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by Ellyn Fortino
5:34pm
Wed Dec 3, 2014

Report: Illinois State Revenue Drop Could Harm Homeless Prevention Efforts

An expected drop in next year's state revenue could spell trouble for an important Illinois homeless prevention program and other crucial supports if Springfield lawmakers fail to take action, advocates are warning.

The state's 2011 temporary income tax increase is slated to sunset starting in January, resulting in a more than a $2 billion revenue decline in the current fiscal year, according to a new analysis by the Fiscal Policy Center at Voices for Illinois Children. In the next fiscal year, state revenue could fall by about $5.4 billion if the tax hike isn't renewed, according to the group.

If the income tax hike expires as planned, legislators might be forced to cut funding for anti-homelessness and other non-mandated programs by an average of 25 percent in order to balance the budget for fiscal year 2016, which begins in July, the center's analysis shows. Average cuts could reach 33 percent if the Illinois Supreme Court strikes down the state's 2013 pension reform overhaul, which is expected to save $1 billion next fiscal year.

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