Difference between revisions of "Illinois state budget"

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{{budget infobox2|
{{budget infobox|
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| state = Illinois  
state = Illinois |
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| image = Flag of Illinois.png|
image = Flag of Illinois.png|
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| budgetcal =Annual
budgetcal = Annual |
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| fiscalyear =2014
fiscalyear = 2013 |
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| credit=A+
datelaw= June 30, 2012 |
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| percentchangedr =   
lasteraltered = |
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| expenses =$29.3 billion  
revenue =  |
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| all funds expenses =$66.4 billion
percentchangedr =  |
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| spending change =.0001%
expenses = $33.7 billion|
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| change =up
all funds expenses = |
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| governor = Pat Quinn
percentchanged = |
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| % federal = 25.66%
}}
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| state debt = $321,354,115,000
Illinois operates on an annual budget cycle. Its fiscal year begins July 1.
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| per cap debt = $24,959
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}}{{tnr|limit=3}}This page contains information about '''budget processes and policy issues''' in [[Illinois]], including:
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* A summary of the budget drafting process
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* Trends in expenditures and revenues
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* Current and past fiscal year budget developments
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* Financial transparency measures
  
[[Illinois]]'s Gov. [[Pat Quinn|Pat Quinn]] signed the state's $33.7 billion budget for FY2013 into law on June 30, 2012, with after vetoing $57 million in spending approved by the [[Illinois General Assembly|General Assembly]].<ref>[http://www.suntimes.com/13505677-761/quinn-cuts-57-million-from-state-budget.html The Chicago Sun Times "Quinn cuts $57 million from state budget" June 30, 2012]</ref> The state began FY2013 with between $7.5 - $8 billion in unpaid bills.<ref>[http://www.pjstar.com/free/x1903094111/Illinois-began-new-budget-year-owing-7-5-billion The Peoria Journal Star "Illinois began new budget year owing $7.5 billion" July 16, 2012]</ref>
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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).<ref>[http://www.bls.gov/cpi/cpid1402.pdf ''Bureau of Labor Statistics'', "CPI Detailed Report Data for February 2014," accessed April 9, 2014]</ref><ref>[http://inflationdata.com/Inflation/Inflation_Calculators/Cumulative_Inflation_Calculator.aspx ''InflationData.com'', "Cumulative Inflation Calculator," February 28, 2014]</ref>
  
The State Budget Crisis Task Force released a [http://www.statebudgetcrisis.org/wpcms/wp-content/images/2012-10-12-Illinois-Report-Final-2.pdf report] in October 2012 finding that “Illinois has been doing back flips on a high wire, without a net,” and that the state's fiscal condition is dire condition. It found that the "existing trajectory of state spending, taxation, and administrative practices cannot be sustained."<ref>[http://www.statebudgetcrisis.org/wpcms/wp-content/images/2012-10-12-Illinois-Report-Final-2.pd STate Budget Crisis Task Force "Illinois Report" Oct. 2012]</ref> The state Auditor General William Holland reported in June 2012 that the state's budget deficit for FY2011 was $43.8 billion, the worst in the nation.<ref>[http://www.wbez.org/auditor-general-report-says-illinois-has-worst-budget-deficit-nation-100322 WBEZ.com "Auditor General report says Illinois has worst budget deficit in the nation" June 21, 2012]</ref>
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==Budget process==
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{{Illinois budget process}}
  
As of August 2012, Illinois has a total state debt of approximately $271,111,148,000 when calculated by adding the total of outstanding official debt, pension and other post-employment benefits (OPEB) liabilities, Unemployment Trust Fund loans, and the FY2013 state budget gap.<ref name=debt>[http://www.statebudgetsolutions.org/publications/detail/state-budget-solutions-third-annual-state-debt-report-shows-total-state-debt-over-4-trillion State Budget Solutions "State Budget Solutions' third annual State Debt Report shows total state debt over $4 trillion" Aug. 28, 2012]</ref> The prior year's total was $280,595,828,000,<Ref>[http://www.statebudgetsolutions.org/publications/detail/report-reveals-aggregate-state-debt-exceeds-4-trillion-2 State Budget Solutions “Report reveals aggregate state debt exceeds $4 trillion” Oct. 24, 2011]</ref> and the current debt total places it in the top 5 states with the highest amount of debt.<ref name=debt/>
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==Expenditures==
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===Definitions===
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{{Budget types background}}
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===2013 expenditures===
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[[File:Illinois total expenditures 2013.png|right|thumb|500px|Breakdown of expenditures in FY 2013.<small><br>'''Source:''' [http://www.nasbo.org/ National Association of State Budget Officers]</small>]]
 +
The table below breaks down expenditures for fiscal year 2013 (comparable figures from surrounding states are provided to give additional context).<ref name=expenditures2013>[http://www.nasbo.org/sites/default/files/State%20Expenditure%20Report.pdf ''National Association of State Budget Officers'', "State Expenditure Report, 2011-2013," accessed February 21, 2014]</ref> 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.  
  
As of October 2012, Illinois's total state debt per capita is $21,066.57, the fifth highest debt per capita of the 50 states.<ref>[http://www.statebudgetsolutions.org/publications/detail/state-debt-more-than-37000-per-private-worker-13000-per-capita State Budget Solutions "State debt more than $37,000 per private worker, $13,000 per capita" Oct. 2, 2012]</ref>
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{| class="wikitable" style="text-align:center; width:55%;"
 +
! colspan="7" align="center" style="background-color:#008000; color: white;" | Total state expenditures, FY 2013 ($ in millions)<ref name=expenditures2013/>
 +
|-
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! valign="bottom" style="background-color:#444; color: white;" | State
 +
! valign="bottom" style="background-color:#444; color: white;" | General fund
 +
! valign="bottom" style="background-color:#444; color: white;" | Federal funds
 +
! valign="bottom" style="background-color:#444; color: white;" | Other funds
 +
! valign="bottom" style="background-color:#444; color: white;" | Bonds
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! valign="bottom" style="background-color:#444; color: white;" | Total
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! valign="bottom" style="background-color:#444; color: white;" | Per capita expenditures**
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|-
 +
|'''Illinois''' || '''$29,260''' || '''$15,407''' || '''$19,825''' || '''$1,955''' || '''$66,447''' || '''$5,158.07'''
 +
|-
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|[[Indiana state budget|Indiana]] || $14,189 || $10,357 || $3,220 || $0 || $27,766 || $4,225.60
 +
|-
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|[[Michigan state budget|Michigan]] || $9,164 || $19,295 || $20,107 || $182 || $48,748 || $4,926.22
 +
|-
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|[[Ohio state budget|Ohio]] || $31,514 || $12,630 || $12,950 || $1,174 || $58,268 || $5,035.78
 +
|-
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|[[Wisconsin state budget|Wisconsin]] || $14,042 || $10,815 || $17,912 || $0 || $42,769 || $7,447.53
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|-
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|align="left" colspan="8" | <small>**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.<ref name=2013census/><ref name=2009census>[https://www.census.gov/popest/data/historical/2000s/vintage_2009/index.html ''United States Census Bureau'', "Vintage 2009: Annual Population Estimates," accessed February 26, 2014]</ref><br>'''Source:''' [http://www.nasbo.org/ National Association of State Budget Officers]</small>
 +
|}
  
According to a 2012 study by 24/7 Wall Street, Illinois is the 48 worst run state taking into account debt per capita, budget deficits, unemployment, median household income, and the percentage of the percentage of the population below the poverty line. The best run state is North Dakota and the worst run state is California.<ref> [http://finance.yahoo.com/news/the-best-and-worst-run-states-in-america-150415625.html/ Yahoo, The Best- and Worst-Run States in America, Nov. 27, 2012] </ref>
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===Expenditures by function===
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[[File:Illinois expenditures by type 2012.png|right|thumb|500px|Breakdown of expenditures by function in FY 2012.<small><br>'''Source:''' [http://www.nasbo.org/ National Association of State Budget Officers]</small>]]
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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.
  
:: ''See also: [http://www.statebudgetsolutions.org/state/detail/illinois The Illinois State Budget on State Budget Solutions]''
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{| class="wikitable" style="text-align:center; width:55%;"
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! colspan="8" align="center" style="background-color:#008000; color: white;" | Expenditures by function, FY 2012 (as percents)<ref name=expenditures2013/>
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|-
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! valign="bottom" style="background-color:#444; color: white;" | State
 +
! valign="bottom" style="background-color:#444; color: white;" | Elementary and secondary ed.
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! valign="bottom" style="background-color:#444; color: white;" | Higher ed.
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! valign="bottom" style="background-color:#444; color: white;" | Public assistance
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! valign="bottom" style="background-color:#444; color: white;" | Medicaid
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! valign="bottom" style="background-color:#444; color: white;" | Corrections
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! valign="bottom" style="background-color:#444; color: white;" | Transportation
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! valign="bottom" style="background-color:#444; color: white;" | Other
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|-
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|'''Illinois''' || '''15.8%''' || '''5.5%''' || '''0.1%''' || '''19.7%''' || '''2.2%''' || '''8.5%''' || '''48.1%'''
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|-
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|[[Indiana state budget|Indiana]] || 32.9% || 6.5% || 1.5% || 27.3% || 2.9% || 9.3% || 19.7%
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|-
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|[[Michigan state budget|Michigan]] || 27.2% || 4.1% || 0.9% || 26.1% || 4.7% || 6.9% || 30.2%
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|-
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|[[Ohio state budget|Ohio]] || 20.6% || 4.2% || 1.5% || 24.4% || 3.1% || 5.1% || 41.2%
 +
|-
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|[[Wisconsin state budget|Wisconsin]] || 16.7% || 14.1% || 0.4% || 16.5% || 2.9% || 6.9% || 42.5%
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|-
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|align="left" colspan="8" | <small>'''Source:''' [http://www.nasbo.org/ National Association of State Budget Officers]</small>
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|}
  
==Federal Aid to State Budget==
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===Expenditure trends===
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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.<ref name=expenditures2013/><ref name=expenditures2011>[http://www.nasbo.org/sites/default/files/2010%20State%20Expenditure%20Report_0.pdf ''National Association of State Budget Officers'', "State Expenditure Report, 2009-2011," accessed February 24, 2014]</ref><ref name=expenditures2012>[http://www.nasbo.org/sites/default/files/State%20Expenditure%20Report%20%28Fiscal%202010-2012%29.pdf ''National Association of State Budget Officers'', "State Expenditures Report, 2010-2012," accessed February 24, 2014]</ref><ref name=expenditures2009>[http://www.nasbo.org/sites/default/files/2009-State-Expenditure-Report.pdf ''National Association of State Budget Officers'', "State Expenditure Report, 2009," accessed February 24, 2014]</ref><ref name=expenditures2008>[http://www.nasbo.org/sites/default/files/FY08%20State%20Expenditure%20Report.pdf ''National Association of State Budget Officers'', "State Expenditure Report, 2008," accessed February 24, 2014]</ref> Figures are rendered as percents, indicating the share of the total budget spent per category.
  
