The sagging U.S. economy continues to take its toll on Illinois’ budget. The state projects an $800-million shortfall this year due to lower-than-expected tax revenue.
The deficit projection is based on data from the first four months of the state’s fiscal year. Mike Klemens is a spokesperson for the Illinois Department of Revenue. He says the projected $800-million shortfall assumes the economy will stay at the current level.
KLEMENS: If the economy gets worse, it’s going to be a bigger number. It’s going to easily go over a-billion dollars.
The state already has put some cost controlling measures in place. That’s according to Katie Ridgway, a spokesperson for Governor Rod Blagojevich. Ridgway says further cuts may be considered down the line. She says Illinois is being hit by the same economic difficulties affecting other states this year.