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Illinois ends “record-breaking fiscal year” with $730 million revenue growth in June alone

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General Funds base receipts finished the fiscal year off extremely well growing $730 million in June. This month’s growth came from a combination of all of the major revenue sources – a fitting culmination of above-average receipts that the economically-tied revenue sources have experienced throughout the fiscal year. The increase was despite June having one less receipting day than the prior fiscal year.

As has been the case many times throughout the fiscal year, corporate income tax receipts led the way by adding $373 million, or $287 million on a net basis. After seeing revenues take a temporary tumble last month due to timing issues related to the previous year’s final tax payments, personal income tax revenues responded with an increase of $189 million, or $156 million net. Sales tax receipt growth has slowed in recent months, but still managed to add another $41 million or $23 million net. […]

After dipping last month, base federal sources finished the year off strong with growth of $127 million in June. This figure does not include the $298 million in revenues from the ARPA reimbursement for Essential Government Services that the State received this month.

Year to Date

The strong month of receipts for June caps off a sensational fiscal year of revenues with base receipts totaling $50.334 billion, or $51.070 billion overall. This record-breaking fiscal year of revenues was led by the State’s “big three” revenue sources. As has been mentioned throughout the fiscal year, despite FY 2022 receipts being compared to FY 2021 which contained two periods of income tax final payments, personal income tax receipts finished the year a whopping $2.787 billion above last year’s levels, or $2.314 billion on a net basis. Perhaps more impressive was the $1.844 billion rise in corporate income tax net receipts. Sales tax receipts were just as impressive, with year-over-year growth in net receipts of $866 million.

While there were a few State sources that did see declines in FY 2022, the remaining State sources combined to finish up $82 million. These gains were led by a $153 million increase in inheritance tax revenues, which benefitted from the strong market conditions over the past several years, and a $104 million annual increase in miscellaneous State source revenues. These sources helped offset a notable loss in revenues from the corporate franchise tax [down $106 million]; cigarette taxes [down $27 million]; interest earnings [down $27 million]; and insurance taxes [down $25 million]. […]

FY 2022 ended up well exceeding all “official” projections. In total, including the revenue received from the ARPA reimbursement for Essential Government Services, actual receipts for FY 2022 finished $6.703 billion above the FY 2022 Final Budget Assumption; $2.582 billion or 5.3% above CGFA’s last official March 2022 projection and $1.884 billion or 3.8% above the GOMB revision released in April 2022. […]

A recent report from the National Association of State Budget Officers indicates that 49 states reported FY 2022 general fund revenue collections exceeding original budget forecasts.

In summary, the better-than-expected revenue gains in FY 2022 came from several atypical revenue- enhancing factors that strongly influenced the overachieving nature of the economically tied revenue sources. Those factors include: the one- time influx of federal stimulus dollars to the nation’s economy; the continuation of a pandemic-related shift from non-taxed service-based sales to taxable goods; and strong market conditions as a result of this enhanced activity, thus, creating elevated taxable income and tax revenues from corporate profits and capital gains. The influence of these particular factors is expected to wane as the State enters into FY 2023 resulting in reduced revenue expectations for the upcoming fiscal year.

* Capitol News Illinois looks at that impending revenue decline…

That’s something Gov. JB Pritzker told Capitol News Illinois last week that lawmakers planned for in April when they projected Fiscal Year 2023 revenues at $46.5 billion – an 8 percent decrease from the final FY 2022 numbers.

“We wrote that into the budget, that is a decrease in revenue just in this coming year,” Pritzker said in an interview. “So, we understand that there were some temporary nature of revenues that were coming in.” […]

A GOMB spokesperson said in an email Wednesday that the surplus has not led to any discussion of amending the FY 2023 budget in the first week of the new fiscal year. But it’s likely to allow for some flexibility.

“FY 2022 revenues continued to outperform expectations through the last quarter of the fiscal year,” GOMB spokesperson Carol Knowles said in an email. “This will allow the state to be better positioned in the coming year as we continue to monitor the national economic outlook.”

posted by Rich Miller
Friday, Jul 8, 22 @ 9:31 am

Comments

Obviously Illinois is in an unstoppable death spiral.

… is the next headline from wherever John Tilman is these days.

Comment by TheInvisibleMan Friday, Jul 8, 22 @ 9:38 am
Wow, $730 million in fresh revenue. When will the House and Senate Dems call for $1.4 billion in new programs?

