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Illinois state budget and finances

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Illinois budget and finances
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General information
Budget calendar:
Annual
Fiscal year:
2016
State credit rating:
A- (as of 2014)
Current governor:
Bruce Rauner
Financial figures
Total spending (state and federal funds):
$70.4 billion (estimated for 2014)
Per capita spending:
$5,462 (estimated for 2014)
Total state tax collections:
$38.7 billion (2013)
Per capita tax collections:
$3,003 (2013)
State debt:
$321.4 billion (as of 2014)
Per capita state debt:
$24,959 (as of 2014)
State budgets and finances
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Total state expenditures • State debt • Tax policy in Illinois
Note: This page contains information from several sources. As such, the information given varies somewhat by year, but reflects the most recent data available as of February 2015.

Between fiscal years 2013 and 2014, total spending in Illinois increased by approximately $4 billion, from $66.4 billion in fiscal year 2013 to an estimated $70.4 billion in 2014. This represents a 5.9 percent increase. The cumulative rate of inflation during the same period was 1.58 percent, calculated using the Consumer Price Indices for January 2013 and January 2014. As of 2014, financial services firm Standard and Poor's had assigned Illinois a credit rating of A-.[1][2][3]

In 2014 total estimated spending in Illinois amounted to $70.4 billion. In 2012 Illinois ranked fifth in the nation for state debt per capita, which amounted to $24,959.

Spending

Definitions

The information below comes from the National Association of State Budget Officers (NASBO). These spending figures are broken into three broad categories in order to facilitate comparison between the states.[3]

  • State funds: State funds include general and other state-based funds. A general fund is "the predominant fund for financing a state's operations." Other state funds are "restricted by law for particular governmental functions or activities."
  • Federal funds: Federal funds are "funds received directly from the federal government."
  • Total spending: Total spending is calculated by adding together the totals for state and federal funds.

These figures exclude spending from the sale of bonds.

2014 expenditures

See also: Total state expenditures

The table below breaks down estimated spending totals for fiscal year 2014 (comparable figures from surrounding states are included to provide additional context). Figures for all columns except "Population” and “Per capita spending" are rendered in millions of dollars (for example, $2,448 translates to $2,448,000,000). Figures in the columns labeled "Population” and “Per capita spending" have not been abbreviated.[3]

Total estimated spending in Illinois amounted to $70.4 billion, highest among its neighboring states. Estimated per capita spending was second-highest among neighboring states at $5,462.

Total estimated state spending, FY 2014 ($ in millions)
State State funds Federal funds Total spending Population Per capita spending
Illinois $50,392 $19,964 $70,356 12,880,580 $5,462.18
Indiana $17,282 $9,978 $27,260 6,596,855 $4,132.27
Michigan $30,605 $20,632 $51,237 9,909,877 $5,170.30
Ohio $46,043 $13,046 $59,089 11,594,163 $5,096.44
Wisconsin $33,887 $11,006 $44,893 5,757,564 $7,797.22
Per capita figures are calculated by taking the state's total spending and dividing by the number of state residents according to United States Census estimates.[4]
Source: National Association of State Budget Officers

Spending by function

See also: State spending by function as a percent of total expenditures
Breakdown of spending by function in FY 2013
Source: National Association of State Budget Officers

State spending in Illinois can be further broken down by function (elementary and secondary education, public assistance, etc.). Fiscal year 2013 information is included in the table below (information from neighboring states is provided for additional context). Figures are rendered as percentages, indicating the share of the total budget spent per category.[3]

In 2013 Illinois dedicated 23.8 percent of its budget to Medicaid, the largest single portion. The bulk of its budget was dedicated to expenditures labeled as "Other." The share dedicated to K-12 education was lower than its neighbors at 13.3 percent.

