Illinois state budget
|Illinois state budget|
|State Credit Rating:||A+|
|Current Governor:||Pat Quinn|
|GF expenses:||$29.3 billion|
|All funds expenses:||$66.4 billion|
|Spending % Change:||.0001%|
|% from Federal Funding:||25.66%|
|Per Capita State Debt:||$24,959|
|Other state budgets|
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- 1 Budget process
- 2 Expenditures
- 3 Revenues
- 4 State budgets by year
- 5 Historical spending
- 6 State debt
- 7 Federal aid to state budget
- 8 Budget transparency
- 9 Accounting principles
- 10 Contact information
- 11 See also
- 12 External links
- 13 References
- A summary of the budget drafting process
- Trends in expenditures and revenues
- Current and past fiscal year budget developments
- Financial transparency measures
Between fiscal year 2009 and fiscal year 2013, Illinois's total expenditures increased by approximately $17.1 billion, from $49.3 billion in 2009 to $66.4 billion in 2013. This represents a 25.6 percent increase, outpacing the cumulative rate of inflation during the same period (9.06 percent, calculated using the Consumer Price Indices for January 2009 and January 2013).
- In September of the year preceding the start of the new fiscal year, the Governor sends budget instructions to state agencies.
- In October and November agencies submit their budget requests to the Governor.
- Agency hearings are held in November and December.
- Budget hearings with the public are held from February through May.
- On the third Wednesday in February, the Governor submits his or her proposed budget to the Illinois State Legislature.
- The State Legislature passes a budget in May.
In Illinois, the Governor has line item veto, item veto of appropriations, item veto of selected words and item veto to change the meaning of selected words.
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.
Although each state executes its budget process differently, the National Association of State Budget Officers (NASBO) breaks down state expenditures into four general categories. This allows for comparisons among the 50 states. NASBO's categories are as follows:
- General fund: "The predominant fund for financing a state’s operations. Revenues are received from broad-based state taxes. However, there are differences in how specific functions are financed from state to state."
- Other funds: "Expenditures from revenue sources that are restricted by law for particular governmental functions or activities. For example, a gasoline tax dedicated to a highway trust fund would appear in the “Other funds” column. For Medicaid, other state funds include provider taxes, fees, donations, assessments, and local funds."
- Federal funds: "Funds received directly from the federal government."
- Bonds: "Expenditures from the sale of bonds, generally for capital projects."
The table below breaks down expenditures for fiscal year 2013 (comparable figures from surrounding states are provided to give additional context). Figures for all columns except "Per capita expenditures" are rendered in millions of dollars (for example, $2,448 translates to $2,448,000,000). Figures in the column labeled "Per capita expenditures" have not been abbreviated.
|Total state expenditures, FY 2013 ($ in millions)|
|State||General fund||Federal funds||Other funds||Bonds||Total||Per capita expenditures**|
| **Per capita figures are calculated by taking the state's total expenditures and dividing by the number of state residents according to United States Census estimates.|
Source: National Association of State Budget Officers
Expenditures by function
State expenditures in Illinois can be further broken down by function (elementary and secondary education, public assistance, etc.). Fiscal year 2012 data is included in the table below (information from neighboring states is provided for additional context). Figures are rendered as percents, indicating the share of the total budget spent per category.
|Expenditures by function, FY 2012 (as percents)|
|State||Elementary and secondary ed.||Higher ed.||Public assistance||Medicaid||Corrections||Transportation||Other|
|Source: National Association of State Budget Officers|
From 2008 to 2012, expenditures for education, public assistance, Medicaid and corrections decreased. During the same time period, expenditures for transportation increased by 0.2 percent, and expenditures for other budget items increased by 16.9 percent. The table below details changes in expenditures from 2008 to 2012. Figures are rendered as percents, indicating the share of the total budget spent per category.
|Expenditures from 2008 to 2012 (as percents)|
|Year||Elementary and secondary ed.||Higher ed.||Public assistance||Medicaid||Corrections||Transportation||Other|
|Change in %||-6.0%||-0.5%||-0.2%||-9.8%||-0.8%||0.2%||16.9%|
|Source: National Association of State Budget Officers|
The table below breaks down general fund revenues by source in fiscal year 2013 (comparable figures from surrounding states are also provided to give additional context). Figures for all columns except "Per capita revenue" are rendered in millions of dollars (for example, $2,448 translates to $2,448,000,000). Figures in the column labeled "Per capita revenue" have not been abbreviated.