Comment by Colin O'Scopy Friday, Jul 8, 22 @ 9:38 am
Colin, did you see this part, or did you just ignore it?

“That’s something Gov. JB Pritzker told Capitol News Illinois last week that lawmakers planned for in April when they projected Fiscal Year 2023 revenues at $46.5 billion – an 8 percent decrease from the final FY 2022 numbers.”

Comment by low level Friday, Jul 8, 22 @ 9:48 am
Even with this very good new the ILGOP nattering nabobs of negativism will be undeterred in the bashing of Illinois.

GOP Quote- “You have to see the BAD in everything.”

Comment by JS Mill Friday, Jul 8, 22 @ 9:48 am
I’m reading this as the environment with Covid helped lead to the surplus. I guess we will know for sure in the coming years given no one time payments and ramped up consumer spending is likely to occur in coming years.

Comment by Politics Drives Policy Friday, Jul 8, 22 @ 9:50 am
When IPI and Wirepoints are grifting off anger for unknown reasonable things, keep in mind two things;

The grift is a real thing.

They all still live in Illinois.

Plus, IPI leaders when given the chance, they couldn’t govern Illinois for an entire fiscal quarter without messing up.

This is incredible news, the binding houses need to consider more upgrades, as the criteria to upgrades is arbitrary, at best.

Bring on the Spelunkers

Comment by Oswego Willy Friday, Jul 8, 22 @ 9:52 am
===no one time payments and ramped up consumer spending is likely to occur in coming years.===

You know what consumer spending is gonna be in the coming years? How about lottery numbers?

Ugh

Comment by Oswego Willy Friday, Jul 8, 22 @ 9:54 am
Colin - you left out “drunken sailors”.

To the post, Pritzker is doing the boring and mundane things as governor, like proper tax revenues leading to paying our bills on time, passing state budgets on time, doing things that get our state’s credit rating upgraded. Can’t wait for the IPI to say this is horrible news.

Comment by Baloneymous Friday, Jul 8, 22 @ 9:57 am
Maybe the Governor can finally start to focus on filling those thousands of positions that his agencies are missing and hire those hundreds of DCFS investigators so we don’t have to live with the knowledge that our state is letting children die while experiencing hundreds of millions of dollars in surplus revenues.

Comment by Candy Dogood Friday, Jul 8, 22 @ 10:04 am
If the Governor really does think about aiming for higher political office some day, his opponents are going to be quick to point out that the fiscal health of the state was improved by failing to hire enough public employees to maintain service level adequacy and letting agencies like DCFS be short many hundreds of investigators and make the pretty compelling argument that Governor Pritzker improved the balance books of the State of Illinois at the expense of the lives of children and the health and welfare of state agencies and services.

If higher office is something he’s harnessing ambition for he should start thinking about a response to that kind of accusation coming from a mid level campaign consultant in New Hampshire or South Carolina, or some state where the Democratic Primary voters really care about kids.

As each week of his administration passes, I become more and more convinced the Governor’s staff live in a bubble and it’s not just one to keep COVID-19 out.

Comment by Candy Dogood Friday, Jul 8, 22 @ 10:09 am
The Dems will have this spent, plus 10%, as soon as they wrap up veto session.

Comment by JustAThought Friday, Jul 8, 22 @ 10:11 am
=== The Dems will have===

“Carnac”,

Did ya forget the rainy day fund in the mouth breathing, or…

Comment by Oswego Willy Friday, Jul 8, 22 @ 10:14 am
==The Dems will have this spent, plus 10%, as soon as they wrap up veto session.==

Try reading what it says vs what you wished it said.

Comment by low level Friday, Jul 8, 22 @ 10:16 am
“The Dems will have this spent, plus 10%, as soon as they wrap up veto session.”

If only the dems were George Ryan….

Comment by Ducky LaMoore Friday, Jul 8, 22 @ 10:22 am
Funny, record revenues and bills paid without the fair tax? The same fair tax jb said was ” needed ” to play the bills or else disaster????? Anyone ..anyone…..bueller?

Comment by Rent free Friday, Jul 8, 22 @ 10:22 am
How about spend some of this extra revenue to finally finish the nearly one mile gap of the MacArthur Extension from 72 to Woodside and Iron Bridge Roads? Between Springfield and Chatham. Something that should have been done 12 years ago when the original extension opened, and would relieve a lot of 55 and Veterans congestion during the commutes.

