{"id":2337105,"date":"2024-09-05T09:10:01","date_gmt":"2024-09-05T13:10:01","guid":{"rendered":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/illinois-one-of-six-states-with-long-term-deficits-study-washington-examiner\/"},"modified":"2024-09-05T09:14:25","modified_gmt":"2024-09-05T13:14:25","slug":"illinois-one-of-six-states-with-long-term-deficits-study-washington-examiner","status":"publish","type":"post","link":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/illinois-one-of-six-states-with-long-term-deficits-study-washington-examiner\/","title":{"rendered":"Illinois one of six states with long-term deficits: Study &#8211; Washington Examiner"},"content":{"rendered":"<aside class=\"mashsb-container mashsb-main mashsb-stretched\"><div class=\"mashsb-box\"><div class=\"mashsb-count mash-medium\" style=\"float:left\"><div class=\"counts mashsbcount\">24<\/div><span class=\"mashsb-sharetext\">SHARES<\/span><\/div><div class=\"mashsb-buttons\"><a class=\"mashicon-facebook mash-medium mash-nomargin mashsb-noshadow\" href=\"https:\/\/www.facebook.com\/sharer.php?u=https%3A%2F%2Fwww.conservativenewsdaily.net%2Fbreaking-news%2Fillinois-one-of-six-states-with-long-term-deficits-study-washington-examiner%2F\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Facebook<\/span><\/a><a class=\"mashicon-twitter mash-medium mash-nomargin mashsb-noshadow\" href=\"https:\/\/twitter.com\/intent\/tweet?text=&amp;url=https:\/\/www.conservativenewsdaily.net\/breaking-news\/?p=2337105&amp;via=ConservNewsDly\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Twitter<\/span><\/a><a class=\"mashicon-subscribe mash-medium mash-nomargin mashsb-noshadow\" href=\"#\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Subscribe<\/span><\/a><div class=\"onoffswitch2 mash-medium mashsb-noshadow\" style=\"display:none\"><\/div><\/div>\n            <\/div>\n                <div style=\"clear:both\"><\/div><\/aside>\n            <!-- Share buttons by mashshare.net - Version: 4.0.47--><p>A recent report \u2063from Pew Charitable Trusts reveals that Illinois is among six states experiencing long-term \u2063budget deficits, despite achieving a budget surplus \u200cin fiscal year 2022 for the first time in decades. The report indicates that\u2062 only \u200dtwo states\u200d had annual deficits in 2022, marking a record low for the nation. However, Illinois&#8217;s surplus was substantial yet insufficient to significantly alleviate its chronic financial issues. This persistent deficit \u2064has led Illinois lawmakers to defer payments to vendors for over a decade, causing the \u2062backlog to reach a peak of $17 \u2063billion. Consequently, while there is some optimism regarding fiscal improvements, the overall <a href=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/electric-truck-company-to-pay-125-million-settlement-for-misleading-investors\/\" title=\"Electric Truck Company To Pay 5 Million Settlement for Misleading Investors\">financial outlook<\/a> for Illinois remains concerning.  <\/p>\n<p class=\"readmore\">\n    <button onclick=\"showReadMore()\" id=\"readmorebtn\">Read more&#8230;<\/button>\n<\/p>\n<hr id=\"line\">\n<span id=\"more\"><\/p>\n<p><?xml encoding=\"utf-8\" ?><?xml encoding=\"utf-8\" ?><?xml encoding=\"utf-8\" ?><?xml encoding=\"utf-8\" ?><?xml encoding=\"utf-8\" ?><?xml encoding=\"utf-8\" ?><\/p>\n<div class=\"tdb-block-inner td-fix-index\"><span class=\"tdb-mobile-menu-button\"><i class=\"tdb-mobile-menu-icon td-icon-mobile\"><\/i><\/span><\/div>\n<div class=\"tdb-block-inner td-fix-index\"><span class=\"tdb-header-search-button-mob dropdown-toggle\" data-toggle=\"dropdown\"><i class=\"tdb-mobile-search-icon td-icon-search\"><\/i><\/span><\/div>\n<div class=\"tdb-block-inner td-fix-index\"><\/div>\n<div class=\"tdb-block-inner td-fix-index\"><span class=\"tdb-mobile-menu-button\"><i class=\"tdb-mobile-menu-icon td-icon-mobile\"><\/i><\/span><\/div>\n<div class=\"tdb-block-inner td-fix-index\">\n<div class=\"tdb-drop-down-search\" aria-labelledby=\"td-header-search-button\">\n<div class=\"tdb-drop-down-search-inner\">\n<form