The chart below represents how much of the state’s budget comes from the federal government.<ref>[http://taxfoundation.org/blog/monday-map-federal-aid-state-budgets ''Tax Foundation'' "Federal Aid to State Budgets," accessed August 22, 2013]</ref> The number is the corresponding ranking in relation to the rest of the nation (if #1, the state receives the highest percentage of federal funding in the nation):
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{| class="wikitable" style="text-align:center; width:65%;"
{| class="wikitable sortable"
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! colspan="8" align="center" style="background-color:#008000; color: white;" | Expenditures from 2008 to 2012 (as percents)
| align="center" style="background:#f0f0f0;"|'''State'''
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| align="center" style="background:#f0f0f0;"|'''2008'''
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| align="center" style="background:#f0f0f0;"|'''2009'''
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| align="center" style="background:#f0f0f0;"|'''2010'''
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| align="center" style="background:#f0f0f0;"|'''2011'''
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|-
 
|-
| Illinois || 27.62% (#31) || 32.35% (#30) || 36.03% (#28) || 33.65% (#34)
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! valign="bottom" style="background-color:#444; color: white;" | Year
|}
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! valign="bottom" style="background-color:#444; color: white;" | Elementary and secondary ed.
*Figures were calculated by dividing each state’s intergovernmental revenue into its general revenue.<ref>[http://www.census.gov/compendia/statab/cats/state_local_govt_finances_employment/federal_aid_to_state_and_local_governments.html '''US Census''' Federal Aid to State and Local Governments]</ref><ref>[http://taxfoundation.org/blog/monday-map-federal-aid-state-budgets ''Tax Foundation''' "Monday Map: Federal Aid to State Budgets. Accessed October 15, 2013]</ref>
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! valign="bottom" style="background-color:#444; color: white;" | Higher ed.
 +
! valign="bottom" style="background-color:#444; color: white;" | Public assistance
 +
! valign="bottom" style="background-color:#444; color: white;" | Medicaid
 +
! valign="bottom" style="background-color:#444; color: white;" | Corrections
 +
! valign="bottom" style="background-color:#444; color: white;" | Transportation
 +
! valign="bottom" style="background-color:#444; color: white;" | Other
 +
|-
 +
|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%
 +
|-
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|2008 || 21.8% || 6.0% || 0.3% || 29.5% || 3.0% || 8.3% || 31.2%
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|-
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|style="background-color:black; color:white"|'''Change in %'''
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| style="background-color:black; color:white" align="center"|'''-6.0%''' || align="center" style="background-color:black; color:white"|'''-0.5%'''|| align="center" style="background-color:black; color:white"| '''-0.2%''' || align="center" style="background-color:black; color:white"|'''-9.8%''' ||align="center" style="background-color:black; color:white"| '''-0.8%''' || align="center" style="background-color:black; color:white"|'''0.2% ''' || align="center" style="background-color:black; color:white"|'''16.9% '''
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|-
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|align="left" colspan="8" | <small>'''Source:''' [http://www.nasbo.org/ National Association of State Budget Officers]</small>
 +
|}
  
==FY2014 State Budget==
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==Revenues==
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===2013 revenues===
[[Illinois]]'s Gov. [[Pat Quinn|Pat Quinn]] unveiled his proposed $35.6 billion FY2014 state budget on March 6, 2013.<Ref>[http://www.suntimes.com/news/metro/18672382-418/gov-quinn-proposes-most-difficult-budget-ever.html The Chicago Sun Times "Gov. Quinn says $35.6 billion proposal ‘most difficult budget . . . ever’" March 6, 2013]</ref>
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[[File:Illinois GF revenues 2013.png|right|400px|thumb|Breakdown of general fund revenue sources in FY 2013.<small><br>'''Source:''' [http://www.nasbo.org/ National Association of State Budget Officers]</small>]]
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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).<ref name=expenditures2013>[http://www.nasbo.org/sites/default/files/State%20Expenditure%20Report.pdf ''National Association of State Budget Officers'', "State Expenditure Report, 2011-2013," accessed February 21, 2014]</ref> 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.
  
The budget includes a 3 percent funding cut to K-12 education, but represents a 3-percent increase in spending over the FY2013 state budget.<ref>[http://www.suntimes.com/news/metro/18672382-418/gov-quinn-proposes-most-difficult-budget-ever.html The Chicago Sun Times "Gov. Quinn says $35.6 billion proposal ‘most difficult budget . . . ever’" March 6, 2013]</ref>
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{| class="wikitable" style="text-align:center; width:55%;"
 +
! colspan="8" align="center" style="background-color:#008000; color: white;" | Revenue sources in the general fund, FY 2013 ($ in millions)<ref name=expenditures2013/>
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|-
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! valign="bottom" style="background-color:#444; color: white;" | State
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! valign="bottom" style="background-color:#444; color: white;" | Sales tax
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! valign="bottom" style="background-color:#444; color: white;" | Personal income tax
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! valign="bottom" style="background-color:#444; color: white;" | Corporate income tax
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! valign="bottom" style="background-color:#444; color: white;" | Gaming tax
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! valign="bottom" style="background-color:#444; color: white;" | Other taxes and fees
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! valign="bottom" style="background-color:#444; color: white;" | Total
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! valign="bottom" style="background-color:#444; color: white;" | Per capita revenue**
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|-
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|'''Illinois''' || '''$7,335''' || '''$16,630''' || '''$3,086''' || '''$340''' || '''$8,899''' || '''$36,290''' || '''$2,817.08'''
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|-
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|[[Indiana state budget|Indiana]] || $6,796 || $4,978 || $968 || $555 || $1,165 || $14,462 || $2,200.92
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|-
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|[[Michigan state budget|Michigan]] || $1,832 || $5,844 || $438 || $0 || $1,075 || $9,189 || $928.59
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|-
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|[[Ohio state budget|Ohio]] || $8,445 || $9,508 || $262 || $0 || $11,344 || $29,559 || $2,554.62
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|-
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|[[Wisconsin state budget|Wisconsin]] || $4,410 || $7,497 || $925 || $0 || $1,254 || $14,086 || $2,554.62
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|-
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| align="left" colspan="8" | <small>**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.<ref name=2013census>[http://factfinder2.census.gov/faces/tableservices/jsf/pages/productview.xhtml?src=bkmk ''United States Census Bureau'', "Annual Estimates of the Resident Population: April 1, 2010 to July 1, 2013," accessed February 26, 2014]</ref><br>'''Source:''' [http://www.nasbo.org/ National Association of State Budget Officers]</small>
 +
|}
  
'''Education'''
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===Revenue trends===
 +
The table below details the change in revenue sources in the general fund from 2009 to 2013.<ref name=expenditures2013/><ref name=expenditures2011/> 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.
  
The proposal's enactment would mark the third year in a row that state spending per student has been cut, dropping from in $6,119 in 2010 to $5,452 under the governor's proposal. The state still owes districts $634 million in past state aid payments, according to the latest figures from the Illinois State Board of Education.<ref>[http://articles.chicagotribune.com/2013-03-08/news/ct-met-school-cuts-20130308_1_state-aid-school-districts-class-sizes The Chicago Tribune "Quinn's proposed budget squeezes educators" March 8, 2013]</ref>
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{| class="wikitable" style="text-align:center; width:65%;"
 +
! colspan="8" align="center" style="background-color:#008000; color: white;" | Revenue sources in the general fund, Illinois ($ in millions)<ref name=expenditures2013/><ref name=expenditures2011>[http://www.nasbo.org/sites/default/files/2010%20State%20Expenditure%20Report_0.pdf ''National Association of State Budget Officers'', "State Expenditure Report, 2009-2011," accessed February 24, 2014]</ref>
 +
|-
 +
! valign="bottom" style="background-color:#444; color: white;" | Year
 +
! valign="bottom" style="background-color:#444; color: white;" | Sales tax
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! valign="bottom" style="background-color:#444; color: white;" | Personal income tax
 +
! valign="bottom" style="background-color:#444; color: white;" | Corporate income tax
 +
! valign="bottom" style="background-color:#444; color: white;" | Gaming tax
 +
! valign="bottom" style="background-color:#444; color: white;" | Other taxes and fees
 +
! valign="bottom" style="background-color:#444; color: white;" | Total
 +
! valign="bottom" style="background-color:#444; color: white;" | Per capita revenue**
 +
|-
 +
|2013 || $7,335 || $16,630 || $3,086 || $340 || $8,899 || $36,290 || $2,817.08
 +
|-
 +
|2012 || $7,226 || $15,512 || $2,461 || $340 || $8,083 || $33,622 || $2,612.80
 +
|-
 +
|2011 || $6,833 || $11,225 || $1,851 || $324 || $9,930 || $30,163 || $2,346.23
 +
|-
 +
|2010 || $6,308 || $8,510 || $1,360 || $383 || $4,884 || $21,445 || $1,670.21
 +
|-
 +
|2009 || $6,772 || $9,223 || $1,710 || $430 || $4,441 || $22,577 || $1,748.74
 +
|-
 +
|style="background-color:black; color:white"|'''Change in %'''
 +
| style="background-color:black; color:white" align="center"|'''8.31%''' || align="center" style="background-color:black; color:white"|'''80.31%'''|| align="center" style="background-color:black; color:white"| '''80.47%''' || align="center" style="background-color:black; color:white"|'''-20.93%''' ||align="center" style="background-color:black; color:white"| '''100.38%''' || align="center" style="background-color:black; color:white"|'''60.74%''' || align="center" style="background-color:black; color:white"|'''61.09%'''
 +
|-
 +
|align="left" colspan="8" | <small>**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.<ref name=2013census/><ref name=2009census>[https://www.census.gov/popest/data/historical/2000s/vintage_2009/index.html ''United States Census Bureau'', "Vintage 2009: Annual Population Estimates," accessed February 26, 2014]</ref><br>'''Source:''' [http://www.nasbo.org/ National Association of State Budget Officers]</small>
 +
|}
  
==FY2013 State Budget==
+
==State budgets by year==
Gov. [[Pat Quinn|Pat Quinn]] signed the state's $33.7 billion FY2013 budget into law on June 30, 2012, with after vetoing $57 million in spending approved by the [[Illinois General Assembly|General Assembly]].<ref>[http://www.suntimes.com/13505677-761/quinn-cuts-57-million-from-state-budget.html The Chicago Sun Times "Quinn cuts $57 million from state budget" June 30, 2012]</ref>
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===Fiscal year 2014===
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{{See budget bill|Link=[http://www.ilga.gov/legislation/BillStatus.asp?DocNum=215&GAID=12&DocTypeID=HB&SessionID=85&GA=98 House Bill 215]}}
 +
{{Budget bill box
 +
|State = Illinois
 +
|Year = 2014
 +
|Link =http://www.ilga.gov/legislation/BillStatus.asp?DocNum=215&GAID=12&DocTypeID=HB&SessionID=85&GA=98 HB 215
 +
|Introduced =January 25, 2013
 +
|Days =
 +
|State House =May 28, 2013
 +
|Vote lower house =69-47
 +
|State Senate =May 31, 2013
 +
|Vote upper house =38-20
 +
|Conference =
 +
|Conference upper house vote =
 +
|Conference lower house vote =
 +
|Governor = [[Pat Quinn]]
 +
|Signed =July 2, 2013
 +
|Vetoed =Line Item and Reduction Vetoed
 +
}}
  
As of July 2012, Comptroller Judy Baar Topinka said the state has a backlog of 160,000 bills to be paid totaling $8 billion.<ref>[http://wjbc.com/topinka-no-improvement-in-state-budget/ WJBC.com "Topinka: No improvement in state budget" July 3, 2012]</reF>
+
The fiscal year 2014 budget was signed into law by [[Governor of Illinois|Governor]] [[Pat Quinn]] on July 2, 2013, after using line item and reduction vetoes.<ref>[http://www.ilga.gov/legislation/BillStatus.asp?DocNum=215&GAID=12&DocTypeID=HB&SessionID=85&GA=98 ''Illinois General Assembly'', "Bill Status of HB0215," accessed April 22, 2014]</ref> 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.<ref>[http://www.civicfed.org/iifs/publications/FY14_enactedbudget ''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]</ref>
  
