As gas prices fall across Illinois, state and local governments may see a decrease in revenue from fuel and sales taxes. Experts say the effect on overall state finances is limited.
According to GasBuddy, local prices in some areas have dropped as low as $2.95 per gallon.
Despite these declines, Illinois Policy Institute Analyst Dylan Sharkey said the impact on state revenue is minimal.
Sharkey noted that Illinois doubled its gas tax in 2019, and state lawmakers maintain substantial reserves, currently around $3 billion, while continuing to discuss additional revenue measures.
Sharkey suggested that attracting more drivers to Illinois could naturally increase revenue, but the state faces net outmigration, which reduces the number of drivers on the roads.
Story from Illinois Radio Network
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