State revenues surged in FY21
Thursday, Jul 8, 2021 - Posted by Rich Miller
* I went over this report with subscribers this morning, so here’s the take from Capitol News Illinois…
Revenues flowing into state coffers surged in the fiscal year that ended June 30, spurred largely by an influx of federal funds, the delayed deadline for filing income tax returns last year and an economic recovery that boosted income and sales tax collections beyond what had been estimated.
A report from the Commission on Government Forecasting and Accountability, a legislative agency that monitors the budget and state revenues, showed base receipts to the General Revenue Fund jumped nearly $6.8 billion, or 17.8 percent, during the fiscal year, fueled by big increases in personal and corporate income taxes and retail sales taxes.
That growth does not include money the state borrowed from the Federal Reserve last year or any of the money the state routinely borrows on a short-term basis from other state funds.
Combined net income tax receipts, both individual and corporate, grew by more than $5.5 billion over the previous year, to a total of just over $26 billion. That was more than $1 billion more than CGFA had estimated as recently as May, and it was over $1.7 billion more than the Governor’s Office of Management and Budget had estimated.
The full COGFA report is here.
- Ducky LaMoore - Thursday, Jul 8, 21 @ 10:27 am:
“Combined net income tax receipts, both individual and corporate, grew by more than $5.5 billion over the previous year”
All I can say is… WOW.
- City Zen - Thursday, Jul 8, 21 @ 10:35 am:
Unless the state anticipated these escalating gas prices, I expect sales tax revenue to outperform as well.
- MOON - Thursday, Jul 8, 21 @ 10:43 am:
With all the new money I am sure people in Springfield are wondering what new programs they can start.
Rest assured they will find a way to waste it.
- Morty - Thursday, Jul 8, 21 @ 10:57 am:
The doomsayers are never happy…
- Flyin' Elvis'-Utah Chapter - Thursday, Jul 8, 21 @ 10:58 am:
It really must suck to look at everything with half-empty eyes.
- Rich Miller - Thursday, Jul 8, 21 @ 10:59 am:
===The doomsayers are never happy===
At least he wasn’t talking about “Judgement Day” like that guy yesterday.
lol
- Steve Rogers - Thursday, Jul 8, 21 @ 11:02 am:
Thanks Moon, for seeing the cloud in the silver lining. Perhaps we can finish paying down the $3.5B backlog. Perhaps we can fix some roads and bridges. Perhaps we can improve DCFS and Veterans Homes. Perhaps we can invest in higher education and K-12.
- Eastside - Thursday, Jul 8, 21 @ 11:04 am:
Kind of makes you wonder why the General Assembly took action to close corporate loopholes with so much excess revenue.
- Rich Miller - Thursday, Jul 8, 21 @ 11:06 am:
===with so much excess revenue===
The loophole closures are permanent. The revenue spike is temporary. What you’re arguing for is a return to irresponsible budgeting.
- Oswego Willy - Thursday, Jul 8, 21 @ 11:07 am:
I’ve always, in sports, looked for “hometown bias” with the rosy glasses and glowing words covering up the paper tigers…
… but the self-loathing of some to the state of Illinois, and the seemingly masochistic way of enjoying the bad… are they only happy in life when in despair? Yikes.
To the post,
This idea that helping states during a once a century pandemic, and that help seems to be as advertised and we are better for it now and in a shorter term window… that’s a good thing, and not seeing that where help was given and it was used for betterment of the situation… maybe a bit of passive literally (editorial) license?
- Rich Miller - Thursday, Jul 8, 21 @ 11:24 am:
===finish paying down the $3.5B backlog===
It’s $2.9 billion today and that means the state’s payment cycle is below 30 days. Backlog really isn’t the correct term at this point.
- truthteller - Thursday, Jul 8, 21 @ 12:33 pm:
crickets from the Eastern Bloc as expected.
- Frank Manzo IV - Thursday, Jul 8, 21 @ 12:56 pm:
The $5.5 billion growth in individual and corporate income taxes, the credit rating upgrade, and the ability to meet pension obligations, invest in education, and fund hollowed-out public services should all be celebrated.
Something else that is notable for FY2021 (from a different State source) is that Adult Use Cannabis taxes brought in $317 million. That’s more than Liquor taxes, which brought in $312 million. Adult Use Cannabis taxes hit a record $38.7 million in June. And this is before the license expansion/reform is in effect.
https://www2.illinois.gov/rev/research/taxstats/CollectionsComptroller/Pages/default.aspx
- Excitable Boy - Thursday, Jul 8, 21 @ 1:24 pm:
- below 30 days. Backlog really isn’t the correct term at this point. -
No kidding, try managing construction in the private sector. 30 days would be a dream come true.
30 days is extremely well run accounts payable.
- walker - Thursday, Jul 8, 21 @ 2:51 pm:
“”30 days is extremely well run accounts payable”"
Yes. Exceptional performance by any private sector business. Large corporate CFO’s would be punished for paying so quickly.
- Phenomynous - Thursday, Jul 8, 21 @ 3:21 pm:
Some of the loophole closures will be paid out in later years, as in they are just front loaded savings. The repeal of the franchise tax is the only long term revenue, and that’s such an outdated model its wild that it was re-implemented.