This week, Illinois State Senator Craig Wilcox came after Democrats in the state over their handling of COVID relief funding, which he says is irresponsible and the primary cause of Illinois' poor financial outlook.
According to Wilcox, Democrats made a mistake by relying on one-time funding to fund long-term programs.
In a Facebook post, Wilcox said, "During the budget debate for the FY23 spending plan (increases operational, year-to-year spending by almost $3 billion) we urged Democrats NOT to rely on one-time COVID relief funds and associated revenues for ongoing spending. They passed the budget anyway. Now a report has been issued that says the same thing: states need to be careful not to use COVID-related funds for operational expenses. This is the exact kind of irresponsible spending habit that has driven Illinois' finances into the ground."
A report conducted by the Volcker Alliance in Illinois appears to confirm Wilcox's claims. It said that Illinois "has a potential for a fiscal cliff", largely thanks to its track record of using one-time revenue sources to pay for recurring expenses.
In 2019, Illinois had the fourth highest outstanding government debt in the country, according to Statista. At that time, the state's debt stood at $165.1 billion, which is less than only California's.
According to Forbes, state governments with large debts and deficits are at increased risk of worsening inflation, which is already heavily affecting residents in Illinois. A WalletHub report found that Illinois taxpayers shoulder the highest tax burden in the nation.
Alerts Sign-up