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* From the Commission on Government Forecasting and Accountability’s monthly report…
Year to Date
With January’s overall decline of $35 million, the year-to-date General Funds total through the first seven months of the year is identical to last year at $29.505 billion. This total includes transactions the Commission has classified as “one-time” revenues including $633 million in Federal matching dollars in FY 2024; a total of $248 million in transfers from excess P.A. 102-700 funds in FY 2024; and $65 million in Federal Stimulus funds that trickled into FY 2025. Excluding these “one-time” revenues, Base revenues are a respectable $816 million or +2.8% above last year’s levels through January.
Revenues from the Personal Income Tax are now $1.293 billion or +8.2% above last year’s levels through January. On a net basis, the gains are slightly weaker at $1.099 billion. While the Personal Income Tax continues to perform well, Corporate Income Tax receipts continue to struggle. These receipts are now down $477 million through January – a decline of -14.1%. On a net basis, the falloff only improves slightly to -$383 million. These important revenue sources will be watched closely as we enter into the revenue-heavy final tax payment period in the upcoming months.
Sales Tax gross receipts are now down $71 or -1.0% through January. However, on a net basis, this seven-month comparison improves to a small gain of $40 million or +0.6% when accounting for non-General Funds distributions.
In the category of All Other State Sources, revenues are now collectively up $188 million or +9.4% through January. Continuing to lead this category of revenues is Interest on State Funds & Investments, which is now $88 million higher year to date. Other increases have come from Insurance Taxes and Fees [+$77 million]; Public Utility Taxes [+$22 million]; and Other Sources [+$35 million]. These gains have offset year-to-date declines in the Estate Tax [-$26 million]; the Corporate Franchise Tax [-$4 million]; the Cigarette Tax [-$3 million]; and the Liquor Tax [-$1 million].
Transfers In are now $287 million behind last year’s seven-month totals when including January’s declines. The main reason for this is because the Income Tax Refund Fund Transfer in FY 2025 was $302 million less than the FY 2024 amount. Lottery Transfers [-$55 million] and Other Transfers [-$30 million] also continue to trail last year’s pace. These declines have offset the $20 million rise in casino-related Gaming Transfers; the $2 million increase in Cannabis Transfers, and the $78 million in new revenues from the Sports Wagering Transfer. Again, the Commission does not include in its comparison $248 million in FY 2024 transfers received from excess P.A. 102-700 funding. These amounts are shown at the bottom of the accompanying tables as part of non-base receipts.
When including January’s growth, base Federal Sources are now $160 million or +6.7% above last year’s levels. However, if including the $633 million in one-time federal matching dollars received in FY 2024 and the $65 million in ARPA funds received this fiscal year, overall federal receipts are a combined $408 million behind last year’s levels through January
posted by Rich Miller
Tuesday, Feb 4, 25 @ 10:49 am
Previous Post: An odd way to push a bill in Illinois, of all places (Updated)
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Seeing how the estate tax generates such little revenue- wouldn’t it make sense to either raise the exemptions to match the Fed rate or eliminate it entirely in terms of removing an incentive for impacted individuals to move out of Illinois?
Comment by Sue Tuesday, Feb 4, 25 @ 11:48 am
The State minimum wage is no longer $3.35 but $15 an hour. If the State raised the alcohol excise taxes in a similar manner the State would incur a revenue increase of $1.2 billion.
Comment by Peter Kowalski in Champaign Tuesday, Feb 4, 25 @ 12:28 pm
I don’t know what you’re smoking Peter Kowalski in Champaign but FY2024 Liquor (beer, wine, and spirits) tax revenue was about $184M and multiplier from $3.35 to $15 is roughly 4.5x and 4.5 x $184M does not equal $1.2 billion.
In conclusion raising Illinois’s already regionally leading taxes on beer, wine, and spirits doesn’t add up in many ways.
Comment by ChicagoBars Tuesday, Feb 4, 25 @ 1:16 pm
==Continuing to lead this category of revenues is Interest on State Funds & Investments, which is now $88 million higher year to date.==
It has brought in $467 million so far this fiscal year, more than the estate tax. I wouldn’t mind some of this going towards pensions until they reach funding levels.
Comment by supplied_demand Tuesday, Feb 4, 25 @ 2:05 pm