Tax Money Flowing into Illinois Treasury Surges 13% in August

(Springfield, IL) — Taxpayers gave Illinois a $1.2-billion shot of cash in August, or $464 million more than last August.

Personal income tax revenue jumped by 68 percent for last month when compared with the same time in 2010, almost mirroring the personal income tax increase of 67 percent approved in January, according to a report issued by the Legislature’s Commission on Government Accountability and Forecasting, or COGFA, this week.

Overall, the state’s revenue jumped from $1.9 billion in August 2010 to $2.2 billion last month, an increase of 13 percent.

However, focusing on the month-to-month numbers won’t give an accurate picture of the state’s fiscal health, said Jim Muschinske, COGFA’s revenue manager and author of the August revenue report that outlines Illinois’ finances.

“I’ve been doing this for more than 20 years, and I don’t get excited over one month. There is just too much that happens on a month-by-month basis,” Muschinske said.

For example, income tax receipts from July through December, or the first half of fiscal 2012, might show big gains compared to last year. But those increases are only because of the income tax increase, and not because the state’s workforce or economy is doing better, according to the COGFA report.

The state also got a one-time shot of $73 million relating to the selling of a permit for and opening of the state’s 10th riverboat casino this summer in Des Plaines.

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