SZALINSKI’S SUMMARY: State revenue growth is on track to meet expectations and there was no “April surprise” from income tax receipts. The Commission on Government Forecasting and Accountability says it is not planning any significant changes to its March revenue projection for the year.
WHY IT MATTERS: April revenues make up as much as 10% of all revenue for a given fiscal year and can make or break a budget. The April report is the final snapshot of revenue trends for state lawmakers before they’re expected to pass a budget by May 31.
With this year’s April report meeting expectations, budgeteers can more easily nail down final numbers based on existing projections. There’s just four weeks left in the legislative session and lawmakers will begin finalizing the fiscal year 2027 budget soon.
APRIL BY THE NUMBERS: Income taxes increased by $146 million, or 2%, this April compared to April 2025. In fact, the month was the second largest revenue generating month in state history with $7.3 billion in revenue. Only April 2022, with $8 billion, was higher, thanks to federal stimulus money that boosted the state’s bottom line.
Personal income taxes grew by $54 million, or 1%, though when combined with March numbers, income tax growth over the last two months was up 4.1% compared to the same period in fiscal year 2025. Corporate income taxes continued a downward trend for fiscal year 2026 by $135 million, or 9%. Sales taxes — a snapshot of consumer confidence in the economy — was up $24 million, or 2.4%.
FY26 TRENDS: Through April, total revenue is up $1.7 billion, or 3.8%, so far this year compared to last. Much of that is driven by a $991 million, or 4.2%, increase in income taxes. That beats the original budget expectation of 0.9% growth, according to COGFA.
Sales taxes have been a bright spot and are up $387 million, or 4%, this year, though a greater distribution of the revenue to transportation has only netted the General Revenue Fund $122 million, or 1.4%, more than at this point last year.
Corporate taxes have decreased by $262 million, or 6.8%. Money from the federal government is also down by $45 million so far this year, or $110 million, when excluding a final distribution of pandemic-era aid received last year.
INCOME TAX RELIANCE: This month’s report shed some light on how dependent Illinois’ budget has become on income taxes to supply most of the state’s revenue. This year, income taxes will account for about 60% of revenue, while 20 years ago, it was about 35%.
A combination of income tax increases in fiscal year 2018 plus declining or stagnant growth in other sources over the years has caused the growing ratio, according to COGFA.
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