Illinois' general fund is expected to bring in more than $1 billion less in this fiscal year than it did last year.
The Commission on Government Forecasting and Accountability's (COGFA) July report said Illinois can expect to work with fewer funds. The majority of the shortfall is due to federal Medicaid funds being unavailable, but analysts said the state is expected to see $338 million less in general revenue from corporate, sales and personal income tax channels.
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COGFA analyst Jim Muschinske said that projection is a combination of higher-than- expected tax return payouts in the spring and Illinois' lackluster business growth leading to less corporate tax revenue.
Gov. Bruce Rauner said those numbers will fluctuate, but Illinois' economy should be doing better.
"We should be booming," Rauner said. "We should be doing better than Texas, Tennessee, better than Indiana. They're growing faster than us. We need to become much more of a growth economy. That's what our reforms are about. Growing the Illinois economy."
State Rep. David Harris (R-Arlington Heights) said the state has got to rein itself in since there will be less to spend.
"Fiscal year '17 revenue is lower than what was expected,” he said. “That's a cause for concern. We are spending more money than we are taking in."