Adopting a state spending cap could help combat a mounting fiscal crisis.
Illinois faces massive projected deficits, threatening the state’s long term fiscal health.
The Governor’s Office of Management and Budget project’s state budget deficits totaling nearly $21 billion during the next five years, with expenditures projected to grow nearly 20% and revenues only 11%.
These estimates could be off by billions of dollars because of the impact of federal changes, such as reductions to federal benefits programs. Still, the forecast sets the stage for lawmakers to raise taxes to make up for the difference.
Rather than do that, the state should implement long-term saving measures, such as a spending cap.
Under such a cap, annual spending cannot increase more than the 10-year average growth of the state’s nominal gross domestic product. That way, increases in…