method=\"get\" class=\"tdb-search-form\" action=\"https:\/\/www.washingtonexaminer.com\/\"><\/form>\n<div class=\"tdb-aj-search\"><\/div>\n<\/div>\n<\/div>\n<p><a href=\"http:\/\/www.washingtonexaminer.com\/#\" role=\"button\" aria-label=\"Search\" class=\"tdb-head-search-btn dropdown-toggle\" data-toggle=\"dropdown\"><i class=\"tdb-search-icon td-icon-search\"><\/i><\/a><\/div>\n<div class=\"tdb-block-inner td-fix-index\"><\/div>\n<div class=\"tdb-block-inner td-fix-index\">\n<h1 class=\"tdb-title-text\">Illinois one of six states with <a href=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/bipartisan-caucus-proposes-plan-to-avoid-default-if-biden-mccarthy-fail-to-reach-debt-ceiling-deal\/\" title=\"Bipartisan Caucus Proposes Plan to Avoid Default If Biden, McCarthy Fail to Reach Debt-Ceiling Deal\">long-term deficits<\/a>: Study<\/h1>\n<div><\/div>\n<div class=\"tdb-title-line\"><\/div>\n<\/div>\n<div class=\"tdb-block-inner td-fix-index\"><\/div>\n<div class=\"tdb-block-inner td-fix-index\"><\/div>\n<div class=\"tdb-block-inner td-fix-index\">\n<div id=\"Brid_1746414\" class=\"tpd-featured-video bridtv\"><\/div>\n<p>(The Center Square) &ndash;&nbsp;A new report highlights just how bad the state of Illinois has been with the budgetary process over the years.&nbsp;<\/p>\n<div class=\"article-paywall\">\n<p>Pew Charitable Trusts found only two states with annual deficits in fiscal year 2022, a record low. Senior associate Page Forrest said Illinois is one of just six states that recorded a 15-year shortfall at the end of fiscal 2022.<\/p>\n<p>&ldquo;The good news is that fiscal year &lsquo;22 is the first time in at least two decades that Illinois recorded an annual surplus,&rdquo; said Forrest. &ldquo;The bad news is that the surplus, while substantial, wasn&rsquo;t enough to move the needle for the state long term.&rdquo;<\/p>\n<p>The&nbsp;<strong><a href=\"http:\/\/admin-newyork1.bloxcms.com\/03\/number-of-states-with-annual-deficits-hit-record-low-in-fiscal-year-2022\" target=\"_blank\" rel=\"noreferrer noopener\">report<\/a><\/strong>&nbsp;notes that because of chronic deficits, Illinois lawmakers regularly delayed payments to hundreds of vendors for more than a decade. This only made the problem worse, with the backlog peaking at $17 billion in 2017 because Illinois pays up to 12% annual interest on unpaid bills.&nbsp;<\/p>\n<p>At the beginning of the pandemic, the federal government quickly approved financial support to states facing a slump in <a href=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/irs-asks-congress-for-authority-to-collect-cryptocurrency-information\/\" title=\"IRS Asks Congress For Authority To Collect Cryptocurrency Information\">tax collections<\/a> and a spike in spending demands. But despite the <a href=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/gop-senators-blast-biden-admin-on-school-reopening-efforts\/\" title=\"GOP senators blast Biden admin. on school reopening efforts\">additional <a href=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/calif-officials-say-10-of-states-unemployment-payments-linked-to-fraud\/\" title=\"Calif. officials say 10% of state\u2019s unemployment payments linked to fraud\">federal funds<\/a><\/a>, 19 states, including Illinois, closed fiscal 2020 with an annual deficit, the most states since the Great Recession.<\/p>\n<p>In 2021-2022, there was a quick recovery with massive surpluses across the country.<\/p>\n<p>&ldquo;Several states benefited from the revenue wave, including Illinois, and this wave was characterized by huge surges in tax revenue as well as an increase in federal funds,&rdquo; said Forrest.&nbsp;<\/p>\n<p>Pew said that states can withstand periodic deficits without endangering their fiscal health over the long run, but chronic shortfalls are one indication of a more entrenched structural deficit in which, without policy action to correct the imbalance, revenue will continue to fall short of spending.<\/p>\n<p>Nationally, state tax revenue rose 1.8% in the fourth quarter of 2023, but if you exclude California, state tax collections continued to fall. As a result, the fourth quarter saw an increasing number of states underperforming their long-term trends.