State spending by function as a percent of total expenditures, FY 2013
State K-12 education Higher education Public assistance Medicaid Corrections Trans-
portation 		Other
Illinois 13.3% 3.7% 0.3% 23.8% 2.1% 8.4% 48.4%
Indiana 30.8% 6.1% 1.4% 31.2% 2.7% 8.3% 19.6%
Michigan 27.2% 4.2% 0.7% 26.4% 4.6% 7.8% 29%
Ohio 17% 4.3% 1.5% 29.2% 3.2% 5.1% 39.8%
Wisconsin 16.2% 14.3% 0.3% 17.2% 2.9% 6.9% 42.1%
Source: National Association of State Budget Officers
Note: "Other" expenditures include "Children's Health Insurance Program (CHIP), institutional and community care for the mentally ill and developmentally disabled, public health programs, employer contributions to pensions and health benefits, economic development, environmental projects, state police, parks and recreation, housing and general aid to local governments."[3]

Spending trends

Between 2009 and 2013, the portion of the budget Illinois dedicated to K-12 education decreased by about 10 percentage points, from 23.9 percent to 13.3 percent. The share dedicated to Medicaid also decreased from 30.9 percent to 23.8 percent. Meanwhile, the portion spent on expenditures labeled as "Other" increased from 26.6 percent to 48.4 percent. See the table below for further details (figures are rendered as percentages, indicating the share of the total budget spent per category).[3][5][6][7][8]

Spending by function from 2009 to 2013 (as percentages)
Year K-12 education Higher education Public assistance Medicaid Corrections Transportation Other
2013 13.3% 3.7% 0.3% 23.8% 2.1% 8.4% 48.4%
2012 15.8% 5.5% 0.1% 19.7% 2.2% 8.5% 48.1%
2011 18.9% 5.6% 1.0% 32.9% 2.9% 11.4% 27.4%
2010 18.2% 4.5% 0.2% 23.6% 2.0% 8.1% 43.3%
2009 23.9% 6.3% 0.3% 30.9% 3.0% 9.0% 26.6%
Source: National Association of State Budget Officers
Note: "Other" expenditures include "Children's Health Insurance Program (CHIP), institutional and community care for the mentally ill and developmentally disabled, public health programs, employer contributions to pensions and health benefits, economic development, environmental projects, state police, parks and recreation, housing and general aid to local governments."[3]

Revenues

2013 revenues

See also: State government tax collections by source

The table below breaks down state government tax collections by source in 2013 (comparable figures from surrounding states are also provided to give additional context). Figures for all columns except "Population" and "Per capita revenue" are rendered in thousands of dollars (for example, $2,448 translates to $2,448,000). Figures in the columns labeled "Population" and "Per capita revenue" have not been abbreviated.[9]

Total tax collections in Illinois amounted to $38.7 billion, while per capita collections came out to $3,003. Both figures were highest among neighboring states.

State tax collections by source ($ in thousands)
State Property taxes Sales and gross receipts Licenses Individual income taxes Corporation net income taxes Other taxes Total 2013 population Per capita collections
Illinois $61,806 $14,705,739 $2,583,108 $16,538,662 $4,462,627 $363,378 $38,715,320 12,890,552 $3,003.39
Indiana $7,008 $10,298,491 $699,373 $4,976,375 $781,585 $167,899 $16,930,731 6,570,713 $2,576.70
Michigan $1,954,898 $12,268,026 $1,454,634 $8,239,086 $900,667 $265,343 $25,082,654 9,898,193 $2,534.06
Ohio N/A $13,636,046 $3,445,620 $9,869,545 $262,226 $117,511 $27,330,948 11,572,005 $2,361.82
Wisconsin $148,600 $7,088,411 $1,035,743 $7,227,690 $955,752 $66,416 $16,522,612 5,742,953 $2,877.02
Source: Tax Policy Center, "State Tax Collection Sources 2000-2013," June 20, 2014
Illinois tax collections by source in 2013
Source: Tax Policy Center

The table below lists 2013 tax collections by source as percentages of total collections. In Illinois, individual income taxes accounted for the bulk of total collections at 42.7 percent.[9]

