Gov. J.B. Pritzker announced current year revenue projections. | https://media.defense.gov/2019/May/28/2002136914/-1/-1/0/190528-Z-A3519-001.JPG
Gov. J.B. Pritzker announced current year revenue projections. | https://media.defense.gov/2019/May/28/2002136914/-1/-1/0/190528-Z-A3519-001.JPG
Governor JB Pritzker of Illinois announced a reduction in current-fiscal-year revenue estimates on May 11 as revenue projections continue to decline.
The Governor's Office of Management and Budget (GOMB) reduced its revenue projection by $616 million, bringing the new total to $50.7 billion, Capitol News said, down from the previous forecast of $51.2 billion.
"We're talking about approximately 1 percent of the entire budget," Pritzker said.
At the same time, GOMB revised its estimate upward for Fiscal Year 2024, which begins July 1, projecting revenues of $50.5 billion, up about $532 million from the prior estimate. The new 2024 revenue estimate is about $840 million higher than Pritzker's proposed 2024 spending budget of $49.6 billion.
The reduction in the 2023 revenue projection was made due to lower-than-anticipated April revenues, which came in $849 million below what was previously forecast. This underperformance is a strong indicator that the pandemic-era revenue spikes that Illinois has experienced are beginning to slow down, Pritzker said at a press conference.
The revised revenue projection will have implications for the state's budget and financial planning. The state will need to adjust its spending plans to accommodate the lower projected revenue, which could mean cuts to some programs or services.
"So knowing that this might be coming, we've ramped down some of the spending here and there within all of our agencies to make sure that we could cover that 1 percent difference," Pritzker said.
Illinois is not alone in experiencing revenue shortfalls. Many states are grappling with similar challenges as the pandemic continues to impact the economy.
However, the revised revenue projection for Illinois is a particularly noteworthy downward revision to Illinois. Revenue projection relates to ongoing challenges facing state governments as they navigate the uncertain economic landscape created by the pandemic. Prudent financial management and careful planning will be critical for Illinois to emerge the other side in a strong financial position.
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