State revenues surged in previous fiscal year

State revenues surged in previous fiscal year

By PETER HANCOCK
Capitol News Illinois
phancock@capitolnewsillinois.com

SPRINGFIELD – Revenues flowing into state coffers surged in the fiscal year that ended June 30, spurred largely by an influx of federal funds, the delayed deadline for filing income tax returns last year and an economic recovery that boosted income and sales tax collections beyond what had been estimated.

A report from the Commission on Government Forecasting and Accountability, a legislative agency that monitors the budget and state revenues, showed base receipts to the General Revenue Fund jumped nearly $6.8 billion, or 17.8 percent, during the fiscal year, fueled by big increases in personal and corporate income taxes and retail sales taxes.

That growth does not include money the state borrowed from the Federal Reserve last year or any of the money the state routinely borrows on a short-term basis from other state funds.

Combined net income tax receipts, both individual and corporate, grew by more than $5.5 billion over the previous year, to a total of just over $26 billion. That was more than $1 billion more than CGFA had estimated as recently as May, and it was over $1.7 billion more than the Governor’s Office of Management and Budget had estimated.

Part of that growth, about $1.3 billion, was the result of the 2020 tax filing deadline being pushed back to July due to the pandemic, but the rest was the result of economic growth as life gradually started returning to what the report called “post-COVID normalcy.”

Sales tax receipts also grew by $1.1 billion as consumer demand, boosted by federal stimulus payments as well as an improved job market, helped lift retail spending. That was $179 million more than CGFA had forecast and $250 million more than GOMB’s estimate.

All other sources of revenue, totaling about $3.1 billion, came in lower than the previous year and below what forecasters had expected.

Transfers to the general revenue fund from the state lottery also grew by 23.3 percent, to $777 million. But that was partially offset by the fact that the no revenue from riverboat casinos was transferred to the general revenue fund during the fiscal year. In the prior fiscal year, $195 million in casino revenue was transferred to the GRF.

Illinois also saw a big increase in federal receipts, which totaled more than $4.7 billion.

“Overall, FY 2021 proved to be another challenging year for revenue estimating,” the report stated. “While the Commission performed better in the estimates related to the larger economic related sources such as personal and corporate income tax as well as sales tax, the GOMB’s projections of transfers as well as federal sources ended the fiscal year closer to actuals.”

The report also noted that Illinois borrowed $1.2 billion at the end of the past fiscal year through the Federal Reserve’s Municipal Liquidity Facility to make up for revenue the state lost during the initial phase of the pandemic. The proceeds were used to pay down Medicaid-related bills that had been pending in the comptroller’s office.

Starting in November, the state began paying back that loan and the final payment was made on June 5.

The state borrowed another $2 billion from the Fed in December to pay additional Medicaid-related bills, which drew down an additional $1 billion in federal matching funds. That borrowing is due to be paid back over three years but state officials have said that due to growing revenues, they plan to repay it entirely within the current fiscal year, which ends June 30, 2022.

The past fiscal year was also the first full year of legalized recreational marijuana in Illinois. Overall, the state took in $186 million in cannabis-related revenue, including $177 million in excise taxes and $9 million in license and registration fees.

Of that, $55.3 million was transferred to the general revenue fund, $39.5 million was used to fund criminal justice information projects and $15.8 million went to the budget stabilization fund.

 

Capitol News Illinois is a nonprofit, nonpartisan news service covering state government and distributed to more than 400 newspapers statewide. It is funded primarily by the Illinois Press Foundation and the Robert R. McCormick Foundation.

Leave a Comment





Local News

Peggy Zabicki

Brother, what a day today is

Spread the love

Spread the love. By Peggy Zabicki Your correspondent in West Lawn 3633 W. 60th Place •  (773) 504-9327 . May 24 is National Brothers Day. The word “brother” comes from the Latin root for “frater” and the Proto-Germanic word “brothar” which itself comes from the Proto-Indo-European root “bhrater.”  I’m sure everyone already knows that, but…