Highlights of the FY2013 state budget:
+
===Fiscal year 2013===
*15% of the budget money spent will go toward pensions;<ref>[http://www.tristatesradio.com/post/illinois-pension-debt-hurts-other-state-services Tri States Public Radio "Illinois Pension Debt Hurts Other State Services" July 8, 2012]</ref>
+
::''See also: [[Illinois state budget (2012-2013)]]
*K-12 education lost $210 million from the state and when reductions in federal funds are included, the reduction tops $855 million.<ref>[http://www.sj-r.com/top-stories/x1098658059/Schools-take-heavy-hit-in-new-Illinois-budget The Springfield Journal-Register "Schools take heavy hit in new Illinois budget" June 8, 2012]</ref>
+
*Elimination of the Illinois Cares RX program.<ref>[http://www.huffingtonpost.com/dan-lesser/illinois-state-budget-cuts_b_1601370.html The Huffington Post "Springfield Budget Recap -- The Poor Get Poorer" June 19, 2012]</ref>
+
  
'''State debt'''
+
===Fiscal year 2012===
 +
::''See also: [[Illinois state budget (2011-2012)]]
  
The state government has $58 billion in direct debt, two-thirds of which consists of bonds the government issued to cover retirement payments for workers, including a $10 billion pension obligation bond that broke all previous records in 2003. Despite the borrowing the total pension shortfall is conservatively estimated at $85 billion by some.<ref>[http://www.nytimes.com/2012/10/25/business/illinois-debt-takes-toll-on-services-study-finds.html The New York Times "Illinois Debt Takes Toll, Study Finds" Oct. 24, 2012]</ref> The state faces total debt of $271,111,148,000 according to a State Budget Solutions study.<ref>[http://www.statebudgetsolutions.org/publications/detail/state-budget-solutions-third-annual-state-debt-report-shows-total-state-debt-over-4-trillion State Budget Solutions "State Budget Solutions' third annual State Debt Report shows total state debt over $4 trillion" Aug. 28, 2012]</ref>
+
===Fiscal year 2011===
 +
::''See also: [[Illinois state budget (2010-2011)]]
  
'''Legislative proposed budget'''
+
===Fiscal year 2010===
 +
::''See also: [[Illinois state budget (2009-2010)]]
  
On May 31 the Illinois Senate passed a $29.36 billion budget along party lines and sent the spending plan to the governor's desk. The spending plan is up one tenth of a percent from the current budget. In the new budget education spending declined by nearly 4 percent, child welfare by almost 7 percent and corrections by more than 3 percent. The Illinois Department of Transportation will get $1.6 billion in bonding authority for highway and transit projects.<ref> [http://www.whig.com/story/18675890/illinois-budget-passes-pension-bill-will-require-a-summer-session/ Quincy Herald-Whig, Illinois budget passes; pension bill will require a summer session, June 1, 2012] </ref>
+
==Historical spending==
 +
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).<ref name=expenditures2013/><ref name=expenditures2012/>
 +
{{State budget historical spending
 +
|State=Illinois
 +
|totalbudgets= 3
 +
|2011-2012genfund=29257
 +
|2011-2012otherfund=14944
 +
|2011-2012fedfund=19407
 +
|2011-2012bonds=2122
 +
|2011-2012budgettotal=65730
 +
|2010-2011genfund=25237
 +
|2010-2011otherfund=14375
 +
|2010-2011fedfund=14821
 +
|2010-2011bonds=1957
 +
|2010-2011budgettotal=56390
 +
|2009-2010genfund=26316
 +
|2009-2010otherfund=10021
 +
|2009-2010fedfund=12083
 +
|2009-2010bonds=895
 +
|2009-2010budgettotal=49315
 +
}}
  
The proposal would reduce state spending by $317 million, or a little under 2 percent.<Ref name=offer>[http://www.businessweek.com/ap/2012-05/D9URCMVG0.htm Businessweek "Democrats in Illinois Senate offer budget proposal" May 18, 2012]</reF>
+
==State debt==
 +
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]].<ref>[http://www.statebudgetsolutions.org/publications/detail/state-budget-solutions-fourth-annual-state-debt-report ''State Budget Solutions'', "State Budget Solutions' Fourth Annual State Debt Report," January 8, 2014]</ref><ref>[http://washingtonexaminer.com/exography-unfunded-public-employee-pensions-are-driving-state-debts-skyward/article/2542548 ''Washington Examiner'', "EXography: Unfunded public employee pensions drive state debts skyward," January 21, 2014]</ref>
 +
{{State debt box
 +
|State = Illinois
 +
|totaldebt=$321,354,115,000
 +
|totaldebtrank=4
 +
|percapdebt=$24,959
 +
|percapdebtrank=5
 +
|expenditures =$44,201,000,000
 +
|expendituresrank =3
 +
}}
  
The legislative proposal would pay $1.3 billion of the state's roughly $9 billion backlog in unpaid bills, whereas the governor's proposal does not make such a payments.<ref name=offer/>
+
===Public pensions===
 +
::''See also: [[Illinois public pensions]] and [[Illinois public employee salaries]]''
  
Illinois lawmakers projected that state revenues will be $33.7 billion in fiscal 2013, which starts July 1. The state has somewhere between $6 billion and $8.5 billion in overdue bills.<ref>[http://www.whig.com/story/17254389/illinois-budget-fix-will-require-years-to-reduce-debt-discipline-to-avoid-frivolous-spending The Quincy Herald-Whig "Illinois budget fix will require years to reduce debt, discipline to avoid frivolous spending" March 26, 2012]</ref>
+
A 2012 report from the Pew Center on the States noted that [[Illinois public pensions|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."
  
'''Governor's proposed budget'''
+
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.
  
Gov. Pat Quinn presented his $33.8 billion fiscal year 2013 budget Feb. 22, 2012.<ref>[http://www.sfgate.com/cgi-bin/article.cgi?f=/g/a/2012/01/06/bloomberg_articlesLXEHTI6S9729.DTL San Francisco Chronicle "Illinois Becomes Moody's Lowest-Rated State After Downgrade" Jan. 9, 2012]</ref>  The full text of the speech can be found [http://www2.illinois.gov/budget/Documents/Budget%20Book/FY%202013/FINAL%20FY13%20BUDGET%20SPEECH.pdf here].  The governor's budget increases spending by 1.5 percent.<ref name=mess>[http://www.suntimes.com/news/metro/10805777-418/gov-pat-quinn-on-pension-mess-everything-is-on-the-table.html The Chicago Sun Times "Gov. Pat Quinn on pension mess: ‘Everything is on the table’" Feb. 22, 2012]</ref>  The governor did not specify many cuts, saying instead he would work with lawmakers to draft solutions for issues such as pension reform, Medicaid reform and closing corporate loopholes.<Ref>[http://www.chicagotribune.com/news/politics/clout/chi-quinns-bad-news-budget-our-rendezvous-with-reality-has-arrived-20120222,0,4043044.story The Chicago Tribune "Quinn's bad news budget: 'Our rendezvous with reality has arrived'" Feb. 22, 2012]</ref> Republicans were frustrated by the governor's lack of detail.<ref>[http://www.sj-r.com/top-stories/x565041335/Live-Follow-Gov-Quinns-budget-address The State Journal-Register "Quinn's budget address lacks details on pensions, Medicaid fixes" Feb. 22, 2012]</ref>  Quinn put the onus on a bipartisan group of legislators formed to look at the state’s pension mess to submit a report to him with specific recommendations by April 17.<ref name=mess/>
+
===Credit ratings===
 +
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.<ref name=credit>[http://www.pewstates.org/projects/stateline/headlines/infographic-sp-state-credit-ratings-20012012-85899404785 ''Stateline: The Daily News Service of The Pew Charitable Trusts'', "Infographic: S&P State Credit Ratings, 2001-2012," July 13, 2012]</ref>
  
Gov. Quinn claims that his proposed budget is smaller than FY2012 while Republicans argue that the budget has in fact grown larger than last year's. The difference is that the governor does include pension and borrowing costs, and the Republicans do.  Quinn's budget does spend $425 million less in agency funding than the FY2012 budget, but overall the governor's proposed budget spends $50 million more last year and $3.4 billion more than five years ago..<ref>[http://www.forbes.com/sites/joshbarro/2012/02/27/pat-quinns-illinois-budget-spending-up-program-spending-down/ Forbes "Pat Quinn's Illinois Budget: Spending Up, Program Spending Down" Feb. 27, 2012]</ref>
+
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).<ref name=credit/>
  
The governor's budget cut projected Medicaid spending by $2.7 billion<ref>[http://www.statebudgetsolutions.org/publications/detail/quinn-medicaid-must-be-cut-back State Budget Solutions "Quinn: Medicaid must be cut back" Feb. 20, 2012]</ref> and to close several state facilities.<ref>[http://www.sj-r.com/breaking/x1793835008/Quinns-budget-plan-to-include-more-state-facility-closures The State Journal Register "Quinn's budget plan to include more state facility closures" Feb. 16, 2012]</ref> The Department of Corrections and the Department of Children and Family Services will be consolidating offices,<ref>[http://www.chicagotribune.com/news/politics/clout/chi-quinn-to-call-for-dozens-of-prison-human-services-closures-20120221,0,4642430.story The Chicago Tribune "Quinn to call for dozens of prison, human services closures" Feb. 21, 2012]</ref> with a total of 59 facilities impacted.<ref name=mess/> 
+
{| class="wikitable" style="text-align:center; width:55%;"
 +
! colspan="6" align="center" style="background-color:#008000; color: white;" | S&P credit ratings from 2001 to 2012
 +
|-
 +
! valign="bottom" style="background-color:#444; color: white;" |
 +
! valign="bottom" style="background-color:#444; color: white;" | '''Illinois'''
 +
! valign="bottom" style="background-color:#444; color: white;" | Indiana
 +
! valign="bottom" style="background-color:#444; color: white;" | Michigan
 +
! valign="bottom" style="background-color:#444; color: white;" | Ohio
 +
! valign="bottom" style="background-color:#444; color: white;" | Wisconsin
 +
|-
 +
| 2012 || A+ || AAA || AA- || AA+ || AA
 +
|-
 +
| 2011 || A+ || AAA || AA- || AA+ || AA
 +
|-
 +
| 2010 || A+ || AAA || AA- || AA+ || AA
 +
|-
 +
| 2009 || A+ || AAA || AA- || AA+ || AA
 +
|-
 +
| 2008 || AA || AAA || AA- || AA+ || AA
 +
|-
 +
| 2007 || AA || AA+ || AA- || AA+ || AA-
 +
|-
 +
| 2006 || AA || AA+ || AA || AA+ || AA-
 +
|-
 +
| 2005 || AA || AA || AA || AA+ || AA-
 +
|-
 +
| 2004 || AA || AA || AA+ || AA+ || AA-
 +
|-
 +
| 2003 || AA || AA+ || AA+ || AA+ || AA-
 +
|-
 +
| 2002 || AA || AA+ || AAA || AA+ || AA-
 +
|-
 +
| 2001 || AA || AA+ || AAA || AA+ || AA
 +
|-
 +
|}
  
The governor proposed cuts of 9 percent to every constitutional office and state department except education and the state police.<ref>[http://abclocal.go.com/wls/story?section=news/politics&id=8552526 ABC7 "Quinn's budget address: What's expected to be cut" Feb. 21, 2012]</ref> Not all state officials endorsed the 9 percent cuts to their agencies. The attorney general said her office hasn't recovered from a 25 percent budget cut in 2006 and that staff lawyers haven't gotten raises in six years <Ref>[http://www.statebudgetsolutions.org/publications/detail/other-ill-officials-cool-to-quinns-call-for-cuts State Budget Solutions "Other Ill. officials cool to Quinn's call for cuts" Feb. 29, 2012]</ref>  The officers themselves, though, would receive raises between $1, to $ under the governor's budget.<ref>[http://centralillinoisproud.com/fulltext?nxd_id=231352 CIProud.com "Proposed State Budget Also Includes Raises" Feb. 27, 2012]</ref>
+
==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.<ref name=federalaid>[http://factfinder2.census.gov/faces/tableservices/jsf/pages/productview.xhtml?pid=COG_2012_FIN009&prodType=table ''United States Census Bureau'', "State Government Finances: 2012," accessed February 24, 2014]</ref>
  
