A University of Illinois economist says he sees evidence the state is off to a good start – but only a start – in righting its financial ship. Professor Fred Giertz told a joint revenue hearing this week the first year of the “budgeting for results” format worked well, especially when coupled with some discipline in spending.
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Giertz says the U. of I. Institute of Government and Public Affairs would not issue an estimate of state revenues, although the figures lawmakers will use to determine this year’s final estimate will be approximately $34 billion.
“I think there will probably be a strong inflow of revenue at the final payment time, in March and April,” Giertz says of the effect of last year’s income tax increase. Plus, “we were coming off an amnesty, and amnesties often do not collect a lot of net new revenue, but they change the time pattern of the revenues.”