(The Center Square) – A new report found that Illinois needs more financial help than all but five other states because of the COVID-19 pandemic.
The financial website WalletHub looked at 18 metrics to determine a state’s fiscal position during the pandemic, including a state’s preparedness for a severe recession, the number of unemployment claims and unfunded pension liabilities.
The metrics were separated into two main categories, state financial rank and health and employment landscape rank. Illinois ranked dead last in the nation in the financial category.
According to a report by the Commission on Government Forecasting and Accountability, after April’s dramatic $2.7 billion decline and May’s lesser but sizable drop, base general funds revenues stand $1.3 billion below last year’s levels. “Economic carnage” related to the COVID-19 pandemic and the tax day deadline changes significantly derailed the fiscal year revenue picture, according to the report.
Analyst Jill Gonzalez said Illinois, which ranked as the sixth neediest in the nation overall, wasn’t in the best of shape before the pandemic.
“A lot of budget issues and Illinois has one of the fewest state rainy day funds per capita, too,” said Gonzalez. “Because Illinois wasn’t in the best position beforehand, obviously it is in a worse position now.”
Illinois also ranked as one of the worst states in terms of state and local debt per capita and scored low for its unfunded pension liabilities, which are estimated at more than $138 billion.
The three states needing the most help financially because of COVID-19 are Louisiana, Kentucky and Florida. The three states in the best positions are Iowa, Wyoming and South Dakota, according to the report.