When giving the state of the state address on Feb. 1, 2012, the governor said that he wanted to increase college scholarships, spend more on preschool and lower taxes on natural gas, but he did not discuss possible sources of funds for his plans.<ref>[http://www.chicagotribune.com/news/local/ct-met-state-of-state-20120202,0,5603945.story The Chicago Tribune "Quinn shoves aside state's budget woes" Feb. 1, 2012]</ref>
+
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 state budget#Federal aid to state budget|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 state budget#Federal aid to state budget|Alaska]] received roughly $2.9 billion in federal aid in 2012, just under 20 percent of the state's general revenues.<ref name=federalaid/>
  
'''Increased Expenses'''
+
{| class="wikitable" style="text-align:center; width:50%;"
 
+
! colspan="4" align="center" style="background-color:#008000; color: white;" | Federal aid to state budgets in 2012
The state is likely to pay more in many areas in FY2013.  The state's retirement systems released a report in Nov. 2011 projecting that the state's pension payment will increase $5.9 billion for FY2013, $1 billion more than it was in FY2012.  Medicaid costs are also expected to rise and lawmakers are seeking $490 million in additional funding from the state.<ref>[http://illinois.statehousenewsonline.com/7201/illinois-needs-1-billion-more-for-fy13-budget/ Illinois Statehouse News "Illinois needs $1 billion more for FY13 budget" Nov. 21, 2011]</ref> On June 14, 2012, the governor signed into law $1.6 billion in health care and Medicaid cuts and a $1 per pack cigarette tax increase,. which Gov. Quinn said was necessary to bring the system back from the brink of collapse.<ref>[http://www.chicagotribune.com/news/local/ct-met-quinn-medicaid-law-20120615,0,490971.story The Chicago Tribune "Quinn says Medicaid cuts were needed to prevent collapse" June 15, 2012]</ref>
+
 
+
On March 1, 2012, the House approved an official revenue estimate of $33.7 billion, which is $200 million below the estimate from Gov. Pat Quinn's office.  House leaders said that they wanted to be more cautious than the governor.  The revenue estimate is the equivalent of an upper limit on state spending for FY2013.  Although the amount is approximately $500 million more than the legislative estimate for FY2012,  House Minority Leader Tom Cross says that after some of the money is used for pensions, old bills and other expenses, actual spending on new services could drop dramatically.<ref>[The Chicago Tribune March 1, 2012]</ref>
+
 
+
==FY2012 State Budget==
+
* '''See past [[Archived Illinois state budgets|state budgets]]'''
+
 
+
As of Nov. 2011, Illinois has a backlog of unpaid bills totaling $3.5 billion.<ref>[http://illinois.statehousenewsonline.com/7201/illinois-needs-1-billion-more-for-fy13-budget/ Illinois Statehouse News "Illinois needs $1 billion more for FY13 budget" Nov. 21, 2011]</ref>
+
 
+
The state will end FY2012 with  a deficit of $8.3 billion according to a Sept. 26, 2011, study by The Civic Foundation.  Its study noted that although the state reducing spending, any benefits were negated by higher pension costs and increased borrowing costs.  If nothing is done before the end of the fiscal year in June 2012, the deficit will break down to $5.5 billion in unpaid bills from companies that provide services, $1.2 billion in Medicaid payments the state will push off until FY2013, and $1.6 billion is owed to companies for tax returns and health insurance bills for state employees.<ref>[http://www.chicagotribune.com/news/local/ct-met-illinois-state-budget-report-20110926,0,7987489.story The Chicago Tribune "Illinois budget deficit to hit $8 billion despite tax increase" Sept. 26, 2011]</ref>
+
 
+
'''Special Legislative Session'''
+
 
+
A special session of the [[Illinois General Assembly|legislature]] adjourned after the [[Illinois House of Representatives|House]] rejected a tax relief plan for business but did approve a budget deal to avoid closing seven state facilities and lay off approximately 1,900 employees.  That legislation shifts money in the budget but keeps overall spending at the same level.<ref name=stalls>[http://www.businessweek.com/ap/financialnews/D9RAQB580.htm Businessweek "Ill. Legislature adjourns as tax package stalls" Nov. 29, 2011]</ref>  Gov. Quinn signed the deal into law on Dec. 19, 2011.<ref>[http://www.chicagotribune.com/news/local/ct-met-quinn-budget-layoffs-20111220,0,5245266.story The Chicago Tribune "Quinn signs law averting layoffs" Dec. 20, 2011]</ref>
+
+
Gov. Quinn initially announced plans to layoff thousands of state employees in sept. 2011 and the closing of several state facilities, which he said was required to prevent the state from running out of money in spring 2012.<ref>[http://articles.chicagotribune.com/2011-09-06/news/ct-met-pat-quinn-illinois-budget-20110906_1_quinn-plans-major-state-employees-union-pat-quinn The Chicago Tribune "Quinn plans layoffs, facility closings" Sept. 6, 2011]</ref>  Quinn backed away from that plan and on Nov. 10, 2011, introduced a new plan that would close six facilities, but no prisons, over 2 1/2 years and reduce by 600 the number of developmentally disabled clients served in state-run facilities by 2014, allowing the state to close up to four of its eight developmental centers. It also calls for closing two psychiatric hospitals by 2014.<ref>[http://www.businessweek.com/ap/financialnews/D9QU58SO2.htm Businessweek "Illinois lawmakers reject Quinn's closure plans" Nov. 10, 2011]</ref>  The issue was moot after the new legislation in November.<ref name=stalls/>
+
 
+
Also in the November special session, the legislature passed a bill to curtail abuses of public pension systems by ending double dipping for employees getting simultaneous credit from  union pension systems and public systems, and also prohibiting employees from earning pension credit while on leave working for unions.<ref name=stalls/>
+
 
+
Gov. [[Pat Quinn|Pat Quinn]] signed the state's FY2012 budget on June 30, 2011, with the general fund totaling $32.98 billion after the governor vetoed $376 million in spending approved by the General Assembly and eliminated what he said were $336 million in redundant appropriations.<ref>[http://www.reuters.com/article/2011/07/01/us-illinois-budget-idUSTRE7600GO20110701 Reuters "Illinois governor signs budget but state's problems mount" June 30, 2011]</ref>  The governor's cuts upon signing the budget included $250 million in Medicaid reimbursements, which were intended to force legislators to restructure the program. The state's budget director explained that cuts won't save the state money but will actually just stall paying hospitals until next year.<ref>[http://www.wbez.org/story/state-cuts-medicaid-meant-force-restructure-program-88699 WBEZ.com "State cuts to Medicaid meant to force a restructure to the program" July 5, 2011]</ref> The spending plan emerged as the result of efforts Democratic House Speaker [[Michael Madigan|Michael Madigan]] and Republican House Minority Leader [[Tom Cross|Tom Cross]] that produced a $33.2 billion budget that is $2 billion less than what Quinn wanted and $1 billion less than the Illinois Senate put forth.<ref>[http://articles.chicagotribune.com/2011-06-05/news/ct-met-state-budget-cuts-20110605_1_budget-cuts-income-tax-spending-plan/ The Chicago Tribune "Lawmakers continue to cut despite major income tax increase" June , 2011]</ref> 
+
 
+
The legislature approved the budget at the end of May, using conservative revenue estimates that the House declared is the amount of tax money the state can expect to collect in FY2012. Although Senate Democrats believe the state will collect more money than that, but Senate President [[John Cullerton|John Cullerton]] said the Senate decided to accept the House-drafted budget rather than risk a protracted overtime session.<ref name=sjr/> One month after signing the budget, the governor explained that he knew that there were insufficient funds to operate state government for the year but that he signed it anyway to prevent Republicans from seeking even deeper cuts.<ref>[http://www.chicagotribune.com/news/politics/clout/chi-quinn-signed-state-budget-to-avoid-deeper-cuts-by-republicans-20110725,0,7625810.story/ The Chicago Tribune "Quinn signed state budget to avoid deeper cuts by Republicans" July 25, 2011]</ref>  On June 27, 2011, Gov. Quinn said, "The budget is an on-going process. We have to work on it 365 days of the fiscal year."<ref>[http://www.kcchronicle.com/2011/06/27/quinn-to-sign-state-budget-thursday/ahe81jp/ The Kane County Chronicle "Quinn to sign state budget Thursday" June 27, 2011]</ref>  The state's FY2012 Operating Budget can be found [http://www.state.il.us/budget/FY2012/FY12_Operating_Budget.pdf here].  Illinois' Capital Budget for FY2012 can be found [http://www.state.il.us/budget/FY2012/FY12_Capital_Budget.pdf here].
+
 
+
In April 2011, lawmakers passed legislation providing $7.8 billion for required state contributions to employee pensions and paying back some of the fund the state borrowed by selling bonds. Cullerton  said that with that legislation, the state will have approximately $26.5 billion left, about $1.2 billion less than the spending proposed by the governor. Republicans criticized the passage of a large piece of the budget prior to determining where to make cuts.<ref>[http://www.businessweek.com/ap/financialnews/D9MKDDG82.htm/ Businessweek "Ill. lawmakers OK money for debt, pension payments" April 15, 2011]</ref> 
+
 
+
The governor signed an agreement with the American Federation of State, County and Municipal Employees union to not lay off employees or close facilities before June 30, 2012, the end of AFSCME’s current state contract, but in June 2011, the governor's spokesperson said that there was not enough money in the budget to fund all salaries for fiscal year 2012.<ref name=sjr>[http://www.sj-r.com/top-stories/x438676411/Salary-shortfall-loom-in-state-budget The State Journal-Register "Employee salary shortfall looms in state budget" June 27, 2011]</ref>  Unions sued the state and on July 19, 2011, an arbitrator ruled that the governor's refusal to give raises violated the union contract.  He ordered the governor to start paying the 2 percent increase and provide back pay within 30 days.  The governor said he planned to appeal<ref>[http://www.forbes.com/feeds/ap/2011/07/20/business-us-illinois-budget-raises_8574591.html Forbes "Arbitrator: Ill. gov. must give workers pay raises" July, 2011]</ref> and a judge granted the Democratic governor’s request to hold off on paying the raises pending that appeal.<ref>[http://www.washingtonpost.com/national/judge-temporarily-halts-union-raises-for-illinois-state-workers-after-governor-appeals/2011/07/22/gIQAgcpCUI_story.html The Washington Post "Judge temporarily halts union raises for Illinois state workers after governor appeals" July 22, 2011]</ref> (See more below.)
+
 
+
===Budget Highlights===
+
To help raise revenue in Illinois, state lawmakers expanded gambling throughout the state. The bill would license four new casinos and would authorize slot machines at both O’Hare and Midway airports as well as at local horse racing tracks. Proponents say it will bring the state more than a billion dollars through licensing fees and subsequent tax revenue, as well as create thousands of jobs. Bill supporters say the additional gaming will deliver $500 million annually for education, public safety, and infrastructure. Some detractors though say the revenues are not sustaining and do not keep up with yearly inflation. Illinois tax revenues from casinos fell 6 percent during the past decade, from $410 million in 2000 to $384 million last year.<ref> [http://www.csmonitor.com/USA/Politics/2011/0531/Illinois-new-solution-to-huge-budget-crisis-gambling/ Christian Science Monitor, Illinois' new solution to huge budget crisis - gambling, June 1, 2011] </ref>
+
 
+
However, Quinn called the expansion of gambling "excessive." Quinn embraced the notion of a casino in the city of Chicago, but said the expansive bill handed to him was more than the people of Illinois wanted to see.<ref> [http://www.suntimes.com/news/politics/5715194-418/quinn-calls-gambling-expansion-plan-excessive-criticizes-budget-cuts.html/ Chicago Sun Times, Quinn Calls Gambling Expansion Plan Excessive, Criticizes Budget Cuts, June 1, 2011] </ref>
+
 
