' Women, working mothers, Black workers hit hardest by economic downfall '

‘Illinois’ weak economic foundations and fiscal mismanagement were preexisting conditions that caused it to suffer a deeper COVID-19 downturn. They will also hurt its recovery.’

From the Illinois Policy Institute:

As Illinois enters 2021, the state’s economy is smaller, the COVID -19 recovery has stalled and the state’s Office of Management and Budget is projecting a budget deficit of $3.9 billion for the current fiscal year that could grow $1 billion worse.

While it is easy for state politicians to blame Illinois’ fiscal struggles on the global pandemic, Illinois’ economy has persistently underperformed the rest of the country for the past two decades. That left the state with tiny reserves, massive debts and a near-junk credit rating even before the pandemic.

Two decades of rising pension and debt service costs left Illinois with fewer and less reliable public services. Spending on child protection, mental health, state police and college aid for low-income students fell by 32%. Even state general assistance was eliminated in 2011 while state politicians approved a record income tax hike that same year.

Don’t say you weren’t warned.

 

Comments

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  • It should be noted that the Illinois Policy Institute is a libertarian non-profit group that supports small government and lower taxes. It opposed the Fair Tax Amendment to the Illinois Constitution which would have created a graduated income tax system that 41 other states have.
    The Fair Tax Amendment was rejected in a referendum in the 2020 election. If it had passed, it would have provided the state of Illinois with a windfall of enhanced revenue that would have over time pulled it out of its economic doldrums.

  • In reply to Aquinas wired:

    It’s popular to criticize IPI for its small government positions. But you can’t argue with their financial statistics and their meaning because the statistics, as in this article, come from government itself. Their opposition to the Fair Tax didn’t kill it. Many organizations did, but mainly taxpayers suspicious of government. They remember how the toll roads would eventually be free, the lottery would support education, and the income tax raise would pay off debt. The most optimistic projection of the Fair Tax was $12 billion, assuming rich people didn’t leave and Pritzker, Rauner,and friends paid on their offshore accounts, and that wouldn’t have put much of a dent in $142 billion in pension liabilities. The only hope is changing the pension system and there’s no sign of that ever happening.

  • In reply to Get out of IL now!:

    How do you know that "their opposition didn't kill it"? Tea leaves?

  • In reply to Aquinas wired:

    First of all, IPI is a website. How many people read it? Downstate? Meanwhile, the Tribune, with a much larger circulation, ran at least a half dozen articles and editorials against it. Most papers downstate were against it. Almost every business organization was against it. Taxpayer groups were against it. Most influential of all, Ken Griffin, not a member of IPI, ran millions of dollars in very effective ads against it. Pritzker also ran ads but what kind of credibility does he have with his tax avoidance toilet bowls and offshore accounts? Don’t need tea leaves to know that IPI doesn’t have that kind of clout to kill it, Ken Griffin did.

  • In reply to Aquinas wired:

    You're kidding yourself if you think a graduated income tax would have pulled out of its $140 billion pension hole plus other problems, which you describe as "doldrums."

  • Much obliged For Sharing the data..

    TargetPayandBenefits

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