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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 SUBJECT
State Fiscal System State Budget Structural Deficit Revenue Options Property Tax Sales Tax Estate Tax Human Services Budget Education Budget Environment Illinois Lottery National Comparisons
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.
Analysis of the Fiscal Year 2008 Illinois General Fund Budget Proposal
Comparison of HB/SB 750 and the Gross Receipts Tax proposal CTBA Presentation on the Illinois Budget and Revenue System Private Sector Job Trends and The Illinois Structural Deficit: 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. An Analysis of the Sale of the State of Illinois Lottery/School Funding Proposal CTBA’s analysis of the proposed sale or lease of the State of Illinois Lottery to generate revenue for funding education.
Analysis of the Illinois FY 2007 Budget Proposal 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.
Fiscal Year 2005 – 2006 Illinois Budget Comparison
Illinois Has Cut Real Spending on All Services Except Health Care, Pensions and Education Since 1995
Revenue Underperformance is the Primary Cause of Illinois’ Chronic Budget Deficits
Human Services Suffer Substantial Funding Cuts Annually
Illinois Must Expand its Sales Tax Base to Reflect the Modern Economy Necessary to Achieve Adequate and Stable State Revenue
P.A. 93-0030: Decoupling from the Estate Tax Saves Illinois $1.5 billion
Analysis of the Illinois FY 2005 Enacted Budget
Illinois FY 2005 State Budget Deficit
Analysis of the FY 2005 Illinois Education Budget Public schools take one step forward, three steps backward in Fiscal Year 2005 Illinois State Budget
Analysis of the FY 2004 Enacted Budget
National Comparison of State Corporate Income Tax Rates
National Comparison of State and Local Tax Burden
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