|Revenue sources in the general fund, FY 2013 ($ in millions)|
|State||Sales tax||Personal income tax||Corporate income tax||Gaming tax||Other taxes and fees||Total||Per capita revenue**|
| **Per capita figures are calculated by taking the state's total revenues and dividing by the number of state residents according to United States Census estimates for 2013.|
Source: National Association of State Budget Officers
The table below details the change in revenue sources in the general fund from 2009 to 2013. Figures for all columns except "Per capita revenue" are rendered in millions of dollars (for example, $2,448 translates to $2,448,000,000). Figures in the column labeled "Per capita revenue" have not been abbreviated.
|Revenue sources in the general fund, Illinois ($ in millions)|
|Year||Sales tax||Personal income tax||Corporate income tax||Gaming tax||Other taxes and fees||Total||Per capita revenue**|
|Change in %||8.31%||80.31%||80.47%||-20.93%||100.38%||60.74%||61.09%|
| **Per capita figures are calculated by taking the state's total revenues and dividing by the number of state residents according to United States Census estimates.|
Source: National Association of State Budget Officers
State budgets by year
Fiscal year 2014
See budget bill: House Bill 215
|Illinois state budget -- 2014|
|Illinois State Legislature|
|Introduced:||January 25, 2013|
|State House:||May 28, 2013|
|Vote (lower house):||69-47|
|State Senate:||May 31, 2013|
|Vote (upper house):||38-20|
|Signed:||July 2, 2013|
|Vetoed:||Line Item and Reduction Vetoed|
The fiscal year 2014 budget was signed into law by Governor Pat Quinn on July 2, 2013, after using line item and reduction vetoes. The enacted budget reduced the backlog of unpaid bills to $5.8 billion, but pension costs totaled $7.65 billion, representing 24.3 percent of General Funds revenues. According to the Institute for Illinois' Fiscal Sustainability, such pension costs represented an unsustainable level and were expected to rise in coming years without reform.
Fiscal year 2013
- See also: Illinois state budget (2012-2013)
Fiscal year 2012
- See also: Illinois state budget (2011-2012)
Fiscal year 2011
- See also: Illinois state budget (2010-2011)
Fiscal year 2010
- See also: Illinois state budget (2009-2010)
State budget historical spending below was compiled by the National Association of State Budget Officers. Figures reflect the reported "Total Expenditures" in Table 1. Figures for all columns are rendered in millions of dollars (for example, $2,448 translates to $2,448,000,000).
|Historical state budget spending in Illinois ($ in millions)|
|Fiscal year||General Fund||Other funds||Federal funds||Bonds||Budget totals|
|Total||% of Budget||Total||% of Budget||Total||% of Budget||Total||% of Budget|
|General Fund: The predominant fund for financing a state’s operations. Revenues are received from broad-based state taxes. However, there are differences in how specific functions are financed from state to state.|
Other funds: Expenditures from revenue sources that are restricted by law for particular governmental functions or activities. For example, a gasoline tax dedicated to a highway trust fund would appear in the “Other funds” column. For Medicaid, other state funds include provider taxes, fees, donations, assessments, and local funds.
Federal funds: Funds received directly from the federal government.
Bonds: Expenditures from the sale of bonds, generally for capital projects.
According to a January 2014 report by the nonprofit organization State Budget Solutions, Illinois had a state debt of over $XXX billion. Its state debt per capita was $XXX. The report revealed that state governments faced a combined $5.1 trillion in debt, 33 percent of annual gross state product. The obligation amounts to $16,178 per capita in the nation. A bulk of the state debt -- 79 percent -- was linked to unfunded public pensions.
|Total state debt in Illinois|
|Total state debt||$321,354,115,000||4|
|Per capita debt||$24,959||5|
|State and other fund expenditures||$44,201,000,000||3|
A 2012 report from the Pew Center on the States noted that Illinois's pension system was funded at 45 percent at the close of fiscal year 2010, making it the most poorly funded pension system in the nation. Consequently, Pew designated the state's pension system as cause for "serious concern."
The funding ratio for the state's pension systems decreased from 68.55 percent in fiscal year 2007 to 47.86 percent in fiscal year 2012, a 20.69 percent drop. Likewise, unfunded liabilities increased from approximately $88.1 billion in fiscal year 2007 to nearly $100 billion in fiscal year 2012.
States sometimes sell general obligation bonds to investors in order to finance large-scale undertakings (e.g., road construction and other public works projects). Credit rating agencies, such as Standard and Poor's, assign grades to states, evaluating their ability to pay the principal and interest on such bonds. Standard and Poor's grades range from AAA, the highest available, to BBB, the lowest. Generally speaking, a higher credit ranking indicates lower risk for an investor, which in turn lowers costs for taxpayers.