+
The budget passed by the legislature in the waning hours of the session is higher than FY2011’s budget and was balanced by delaying the payment of billions of dollars in unpaid bills until this current fiscal year. In the proposed budget, lawmakers include funds to pay for pensions, but did not reduce the $4 billion in old bills on the desk of the Illinois Comptroller. Instead, the state will take longer to pay these bills, including Medicaid payments.<ref> [http://illinois.statehousenewsonline.com/6276/illinois-budget-spends-less-but-doesnt-cut-more/ State House News, Illinois Budget Spends Less, but Doesn't Cut More, May 31, 2011] </ref> The $33.2 billion spending plan is about $2 billion less than what Democratic Gov. Pat Quinn wanted. Spending less was on the minds of many lawmakers after they approved a 67 percent increase in the income tax rate in January that was billed as mostly temporary.
+
Some of the changes sent to the governor's desk include:<ref> [http://articles.chicagotribune.com/2011-05-31/news/ct-met-illinois-state-budget-20110531_1_social-services-budget-plan-state-budget/ Chicago Tribune, Education, social services are big losers in state budget, June 1, 2011] </ref>
+
*About $200 million statewide was cut from education spending
+
*Lawmakers approved 50 percent of the current year's funding of Illinois Rx, a program Quinn wanted to eliminate
+
*To cut down on the number of poor people using emergency rooms for minor issues, the state would start charging a co-pay of $10 — twice the regular rate — for going to emergency rooms for non-emergencies
+
*The state would cut in half the amount of interest it offers when it falls behind in paying hospitals, doctors and other health care providers. Instead of 2 percent a month starting after 60 days, the interest rate would be 1 percent starting after 90 days for late payments.
+
*To save $16 million annually the state would no longer pick up the costs of over-the-counter drugs, such as allergy medicine, cough syrup or painkillers, prescribed for Medicaid patients.
+
 
+
The budget sections that took the biggest hit were education and human services. The Department of Human Services lost more than $669 million, or 17.3 percent and education spending declined $171 million, or 2.4 percent. Early childhood education lost $17 million. Mentoring for teachers and administrators would be eliminated entirely. Special education for orphans took an $18 million cut. The state's main contribution to schools, general state aid, would drop more than $152 million, or 3.3 percent.<ref> [http://www.businessweek.com/ap/financialnews/D9NK0JFO1.htm/ Business Week, Proposed Ill. budget hits human services, schools, June 3, 2011] </ref>
+
 
+
'''Schools'''
+
 
+
After back-to-back years of delayed payments and bill backlogs, local educators doubted that they would collect the money on time that, on paper, they would be due in the coming year. The state owed school districts $981 million in unpaid bills, according to the state comptroller's office.<ref> [http://articles.chicagotribune.com/2011-06-01/news/ct-met-budget-education-20110601_1_early-childhood-education-school-districts-state-budget-plan/ Chicago Tribune, Budget would cut $171 million from public schools, June 1, 2011] </ref>
+
 
+
Illinois' education chief says the state hasn't provided enough money to institute a new education reform law that's been praised nationwide. State education officials said budget cuts hurt efforts to move reforms forward, including cutting a model for performance evaluations and mentoring programs.<ref> [http://www.wbez.org/story/state-schools-chief-says-budget-cuts-hurt-reform-89309/ WBEZ, State schools chief says budget cuts hurt reform , July 18, 2011] </ref>
+
 
+
'''Education spending'''
+
 
+
Illinois consistently devotes approximately 27-28 percent total spending to K-12 education.<ref>[http://www.statebudgetsolutions.org/publications/detail/throwing-money-at-education-isnt-working State Budget Solutions "Throwing Money At Education Isn't Working" Sept. 12, 2012]</ref>
+
 
+
{|class="wikitable"
+
!Fiscal Year
+
!Total Spending<ref>[http://www.usgovernmentspending.com/spending_chart_1997_2017AKb_13s1li111mcn_F0t USGovernmentSpending.com "Illinois Government Spending Chart - Total Spending" Aug. 4, 2012]</ref>
+
!Education Spending<reF>[http://www.usgovernmentspending.com/spending_chart_1997_2017ALb_13s1li111mcn_20t http://www.usgovernmentspending.com/spending_chart_1997_2017ALb_13s1li111mcn_20t USGovernmentSpending.com "Illinois  Government Spending Chart - Education Spending"Aug. 4, 2012]</ref>
+
! Percent Education Spending
+
 
|-
 
|-
|2009|| $123.1  billion ||$35.3 billion || 28.6%
+
! valign="bottom" style="background-color:#444; color: white;" | State
 +
! valign="bottom" style="background-color:#444; color: white;" | Federal aid as % of general revenue
 +
! valign="bottom" style="background-color:#444; color: white;" | Total federal aid
 +
! valign="bottom" style="background-color:#444; color: white;" | National rank
 
|-
 
|-
|2010||$129.7 billion||$35.5 billion||27.3%
+
| '''Illinois''' || '''25.66%''' || '''$15,647''' || '''43'''
 
|-
 
|-
|2011|| $127.7 billion||$35.2 billion||27.5%
+
| [[Indiana state budget|Indiana]] || 32.96% || $10,441 || 27
 +
|-
 +
| [[Michigan state budget|Michigan]] || 33.74% || $17,850 || 24
 +
|-
 +
| [[Ohio state budget|Ohio]] || 34.88% || $20,688 || 17
 +
|-
 +
| [[Wisconsin state budget|Wisconsin]] || 28.19% || $8,855 || 38
 
|-
 
|-
|2012|| $125.4 billion||$35.6 billion||28.3%
 
 
|}
 
|}
 
+
'''Pension Payment'''
+
===Stimulus===
 
+
Illinois received $9.1 billion in federal stimulus funding between February 2009 and June 2013.<ref>[http://www.recovery.gov/Pages/default.aspx ''Recovery'', "Stimulus Spending by State"]</ref>
For the first time in two years, the General Assembly agreed to pay into its [[Illinois public pensions]] and approved to plan to pay $4.5 billion in FY2012.<ref>[http://illinois.statehousenewsonline.com/5812/pensions-to-be-paid-without-borrowing-first-time-in-two-years-2/ Illinois Statehouse News"Pensions to be paid without borrowing, first time in two years" April 19, 2011]</ref>
+
 
+
'''Medicaid'''
+
 
+
Lawmakers balanced the 2012 state budget by dragging out Medicaid payments. Quinn’s order to cut Medicaid spending will increase the payment cycle again, to another 162 days. Illinois hospitals had been getting paid every 30 days because of the federal stimulus, but that stimulus expired July 1.<ref> [http://illinois.statehousenewsonline.com/6561/quinns-medicaid-reduction-means-5-month-payment-delay// StateHouse News, Quinn's Medicaid reduction means 5 months payment delay, July 7, 2011] </ref>
+
 
+
The Illinois Cares RX program is also in trouble. The state is notifying all 211,000 participants in the Illinois Cares Rx program that they either will be paying more for their drugs beginning Sept. 1 or are being terminated from the program. DHFS expects 40,000 and 45,000 participants to lose their Illinois Cares Rx aid.<ref> [http://www.pressmentor.com/state_news/x121477692/Illinois-Cares-Rx-participants-being-notified-of-cutbacks/ Press Mentor, Illinois Cares Rx participants being notified of cutbacks, July 15, 2011] </ref>  The changes mean a single person cannot make more than $21,780 a year to qualify. That's down from $27,610. The base income for a two-person household went from $36,635 to $29,420. For those still participating, generic drug co-pays will rise to $5 from $2.50 and brand-name prescriptions will cost $15, up from $6.30.<ref> [http://www.chicagotribune.com/news/chi-ap-il-seniorsdrugs,0,3521880.story/ Chicago Tribune, Ill. budget cuts reduce seniors' drug benefits, July 15, 2011] </ref>
+
 
+
U.S. Sen. Mark Kirk told WLS news that Illinois' bipartisan legislation to means test Medicaid recipients was overriden by the federal government. The legislation would have made it possible to ensure Medicaid recipients live in Illinois and are low income. The legislation, designed to strengthen Medicaid's finances by cutting fraud and decreasing costs, would have saved the state millions. About 2.5 million Illinois residents are currently on Medicaid.<ref> [http://www.wlsam.com/Article.asp?id=2239341/ Kirk: Feds override means-testing Illinois Medicaid recipients, July 18, 2011] </ref>
+
 
+
====Money Owed and State Debt====
+
 
+
Some lawmakers, including Gov. Quinn, supported a plan to issue bonds to raise up to $8 million to pay off the state's bills. That proposal failed. Without the bonds, the $8 billion of FY2011 bills and obligations will have to be paid off by the end of December 2011 with FY2012 revenue, exacerbating the state's structural deficit.<ref> [http://www.reuters.com/article/2011/06/02/us-illinois-budget-comptroller-idUSTRE7516SR20110602/ Reuters, Illinois on track to end fiscal year owing $8 billion, June 2, 2011] </ref>
+
 
+
Illinois' widening structural deficit, huge unfunded pension liability, inability to pay its bills on time, cascading bond ratings and propensity to borrow its way out of financial problems have made the state a major worry in the $2.9 trillion U.S. municipal bond market. Money raised through a new income tax hike passed in January is being absorbed by Medicaid and the state's pension plans. It is not able to help pay the state's debts.<ref> [http://www.reuters.com/article/2011/06/02/us-illinois-budget-comptroller-idUSTRE7516SR20110602/ Reuters, Illinois on track to end fiscal year owing $8 billion, June 2, 2011] </ref>
+
 
+
The comptroller's office said that it takes the state 118 days to pay a bill, as of June 2011.  As of September 2011, the state had 166,000 outstanding bills of approximately $5 billion.<ref>[http://www.suntimes.com/news/8212559-418/deadbeat-illinois-owes-billions.html The Chicago Sun-Times "Deadbeat Illinois owes billions" Oct. 16, 2011]</ref>
+
 
+
As of early last month, the state owed on 166,000 unpaid bills worth a breathtaking $5 billion, with nearly half of that amount more than a month overdue, according to an Associated Press analysis of state documents. Hundreds of bills date back to 2010 and the actual amount owed is likely higher because some bills are still in the pipeline. The unpaid bills range from a few pennies to nearly $25 million. In early September, for example, Illinois owed $55,000 to a small-town farm supply business for gasoline, $1,000 to a charity that provides used clothing to the poor, $810,000 to a child-nutrition program.<ref> [http://www.suntimes.com/news/8212559-418/deadbeat-illinois-owes-billions.html/ Chicago Sun Times, Deadbeat Illinois Owes Billions, Oct.17, 2011] </ref>
+
 
+
The Chicago-based Civic Federation in 2012 warned that the state government’s $9.2 billion backlog of unpaid bills (by early summer) will reach an unprecedented $34.8 billion by 2017 without immediate action by Gov. Pat Quinn and state lawmakers.<ref name=civ>[http://www.suntimes.com/news/10277137-418/state-action-urged-to-stop-pension-debt-from-ballooning.html "State action urged to stop pension debt from ballooning," ''Chicago Sun-TImes,'' January 30, 2012]</ref>
+
 
+
The Civic Federation made several suggestions for addressing the issue:<ref name=civ/>
+
 
+
*“Aggressive implementation” of a Medicaid reform package that passed in January 2011. The program was designed in part to boost the use of managed care and lessen reliance on institutional care for the elderly and disabled.
+
*The elimination of Illinois Cares Rx, a prescription care program for the needy launched under former Gov. Rod Blagojevich that is not eligible for federal reimbursement.
+
*Curtailing pension benefits for existing state retirees by limiting benefit increases to 3 percent a year or one-half the rate of inflation, whichever is less. That constitutionally questionable maneuver would extend 2010 pension reforms that imposed identical limits on workers hired after Jan. 1, 2011.
+
 
