State Comptroller Dan Hynes is reporting that compared to last year’s first quarter of the fiscal year, Illinois revenues are down by approximately $885 million.

Senator Radogno said that the Comptroller’s quarterly report notes that the significant deterioration in revenue could be attributed to the state’s increased Medicaid obligations and declining returns from the state sales tax and the corporate income tax.

Radogno observed that if the state had simply kept pace with the rest of the country in job creation during the Blagojevich administration, the decline may not have been so drastic.

The latest figures from the U.S. Department of Labor show Illinois continues to trail much of the nation in job growth, ranking 45th in the country. That means less sales and income taxes for the state.

In fact, total jobs in Illinois dropped for the second straight month in August, according to the job numbers from the Bureau of Labor Statistics. (Full state-by-state comparison)

The Comptroller noted that the General Revenue Fund’s position is significantly weaker than in previous fiscal years. Currently $1.4 billion in bills is being held in the GRF—the most quickly and steeply declining cash balance position in years. In addition, the lackluster economy has contributed to weak economic revenue returns.

The dim economic outlook is particularly disappointing for Illinois. As the state’s spending pressures continue to mount; education, pension and health care costs have all increased in the new fiscal year. In fact, the Comptroller warns that Illinois could end the year with the largest backlog of unpaid bills since Fiscal Year 2003.

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