&nbsp;<\/p>\n<\/div>\n<p> <script data-cfasync=\"false\" src=\"http:\/\/www.washingtonexaminer.com\/cdn-cgi\/scripts\/5c5dd728\/cloudflare-static\/email-decode.min.js\"><\/script><script>!function(){var g=window;g.googletag=g.googletag||{},g.googletag.cmd=g.googletag.cmd||[],g.googletag.cmd.push(function(){g.googletag.pubads().setTargeting(\"has-featured-video\",\"true\")})}();<\/script><script>var _bp=_bp||[];_bp.push({\"div\":\"Brid_1746414\",\"obj\":{\"id\":\"27789\",\"width\":\"1280\",\"height\":\"720\",\"stickyDirection\":\"below\",\"video\":\"1746414\"}});<\/script><script defer src=\"https:\/\/services.brid.tv\/player\/build\/brid.min.js\"><\/script><\/div>\n<div class=\"tdb-block-inner td-fix-index\"><\/div>\n<div class=\"tdb-block-inner td-fix-index\"><\/div>\n<p><\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Illinois is one of six states facing long-term deficits, according to a new study by Pew Charitable Trusts. The report reveals the ongoing challenges Illinois has encountered in managing its budget. In fiscal year 2022, only two states reported annual deficits, marking a historic low. Page Forrest, a senior associate at Pew, noted that Illinois is among just six states that experienced a 15-year shortfall by the end of fiscal 2022. While he pointed out that fiscal year &#8217;22 was the first time in two decades that Illinois achieved an annual surplus, he also emphasized that this surplus was significant but insufficient to address the state&#8217;s long-term financial issues. The report highlights how chronic deficits have led Illinois lawmakers to postpone payments to numerous vendors for over ten years, exacerbating the situation and resulting in a peak backlog of $17 billion in 2017 due to high interest rates on unpaid bills. During the onset of the pandemic, federal assistance was quickly provided to states grappling with declining tax revenues and increased spending demands; however, despite this support, 19 states\u2014including Illinois\u2014ended fiscal 2020 with an annual deficit\u2014the highest number since the Great Recession. A recovery occurred in 2021-2022 as many states saw substantial surpluses fueled by significant increases in tax revenue and federal funding; Forrest noted that Illinois benefited from this revenue surge as well. Pew indicated that while occasional deficits can be managed without jeopardizing long-term financial health, persistent shortfalls may signal deeper structural issues requiring policy intervention to rectify imbalances between revenue and expenditures. Nationally, state tax revenues rose by 1.8% in Q4 of 2023; however, excluding California showed continued declines in collections across other states leading to more underperforming entities relative to their historical trends<\/p>\n","protected":false},"author":1,"featured_media":2337106,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_mo_disable_npp":"","fifu_image_url":"https:\/\/www.washingtonexaminer.com\/wp-content\/uploads\/2024\/07\/illinois-state-capitol.webp","fifu_image_alt":"","footnotes":""},"categories":[],"tags":[40168,6413,40167],"class_list":["post-2337105","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","tag-budget-crisis","tag-illinois","tag-long-term-deficits"],"fifu_image_url":"https:\/\/www.washingtonexaminer.com\/wp-content\/uploads\/2024\/07\/illinois-state-capitol.webp","_links":{"self":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts\/2337105","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/comments?post=2337105"}],"version-history":[{"count":0,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts\/2337105\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/media\/2337106"}],"wp:attachment":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/media?parent=2337105"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/categories?post=2337105"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/tags?post=2337105"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}