Prairie State Wire

Illinois' estimated spending budget is $40 billion a fiscal year and its emergency fund of $1.9 million would take about 15 minutes to spend, according to the Illinois Policy Center. 

Concerns are rising from federal to state levels with potential recession talk due to the economic impact of the coronavirus.  

Each state should technically have a month's budget supply to help in these circumstances, but the Illinois Capitol's reform resistance and less than frugal spending habits have made the state residents vulnerable, according to Illinois Policy Center.

Illinois was one of two states to get a D- grade by the Volcker Alliance for the amount in their emergency funds. The other was Kansas. This grading reflects Illinois' lack of using recurring revenue to cover recurring expenses and their pension debt that is estimated to be somewhere in the $200 billion range. 

"Across America, states have benefited mightily from the longest economic recovery since the mid-nineteenth century," the Volcker Alliance said, according to Illinois Policy Center. "Total state expenditures reached $2.1 trillion in fiscal 2019, equivalent to about 10% of U.S. gross domestic product, and states' spending of their own funds, excluding federal transfers, was the highest since the Great Recession. The recovery is reflected in a widespread improvement in our third annual evaluation of the budgetary practices of all 50 states."

Unfortunately, history proves that Illinois just doesn't know how save. According to the Illinois Policy Center, their emergency fund averages 0.8% of revenue, with only $98,000 in 2018. Experts indicate states should have at least 5% of their annual revenues.

With bars and restaurants being ordered to close their doors March 15 by Gov. J.B. Pritzker, some are already asking for tax breaks. Though the state constitution allows borrowing up to 15% of revenues in an emergency, it has to be paid back within a year.