A proposed package of tax incentives currently being considered by the Illinois General Assembly includes eliminating tax relief known as “bonus depreciation” already provided to businesses for 2011 through a federal tax change that the State currently conforms to. Among other provisions, Senate Bill 397 provides tax credits to specific companies that have publicly stated they are considering…
This article discusses the negative effect that revenue declines are having on the fiscal condition of states’ budgets. The Civic Federation says that the State of Illinois will not grow out its way out of fiscal trouble and that it must make more budget cuts.
This article profiles the budget troubles faced by a number of states. It cites IIFS’ analysis of the State of Illinois’ FY2012 enacted budget, which found that Illinois will face $8.3 billion in unpaid bills.
This report examines the State of Illinois’ operating and capital budgets as enacted for Fiscal Year 2012, which began on July 1, 2011 and ends on June 30, 2012. Despite a major income tax increase implemented in January 2011, the total General Funds deficit is projected to grow in FY2012 and the State continues to deal with its financial problems by delaying payments to vendors and local…
Major Tax Increase, Cuts to Appropriations Did Not Fix State’s Finances (CHICAGO) The Institute for Illinois’ Fiscal Sustainability at the Civic Federation released its analysis of the enacted FY2012 State budget today. The report found that the spending plan will increase Illinois’ total general operating deficit to $5.0 billion by June 2012. The shortfall would be even larger if the State had…
The Illinois State Comptroller’s Office recently issued its annual report on tax expenditures. The report is published pursuant to a provision of the State Comptroller Act (15 ILCS 405/16) that requires the Comptroller’s Office to collect tax expenditure information reported by state agencies. A tax expenditure is defined in the State Comptroller Act as any exemption, exclusion, deduction,…
Largely due to the income tax increase that took effect in January 2011, the State of Illinois’ operating deficit is expected to shrink from $3.9 billion in FY2011 to $454 million in FY2012. However, as previously discussed here, FY2012 costs are understated because appropriations do not cover the full cost of the Medicaid program. The operating budget underfunds projected Medicaid costs by as…
The State of Illinois still owes income tax refunds to many businesses, but the backlog declined in the fiscal year ended June 30, 2011 and is expected to dip further this year. According to the Illinois Department of Revenue, 4,569 businesses were owed $626.9 million in income tax refunds at the end of FY2011, down from $690.9 million at the end of FY2010. Nearly 34,000 individuals were owed $18…
Illinois’ Personal Property Replacement Tax (PPRT) is a revenue source for local governments that was created by the General Assembly in 1979 to replace a tax on the personal property of businesses that was abolished pursuant to the 1970 Illinois Constitution Article IX Section 5. Although its name refers to the tax it replaces, the PPRT is an income tax on the federal taxable income of…
After two consecutive years of losses, the State of Illinois is reporting moderate growth in sales tax revenue for FY2011, which ended on June 30, 2011. Not only did sales tax revenue collected by the State grow but it also beat the projections on which the budget was based. Total General Funds revenues from sales taxes declined from FY2008 through FY2010 by nearly $1 billion, from $7.2 billion…