+
A look at a state ledger provided by the Illinois Comptroller's Office showed roughly $67 million in overdue bills primarily from businesses as of early September. The late tab for cars and gasoline was $2.7 million. Auditing and management services were owed $4.5 million. Computer software cost $2.7 million.<ref> [http://www.myjournalcourier.com/news/state-35863-illinois-government.html/ Jacksonville Journal Courier, Deadbeat Illinois: Unpaid bills undercut state's business partners, Oct. 17, 2011] </ref>
+
 
+
The Department of Healthcare and Family Services is so short of money that it isn't even sending bills to the comptroller's office where they would be added to the state's vast backlog. Spokesman Mike Claffey said the department has about $1.9 billion worth of unpaid bills it hasn't submitted to the comptroller. Claffey said recently the state owes a total $1.2 billion to its insurance vendors for premium payments and to the medical providers that care for state employees and retirees enrolled in self-funded group health plans. Payments are typically running six or seven months behind, he said.<ref> [http://www.stltoday.com/news/state-and-regional/illinois/article_f873d57d-ec9c-5b60-8140-18cf3d1e69f3.html#.Tpx_jJYJ4X4.facebook/ St. Louis Today, Official numbers hide true health care backlog, Oct. 17, 2011] </ref>
+
 
+
Illinois ranks first nationwide when it comes to nonprofit groups reporting late payments from the government, according to a survey last year by the nonpartisan Urban Institute. More than 80 percent of Illinois groups say their money doesn't come on time. An analysis of state data by The Associated Press found that the backlog wasn't as dire for human services as for other parts of state government, but it still amounted to more than 31,000 bills totaling $425 million. The Department of Human Services, for instance, had $105.4 million in bills that were more than a month old as of early September. They ranged from grants to nonprofit groups to food to burial expenses.<ref> [http://moneywatch.bnet.com/economic-news/news/nonprofits-bear-burden-of-illinois-unpaid-bills/6316191/ CBS Moneywatch, Nonprofits bear burden of Illinois' unpaid bills, Oct. 17, 2011] </ref>
+
 
+
'''Charity Funds'''
+
 
+
With Illinois' finances in shambles, the state is temporarily using tax dollars designated to supporting charities to pay off its bills. In all, state officials have borrowed $1.176 million in fiscal 2011 from 11 tax checkoff funds, according to figures provided by the Office of Management and Budget.That's on top of $434,000 that was "swept," or taken permanently, from seven funds in fiscal 2010, part of a much broader emergency funds sweep approved by the General Assembly to address a huge budget gap.<ref> [http://www.news-gazette.com/news/politics-and-government/2011-06-26/state-takes-money-designated-charities-repays-some-it.html/ News Gazette, State takes money designated for charities, repays some of it, June 26, 2011] </ref> The borrowing was done in stages during fiscal 2011, which ends June 30, as state budget analysts needed to pay a backlog of bills to hospitals and other vendors. The earlier fund sweeps were approved in June 2010, the end of that fiscal year.
+
 
+
'''The Dead'''
+
 
+
Illinois' budget is so tight the state can no longer afford to pay for the burial of poor people reliant on public aid. State officials say the financial burden will now fall to county governments. Until July 1, the Illinois Dept. of Human Services had a budget of $12.6 million for indigent burials. The fund paid about $1,650 per deceased person – $1,103 for a funeral and $552 for a burial – to be handled by a private funeral home, which would later be reimbursed. Last year, about 12,000 such cases were funded statewide.<ref> [http://austintalks.org/2011/08/no-money-remains-for-burying-illinois-poor/ Austin Talks, The money is gone for burying Illinois’ poor, Aug. 17, 2011] </ref>
+
 
+
====Governor's Refusal to Pay Employees Raises====
+
With the tight budget Illinois does not have enough money to pay all employee salaries. Gov. Quinn signed an agreement with the American Federation of State, County and Municipal Employees union to not lay off employees or close facilities before June 30, 2012, the end of AFSCME's current state contract.<ref> [http://www.statebudgetsolutions.org/publications/detail/employee-salary-shortfall-looms-in-state-budget/ State Journal Register, Employee salary shortfall looms in state budget, June 27, 2011] </ref>
+
 
+
Gov. Quinn canceled raises for 33,0000 of state employees that were to take effect on July 1, 2011.<ref name=raises>[http://www.chicagotribune.com/news/politics/clout/chi-state-worker-unions-protest-blocked-raises-20110712,0,4612329.story The Chicago Tribune "State worker unions protest blocked raises" July 12, 2011]</ref>  The administration notified 14 state agencies and employee unions that the 2 percent raises won't be paid as required by contract because lawmakers did not include enough money in the new state budget.<ref> [http://www.victoriaadvocate.com/news/2011/jul/01/bc-us-illinois-budget-raises/?news&national-hurricane-news/ Victoria Advocate, Ill. governor plans to skip $77 million in raises, July 4, 2011]</ref>  Quinn and AFSCME reached a deal last year that bars the state from laying off employees or closing government facilities. In exchange, AFSCME agreed to come up with at least $50 million in cost-cutting and delay raises. Originally, AFSCME workers were to get 4 percent increases July 1, but the union agreed to give up months' worth of additional pay by taking a 2 percent raise on July 1, 2011, and the other 2 percent in February. Another raise, of 1.25 percent, is scheduled for January.<ref> [http://www.contracostatimes.com/nation-world/ci_18424104/ Contra Costa Times, Ill. governor plans to skip $75 million in raises, July 6, 2011] </ref>
+
 
+
Quinn's office said the agencies that can't afford the promised raises include Corrections, Human Services, Natural Resources and Public Health. Canceling the raises would affect nearly 30,000 employees and save the state more than $75 million.<ref> [http://www.victoriaadvocate.com/news/2011/jul/01/bc-us-illinois-budget-raises/?news&national-hurricane-news/ Victoria Advocate, Ill. governor plans to skip $77 million in raises, July 4, 2011]</ref>  The American Federation of State, County and Municipal Employees filed a lawsuit over the blocked raises on July 8, 2011.<ref> [http://www.allheadlinenews.com/articles/90053916?Illinois%20public%20workers%20file%20lawsuit%20to%20stop%20salary%20freeze/ All Headline News, Illinois public workers file lawsuit to stop salary freeze. July 11, 2011] </ref> The unions say the pay freezes are not reasonable or necessary to achieve an important public purpose.<ref> [http://www.courthousenews.com/2011/07/14/38151.htm/ Courthouse New, Unions Fight Pay Freeze in Illinois, July 14, 2011] </ref>
+
 
+
Quinn said he was prepared to defend his decision to cancel pay raises in court,<ref> [http://www.forbes.com/feeds/ap/2011/07/05/general-il-illinois-budget-raises_8550538.html/ Forbes, Quinn: Ready for Lawsuits, July 6, 2011] </ref> explaining that he was following the law by not issuing the pay hikes, because lawmakers failed to set aside enough money to fund the increases and also maintain government functions for a full year.<ref name=raises/> Some lawmakers say Quinn's actions are not legal and he is bound to lose in court.<ref> [http://illinois.statehousenewsonline.com/6550/lawmakers-court-challenges-overrides-likely-for-quinn-budget/ State House News, Lawmakers: Court challenges overrides likely for Quinn budget, July 6, 2011] </ref>
+
 
+
A decision is still pending in circuit court. A federal judge sided with Quinn, arguing the state’s budget crisis is so dire that denying the pay hikes was “a legitimate governmental interest.”<ref>[http://www.chicagotribune.com/news/local/breaking/chi-arbitrator-rules-against-quinn-on-layoffs-closures-20111003,0,1490338.story The Chicago Tribune "Arbitrator rules against Quinn on layoffs, closures" Oct. 3, 2011]</ref>
+
 
+
===Budget Criticisms===
+
Through the budget process lawmakers claimed they made tough choices and "cut to the bone," however  in a budget analysis the Illinois Policy Institute points out fluff left in the budget.<ref> [http://www.bnd.com/2011/06/12/1742909/so-much-for-necessary-services.html/ BND, So much for 'necessary services', June 13, 2011] </ref>
+
* $4,037,500 for the Upward Mobility Program: Available only to state employees who are union members, the Upward Mobility Program pays 100 percent of tuition costs at public institutions and a set amount per credit hour at select private universities.
+
* $1,057,500 for state fairs: Texas has a privately-run state fair that operates without government subsidies.
+
* $4,214,400 for grants to arts organizations
+
* $365,400 for the Urban Fishing Program: The program provides free summer fishing clinics at stocked ponds and other fishing outreach events
+
* $2,615,600 for the Sparta World Shooting and Recreation Complex: The complex was completed in 2006 at a construction cost of $31.5 million.
+
* $23,836,900 for tourism promotion: Tourism grants have included $29,550 for a Lois Lane statue in Metropolis and $200,000 for Fashion Focus Chicago 2009
+
* $1,267,685 for the Internship Program: Participants in the governor's and Vito Marzullo's internship programs receive $31,332 annually and full state benefits
+
* $243,800 for the Foster Grandparent Program
+
* $1,640,000 for the Diversifying Higher Education Faculty in Illinois Program: This program provides higher education financial assistance for "traditionally underrepresented groups."
+
* $9 million for the Renewable Energy Resources Program and the Illinois Renewable Fuels Development Program: This includes $450,000 for the University of Illinois to "implement the Biogas and Biomass to Energy program," and $13,358 to the Phi Kappa Theta fraternity house at Northern Illinois University for a solar thermal energy system to "increase the utilization of alternative energy technology in Illinois."
+
 
+
People for the Ethical Treatment of Animals also took issue with the state's Urban Fishing Program. In a letter to Gov. Quinn, PETA chided the state for funding the program during tight economic times, as well as calling it a program that teaches children to "injure and torment defenseless animals."<ref> [http://www.peta.org/mediacenter/news-releases/PETA-to-Gov-Quinn--It-s-Time-to-Cast-the-Cruel-and-Wasteful--365-000--Urban-Fishing--Program-Out-of-the-Busted-Budget.aspx/ PETA, It's Time to Cast the Cruel and Wasteful $365,000 'Urban Fishing' Program Out of the Busted Budget, June 13, 2011] </ref>
+
 
+
Another criticism the budget and the state of Illinois' financial crisis received even before the 2012 budget was signed, is for a shortage in prison-issued underwear. Prisoners at the Taylorville Correctional Center complained about having to wear dirty underwear and socks for at least half the week, according to a recent report by the John Howard Association, which blamed state budget cuts and overcrowding at prisons. Inmates also said the boxers they received from the prison often had stains and holes, the report said.<ref> [http://www.nytimes.com/2011/06/30/us/30brfs-Prison.html/ NY Times, http://www.nytimes.com/2011/06/30/us/30brfs-Prison.html, June 29, 2011] </ref>
+
 
+
On June 27, the Peoria Journal Star reported that the state owes some $620 million in income tax refunds dating back to 2009 to businesses, and the Illinois Department of Revenue announced this week that "there is not enough money in the Income Tax Refund Fund" to pay the over 7,500 businesses still owed those funds.<ref> [http://www.huffingtonpost.com/2011/06/29/illinois-prisons-face-und_n_887106.html/ Huffington Post, Underwear Shortage In Illinois Prisons: Latest Sign Of State's Financial Woes , June 29, 2011] </ref>
+
 
+
During an interview with Fox News, Rutherford said despite the financial woes of Illinois, the federal government should not help balance the state's budget. Rutherford also criticized the income tax hikes passed in January.<ref> [http://video.foxbusiness.com/v/1041034735001/illinois-state-treasurer-on-budget-mess/ Fox News, Illinois State treasurer on budget mess, July 6, 2011] </ref>
+
 
