Illinois Legislative News: July 8, 2024
Third Reading Consulting Group
FY 2024 closed on June 30, 2024. Illinois ended the fiscal year with total General Funds revenues of $52.589B, down -1.0% (or -$545M) from FY 2023. However, from a base revenue perspective, the state finished the year at $51.708B, a 2.0% ($1.001B) increase over FY 2023. The base revenue calculation factors out the $2.427B in one-time revenues received in FY 2023 and the $881M in one-time revenues received in FY 2024, representing a net decline in one-time revenues of $1.546B in FY 2024. A large portion of the year-over-year decline in one-time revenues came in June. The state received $1.531B ($1.064B in ARPA funds and $1.363B in Coronavirus State and Local Fiscal Recovery Funds) in one-time revenues in June of FY 2023 but did not receive any one-time revenues this June. With 2.0% growth in base General Funds revenues, FY 2024 was the highest base revenue year in state history, while FY 2023 remains the highest total revenue year on record.
Illinois’ FY 2024 personal income tax revenue increased by 8.0% (or $2.245B), corporate income tax revenue decreased by 10.8% (or -$793M), and sales tax revenue increased by 1.0% (or $121M) over FY 2023. The increase in personal income tax and the decline in corporate income tax was expected as a part of the Department of Revenue’s true-up process, resulting in a net income tax gain of $1.452B over FY 2023. All other state revenue sources finished FY 2024 up 9.4% (or $340M) over FY 2023. This increase is in large part due to gains from interest on state funds and investments, which increased by 60.7% (or $247M) over FY 2023, benefiting from higher interest rates throughout much of the fiscal year. Inheritance Tax (estate tax) revenues also increased by 24.7% (or $124M) over last year. Transfers in decreased by 21.5% (or $698M), and base federal sources grew 2.4% (or $91M) over FY 2023.
At the time of its passage, the FY 2024 budget operated on assumed revenues of $50.611B, 3.9% below the final FY 2024 figure. COGFA and GOMB both adjusted their revenue projections throughout the fiscal year to keep up with collections above projected amounts. COGFA last revised their projection in March 2024 to a total General Funds estimate of $52.590B, only $1M below the final FY 2024 figure. GOMB similarly projected a total General Funds estimate of $52.466B in May 2024, which was $123M below than the actual FY 2024 figure. Continuing trends from the last few years, COGFA’s revenue estimates were slightly more accurate than GOMB’s, and GOMB provided the more conservative projection of the two agencies.
The enacted FY 2025 budget assumes base revenues of $53.281B, which is 1.316% (or $692M) higher than the final FY 2024 revenue figure. Notably, the FY 2025 budget adds an estimated $870M in new revenue sources, which will more than make up the difference between FY 2024 final revenues and the assumed FY 2025 budget revenues.
Important Upcoming Dates – Statewide
November 5 – 2024 General Election
November 12-14 – Veto Session Week 1
November 19-21 – Veto Session Week 2
