New analysis of the proposed 2027 state budget revealed the spending plan to be middling, with a short term balance that doesn’t fully address fiscal concerns in the long term.
Paula Worthington, senior policy advisor for the Civic Federation, produced a report on the long-term effects. She found that based on current income tax rates, the state is on track to continue seeing tighter budgets yearly.
The analysis considered four main factors; structural stability, fiscal resiliency, state pensions and growth of the Illinois economy.
The researcher said considering revenue growth from the state income tax hike imposed in 2018 led her to the realization that trend may not continue.
Without additional policies to structurally grow the state’s tax base, the rate of spending may outpace the state’s income long-term, according to the findings.
Story from Illinois Radio Network
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