Illinois to Borrow $2 Billion More From Feds as COVID-19 Dents Tax Revenue
Illinois will borrow about $3.2 billion from the federal government to shore up the state’s budget, Gov. JB Pritzker said Wednesday.
Lawmakers authorized borrowing $5 billion earlier this year as the state struggled with financial problems exacerbated by economic fallout from the coronavirus pandemic.
The coronavirus and mitigations put in place to help control its spread have put a dent in tax revenues for both the state and local governments. At the same time, both the state and local governments have seen expenses rise as they have to spend more money on protective gear for first responders, ventilators for seriously ill patients and on programs to businesses and individuals financially harmed by the pandemic.
In May, Illinois lawmakers authorized the state to borrow up to $5 billion from the Municipal Liquidity Facility managed by the Federal Reserve. Illinois is so far the only state to tap into the program. Any money borrowed must be repaid in three years.
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Lawmakers authorized borrowing $5 billion earlier this year as the state struggled with financial problems exacerbated by economic fallout from the coronavirus pandemic.
The coronavirus and mitigations put in place to help control its spread have put a dent in tax revenues for both the state and local governments. At the same time, both the state and local governments have seen expenses rise as they have to spend more money on protective gear for first responders, ventilators for seriously ill patients and on programs to businesses and individuals financially harmed by the pandemic.
In May, Illinois lawmakers authorized the state to borrow up to $5 billion from the Municipal Liquidity Facility managed by the Federal Reserve. Illinois is so far the only state to tap into the program. Any money borrowed must be repaid in three years.
Click Here to read more.