Mary Stanek

May your Memorial Day be meaningful

Spread the love

Spread the love. By Mary Stanek Your correspondent in Archer Heights and West Elsdon 3808 W. 57th Place •  (773) 517-7796 . I hope we all will have a meaningful Memorial Day. Let us remember that this day is set to honor military personnel who died in service of their country. Memorial Day also marks…

volleyball

Boys Volleyball | Sandburg seeks 26th regional title

Spread the love

Spread the loveBy Randy Whalen Correspondent Coming off the worst season in program history in 2023, Sandburg was not going to settle for anything less than better results this year. Past the midway point of this season, however, the Eagles had a record of 11-8. But they closed the regular season strong, winning 11 of…

Reavis players celebrate after the Rams clinched the South Suburban Red title with a 3-0 win over Oak Lawn. Photo by Xavier Sanchez

Baseball | Red-hot Reavis looks to make noise in postseason

Spread the love

Spread the loveBy Xavier Sanchez Correspondent Reavis is determined to send their head coach Don Erickson into retirement on a high note and will head into the postseason red hot and as South Suburban Red champions. The Rams defeated Oak Lawn 3-0 for the second straight day on May 15 to clinch the conference title.…

Richards alum Sebastian Castro is ranked by NFL Draft Live among the top 10 college cornerbacks heading into the 2024 NCAA football season. Photo courtesy of University of Iowa Athletics

Sports Bits | Rice boats at Carlyle Lake, Hawkeye DB and Do It Stevie’s Way

Spread the love

Spread the loveBy Jeff Vorva Correspondent Noteworthy sports briefs from May 12-19 • Brother Rice’s No. 1 boat of Joe Hall and Joe Judeh took 31st in the state bass fishing tournament, which wrapped up on May 18 at Carlyle Lake. The Crusaders had a two-day haul of 7 pounds, 12 ounces.  The Crusaders’ No.…

SRP-IMAGE-Logo

Nothing NU at SeatGeek

Spread the love

Spread the loveBy Jeff Vorva Correspondent There was speculation that because of the renovations being done at Ryan Field, Northwestern would schedule a few football games at SeatGeek Stadium in Bridgeview this fall. The Wildcats announced their schedule and no home games are listed at SeatGeek, but the situation is still fluid. They are opting…

SXU softball players celebrate a victory over Bellevue. SXU photo

College Softball | Close losses at nationals end Saint Xavier’s season

Spread the love

Spread the loveBy Jeff Vorva Correspondent The Saint Xavier softball team played three nailbiters in the opening round of the NAIA Tournament. But the end result was a 1-2 record to eliminate the Cougars from advancing. SXU (28-14) opened the tournament by nipping Bellevue (Nebraska), 5-4, in Sioux City, Iowa on May 13. Alexus Reese…

Red Stars goalie Alyssa Naeher was with the team but did not play at Gotham on May 19.  IMAGN photo

Red Stars’ Naeher misses loss to Gotham

Spread the love

Spread the loveBy Jeff Vorva Correspondent The world’s best kept secret is still a mystery. The Chicago Red Stars are not releasing information to the public about the severity of a thigh injury or the status of world-class goalie Alyssa Naeher. What is known is that she did not play in a 2-1 loss to…

CRRNH_PattiTyznik_102622

Summer calendar filling up quickly

Spread the love

Spread the love. By Patti Tyznik Your correspondent in Clearing and Garfield Ridge (708) 496-0265 • ptyznik@gmail.com . Summer is rapidly approaching, and the neighborhood is geared up for lots of great summer fun and activities. The Midway Chamber of Commerce’s farmer’s market will be opening on Wednesdays at the end of May through September…

SRP-IMAGE-Logo

Shepard’s Kyla Motley cruises to two medals at girls state track finals

Spread the love

Spread the loveBy Jeff Vorva Correspondent Shepard junior Kyla Motley medaled in two events in the Class 3A girls state track and field meet, the finals for which were held May 18 at Eastern Illinois University in Charleston. Motley finished fourth in the long jump with a leap of 18 feet, 4 inches. She finished…

Neighbors

Peggy Zabicki

Brother, what a day today is

Spread the love

Spread the love. By Peggy Zabicki Your correspondent in West Lawn 3633 W. 60th Place •  (773) 504-9327 . May 24 is National Brothers Day. The word “brother” comes from the Latin root for “frater” and the Proto-Germanic word “brothar” which itself comes from the Proto-Indo-European root “bhrater.”  I’m sure everyone already knows that, but…

