Illinois joins about a dozen other states in losing revenue from the last quarter, according to the latest research from the Pew Charitable Trusts, but even more noteworthy is Illinois’ lack of reserves. Pew’s Fiscal 50 project indicates Illinois was one of the first states to have a revenue rebound after the great recession in 2008 but has been losing revenue over the past year, something that stretches the state’s spending power.
Meanwhile Pew’s State Fiscal Analyst Barb Rosewicz says when comparing Illinois with other states they discovered Illinois doesn’t have a great safety net of reserves. Rosewicz also says Illinois is known for it’s large unfunded public pension and retiree healthcare liability which grows while revenues diminish. Illinois is in the sixth month of the current fiscal year without a budget.