Comment by Complex State Employee Friday, Jul 8, 22 @ 10:25 am
== record revenues and bills paid without the fair tax==

The operative word in your statement is “record revenues”. What happens without the record revenues?

Comment by low level Friday, Jul 8, 22 @ 10:26 am
==The same fair tax jb said was ” needed ” to play the bills or else disaster?==

JB didn’t count on the feds dumping a ton of money on the states, and we should not assume that they will keep doing so.

Comment by Arsenal Friday, Jul 8, 22 @ 10:29 am
Some of y’all really don’t understand that the General Assembly is supposed to spend surplus revenues and whether it goes towards pension liability, a rainy day fund, tax refunds, surplus checks, or something or anything else it counts as the General Assembly spending it.

What on earth do you expect the government to do with revenues that they levy?

Comment by Candy Dogood Friday, Jul 8, 22 @ 10:30 am
===What happens without the record revenues?===

Good thing we paid down our bills, or is that bad…

=== The same fair tax jb said was ” needed ” to play the bills or else disaster?===

If you are in the 97%, you got played and arguing this with you is comedy for me.

Comment by Oswego Willy Friday, Jul 8, 22 @ 10:30 am
Candy, you are attempting to bring logic to illogical people. You should know better.

Comment by low level Friday, Jul 8, 22 @ 10:32 am
==If only the dems were George Ryan….==

If only George Ryan had laid off the Illinois First hangover and said No to the 2000 gas tax holiday–both of which helped lead the state’s economy to the dumpster even before 9/11 and 16 years of Blago/Quinn/Rauner made things infinitely worse.

Comment by Complex State Employee Friday, Jul 8, 22 @ 10:33 am
Yes OW. My point is that without the record revenues, another source would have been required. Namely, the fair tax.

Comment by low level Friday, Jul 8, 22 @ 10:34 am
“the one- time influx of federal stimulus dollars to the nation’s economy”

Thanks, Brandon. The spelunkers were against this revenue and wanted to make us worse deliberately to blame political opponents, just like they did under the last governor.

Comment by Grandson of Man Friday, Jul 8, 22 @ 10:40 am
- low level -

You’re on it.

===No to the 2000===

“If Bruce Rauner would’ve had budgets for a whole General
Assembly…”

Now we’re in 2022. Revenues are up, Bills are paid…

Comment by Oswego Willy Friday, Jul 8, 22 @ 10:40 am
Someone better tell Candy there’s an employment crisis in the entire country. The agencies are hiring, but it’s not easy to find people to fill the jobs. Also, have you followed a RUTAN hiring process? It’s a nightmare.

Comment by hmmmm Friday, Jul 8, 22 @ 10:48 am
- Arsenal - Friday, Jul 8, 22 @ 10:29 am:

==The same fair tax jb said was ” needed ” to play the bills or else disaster?==

JB didn’t count on the feds dumping a ton of money on the states, and we should not assume that they will keep doing so

Arsenal, in agree 100% but given the fact it was bolstered by the feds I don’t want to see jb or Susanna taking credit for a job ” well done” when it was only possibly with fed $$$$$. Lets see how will they perform in 2024 and beyond..

Comment by Rent free Friday, Jul 8, 22 @ 11:05 am
==Also, have you followed a RUTAN hiring process?===

Also, I believe, if the unfilled jobs are union positions, they have to go out to the agency first, then to other agencies and/or recall lists, and then to the general public. But the State recently developed a new electronic hiring process to hopefully fill vacancies quicker. we’ll see. And yes, the RUTAN interview process along with the conflict of interest delays to make sure people on the interview teams aren’t related or friends with the job candidates, adds a lot of time to the process.

Comment by Baloneymous Friday, Jul 8, 22 @ 11:08 am
===but given the fact it was bolstered by the feds I don’t want to see jb or Susanna taking credit for a job ” well done” when it was only possibly with fed $$$$$. Lets see how will they perform in 2024 and beyond..===

And yet it appears if the monies were used to bolster programs or spent on things, you’d complain.

So no credit for fiscal prudence?

Huh.

Comment by Oswego Willy Friday, Jul 8, 22 @ 11:12 am
Apparently Candy is also living in a bubble where people are clamoring for some of the hardest jobs in government or the private sector and the government hiring process is super easy. I guess the hiring struggles pertain to everyone except the Governor and his staff. Give me a break.