+
The Daily Herald's tax watchdog reported paying for lawmakers' mileage costs the state $1.7 million a year. That's on top of the $13.1 million taxpayers spent on salaries and leadership stipends for those same legislators. The average salary is $74,185, including leadership stipends that nearly three-quarters of the legislature gets. Combined with the average annual reimbursement of $9,292, Illinois legislators' average pay is $83,477. Only lawmakers in California, New York and Pennsylvania make more on average than Illinois legislators. The median household income in Illinois is $53,966, according to the U.S. Census Bureau.<ref> [http://dailyherald.com/article/20110810/news/708109943/ Daily Herald, You paid $1.7 million for legislators' mileage, daily allowance, Aug. 10, 2011] </ref>
+
 
+
'''School Funding'''
+
 
+
Due to state budget problems many school districts are crafting tight budgets because they do not expect promised funds from the state coffers.<ref> [http://www.courierpress.com/news/2011/aug/19/no-headline---ev_schoolfunding/ Evansville Courier, Illinois budget woes hit school funding, Aug. 19, 2011] </ref>
+
 
+
'''Prisons'''
+
 
+
The Illinois Department of Corrections could lose up to 1,000 prison guards in the next year because of retirement. Each facility in the state has a ratio of about one prison guard for every 20 inmates, according to figures released by Senate Republicans.<ref> [http://illinois.statehousenewsonline.com/6769/prison-guard-numbers-worry-lawmakers/ State House News, Prison guard numbers worry lawmakers, Aug. 26, 2011] </ref>
+
 
+
===State's Credit Rating===
+
 
+
Illinois, which borrowed to make its two most recent annual pension payments, is the lowest-rated state in Moody’s estimation, at A1.<ref>[http://www.sfgate.com/cgi-bin/article.cgi?f=/g/a/2012/01/06/bloomberg_articlesLXEHTI6S9729.DTL San Francisco Chronicle "Illinois Becomes Moody's Lowest-Rated State After Downgrade" Jan. 9, 2012]</ref> Standard & Poor’s has it at A.<ref>[http://articles.chicagotribune.com/2012-08-29/news/chi-sp-lowers-illinois-credit-rating-over-pensions-20120829_1_pension-funds-robin-prunty-weak-pension Chicago Tribune "S&P lowers Illinois credit rating over pensions" Aug. 29, 2012] </ref>
+
 
+
In January 2012 Moody's lowered Illinois' rating to A2 from A1. The downgrade to the sixth-highest rating came after a legislative session that “took no steps to implement lasting solutions to its severe pension under-funding or to its chronic bill payment delays,” Moody’s said in a report. Illinois, it said, has “weak management practices.” Moody’s revised its outlook on the debt to stable from negative, citing the state’s sovereign power over revenue and spending, and laws that establish the priority of payment for general-obligation bonds. The downgrade affects $32 billion of debt, according to the statement.<ref> [http://www.bloomberg.com/news/2012-01-06/illinois-rating-lowered-to-a2-by-moody-s-with-32-billion-of-debt-affected.html/ Bloomberg, Illinois Becomes Moody’s Lowest-Rated U.S. State With Debt Downgrade to A2, Jan. 6, 2012] </ref> "The downgrade reflects the state's weak pension funding levels and lack of action on reform measures intended to improve funding levels and diminish cost pressures associated with annual contributions," said Standard & Poor's credit analyst Robin Prunty in a statement.<ref>[http://articles.chicagotribune.com/2012-08-29/news/chi-sp-lowers-illinois-credit-rating-over-pensions-20120829_1_pension-funds-robin-prunty-weak-pension Chicago Tribune "S&P lowers Illinois credit rating over pensions" Aug. 29, 2012] </ref>
+
 
+
In August 2012 Standard & Poor's Ratings Services lowered Illinois' rating from A+ to A because of "weak [[Illinois public pensions | pension]] funding levels and lack of action on reform measures." The firm also said the financial outlook for Illinois is negative, in part because the state's temporary income tax is scheduled to expire in 2015.<ref> [http://www.myfoxchicago.com/story/19407957/standard-poors-lowers-illinois-credit-rating-over-pensions/ Fox Chicago, S&P lowers Illinois credit rating over pensions, Aug. 29, 2012] </ref>
+
 
+
Illinois' credit standing took another tumble as Standard & Poor's Ratings Services downgraded the state by one notch to A-minus and raised the possibility it could fall further. S&P placed a negative outlook on the lower rating, saying legislative consensus and action would be needed to tackle challenges, including the state's huge unfunded public pension liability.<ref> [http://www.chicagotribune.com/business/breaking/chi-sp-downgrades-illinois-to-aminus-citing-pension-inaction-20130125,0,5893672.story/ Chicago Tribune, S&P downgrades Illinois to A-minus, citing pension inaction, Jan. 25, 2013] </ref>
+
 
+
===Budget Panel===
+
Enacted in 2010 by the General Assembly, Budgeting for Results is a tool to help government agencies set priorities, meet goals, and deliver excellent services and achieve the best value possible to taxpayers. For the fiscal year 2012 budget, the first year of BFR, agencies and departments were required to justify budget requests based on results achieved in the following priority areas set by the Governor:<ref> [http://www.illinois.gov/PressReleases/ShowPressRelease.cfm?SubjectID=1&RecNum=9668/ Illinois Government News Network, Governor Quinn Convenes Budget Reform Commission, Aug. 22, 2011] </ref>
+
 
+
* Quality education and opportunities for growth and learning for all Illinois students;
+
* Enhanced economic well-Being of citizens;
+
* Protection of citizens’ lives and property;
+
* Protection of the most vulnerable of our citizens;
+
* Improved quality of life of citizens; and
+
* Improved efficiency and stability of state government.
+
 
+
===Tax Burden===
+
A new report by Truth in Accounting.org indicates each taxpayer’s financial burden is $26,800. According to the report Illinois has $55 billion worth of assets (defined as both financial assets, and also including state parks, for example), but less than $19.6 billion is available to pay $130.2 billion of bills as they come due. n addition to not including pension obligations tied to current compensation in the annual budget, the report condemns Illinois because, according to the report: “Illinois habitually delays issuing its year-end financial report until after the next fiscal year’s budget process has been completed. That prevents citizens and public officials from having important information, leading to less-than-optimal public policy decisions.”<ref> [http://www.suntimes.com/business/7069692-452/as-debt-crisis-looms-at-state-level-illinois-identified-as-a-sinkhole.html/ Chicago Sun Times, As debt crisis looms at state level, Illinois identified as a ‘sinkhole’, Aug. 14, 2011] </ref> Rep. Darlene Senger told a Naperville crowd the 2011 budget broke down to $2 billion went to pay current debt and another $4 billion went towards the state’s pension obligations.<ref> [http://napervillesun.suntimes.com/news/7293267-418/senger-talks-pension-reform-at-forum.html/ Naperville Sun, Senger talks pension reform at forum, Aug. 26, 2011] </ref>
+
 
+
As the 2012 election cycle began in Illinois, Republican candidates used the state's economy as a talking point for leadership change, with statewide officer holders criticizing Quinn's proposals for borrowing money.<ref> [http://www.suntimes.com/news/politics/7141340-418/gop-rejects-quinn-borrowing-plan-again-at-state-fair.html/ Chicago Sun Times, GOP rejects Quinn borrowing plan again, Aug. 19, 2011] </ref>
+
 
+
===Proposed Budgets===
+
'''Governor's Proposed Budget'''
+
 
+
In his budget address on Feb. 16, 2011, Governor Quinn asked the state legislature to consider borrowing $8.7 billion dollars to pay the state's bills.<ref>[http://blogs.chicagotribune.com/news_columnists_ezorn/2011/02/gov-quinns-budget-address-as-delivered.html here]</ref><ref name=boost>[http://www.cltv.com/news/wgntv-quinn-budget-address-feb16,0,7991135.story The Chicago Tribune "Quinn asking for $1.7B spending boost" Feb. 16, 2011]</ref>  The borrowing is a key part of the governor's $35.4 billion budget proposal.<ref name=cnn>[http://money.cnn.com/2011/02/16/news/economy/Illinois_budget/ CNNMoney.com "Illinois governor proposes borrowing $8.7 billion" Feb. 16, 2011]</ref>
+
 
+
To pay off bills owed to schools, state vendors and other providers, Quinn proposed borrowing billions of dollars. Initially Quinn wanted to borrow $8.75 billion, but reduced that number to $2 billion, primarily due to lack of support in the legislature. Quinn wants to use the funds to pay off health care providers before July 1, when the reimbursement rate from the federal government drops and Illinois would lose out on millions of dollars.<ref> http://www.statebudgetsolutions.org/publications/detail/quinn-tweaks-borrowing-plan-amid-republican-opposition/ State Budget Solutions, Chicago Tribune, Quinn Tweaks Borrowing Plan, march 25, 2011] </ref> Any borrowing proposal would need three-fifths support in the legislature.
+
 
+
The remaining $6 billion in the borrowing plan would pay down other state bills. This amount would be repaid over 14 years, the loan term originally proposed for the entire package. Of that money, $2.76 billion would go to pay what the state owes to schools, universities, community colleges, and local governments; $1.48 billion would be used for non-government service providers; $1.134 billion for health care providers; and $800 million for corporate income tax refunds. A super-majority or a three-fifths legislative majority in both chambers is required for passage because the bills would increase the state’s bond limit.<ref> [http://www.ilfb.org/viewdocument.asp?did=20170&r=0.9492914/ Illinois Farm Bureau, State lawmakers advance budget ideas, congressional map, May 27, 2011] </ref> The House placed the revenue estimate next year at about $33.3 billion while the Senate determined it would be about $34.3 billion.  The Senate said its number was based on estimates produced by the General Assembly’s Commission on Government Forecasting and Accountability.<ref> [http://www.sj-r.com/top-stories/x1148651891/Illinois-Senate-to-accept-House-revenue-estimates-cut-budget-further/ State Journal Register, Illinois Senate to accept House Revenue estimates, cut budget further, May 26, 2011] </ref>
+
 
+
[http://www.ballotpedia.org/wiki/index.php/Dan_Rutherford State Treasurer Dan Rutherford] strongly opposes the borrowing plan. Illinois's state-backed debt has risen to $45 billion from $12 billion in 2002, with 58 percent to cover payments to pension plans, Rutherford said. With a budget calling for spending $2.4 billion more than the state expects to collect next year, Illinois will create another backlog, he said. Rutherford said the state is being penalized in the bond market because of its inability to manage its budget and debt. He said the state has higher borrowing costs than other states. Illinois, which has borrowed to make its two most recent annual pension payments, is tied with California as the lowest- rated in the estimation of Moody's Investors Service at A1. Standard & Poor's has it at A+, one level above California.<ref> [http://www.sfgate.com/cgi-bin/article.cgi?f=/g/a/2011/05/25/bloomberg1376-LLTA8Y0YHQ0X01-37QVBK8OGHS4AOJKJ9M9UU0RUK.DTL/ San Francisco Chronicle, Illinois Must Stop Borrowing for Operating Costs, Treasurer Says, May 25, 2011] </ref>
+
 
+
Rutherford is calling for freezing state spending and ending borrowing. He said: “Illinois borrowed another $3.7 billion in April 2011 to partially fund a pension payment; because of the state’s low credit rating, taxpayers will have to repay $1.279 billion in interest; that dollar amount is 17 percent more than Kentucky, 34 percent more than Michigan and 41 percent more than Washington which all issued similar bonds this year.”<ref> http://www.pantagraph.com/news/opinion/editorial/article_5643ef12-88b3-11e0-9d0e-001cc4c002e0.html/ Pantagraph, If Gov. Quinn won't listen, Wall St. might, May 31, 2011] </ref>
+
 
