentary says Senate tax hike is a raw deal for Illinoisans.

Tax Hikes Don’t Work

If tax hikes worked, Illinois revenue would be up, not down. But Illinoisans are voting with their feet. On March 25, 2017, I noted Cook County Illinois Suffers Largest Population Drop In Entire US.

On May 18, 2016, I noted Illinois State Workers, Highest Paid in Nation, Demand 11.5 to 29% Hikes.

And on March 14, 2017, I noted Illinois General Assembly Retirement System Only 13.52% Funded: Overall, Illinois Pension Debt Interest Hits $9.1 Billion Per Year.

Explaining Dysfunctional Illinois

Tax hikes cannot and will not fix this mess. On January 9, 2017, I explained Dysfunctional Illinois in One Word, One Idea, One Person.

  • One Word: Corruption
  • One Idea: Public Unions
  • One Person: House Speaker Mike Madigan

The only rational solution is bankruptcy, not higher taxes.  Unfortunately, we cannot expect Madigan to do a damn thing other than demand more tax hikes.

Illinois and other states hamstrung by public unions, pension woes, and high costs need three things at the national level because Illinois is too corrupt and too in bed with unions to fix any problems here.

Three National Level Priorities

  1. National right-to-work legislation that supersedes state legislation
  2. Scrap Davis-Bacon and all prevailing wage laws that drive up costs
  3. Bankruptcy legislation that allows municipalities to file when they want to, not when dictators like Madigan allow them.

The Illinois Chamber of Commerce and the Chamber of Commerce of each Illinois city need to make their representatives aware of what needs to be done.

It would also behoove the Illinois Chambers of Commerce to reach out to cities in other states so their respective chambers preach the same message to their legislative representatives.

Mike “Mish” Shedlock

Source :
Data and Statistics for these countries : Georgia | All
Gold and Silver Prices for these countries : Georgia | All
<< Previous article
Rate : Average note :5 (1 vote)
>> Next article
IMG Auteur
Mish 13 abonnés
Mike Shedlock / Mish is a registered investment advisor representative for SitkaPacific Capital Management. He writes a global economics blog which has commentary 5-7 times a week. He also writes for the Daily Reckoning, Whiskey & Gunpowder, and has over 80 magazine and book cover credits. Visit
WebsiteSubscribe to his services
Comments closed
Latest comment posted for this article
Be the first to comment
Add your comment
Top articles
Latest Comments
Predicting The Next Crisis, Programming Behavior: “The Ability To T...
18 JanS W.
Excellent article with a small touch of healthy paranoia. Good idea, 'leave the phone at home sometimes' Go smell the roses !
18 JanS W.
Fancy specialising in race and gender studies ! And then do exactly what? I suspect, write papers ad infinitum that hardly anyone would read.
Who Moved My Xanax?
17 JanThemis0
I actually agree with a lot of what Trump says while deploring the tone and his lack of judgment in making such remarks publically while in office.
Socialist Dystopia: Starving Venezuelans Loot As Runaway Inflation ...
17 JanThemis
There is a 19th century English word that is particularly appropriate in this instance - "kakistocracy", i.e. government by the worst or least qual...
Who Moved My Xanax?
15 JanMr. Gnawbone1
It is an exploitation of the ignorant and uninformed population, but that is what happens when they pay attention to meaningless information and ...
15 JanMr. Gnawbone1
It sounds racist, so it has to be. Overton Bubble at work, the faculty were programed to respond as if to a Pavlovian Bell. There is no way to ch...
16 Jandennyc3
Ah, yes, black welfare recipients receiving our hard earned and easily spent tax dollars and providing us nothing save their lives for our investme...
15 JanDoom2
It's not just the English that is considered RACIST, it's also mathematics, and a wide range of other things: http://professorconfess.blogspot...
Most commented articlesFavoritesMore...
World PM Newsflow
Take advantage of rising gold stocks
  • Subscribe to our weekly mining market briefing.
  • Receive our research reports on junior mining companies
    with the strongest potential
  • Free service, your email is safe
  • Limited offer, register now !
Go to website.