(The Center Square) – After Gov. J.B. Pritzker proposed a budget anticipating $55.4 billion in state taxpayer funds, the process of coming to a revenue estimate for the looming Illinois state budget has begun.
Officials with the Illinois Department of Revenue met with the Illinois House Revenue and Finance Committee Thursday. IDOR Chief Economist Rubina Hafeez explained some of their projections include possible impacts from Trump administration policies.
“Highlights being personal and corporate tax cuts, crackdown on undocumented immigration and deportations and the implementation of tariffs,” Hafeez said.
One thing confounding some legislators is the estimated budget deficit of $3 billion reported in November. IDOR Director David Harris said budgeteers are expected to work at plugging that budget hole.
“You, the General Assembly in cooperation with the governor, are going to take action that ensures that there is not a $3 billion deficit,” he said.
Pritzker’s budget plan for the coming fiscal year that starts this summer includes an amnesty program for state taxpayers in arrears.
Harris said the governor hopes legislators will continue a program withholding penalties for taxpayers owing back taxes so they can make their payments to the state, something that could generate $240 million for the coming fiscal year, $59 million from individuals and $127 million for corporate taxes.
“If we can give the corporations the opportunity to pay that tax liability, avoiding the penalty, the previous experience is they’re going to take it,” Harris said.
Some topline items include the corporate income tax, revenue from which is down 14.2% to date in the this fiscal year. The rest of the current budget year, corporate tax revenue is expected to decrease 6.3%, with the next fiscal year expected to see a 7.2% increase.
Legislators will hold a series of hearings with state agencies to go through the proposed budget with the eye of approving a plan to begin July 1.