To the post - grateful for the good fiscal management of this administration and General Assembly and all the staff that work for those folks. There will always be struggles and no one should take too much of a victory lap. But if we don’t acknowledge the good news then we don’t have any right to complain about the bad.

Comment by Laketrail Runner Friday, Jul 8, 22 @ 11:22 am
If the figure is accurate and it’s not smoke and mirrors, not federal money propping is up and the Gov is being straight with everyone why did we need an income tax increase?

Comment by Galway Bay Friday, Jul 8, 22 @ 11:35 am
===why did we need an income tax increase? ===

Did you or anyone at all think in the spring of 2019, when it was put on the ballot, or in November of 2020, when it was on the ballot, that revenue in FY2022 would be that high? And do you think it’ll remain that high?

Sheesh.

Comment by Rich Miller Friday, Jul 8, 22 @ 11:38 am
===why did we need an income tax increase?===

Fiscal prudence and underfunded pensions are a good reason… but the very same folks complaining about “spending and pensions” also seemingly are against paying bills…

What’s funny is “we don’t need to raise taxes in the 3% folks” aren’t grasping that everyone is paying the same percentage of any new taxes raised instead of generating new revenues from the 3%

It’s a lot to take in for folks like the in-law uncles wanting to be angry no matter the fiscal outlook

Comment by Oswego Willy Friday, Jul 8, 22 @ 11:38 am
==need an income tax increase?==

Record revenues are unexpected and likely temporary. Only the fair tax would provide certainty.

Comment by low level Friday, Jul 8, 22 @ 11:51 am
==What on earth do you expect the government to do with revenues that they levy?==Put it away in shoe boxes like Paul Powell. I guess that money wasn’t official state revenue, though. Just had to say that.

Serious answer: 1 and 2, pay down pensions (maybe think more voluntary buyouts) and rainy day fund, just not in shoe boxes.

Comment by MoralMinority Friday, Jul 8, 22 @ 11:58 am
==How about spend some of this extra revenue to finally finish the nearly one mile gap of the MacArthur Extension from 72 to Woodside and Iron Bridge Roads? Between Springfield and Chatham==

And while we’re at it, let’s use some of the surplus to finish Interstate 180 from Hennepin to Peoria, the four lane Route 336 from Macomb to Peoria, and finish extending Interstate 39 from Bloomington to 57 near Salem. And then make serious revivals of the Prairie Parkway (Route 47) expansion combined with the Illiana Expressway to make another huge collar counties freeway bypass.

And then revive the Route 53 tollway expansion and Route 120 expansion and force that upon Lake County, no matter what the NIMBYs say.

Comment by Complex State Employee Friday, Jul 8, 22 @ 12:23 pm
- Complex State Employee -

Would federal matching funds for some of these projects be prudent?

Why waste surplus monies if only half would be needed?

Comment by Oswego Willy Friday, Jul 8, 22 @ 12:30 pm
==Would federal matching funds for some of these projects be prudent?==

I’m definitely not a state budget or finance expert, but whatever matching or other federal funds we can get for those essential projects, we definitely need to get.

Comment by Complex State Employee Friday, Jul 8, 22 @ 12:40 pm
Candy, if you know anyone that would come in as Tier 2, must start at the lowest salary level at their position (reminder, it is now 1a, 1b, 1c before you get to level 1) and deal with what is DCFS on a normal basis (let alone the added problems of late), please have them apply. I know of no one I would put in that position.

I should add, they just changed the hiring process on July 1. From my perspective, it is going to make new hires more difficult.

Comment by Lurker Friday, Jul 8, 22 @ 12:56 pm
But Ken Griffin moved to Florida.

Comment by Cool Papa Bell Friday, Jul 8, 22 @ 1:18 pm
===why did we need an income tax increase?====

Have you seen how much money will be put into pensions over the next 20 years? I think JB has done a great job, but I still don’t know how we can eventually double our annual pension contributions without that additional revenue.

Comment by Jibba Friday, Jul 8, 22 @ 1:21 pm
==Funny, record revenues and bills paid without the fair tax? ==

If the Fair Tax passed, we could be discussing a tax cut for the lower income group, no?

Comment by supplied_demand Friday, Jul 8, 22 @ 2:25 pm
===If the Fair Tax passed, we could be discussing a tax cut for the lower income group, no?===

It didn’t pass. It’s moot.

