SPRINGFIELD – Illinois' tax revenue slump continued in July, with overall state tax collections down 9.5 percent from July 2009.

The latest monthly report from the Legislature's Commission on Government Forecasting and Accountability showed that the state's two biggest revenue sources – the personal income tax and sales taxes – continued a decline that began in November 2008.

Personal income tax collections last month amounted to $648 million, down from $655 million in July 2009 and $695 million two years ago.

Sales tax receipts were $542 million, less than the $546 million last year and the $629 million in July 2008. The $542 million in sales tax collections last month is the least for a July since 2004's $534 million.

Personal income tax collections were down just 1.1 percent from July 2009 and sales tax revenues were down 0.7 percent. The biggest losses were in public utility tax revenue (down 12 percent), insurance taxes and fees (down 43 percent), corporate franchise fees and taxes (down 14 percent) and interest on state funds and investments (down 75 percent).

Overall general fund revenues were up by $107 million last month, or about 5.3 percent. The primary reason for the increase, however, was a $182 million surge in federal reimbursements. Those numbers are expected to decline later this year when federal stimulus programs begin to wind down.

Lottery and riverboat gambling transfers and receipts also declined in July. Lottery proceeds were off by 8.5 percent or $4 million. Riverboat gaming revenues were down by 14 percent or $5 million.

Earlier this week, University of Illinois economist J. Fred Giertz said Illinois' economic recovery would continue to be "painfully slow." The state's unemployment rate was 10.4 percent in June, almost a full percentage point higher than the national average of 9.5 percent.