ILLINOIS, USA — The coronavirus pandemic is projected to cost the state of Illinois billions of dollars in lost revenue.
Governor JB Pritzker released updated revenue projections Wednesday afternoon. General revenue funds are being revised down $2.7 billion for fiscal year 2020, which ends June 30.
An additional $4.6 billion was taken out of consideration for fiscal year 2021, which starts July 1. But that number could rise even higher when taking into consideration short-term borrowing that’s helping the state get through the COVID-19 crisis.
In all, the governor said the total shortfall for the next fiscal year could be upwards of $6.2 billion when compared to the spending plan lawmakers had put together.
“This is a public health crisis — but it is accompanied by massive economic disruption that’s unprecedented in modern history,” Gov. Pritzker said in a news release Wednesday afternoon.
The governor said he’s working with federal partners and calling on Congress to pass an extra aid package that’ll give funding to states to make up for “unprecedented nationwide revenue shortfalls.” Pritzker said early projections show $500 billion in combined state budget deficits over the next two years.
“We will need to make extraordinarily difficult decisions on top of the difficult decisions we’ve already made, but together with the state legislature we will make them and we will do so with an unswerving dedication to fairness. In the midst of a pandemic, I am more resolute than ever to protect those who are suffering physical and financial hardship from it.”
Gov. Pritzker said the state already has taken the following steps to help stabilize the state’s budget:
- Earlier this month, the Governor’s Office of Management and Budget directed agencies to take all possible steps to manage existing resources for the remainder of fiscal year 2020 by putting on hold all non-essential purchases and operational expenditures, freezing all travel that is not mission essential, and limiting all non-essential hiring. These actions are expected to save at least $25 million for the general funds in fiscal year 2020. This is in addition to earlier efforts to identify efficiencies for the fiscal year 2021 budget, slated to save the state $750 million over the next three years.
- Working with our partners, the Comptroller and Treasurer have extended $400 million in investment borrowing agreements that were due to be repaid from the General Revenue Fund in March and April to July 2020. In coordination with the Governor’s Office of Management and Budget, the Comptroller has utilized interfund borrowing authority to transfer an additional $323 million in March and April to the general funds.
On April 15, Illinois reported 24,593 confirmed coronavirus cases and 948 deaths.
You can see a county-by-county breakdown of cases with 5 On Your Side interactive map below.
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