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An Essential Step Toward Resolving the State Fiscal Crisis

The recently enacted income tax increase is an essential step toward resolving the prolonged fiscal crisis in Illinois. Prior to this legislation, the projected General Funds budget deficit for FY 2012 was estimated at $15 billion, which represents about 60% of FY 2011 appropriations for all state agencies. The new revenue package is expected to generate about $7 billion over a full year. The temporary tax increase will enable the state to improve its credit rating, reduce the massive backlog of unpaid bills, and avert a full-scale fiscal meltdown. But it is not a panacea. Download and read report

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