The table below lists the Standard and Poor's credit ranking for Illinois from 2001 to 2012 (grades from surrounding states are provided for additional context).
|S&P credit ratings from 2001 to 2012|
Federal aid to state budget
- See also: Federal aid to budgets in the 50 states
The chart below notes how much of the state’s general revenues come from the federal government. Figures were calculated by dividing each state’s federal intergovernmental revenue into its general revenue. The number in the rightmost column indicates the state's ranking in relation to the rest of the nation (e.g., if "1," the state receives the highest percentage of federal funding in the nation). Figures from neighboring states are included to provide additional context.
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.
|Federal aid to state budgets in 2012|
|State||Federal aid as % of general revenue||Total federal aid||National rank|
Illinois received $9.1 billion in federal stimulus funding between February 2009 and June 2013.
|Illinois Open Book||Illinois Transparency and Accountability|
|Line item expenditures|
|Public employee salaries|
|Last evaluated in 2009.|
Article 4, Section 8 of the Illinois Constitution requires “title” read three times, on three separate days and that a bill must printed in entirety and placed on the desk of members before final passage. There is no provision for a length time between when the bill is placed on the desk and when a vote may be taken.
In March 2009, Governor Pat Quinn launched "Budget Illinois," which summarized the proposed budget for 2010, offered budget figures and also detailed a capital projects list, including information on the recommended and actual appropriations and expenditures going forward.
State budget websites and analysis
As of May 2009, the Illinois Office of Management and Budget website did not post copies of the budget proposals from previous fiscal years. This was unusual, given that many other states' budget offices keep up archived copies of past budgets. For the 2011 budget, the state adopted a more transparent method of publishing its budget, providing the information on a quarterly and annual basis. The new process did not affect how agency's budgets would be audited. These reports were to be released for a year or more after revenue and costs were available.
Limitations and Suggestions
- Add a copy of the actual contracts to Open Book.
- Provide line-item spending information on the Comptroller's aggregate expenditure information website.
Multi-measure budget transparency profile
The Institute of Government and Public Affairs at the University of Illinois created a multi-measure transparency profile for Illinois, which measured state transparency as of September 2011 using indicators from a range of organizations. These indicators measured both website transparency and other recognized facets of governmental transparency. In addition, IGPA presented four unique indicators of non-transparency based on the observation that transfers or reassignments between general and special funds can obscure the true fiscal condition of a state.
IGPA devised a budget transparency index based on information available from the National Association of State Budget Officers. Illinois tied for 33rd in the nation with 12 other states, earning four out of eight possible points.
|Illinois - IGPA score for budget process, contents and disclosure|
|Budget transparency indicator||Yes or no?|
|"Generally Accepted Accounting Principles" budget|
|Binding revenue forecast|
|Legislative revenue forecast|
|Constitution or statutory tax/spend limitations|
In addition to the individual state profile, IGPA offers a 50-state comparison and profiles for other states.
U.S. PIRG "Following the Money" report
- See also: Following the Money 2014 Report
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. According to the report, Illinois received a grade of B+ and a numerical score of 88, indicating that Illinois was an "advancing" state in terms of transparency regarding state spending.
The Illinois Auditor General is William Holland. He was appointed by the Illinois General Assembly to a ten-year term commencing August 1, 1992, and was unanimously re-appointed to a second ten-year term, effective August 1, 2002. The Auditor General is a constitutional officer of the state of Illinois charged with reviewing the obligation, expenditure, receipt and use of public funds. The office issues approximately 150 post-audits of state agencies each year, reviewing an agency's financial records, compliance with state and federal laws and regulations, and program performance after the close of its fiscal year. Report digests (summaries) and full audit reports of released audits are available here.
The Illinois State Comptroller is Dan Hynes, who has had 3 terms since first elected in November of 1998. The Comptroller's Office was created by the Constitutional Convention of 1970 as an expanded replacement for the Office of the Auditor of Public Accounts.
The Institute for Truth in Accounting (IFTA) rates Illinois “Worst” in filing the state’s Comprehensive Annual Financial Report (CAFR) – the annual report of state and local governmental entities. IFTA rated 22 states timely, 22 states tardy, and 6 states as worst. IFTA does not consider Illinois’ CAFRs, and those of the other states, to be accurate representations of the state’s financial condition because the Generally Accepted Accounting Principles (GAAP) basis does not include significant liabilities for the pension plans and for other post employment benefits, such as health care. Illinois’ CAFRs CAFRs are published online by the Illinois State Comptroller.
Governor Pat Quinn joined Attorney General Lisa Madigan and members of the Illinois Reform Commission on August 17, 2009 to sign bills to increase transparency and accountability in state government. The legislation strengthened the Illinois Freedom of Information Act (FOIA) and ensured the state’s boards and commissions were open and accessible to the public. The website makes the state’s expenditures and employee pay data available through a single, searchable portal: Accountability.Illinois.gov.
