SPRINGFIELD – Illinois is expected to see a $1.58 billion drop in revenue if the state’s income tax increase rolls back as planned.
Officials from the Commission on Government Forecasting and Accountability told lawmakers Tuesday the preliminary revenue forecast for the next fiscal year will be $34.4 billion. That’s down from $36 billion this year.
The drop in revenue reflects an expected decrease in the state’s income tax. The temporary hike is scheduled to drop from its current 5 percent to 3.75 percent next January. Some Democrats want the tax increase extended but many Republicans oppose it.
Gov. Pat Quinn plans to give his budget address in March. The event serves as the official opening of negotiations on the state budget, which lawmakers are tasked with passing before adjourning for the year.