State tax collections by source (as percentages)
State Property taxes Sales and gross receipts Licenses Individual income taxes Corporation net income taxes Other taxes
Illinois 0.16% 37.98% 6.67% 42.72% 11.53% 0.94%
Indiana 0.04% 60.83% 4.13% 29.39% 4.62% 0.99%
Michigan 7.79% 48.91% 5.8% 32.85% 3.59% 1.06%
Ohio N/A 49.89% 12.61% 36.11% 0.96% 0.43%
Wisconsin 0.9% 42.9% 6.27% 43.74% 5.78% 0.4%
Source: Tax Policy Center, "State Tax Collection Sources 2000-2013," June 20, 2014

Current fiscal year budget

See also: Historical Illinois budget and finance information

Fiscal year 2016

Governor Bruce Rauner proposed his fiscal year 2016 budget in February 2015. In June, the Republican governor signed a fiscal year 2016 education budget, but the state's general budget had not yet been passed as of September 24, 2015.[10].

The governor's budget proposed cuts in spending while recommending reforms in state pension and other budgets. The governor also prioritized paying off debts while also building up the state's rainy day fund.[11]

State debt

See also: State debt

According to a January 2014 report by the nonprofit organization State Budget Solutions, Illinois had a state debt of approximately $321.4 billion. Its state debt per capita was $24,959, fifth highest in the country. In this report for fiscl year 2012, state debt was based on four components: "market-valued unfunded public pension liabilities, outstanding government debt, unfunded other post employment benefit (OPEB) liabilities, and outstanding unemployment trust fund loans." The report revealed that all state governments faced a combined $5.1 trillion in debt, which amounted to an obligation of $16,178 per capita in the nation.[12]

Total 2012 state debt
State Total state debt State debt per capita Per capita debt ranking
Illinois $321,354,115,000 $24,959 5
Indiana $46,377,635,000 $7,094 48
Michigan $142,668,026,000 $14,435 25
Ohio $321,340,764,000 $27,836 4
Wisconsin $45,026,643,000 $7,863 47
Sources: State Budget Solutions, "State Budget Solutions' Fourth Annual State Debt Report," January 8, 2014

According to a report released in July 2014 by the nonprofit Truth in Accounting (TIA), Illinois ranked second highest in per capita debt, or 49th worst in the country. Based on anaylsis of Illinois's Comprehensive Annual Financial Report from June 30, 2013, and actuarial reports for Illinois retirement plans, the organization concluded that $147.4 billion in promised retirements benefits were unfunded, but only $37 billion of these liabilites were reported on Illinois's balance sheet. With the unfunded pension benefits and unfunded retiree health care benefits included in the total debt, the state had a shortfall of $175.7 billion, or per capita debt of $43,400.[13]

Public pensions

See also: Illinois public pensions and Illinois public employee salaries

Between fiscal years 2008 and 2012, the funded ratio of Illinois's state-administered pension plans decreased from 54.3 percent to 40.4 percent. The state paid 76 percent of its annual required contribution, and for fiscal year 2012 the pension system's unfunded accrued liability totaled $94.5 billion. This amounted to $7,421 in unfunded liabilities per capita.[14][15]

Credit ratings

See also: State credit ratings

Credit rating agencies, such as Standard and Poor's, assign grades to states that take into account a state's ability to pay debts and the general health of the state's economy. Generally speaking, a higher credit rating indicates lower interest costs on the general obligation bonds states sometimes sell to investors in order to finance large-scale undertakings (e.g., road construction and other public works projects). This in turn results in lower interest costs, thereby lowering the cost to taxpayers.[16][17]

The table below lists the Standard and Poor's credit ratings for Illinois and surrounding states from 2004 to 2014. Standard and Poor's grades range from AAA, the highest available, to BBB, the lowest.[18]

State credit ratings, 2004 to 2014
State 2014 2013 2012 2011 2010 2009 2008 2007 2006 2005 2004
Illinois A- A- A A+ A+ A+ AA AA AA AA AA
Indiana AAA AAA AAA AAA AAA AAA AAA AA+ AA+ AA AA
Michigan AA- AA- AA- AA- AA- AA- AA- AA- AA AA AA+
Ohio AA+ AA+ AA+ AA+ AA+ AA+ AA+ AA+ AA+ AA+ AA+
Wisconsin AA AA AA AA AA AA AA AA- AA- AA- AA-
Source: Stateline: The Daily News Service of The Pew Charitable Trusts, "Infographic: S&P State Credit Ratings, 2001-2014," June 9, 2014