Office of Management and Budget
401 South Spring
603 Stratton Building
Springfield, Illinois 62706
Phone: (217) 782-4520
Fax: (217) 524-4876
- Illinois government sector lobbying
- Illinois public pensions
- Governor of Illinois
- Illinois State Senate
- Illinois House of Representatives
- Illinois State Legislature
- Illinois Auditor
- State Budget Solutions, Illinois
- American Legislative Exchange Council
- Illinois Policy Institute
- Illinois Office of Management and Budget
- Illinois State Government homepage
- Illinois Government News Network
- Illinois Government spending
- Illinois Open Gov
- Illinois Transparency & Accountability Portal
- U.S. PIRG, "Report: Transparent & Accountable Budgets," April 8, 2014
- The New York Times, "Battles loom in many states over what to do with budget surpluses," February 3, 2014
- Refers to General Fund spending. Typically in state budgets the General Fund is spending that is most directly controlled by state legislators.
- This figure is derived by calculating the percent difference between the prior two years' spending levels according to the National Association of State Budget Officers.
- Bureau of Labor Statistics, "CPI Detailed Report Data for February 2014," accessed April 9, 2014
- InflationData.com, "Cumulative Inflation Calculator," February 28, 2014
- National Conference of State Legislatures "State Experiences with Annual and Biennial Budgeting," updated April 2011
- National Association of State Budget Officers "Budget Processes in the States, Summer 2008," accessed February 21, 2014
- National Association of State Budget Officers "State Expenditure Report, 2011-2013," accessed February 21, 2014
- United States Census Bureau, "Annual Estimates of the Resident Population: April 1, 2010 to July 1, 2013," accessed February 26, 2014
- United States Census Bureau, "Vintage 2009: Annual Population Estimates," accessed February 26, 2014
- National Association of State Budget Officers, "State Expenditure Report, 2009-2011," accessed February 24, 2014
- National Association of State Budget Officers, "State Expenditures Report, 2010-2012," accessed February 24, 2014
- National Association of State Budget Officers, "State Expenditure Report, 2009," accessed February 24, 2014
- National Association of State Budget Officers, "State Expenditure Report, 2008," accessed February 24, 2014
- Illinois General Assembly, "Bill Status of HB0215," accessed April 22, 2014
- Institute for Illinois' Fiscal Sustainability, "State of Illinois Enacted FY2014 Budget: A Review of the Operating and Capital Budgets for the Current Fiscal Year," October 2, 2013
- State Budget Solutions, "State Budget Solutions' Fourth Annual State Debt Report," January 8, 2014
- Washington Examiner, "EXography: Unfunded public employee pensions drive state debts skyward," January 21, 2014
- State Budget Solutions "State Budget Solutions' Fourth Annual State Debt Report," January 8, 2014
- Stateline: The Daily News Service of The Pew Charitable Trusts, "Infographic: S&P State Credit Ratings, 2001-2012," July 13, 2012
- United States Census Bureau, "State Government Finances: 2012," accessed February 24, 2014
- Recovery, "Stimulus Spending by State"
- Illinois Constitution, "Article 4, Section 8," accessed 2009
- Budget Illinois
- State of Illinois - Budget, March 19, 2009
- Illinois Policy Institute, "Where can I find past copies of the Illinois state budget?," May 11, 2009
- Chicago Press Release, Governor’s Office of Management and Budget Improves Transparency by Releasing Quarterly Financial Reports – Financial Statements Now Available Without Delay, Dec. 9, 2010
- Institute of Government and Public Affairs at University of Illinois, "Home page," accessed February 21, 2014
- Institute of Government and Public Affairs at University of Illinois, "Budget Transparency Profiles - All 50 States," September 2011
- U.S. Public Interest Research Group, "Following the Money 2014 Report," accessed April 15, 2014
- Office of the Illinois Auditor General Web site, accessed October 20, 2009
- Office of the Illinois Auditor General Web site, retrieved October 20, 2009
- Office of the Illinois State Comptroller Web site, retrieved October 20, 2009
- Institute for Truth in Accounting, “The Truth About Balanced Budgets—A Fifty State Study,” Page 35
- the Illinois State Comptroller
- Office of the Illinois State Comptroller, Research and Fiscal Information Department Web site, retrieved October 20, 2009
- California State Treasurer, “Comparison of Other States’ General Obligation Bond Ratings,” accessed 2009
- Gov. Quinn Press Release, “Governor Quinn Signs Major Legislation to Increase Transparency in State Government,” August 17, 2009