The governor’s budget office now expects about $500 million less in revenue for the coming fiscal year, which will make it more challenging for the General Assembly to come up with a budget.

The Governor’s Office of Management and Budget said today it now expects $54.9 billion in revenue for the fiscal year beginning July 1. Its previous forecast called for $55.5 billion. (Read the full report below.)

Among the culprits: $351 million less in corporate income taxes because of a lower forecast for corporate profits; and $289 million less in individual income taxes because of recently reduced forecasts of employment, lower wages and salaries growth, and lower estimated stock market performance.

The new budget forecast also predicts $150 million less in sales taxes and $70 million less from the federal government.

The reductions are offset, in part, by higher interest income because the Federal Reserve has been slower to reduce interest rates than expected. 

The governor’s office blamed President Donald Trump and a Republican-controlled Congress.

"This year has brought unprecedented set of challenges, as Donald Trump and Elon Musk push efforts that would strip Illinois of vital tax dollars and deny residents the services and protections they depend on," Deputy Gov. Andy Manar said in a statement.

"The downward revision of the state’s revenue estimate in the April report from GOMB is largely driven by the economic uncertainty and anxiety fueled by the Trump Administration and Republicans in Congress. Their reckless economic policies have already triggered the first quarterly decline in the nation’s Gross Domestic Product in three years and are driving up costs for working families. This growing national instability poses a serious risk to Illinois continued economic progress and outlook."