State of Illinois Capital Markets Presentation
14
A Path Toward Fiscal Stability
Illinois' recent fiscal history is one of instability and uncertainty.
The budget impasse in FY2016 and FY2017 damaged the State's
reputation and relationship with entities dependent on state
payments.
✓ The backlog increased from $5 billion at the beginning of the impasse to a
peak of $16.7 billion.
✓ Late payment interest penalties from the impasse exceed $1.25 billion.
Illinois will continue to face structural deficits, including an
estimated deficit of $3.2 billion in FY2020.
✓ Structural deficits cannot be addressed by spending cuts alone.
✓ Revenue adjustments and a different approach to the payment of the state's
pension contributions are necessary.
✓ Governor Pritzker believes Illinois' fiscal health depends on the
passage of a constitutional amendment to allow for a fair income
tax system.
✓ Thirty-three states and the federal government have graduated
income tax rates based on varying income levels.
✓ Only nine states tax income at a single rate.
AL OF THE STAT
OF ILLINO
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