Coronavirus Could Lead To $7.4 Billion Deficit In Illinois

ILLINOIS — As the Illinois coronavirus outbreak grew by more than 1,300 new cases and 80 deaths, Gov. J.B. Pritzker said that even as the state deals with a public health crisis, officials are anticipating a massive economic impact.

"State budgets are dependent upon taxes on income, sales and other sources, including gaming and lotteries," Pritzker said. All of those sources have been "substantially disrupted" by the coronavirus and the state shutdown that closed all bars and restaurants to dine-in customers as of March 16 and all non-essential businesses as of March 21.

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On Wednesday, the governor said Illinois' state budget shortfall could hit $7.4 billion for fiscal year 2021 if the constitutional amendment to move to a graduated income tax does not pass in November.

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If the amendment passes, and with short-term borrowing to bridge the crisis, Pritzker said, the total shortfall for fiscal year 2021 is likely to be $6.2 billion, compared to the spending plan he announced in February.

"This is a public health crisis — but it is accompanied by massive economic disruption that's unprecedented in modern history," Pritzker said. "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.

"We will need to make extraordinarily difficult decisions on top of the difficult decisions we've already made, but together with the state legislature we will make them," he added. "In the midst of a pandemic, I am more resolute than ever to protect those who are suffering physical and financial hardship from it."

Meanwhile, some Illinois towns have been outspoken about the toll coronavirus is taking on local government budgets.

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Pritzker said he is taking steps to shore up the state's fiscal health:

• Earlier this month, the governor's Office of Management and Budget directed agencies to take all possible steps to manage existing resources for the remainder of fiscal year 2020 by putting on hold all non-essential purchases and operational expenditures, freezing all travel that is not mission essential, and limiting all non-essential hiring. These actions are expected to save at least $25 million for the general funds in fiscal year 2020. This is in addition to earlier efforts to identify efficiencies for the fiscal year 2021 budget, slated to save the state $750 million over the next three years.
• Working with our partners, the Comptroller and Treasurer have extended $400 million in investment borrowing agreements that were due to be repaid from the General Revenue Fund in March and April to July 2020. In coordination with the governor’s Office of Management and Budget, the comptroller has utilized interfund borrowing authority to transfer an additional $323 million in March and April to the general funds.
• The governor, comptroller and treasurer will be moving forward with the issuance of up to $1.2 billion in short-term borrowing in May under Article 9, Section 9(d) of the Constitution and Section 1.1 of the Short-Term Borrowing Act (30 ILCS 340) for situations where revenue forecasts do not meet projections. About $1 billion of the decline in revenue for fiscal year 2020 is attributable to the extension of the April 15 deadline for filing 2019 income tax returns to July 15. This action will cover funds lost due to that extension.

Pritzker said he has directed nearly $500 million in additional spending authority to the Illinois Emergency Management Agency through the emergency powers granted under the gubernatorial disaster proclamation. The funding is being used to obtain personal protective equipment for frontline workers and ventilators to treat coronavirus patients. An estimated $170 million has been spent to date, his office said.

As many Illinoisans received their stimulus payments from the federal Coronavirus Aid, Relief and Economic Security (CARES) Act, Pritzker was calling for more financial help.

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"It is absolutely critical that Congress pass another stimulus bill," he said.

More cases, more deaths

Illinois health officials are reporting 80 additional coronavirus deaths, bringing the total to 948:

• Cook County: 1 female teens, 1 male 30s, 2 males 50s, 11 females 60s, 5 males 60s, 5 females 70s, 11 males 70s, 5 females 80s, 4 males 80s, 1 female 90s, 5 males 90s, 1 female 100+, 1 male 100+
• DuPage County: 1 male 70s, 1 female 80s, 2 males 80s, 1 male 90s
• Jackson County: 1 male 80s
• Lake County: 1 male 70s, 1 female 80s, 1 male 80s, 1 male 100+
• Macon County: 1 female 70s, 2 females 80s, 1 male 80s
• McHenry County: 3 males 70s
• Monroe County: 1 female 90s
• Ogle County: 1 female 80s
• Rock Island County: 1 male 50s
• St. Clair County: 1 male 80s, 1 female 90s
• Whiteside County: 1 male 70s
• Will County: 1 female 50s, 1 male 50s, 1 male 60s, 1 female 70s

The state total is at 24,593 confirmed coronavirus cases.