COGFA presents budget projections and revenue estimate. The Commission on Government Forecasting and Accountability (COGFA) presented FY17 and preliminary FY18 budget projections to the House Revenue and Finance Committee this week. COGFA presented a revised revenue estimate of $33.1 billion in FY17 general funds inflows, representing a significant reduction from the FY17 preliminary estimate of $33.9 billion published by COGFA in July 2016.
COGFA’s report that revenues are falling short of projections by approximately $800 million adds to the fiscal burdens facing the State. COGFA also warned House Revenue Committee members that further extensions of these fiscal trends could further worsen this picture in FY18, the fiscal year that starts on July 1, 2017. Fiscal trends listed in this context include disappointing income tax receipts due to high unemployment and stagnant Illinois job growth, disappointing sales tax revenues, rising pension costs due to low interest rates and revisions to pension fund rates of annual return, and continued increases in the costs of Medicaid and health care for state employees.