Caution urged following Illinois jobs, revenue reports
(The Center Square) – A strong labor market is helping to boost Illinois tax revenues, but an economics professor says states with budget difficulties should be prepared in case unemployment rises. The Commission on Government Forecasting and Accountability said Illinois sales tax revenues grew $175 million, or 17.1% in October and corporate income tax receipts increased $100 million, or 43%. David Yaskewich, professor of economics and chair of accounting, economics and finance at Southeast Missouri State University in Cape Girardeau, said income tax and sales taxes are the primary generators of revenue at the state level. “If we have a healthy labor market where people are working, that would be something that would tend to generate revenue. So in a low unemployment period, if a state were having difficulties with its budget, that would be potentially worrisome, because if unemployment were to rise, it could only really get worse from that standpoint,” Yaskewich told The Center Square. The Illinois state budget is $55.9 billion for fiscal year 2027, up from $39 billion in 2019. The Illinois Flash Index increased from 101.5 in September to 101.7 in October, reflecting continued strength in state revenues and an improving labor market. Yaskewich said
