Budget, Tax & Revenue
Public services in Illinois, from education to public safety, are in trouble. The problem is not spending, Illinois is a low spending state ranking 42nd nationally, the trouble is the state’s revenue system was developed decades ago and cannot deal with the costs of funding public services in the 21st century. Illinois has a tax system so antiquated it does not grow with the economy and is one of the most unfair systems in the nation, placing a larger tax burden on low and middle-income residents. This means state funding for public services like education and public safety is unable to grow with inflation and is often cut from year to year.
The Center for Tax and Budget Accountability analyzes these budget, tax and revenue challenges facing Illinois to highlight fiscal policies that are both unsound and place an unfair burden on low and middle income residents. Additionally, CTBA identifies structural budget issues and possible solutions to ensure that essential state government services are adequately funded and that the state’s tax burden falls fairly upon all Illinoisans. CTBA also works with coalitions, government officials and elected representatives to promote fair fiscal policies that will benefit all residents of Illinois.
Analysis & Reports
State Fiscal System
Human Services Budget
Revenue Options, Initiatives and Enhancements for Illinois
Eleven revenue alternatives, initiatives and enhancements Illinois lawmakers should consider.
Written supplement to oral testimony provided by Ralph Martire to the House Revenue Committee during its subject matter hearing on tax fairness held on April 17, 2007.
What Illinois’ Changing Economy Means For The Demand For Public Services and The State’s Fiscal Capacity to Fund Them
An analysis of the state's fiscal system finds that Illinois’ state deficit will increase to more than $6 Billion over the next five years, without adding or expanding any programs. This deficit increase is the result of a tax system that does not generate enough revenue to continue funding the current level of public services into the future, adjusting solely for inflation and population growth. This fiscal mismatch is called a “structural deficit”.
In addition to an unsustainable state revenue system, the study also found that increasing the number of high paying jobs in the state will not solve the problem. This limited impact of high paying jobs on the state’s ability to generate revenue is a direct result of the longstanding structural flaws in the state fiscal system that severely limit Illinois' ability to generate revenue that responds adequately to economic growth.
CTBA’s analysis of the proposed sale or lease of the State of Illinois Lottery to generate revenue for funding education.
Analysis shows forecasts of combined state and local revenue underperforms inflation by $53 million, the proposed FY 2007 budget has projected expenditures that exceed projected revenue by $550 million and at least $3.1 billion of proposed expenditures on public services in the FY 2007 budget will be paid for with debt.
Necessary to Achieve Adequate and Stable State Revenue
Public schools take one step forward, three steps backward in Fiscal Year 2005 Illinois State Budget