Current Condition and Future Concerns for Growth in Illinois’ State Revenue

Merriman, David; Wilbur-Mujtaba, Alea; Worthington , Paula; Lee, Jahun; Hu, Hiaoyan

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https://hdl.handle.net/2142/132717 Copy

Description

Title

Current Condition and Future Concerns for Growth in Illinois’ State Revenue

Author(s)

• Merriman, David
• Wilbur-Mujtaba, Alea
• Worthington , Paula
• Lee, Jahun
• Hu, Hiaoyan

Issue Date

2026-01-06

Keyword(s)

• Tax
• revenue
• Illinois
• Provider

Date of Ingest

2026-02-20T14:51:58-06:00

Abstract

Executive Summary Current Condition and Future Concerns for Growth in Illinois’ State Revenue. IGPA’s Fiscal Futures project produces annual reports analyzing Illinois’s fiscal condition and long-term trends to inform policy decisions. This report examines FY2025 revenue trends with three main findings: (1) Re-categorization of individual and corporate income tax revenues has complicated data interpretation; (2) Evidence suggests long-term decline in state sales tax revenue, though COVID-era volatility obscures clear trends; and (3) Federal policy changes will significantly decrease health-care-related funding, posing serious longer-term challenges. FY2025 Revenue Performance. Since 1998, total nominal (i.e. not adjusted for inflation) revenue has grown at almost five percent per year. As in past years, the largest categories of Illinois revenues continue to be the individual income tax, federal revenues for Medicaid, and the sales tax. Total revenues reached $93.5 billion in FY2025, up from $91.1 billion in FY2024. However, the one-year growth rate significantly lagged the long-term trend across most categories.

Type of Resource

text

Language

eng

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