CHICAGO — The state of Illinois will have a projected $2.7 billion shortfall in fiscal year 2020 due to the COVID-19 crisis.
It is projected that in fiscal year 2021 that number will rise to $4.6 billion. With short term borrowing to bridge through this crisis, the total shortfall for fiscal year 2021 is $6.2 billion according to Gov. Pritzker.
That shortfall expands to $7.4 billion if the constitutional amendment to move to a graduated income tax does not pass.
COVID-19 has had a profound impact on the U.S. economy, leading to an unexpected loss of revenues across all 50 states, with early projections showing combined state budget deficits of $500 billion over the next two years.
The federal funding cannot be used for the broader impact on COVID-19 on state revenue.
“This is a public health crisis – but it is accompanied by massive economic disruption that’s unprecedented in modern history,” said Pritzker. “Illinoisans are all too familiar with the pain the lack of a state budget can cause, so let me just say up front: we will not go without a state budget.”
The federal Coronavirus Aid, Relief and Economic Security (CARES) Act is a $2 trillion disaster aid stimulus package that is estimated to provide more than $9 billion to Illinois governments for a variety of programs from education, to aid for seniors and child nutrition to transit systems.
It provides $150 billion in direct aid for COVID-19 related expenditures to the states, of which Illinois is expected to receive $4.9 billion – at least $2.7 billion to the state of Illinois directly and up to $2.2 billion to larger local governments.
Pritzker said that another stimulus bill should be passed by the federal government to assist states in this time of need.
The Illinois Department of Public Health (IDPH) Wednesday announced 1,346 new cases of coronavirus disease (COVID-19) in Illinois, including 80 additional deaths.
Currently, IDPH is reporting a total of 24,593 cases, including 948 deaths. The age of cases ranges from younger than one to older than 100 years.