Federal aid to the state budget

See also: Federal aid to state budgets

State governments receive aid from the federal government to fund a variety of joint programs, such as Medicaid. Federal aid varies considerably from state to state. For example, Mississippi received approximately $7.7 billion in federal aid in 2012, which accounted for more than 45 percent of the state's general revenues. By contrast, Alaska received roughly $2.9 billion in federal aid in 2012, just under 20 percent of the state's general revenues.[19]

The table below notes what share of Illinois’s general revenues came from the federal government in 2012. That year, Illinois received approximately $15.6 in federal aid, 25.7 percent of the state's total general revenues. Figures from surrounding states are provided for additional context.[19]

Federal aid to state budgets, 2012
State Total federal aid ($ in thousands) Federal aid as a % of general revenue Ranking
Illinois $15,646,844 25.66% 43
Indiana $10,441,125 32.32% 29
Michigan $17,849,942 33.76% 24
Ohio $20,687,909 34.88% 17
Wisconsin $8,855,079 28.19% 38
Source: United States Census Bureau, "State Government Finances: 2012," accessed February 24, 2014

Stimulus

According to Recovery.gov, the official government website for the Recovery Accountability and Transparency Board, under the American Recovery and Reinvestment Act, Illinois received $9.1 billion in federal stimulus funding between February 2009 and June 2013.[20]

Budget process

Illinois operates on an annual budget cycle. The sequence of key events in the budget process is as follows:[21][22]

  1. In September of the year preceding the start of the new fiscal year, the governor sends budget instructions to state agencies.
  2. In October and November, agencies submit their budget requests to the governor.
  3. Agency hearings are held in November and December.
  4. Budget hearings with the public are held from February through May.
  5. On the third Wednesday in February, the governor submits his or her proposed budget to the Illinois State Legislature.
  6. The State Legislature passes a budget in May.

Illinois is one of 44 states in which the governor has line item veto authority.[22]

The governor is constitutionally required to submit a balanced budget. In turn, the legislature must pass a balanced budget, and the budget must be balanced in order for the governor to sign it into law.[22]

Agencies, offices and committees

The following standing committees in the Illinois General Assembly deal with budget and finance matters:

  1. Appropriations I Committee, Illinois State Senate
  2. Appropriations II Committee, Illinois State Senate
  3. Appropriations-Elementary & Secondary Education Committee, Illinois House of Representatives
  4. Appropriations-General Service Committee, Illinois House of Representatives
  5. Appropriations-Higher Education Committee, Illinois House of Representatives
  6. Appropriations-Human Services Committee, Illinois House of Representatives
  7. Appropriations-Public Safety Committee, Illinois House of Representatives
  8. Revenue & Finance Committee, Illinois House of Representatives

The Illinois Treasurer is the state's chief financial officer and is responsible for overseeing the state's funds, managing investments and disbursing monies. The treasurer is elected every four years and is a partisan position.

The Illinois Comptroller maintains the state's fiscal accounts and oversees withdrawals from and deposits into the state's accounts. The comptroller is elected every four years and is a partisan position.

Studies and reports

U.S. PIRG "Following the Money" report

See also: "Following the Money" report, 2014

The U.S. Public Interest Research Group, a consumer-focused nonprofit organization based in Washington, D.C., released its annual report on state transparency websites in April 2014. The report, entitled "Following the Money," measured how transparent and accountable state websites are with regard to state government spending.[23] According to the report, Illinois received a grade of B+ and a numerical score of 88, indicating that Illinois was advancing in terms of transparency regarding state spending.[23]

Budget and finance ballot measures

Voting on
state and local
government budgets,
spending and finance
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Policy
Budget policy
Ballot measures
By state
By year
Not on ballot
See also: Spending and finance on the ballot and List of Illinois ballot measures

Ballotpedia has tracked no ballot measures relating to state and local budget and finance matters in Illinois

Budget and finance legislation

The following is a list of recent budget and finance bills that have been introduced in or passed by the Illinois state legislature. To learn more about each of these bills, click the bill title. This information is provided by BillTrack50 and LegiScan.