Comment by Oswego Willy Friday, Jul 8, 22 @ 2:29 pm
=over the next 20 years =

Generally through *regular* inflation, the value of money halves approximately every 23-25 years. That doesn’t take into consideration the recent inflation. At 11% inflation, the value of a dollar would half in a bit over 6 years.

Remember that same guaranteed 3% COLA for pensions is FIXED. It’s not the higher of 3% or the rate of inflation. It’s just 3%. Recent inflation on a yoy basis is more than double that, and that’s being conservative with the inflation numbers.

High inflation is the best thing that could have happened to the pension debt.

Inflation makes a huge difference to that 20 year number that seems so concerning at first glance in todays dollars.

Comment by TheInvisibleMan Friday, Jul 8, 22 @ 2:48 pm
==It didn’t pass. It’s moot. ==

Except when you were talking about it a few posts earlier, right?

Comment by supplied_demand Friday, Jul 8, 22 @ 2:54 pm
=== Except when===

The question posed was the *need* for the Fair Tax, not it’s actual use or movement of it, up or down.

=== ===why did we need an income tax increase?===

Fiscal prudence and underfunded pensions are a good reason… but the very same folks complaining about “spending and pensions” also seemingly are against paying bills…===

The need of it existing. The arguments the actual Fair Tax folks made. But, it doesn’t exist.

It’s a next level speculation that A) it passed, and B) since it passed the next item was to have the GA give a tax cut.

Hope that helps.

Comment by Oswego Willy Friday, Jul 8, 22 @ 3:01 pm
The primary cause of this increased revenue the state is increased economic activity overall, not any specific Federal funding to the state. That increased economic activity is indeed the result of increased governmental support to families and businesses.

In case you’re missing it: This is demand-side incentives working better than supply-side incentives in the national economy, i.e. Democratic vs Republican economic strategies.

The extent to which this also could be amplifying current inflation is an open question. A lot of variables in the “dismal science.”

Comment by walker Friday, Jul 8, 22 @ 3:02 pm
Let’s not forget we’re losing Ken Griffin…
He’d rather live in a state where a gay teacher can’t have a picture of their spouse on their desk… and where if you teach the impact of slavery, you can be jailed… and where Mickey Mouse is your enemy.
Bye Felicia…

Comment by Lincoln Lad Friday, Jul 8, 22 @ 3:13 pm
===Candy, you are attempting to bring logic to illogical people. You should know better. ===

The world gains nothing from the admonishment of hope.

===Apparently Candy is also living in a bubble where people are clamoring for some of the hardest jobs in government or the private sector and the government hiring process is super easy===

I do my best to be bubble conscious but I also understand that it takes extraordinary effort to fill 7,000 positions in a prompt fashion. I also understand that a variety tools are available to recruit skilled workers from other states and that if the Department of Corrections can agree to hire people in at Step 1 instead of Step 1c other agencies can probably figure out a way to get to an agreement where the entry level pay is higher — even though that might mean giving some other people raises too.

There is nothing preventing the State government from offering moving expenses. There is nothing preventing the state government from offering lump sum payments towards student loans. There is nothing that prevents the Governor’s office from being able to approach organized labor to come to an agreement to change something that’s in a collective bargaining agreement if they believe it is changing the process.

The reason why Governors own is because Governors have the authority and the bully pulpit. Pritzker himself could be taking time out of his day to be making recruiting calls if he felt the need was significant enough.

At some point the Pritzker administration might also need to figure out that some of those exempt staff they’ve retained from prior administrations do not believe in the mission and have no respect for the Office of the Governor. If the Governor is not making his appointees accountable for their failures to adequately hire and staff their agencies, then the Governor is accepting that accountability.

===Candy, if you know anyone that would come in as Tier 2, must start at the lowest salary level at their position (reminder, it is now 1a, 1b, 1c before you get to level 1) and deal with what is DCFS on a normal basis (let alone the added problems of late), please have them apply. I know of no one I would put in that position. ===

It’s almost as if neglecting this foreseeable problem has made it worse and neglecting developing an organizational culture and actually training and educating their management staff has made the whole situation worse.

If only there was some kind of executive officer who could implement sweeping changes to those structural problems /s

Comment by Candy Dogood Friday, Jul 8, 22 @ 4:31 pm