COVID-19 expected to cause multibillion revenue shortfall for Illinois
Financial experts estimate the new coronavirus pandemic will create a revenue shortfall of at least $7.3 billion over the next two fiscal years, Gov. JB Pritzker said Wednesday.
The estimates include $2.7 billion in the current fiscal year, which runs through the end of June, and $4.6 billion next fiscal year. The shortfall for the next fiscal year could rise to $7.4 billion if the constitutional amendment to move to a graduated income tax does not pass in the November election.
“This is a public health crisis, but it is accompanied by a massive economic disruption that’s unprecedented in modern history,” Pritzker said. He has asked agency directors to enact “spending reductions and efficiencies.”
Additionally, Pritzker said his administration is working with Comptroller Susana Mendoza and Treasurer Michael Frerichs to leverage over $700 million in other state funds to support state government operations.
The state will also move forward with borrowing $1.2 billion next month to cover its operations. The short-term borrowing will help cover the loss of roughly $1 billion from extending the tax filing day to July.
Pritzker also called on the federal government to approve another stimulus package that would provide aid to local governments. Funds from the $2 trillion stimulus package approved last month can only be used for new public health spending, he said.
Officials reported another 80 deaths Wednesday, bringing the state’s total to 948. There were 1,346 new COVID-19 cases reported on Wednesday, taking the state’s total to 24,593 cases in 89 counties.
There have been 116,929 total tests.
Pritzker told reporters that he was open to following New York’s lead in requiring individuals to wear masks or face coverings in public whenever social distancing was not possible.
“When I look at the mitigation measures that we should be contemplating and making adjustments to, that is one that I think might be seriously important for us to consider in the period going forward,” Pritzker said.
Pritzker also said he wants to boost contact tracing in the state, highlighting efforts underway in Massachusetts.
He is still weighing what steps need to be taken by April 30 to either lift or extend the stay-at-home order. While he questioned whether local counties and health departments should be able to lift the order themselves, he said there are options to make adjustments to better assist rural or urban communities.
Specifically, he mentioned how most agriculture-related industries are essential businesses under the order, which came at the request of downstate officials.
“So we are thinking about how to make differences between urban and rural communities, recognize those differences and let as many people work as possible without endangering people’s lives,” Pritzker said.
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