Illinois facing catastrophic revenue drop due to COVID-19
Illinois facing catastrophic revenue drop due to COVID-19
With thousands of Illinoisans killed by the deadly coronavirus, its financial fallout has been a secondary concern. But that, too, is frightening.
CHICAGO - With thousands of Illinoisans killed by the deadly coronavirus, its financial fallout has been a secondary concern. But that, too, is frightening.
State and local tax collections collapsed last month, dropping by nearly $3-billion compared to 2019.
With millions of Illinoisans staying home, revenue from income taxes, sales taxes and just about every other tax were way, way down in April, according to a state finance panel.
“If the feds don't help us out, we're going to have some dire consequences,” said Rep. Greg Harris.
Those dire consequences could include tax increases, spending cuts and/or government job cuts, because Illinois government's usual go-to, borrowing, is not as easy as it used to be, pre-coronavirus.
The state Tuesday postponed borrowing a billion dollars after skeptical lenders jacked interest rates way, way up. The state's credit is one-step above junk status.
Facing even bigger trouble is local governments like Mayor Lightfoot's City Hall, whose credit was "junk" before the pandemic.
“There are cities and towns across Illinois. They also need help to keep their police and their fire, their EMS and their first responders employed,” Rep. Harris said.
It is one reason eight republican women lawmakers sent a letter to Governor Pritzker asking him to convene the General Assembly, which has not met in nearly two months.
“Other legislatures have been getting together. The U.S. Congress, they managed to get together to meet and discuss and vote on certain bills. I don't understand why Illinois should be an exception to that,” said Rep. Deanne Mazzochi.
While rejecting a special session, the governor said the General Assembly may take up a "limited" agenda toward the end of the month.