Depending on which estimate you believe, the state of Illinois will take in either $34.4 billion or $35.1 billion in the 12 months beginning July 1.
The Commission on Government Forecasting and Accountability predicts the state will lose $1.58 billion next fiscal year because the state’s income tax rate will drop from 5 percent to 3.75 percent at the end of 2014.
The work of putting together a budget is under way. The lower estimate comes from COGFA the higher one comes from the Governor’s Office of Management and Budget. Representatives of both groups testified Tuesday to a joint session of two House committees.
Differences in income from federal funds and from income tax revenue account for the $727 million variation, Hans Zigmund of the Illinois Department of Revenue told lawmakers.
Later in the day, during debate over moving the governor’s budget speech five weeks back, House Speaker Mike Madigan (D-Chicago) took the microphone on the floor.
“Indeed, there are unusual circumstances facing the governor; the biggest being the fact that the increase in the income tax is scheduled to expire in January of 2015,” he said, “which obviously will complicate his preparation of the budget address.”
Madigan said appropriations committees will do their work immediately and not wait for the governor.