Note: Due to the nature of the sorting process used to generate this list, some results may not be relevant to the topic. If no bills are displayed below, no legislation pertaining to this topic has been introduced in the legislature recently. 

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Recent news

This section displays the most recent stories in a Google news search for the terms Illinois budget.

Some of the stories below may not be relevant to this page due to the nature of Google's news search engine.

Illinois state budget and finances - Google News Feed

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Contact information

Office of Management and Budget
401 South Spring
603 Stratton Building
Springfield, Illinois 62706
Email: GOMB@illinois.gov
Phone: 217-782-4520
Fax: 217-524-4876

See also

External links

Additional reading

References

  1. ↑ Bureau of Labor Statistics, "CPI Detailed Report Data for February 2014," accessed April 9, 2014
  2. ↑ InflationData.com, "Cumulative Inflation Calculator," February 28, 2014
  3. ↑ 3.0 3.1 3.2 3.3 3.4 3.5 3.6 National Association of State Budget Officers, "State Expenditure Report: 2012-2014," accessed February 18, 2015
  4. ↑ United States Census Bureau, "State and County QuickFacts," accessed February 23, 2014
  5. ↑ National Association of State Budget Officers, "State Expenditure Report, 2009-2011," accessed February 24, 2014
  6. ↑ National Association of State Budget Officers, "State Expenditures Report, 2010-2012," accessed February 24, 2014
  7. ↑ National Association of State Budget Officers, "State Expenditure Report, 2009," accessed February 24, 2014
  8. ↑ National Association of State Budget Officers, "State Expenditure Report, 2008," accessed February 24, 2014
  9. ↑ 9.0 9.1 Tax Policy Center, "State Tax Collection Sources 2000-2013," June 20, 2014
  10. ↑ Reuters.com, "Illinois governor signs first fiscal year 2016 budget bill," accessed September 24, 2015
  11. ↑ National Association of State Budget Officers, "Summaries of Fiscal Year 2016 Proposed and Enacted Budgets," accessed September 22, 2015
  12. ↑ State Budget Solutions, "State Budget Solutions' Fourth Annual State Debt Report," January 8, 2014
  13. ↑ Truth in Accounting, "The 2013 Financial State of the States," July 31, 2014.
  14. ↑ Morningstar, "The State of State Pension Plans 2013: A Deep Dive Into Shortfalls and Surpluses," accessed September 16, 2013
  15. ↑ The Pew Charitable Trusts, “The Fiscal Health of State Pension Plans Funding Gap Continues to Grow,” accessed April 8, 2014
  16. ↑ Stateline: The Daily News Service of The Pew Charitable Trusts, "Infographic: S&P State Credit Ratings, 2001-2012," July 13, 2012
  17. ↑ Bankrate, "The 6 states with the worst credit ratings," September 27, 2012
  18. ↑ Stateline: The Daily News Service of The Pew Charitable Trusts, "Infographic: S&P State Credit Ratings, 2001-2014," June 9, 2014
  19. ↑ 19.0 19.1 United States Census Bureau, "State Government Finances: 2012," accessed February 24, 2014
  20. ↑ Recovery, "Stimulus Spending by State," accessed March 19, 2015
  21. ↑ National Conference of State Legislatures, "State Experiences with Annual and Biennial Budgeting," accessed April 2011
  22. ↑ 22.0 22.1 22.2 National Association of State Budget Officers, "Budget Processes in the States, Summer 2008," accessed February 21, 2014
  23. ↑ 23.0 23.1 U.S. Public Interest Research Group, "Following the Money 2014 Report," accessed April 15, 2014
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