Mary Stanek

May your Memorial Day be meaningful

Spread the love

Spread the love. By Mary Stanek Your correspondent in Archer Heights and West Elsdon 3808 W. 57th Place •  (773) 517-7796 . I hope we all will have a meaningful Memorial Day. Let us remember that this day is set to honor military personnel who died in service of their country. Memorial Day also marks…

volleyball

Boys Volleyball | Sandburg seeks 26th regional title

Spread the love

Spread the loveBy Randy Whalen Correspondent Coming off the worst season in program history in 2023, Sandburg was not going to settle for anything less than better results this year. Past the midway point of this season, however, the Eagles had a record of 11-8. But they closed the regular season strong, winning 11 of…

Reavis players celebrate after the Rams clinched the South Suburban Red title with a 3-0 win over Oak Lawn. Photo by Xavier Sanchez

Baseball | Red-hot Reavis looks to make noise in postseason

Spread the love

Spread the loveBy Xavier Sanchez Correspondent Reavis is determined to send their head coach Don Erickson into retirement on a high note and will head into the postseason red hot and as South Suburban Red champions. The Rams defeated Oak Lawn 3-0 for the second straight day on May 15 to clinch the conference title.…

Richards alum Sebastian Castro is ranked by NFL Draft Live among the top 10 college cornerbacks heading into the 2024 NCAA football season. Photo courtesy of University of Iowa Athletics

Sports Bits | Rice boats at Carlyle Lake, Hawkeye DB and Do It Stevie’s Way

Spread the love

Spread the loveBy Jeff Vorva Correspondent Noteworthy sports briefs from May 12-19 • Brother Rice’s No. 1 boat of Joe Hall and Joe Judeh took 31st in the state bass fishing tournament, which wrapped up on May 18 at Carlyle Lake. The Crusaders had a two-day haul of 7 pounds, 12 ounces.  The Crusaders’ No.…

SRP-IMAGE-Logo

Nothing NU at SeatGeek

Spread the love

Spread the loveBy Jeff Vorva Correspondent There was speculation that because of the renovations being done at Ryan Field, Northwestern would schedule a few football games at SeatGeek Stadium in Bridgeview this fall. The Wildcats announced their schedule and no home games are listed at SeatGeek, but the situation is still fluid. They are opting…

SXU softball players celebrate a victory over Bellevue. SXU photo

College Softball | Close losses at nationals end Saint Xavier’s season

Spread the love

Spread the loveBy Jeff Vorva Correspondent The Saint Xavier softball team played three nailbiters in the opening round of the NAIA Tournament. But the end result was a 1-2 record to eliminate the Cougars from advancing. SXU (28-14) opened the tournament by nipping Bellevue (Nebraska), 5-4, in Sioux City, Iowa on May 13. Alexus Reese…

Red Stars goalie Alyssa Naeher was with the team but did not play at Gotham on May 19.  IMAGN photo

Red Stars’ Naeher misses loss to Gotham

Spread the love

Spread the loveBy Jeff Vorva Correspondent The world’s best kept secret is still a mystery. The Chicago Red Stars are not releasing information to the public about the severity of a thigh injury or the status of world-class goalie Alyssa Naeher. What is known is that she did not play in a 2-1 loss to…

CRRNH_PattiTyznik_102622

Summer calendar filling up quickly

Spread the love

Spread the love. By Patti Tyznik Your correspondent in Clearing and Garfield Ridge (708) 496-0265 • ptyznik@gmail.com . Summer is rapidly approaching, and the neighborhood is geared up for lots of great summer fun and activities. The Midway Chamber of Commerce’s farmer’s market will be opening on Wednesdays at the end of May through September…

SRP-IMAGE-Logo

Shepard’s Kyla Motley cruises to two medals at girls state track finals

Spread the love

Spread the loveBy Jeff Vorva Correspondent Shepard junior Kyla Motley medaled in two events in the Class 3A girls state track and field meet, the finals for which were held May 18 at Eastern Illinois University in Charleston. Motley finished fourth in the long jump with a leap of 18 feet, 4 inches. She finished…