COVID - 19’s Impact on the IL State Budget
This is unlike anything we’ve experienced, and it’s going to take patience and flexibility to recover.” - Senate President Don Harmon
Last month, Governor Pritzker issued a stay-at-home order in Illinois in response to the coronavirus. In the three weeks that have passed, leaders and experts have had to navigate the virus’ impact on public health and the economy..
The sheer speed of the virus’ impact continues to confuse experts and lawmakers alike. In its latest monthly update, the state’s Commission on Government Forecasting and Accountability (COGFA) described as much, saying, “it is clear that economic forecasters are predicting a severe slowdown in the economy—but the depth and length of the slowdown is unknown.”
In reviewing several economic outlooks from sources like Moody’s and Wells Fargo, COGFA posited a significant contraction of Illinois’ economy and a continuous surge in unemployment. In a twist of irony, this comes after cautiously optimistic trends for Illinois, namely increases in state revenues.
Months into his new role as Senate President, Don Harmon (D) finds himself with his hands full. Arising to the challenge Harmon has put together 17 working groups of senators from both parties to address a number of policy areas, per Politico. Each group will focus on three categories of actions: virus-related interventions, nonvirus-related interventions needed now, and actions that can be shelved until the pandemic passes.
Still, there’s only so much a governing body can do at this stage. In a conversation with the Center, Harmon explained that frustrating reality.
“The truth is I don’t think we understand the breadth and depth of this crisis yet, but we recognize we’re going to have to be there when it’s all over,” he said.
The state budget has been tossed into chaos. In its monthly report for March, COGFA explained that the full economic effects of the virus won’t be known until the last quarter of Fiscal Year 2020. Projecting revenues for the following year will likely be similarly challenging, as income tax filings and returns are delayed. This puts Gov. Pritzker’s proposed budget for FY21 on hold , at best and more likely in do-over mode.
“In February, the Governor proposed a $42 billion budget plan,” Harmon said. “Even he has said the numbers used to create that plan are essentially out the window because of this pandemic. Not only are revenues going to be down, but the state’s aggressive response to this pandemic is something no one could have budgeted for.”
Elsewhere in Illinois, legislators face issues specific to their districts. Rep. Patrick Windhorst (R) of the southern 118th District of Metropolis expressed concerns shared among rural areas. “We’re already hurting. This has put an added burden on local businesses,” said Windhorst. “Will they be able to survive after being closed for several months? These are questions we face every day. It’s a big challenge. For those out of work, that uncertainty is heightened.”
Top-down aid for Illinois communities is on its way: when Congress passed a $2 trillion stimulus package with much of the money earmarked for state government responses to the virus. However, like most everything else related to the pandemic, the potency of this aid feels unpredictable.
In recent weeks, municipalities large and small have sounded the alarm as local revenues continue to shrink. With businesses closing indefinitely or for good, local funds will only dwindle. Optimism and certainty seem difficult to come by. The federal stimulus, though historically large, doesn’t necessarily provide much guidance for state lawmakers going forward.
“That’s the $2 trillion dollar question,” Senate President Harmon said. “Obviously any assistance is better than no assistance. Given the size and scope of the federal relief plan, and that it comes during an ongoing and growing pandemic, there’s a lot for Illinois other states to decipher.”
“This is unlike anything we’ve experienced, and it’s going to take patience and flexibility to recover.”
With so much up in the air, Illinoisans across the state have pitched in to support their neighbors as their lawmakers begin to handle the mechanisms of budgeting and legislating. At the end of the day, that’s all many of us can do, according to Harmon.
“Right now, however, what’s important is that we focus on following the stay-at-home order and social distancing to do our part to help health care professionals manage this outbreak," Harmon said.
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Last month, Governor Pritzker issued a stay-at-home order in Illinois in response to the coronavirus. In the three weeks that have passed, leaders and experts have had to navigate the virus’ impact on public health and the economy..
The sheer speed of the virus’ impact continues to confuse experts and lawmakers alike. In its latest monthly update, the state’s Commission on Government Forecasting and Accountability (COGFA) described as much, saying, “it is clear that economic forecasters are predicting a severe slowdown in the economy—but the depth and length of the slowdown is unknown.”
In reviewing several economic outlooks from sources like Moody’s and Wells Fargo, COGFA posited a significant contraction of Illinois’ economy and a continuous surge in unemployment. In a twist of irony, this comes after cautiously optimistic trends for Illinois, namely increases in state revenues.
Months into his new role as Senate President, Don Harmon (D) finds himself with his hands full. Arising to the challenge Harmon has put together 17 working groups of senators from both parties to address a number of policy areas, per Politico. Each group will focus on three categories of actions: virus-related interventions, nonvirus-related interventions needed now, and actions that can be shelved until the pandemic passes.
Still, there’s only so much a governing body can do at this stage. In a conversation with the Center, Harmon explained that frustrating reality.
“The truth is I don’t think we understand the breadth and depth of this crisis yet, but we recognize we’re going to have to be there when it’s all over,” he said.
The state budget has been tossed into chaos. In its monthly report for March, COGFA explained that the full economic effects of the virus won’t be known until the last quarter of Fiscal Year 2020. Projecting revenues for the following year will likely be similarly challenging, as income tax filings and returns are delayed. This puts Gov. Pritzker’s proposed budget for FY21 on hold , at best and more likely in do-over mode.
“In February, the Governor proposed a $42 billion budget plan,” Harmon said. “Even he has said the numbers used to create that plan are essentially out the window because of this pandemic. Not only are revenues going to be down, but the state’s aggressive response to this pandemic is something no one could have budgeted for.”
Elsewhere in Illinois, legislators face issues specific to their districts. Rep. Patrick Windhorst (R) of the southern 118th District of Metropolis expressed concerns shared among rural areas. “We’re already hurting. This has put an added burden on local businesses,” said Windhorst. “Will they be able to survive after being closed for several months? These are questions we face every day. It’s a big challenge. For those out of work, that uncertainty is heightened.”
Top-down aid for Illinois communities is on its way: when Congress passed a $2 trillion stimulus package with much of the money earmarked for state government responses to the virus. However, like most everything else related to the pandemic, the potency of this aid feels unpredictable.
In recent weeks, municipalities large and small have sounded the alarm as local revenues continue to shrink. With businesses closing indefinitely or for good, local funds will only dwindle. Optimism and certainty seem difficult to come by. The federal stimulus, though historically large, doesn’t necessarily provide much guidance for state lawmakers going forward.
“That’s the $2 trillion dollar question,” Senate President Harmon said. “Obviously any assistance is better than no assistance. Given the size and scope of the federal relief plan, and that it comes during an ongoing and growing pandemic, there’s a lot for Illinois other states to decipher.”
“This is unlike anything we’ve experienced, and it’s going to take patience and flexibility to recover.”
With so much up in the air, Illinoisans across the state have pitched in to support their neighbors as their lawmakers begin to handle the mechanisms of budgeting and legislating. At the end of the day, that’s all many of us can do, according to Harmon.
“Right now, however, what’s important is that we focus on following the stay-at-home order and social distancing to do our part to help health care professionals manage this outbreak," Harmon said.
Recent reports
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