By Andrew Thomason Illinois Statehouse News
SPRINGFIELD – Illinois could be in the position of having more money than anticipated come June.
That number might be even higher next fiscal year, according to Jim Muschinske, revenue manager for COGFA. He said at a hearing Thursday that the state should pull in $34.9 billion in general revenue for fiscal year 2012.
Having more money means fewer cuts, and it might save some people’s jobs, according to Tryon.
COGFA’s predication is more critical now than in years past because of new legislation capping how much the state can spend and requiring the budget to be based on the state’s income instead of spending wants.
The difference between the numbers comes from how much each entity believes the state’s tax base will grow and how much money will be generated by a recent personal income tax hike. Lawmakers increased the personal income tax by 67 percent in January.
Muschinske called both Quinn’s and the House’s forecast conservative, but not wrong simply because it differed from COGFA’s $34.9 billion projection for fiscal year 2012.
Even COGFA’s estimates are based on a smaller rate of growth than average for the past 15 years, according to Muschinske.
“And that takes into account two recessions,” he added.
The income tax increase and an economy groggily waking up from the recession should prop up the state’s sagging financial standing for now, according to Edward Boss Jr., chief economist for COGFA.
The nation and state are still dealing with the hangover left by the recession.
Originally reported by Illinois Statehouse News. Read the original article here.