+
Over the Memorial Day weekend members of the state Senate blocked the $6 billion borrowing proposal. The bill needed a three-fifths majority, or 36 votes, to pass. That meant some Republicans had to support it to send it to the House. They didn't, and the measure got only 19 votes. Supporters of the plan said it's important to pay what's owed to providers of state services. But Republicans said it would cost the state at least $804 million in interest over seven years.<ref> [http://www.chicagotribune.com/news/local/ct-met-illinois-workers-comp-20110529,0,2707797.story/ Chicago Tribune, Republicans in Illinois House shoot down workers' comp changes, May 30, 2011] </ref>
+
 
+
Per-capita state debt has tripled since 2001, to $1,924, and would almost double to $3,732 next year if lawmakers approve borrowing, according to a Feb. 15 report from Chicago’s Civic Federation, a nonpartisan public-interest group.<ref> [http://www.bloomberg.com/news/2011-03-30/illinois-s-quinn-says-budget-cutting-governors-have-it-wrong.html/ Bloomberg News, Illinois' Quinn Says Budget Cutting Governor's Have it Wrong, April 1, 2011] </ref>
+
 
+
The budget increases spending by $1.7 billion over FY2011.<ref name=cnn/> A breakdown of the budget can be found [http://www.senategop.state.il.us/index.php/budget/budget-site-map here]
+
 
+
The Illinois budget deadline is May 31. With only a few days left before the budget deadline Democratic House Speaker Michael Madigan and House Republican leader Tom Cross worked together to set a low bar for the state's day-to-day budget at $33.2 billion — about $2 billion less than Quinn proposed and about $1 billion less than the Senate. Negotiators are wrestling over how to keep spending closer to the Madigan and Cross level, but the priorities of where and how much to cut have yet to be worked out.<ref> [http://articles.chicagotribune.com/2011-05-28/news/ct-met-illinois-legislature-0529-20110527_1_pension-benefits-first-spending-plan-lawmakers/ Chicago Tribune, Lawmakers save the rest for last, May 28, 2011] </ref>
+
 
+
An impasse over the budget will jeopardize thousands of state construction jobs, Quinn said. Projects ranging from new buildings under construction at the state’s public universities to renovation work at state parks, prisons and historic sites could be put on hold in as few as 10 days, idling an estimated 52,000 of workers during the height of the summer construction season.<ref> [http://www.pantagraph.com/news/state-and-regional/illinois/article_1b53cee6-9064-11e0-a376-001cc4c002e0.html/ Bloomington Pantagraph, Quinn: Budget impasse threatens 52,000 jobs, June 6, 2011] </ref> Although the capital program was approved in 2009, a reappropriation bill was used as the vehicle for adding $430 million in operational funds for education, human services and other budget add-ons. The Senate approved HB 2189, but the House rejected it -- leaving ongoing construction projects in limbo.<ref> [http://www.whig.com/story/news/Illinois-Construction-060711/ Quincy Herald Whig, Special session sought to avert work stoppage, job crisis in Illinois, June 8, 2011] </ref>
+
 
+
''Cuts''
+
 
+
The governor also proposed doing away with Illinois Cares Rx, which costs which costs $107 million, and lowering the Medicaid reimbursement rates by 6%, saving $552 million.<ref name=cnn/>
+
 
+
Although under the governor's proposal state funding for education will rise by $231 million<ref name=cnn/>, the governor noted that savings could be found with the consolidation of school districts, which would lower administration costs.<Ref name=boost/>  The governor also announced that all drug and alcohol abuse programs would no loger receive state funding.<ref>[http://www.dailymail.co.uk/news/article-1359098/Tens-thousands-hit-Illinois-cuts-funding-drug-treatment-programmes.html#addComment ''Daily Mail'', Illinois slashes ALL state funding for drug and alcohol abuse treatment in massive cuts, Feb. 21, 2011]</ref>
+
 
+
''Pensions''
+
 
+
In the governor's proposed budget, the options for  “significant long-term improvements” in its five pension systems included “seeking a federal guarantee of the debt" as well as curtailing public employee retirement benefits, borrowing more and increasing annual state pension contributions were identified as other choices.<ref name=top>[http://www.suntimes.com/news/politics/3959464-418/top-u.s.-house-republican-rejects-federal-guarantee-for-ill.-pensions The Chicago Sun-Times "Top U.S. House Republican rejects federal guarantee for Ill. pensions"  Feb. 23, 2011]</ref>  U.S. Rep [[Peter Roskam|Peter Roskam]] from Illinois said that there was no chance of the federal bailout of the state pension system.<ref name=top/>
+
 
+
'''Legislative Budget Proposal'''
+
Illinois Senate Democrats accepted House revenue projects and crafted a 2011-12 budget that cut nearly $1 billion from the Senate’s earlier spending plan. The House placed the revenue estimate next year at about $33.3 billion while the Senate determined it would be about $34.3 billion.  The Senate said its number was based on estimates produced by the General Assembly’s Commission on Government Forecasting and Accountability.<ref> [http://www.sj-r.com/top-stories/x1148651891/Illinois-Senate-to-accept-House-revenue-estimates-cut-budget-further/ State Journal Register, Illinois Senate to Accept House Revenue Estimates, Cut Budget Further, May 26, 2011] </ref>
+
 
+
''House Proposal''
+
 
+
On May 13, 2011, the House approved a $25.2 billion budget for FY2012 which spends $600 million, or 2.4 percent, less than the current budget.  Under the plan, schools would relieve $169 million, or 2.4 percent, less. The Monetary Award Program would lose $17 million for college scholarships, a 4.2 percent cut. In human services, Medicaid bills would be paid more slowly, many would be trimmed 1 percent and administrative spending would drop $181 million.<Ref name=oks>[http://www.businessweek.com/ap/financialnews/D9N6R3C80.htm Businessweek "Ill. House OKs deep cuts in preliminary budget" May 13, 2011]</ref>
+
 
+
The House version of the budget is roughly $1 billion smaller than the version approved by the Senate and $2 billion below the governor's proposal.<Ref name=oks/>
+
 
+
Illinois House leaders have reached a bipartisan budget agreement, but it was unclear if the House would be able to reach agreement with the Senate.<ref>[http://illinois.statehousenewsonline.com/5524/house-versus-senate-on-budget-2/ Illinois Statehouse News "House versus Senate on budget?" March 30, 2011]</ref>  House leaders are backing a budget proposal that spends $200 million less on education. Gov. Quinn proposes to increase education spending by $200 million.Overall, education funding could be cut by as much as $600 million under the House plan if the federal government does not renew up to $400 million in special stimulus funds that helped counter the effects of the recession.<ref> [http://articles.chicagotribune.com/2011-03-30/news/ct-met-state-budget-bipartisan-budget20110330_1_spending-plan-budget-plan-madigan-cross/ Chicago Tribune, House Democrats, GOP Join hands on Budget Plan, March 31, 2011] </ref> Quinn is not happy with the proposed cuts to education. He said cuts to education are an "alarm bell" because it's important to have a well-funded education system.<ref>[http://www.wbez.org/story/budget/quinn-says-he-wont-support-education-cuts-84617#/ WBEZ, Quinn Says He Won't Support Education Cuts, April 4, 2011] </ref>
+
 
+
The two chambers do not agree on revenue projects, with the House’s projecting $33.2 billion in revenue and the Senate making a $34.3 billion projection.<Ref>[http://illinois.statehousenewsonline.com/5388/illinois-senate-sets-its-own-budget-numbers-2/ Illinois Statehouse News "Illinois Senate sets its own budget numbers" March 16, 2011]</ref>  House leaders adopted a [http://ilga.gov/legislation/fulltext.asp?DocName=&SessionId=84&GA=97&DocTypeId=HR&DocNum=158&GAID=11&LegID=61227&SpecSess=&Session= resolution] that any additional revenue will be used to pay the state's outstanding bills.
+
 
+
''Senate Proposal''
+
 
+
Senate Democrats passed parts of a budget on May 4, 2011, although they did not release a summary of their plan except to say that when their entire budget package is assembled, they will have cut $1.2 billion from the budget plan introduced by Gov. Pat Quinn.  The plan relies on revenue projections rejected by both the governor and the Democratic House. The budget bills passed covered spending for the departments of Revenue, Natural Resources, State Police, Labor and a number of smaller commissions.<ref>[http://www.sj-r.com/top-stories/x1401929482/Senators-tackle-easiest-portions-of-state-budget-first The State Journal-Register "Senators tackle easiest portions of state budget first" May 4, 2011]</ref>  They did not address funding for prisons, welfare or education, and it's unknown when the Senate will tackle those remaining large pieces.<ref>[http://www.businessweek.com/ap/financialnews/D9N108MO1.htm Businessweek "Ill. Senate begins tackling state budget" May 4, 2011]</ref>
+
 
+
Senate Republicans initially introduced a plan to reduce spending by $6.7 billion, saying that would be more than enough to let Illinois reverse the new income tax increase and make progress on paying its overdue bills.  They renewed their call to cut health care costs and slash retirement benefits for government employees, even if it requires a constitutional amendment.<Ref>[http://www.businessweek.com/ap/financialnews/D9M18K102.htm Businessweek "GOP senators propose $6.7B in cuts to Ill. budget" March 17, 2011]</ref> The proposed cuts include increasing healthcare premiums for state employees to save $300 million annually, saving $9 million by reducing the number of government provided cars and eliminating $2.3 million by reducing the number of state provided cell phones. The plan also includes proposals to combine the office of state treasurer and comptroller for an annual savings of $12 million and eliminate funding for the office of lieutenant governor.<ref> [http://downersgrove.patch.com/articles/republican-senators-tout-budget-proposal/ Patch, Republican Senators Tout Budget Proposal, March 25, 2011] </ref> The plan also targets $1.3 billion in cuts to Medicaid, including reducing eligibility to certain programs like All-Kids.Other ways of achieving Medicaid reform include increasing co-pays, rolling back eligibility and eliminating optional services not required by the federal government. The plan also calls for implementing a Medicaid audit to eliminate fraud. Sen. Kirk Dillard said studies show that up to 10 percent of Medicaid payments are fraudulent. He said recapturing that 10 percent would amount to $1 billion. However, he said a more realistic outlook is recapturing 2.5 percent, which would amount to $250 million in savings.<ref> [http://downersgrove.patch.com/articles/republican-senators-tout-budget-proposal/ Patch, Republican Senators Tout Budget Proposal, March 25, 2011] </ref>
+
 
+
The Republican Senate caucus criticized the hiking of personal and corporate income tax levels in Jan. 2011, which is expected to raise about $7 billion in new revenue. The GOP leaders said even with a hike, they are still having to look at cutting spending.<ref> [http://downersgrove.patch.com/articles/republican-senators-tout-budget-proposal/ Patch, Republican Senators Tout Budget Proposal, March 25, 2011] </ref>
+
 
+
After a working weekend over the 2011 Memorial Day weekend, the Illinois Senate on Monday added $431 million to the Illinois House’s proposed budget. The biggest portion — $151 million — would fund elementary and high schools statewide. Another large portion — $49.3 million — would go to mental health grants and programs.<ref> [http://illinois.statehousenewsonline.com/6265/senate-adds-431m-to-illinois-budget// State House News, Senate Adds 431 Million to Illinois Budget, May 31, 2011] </ref> The additions would be paid for with money from the general revenue fund, the state’s biggest pot of money. The Senate estimates the state will deposit $34.3 billion into the fund during the next fiscal year in tax revenue, including the income and sales tax.
+
 
+
Originally, the Senate passed a $34.3 billion budget, $1.1 billion more than the House’s version. Senate Democrats passed the House’s budget despite Republican opposition. The spending plan, approved by both chambers, isn’t small enough to pay off the state's debt quickly enough to allow a temporary income tax increase to expire in 2014, according to Senate Republicans. The budget is smaller than Quinn's original proposal of $35.4 billion. The governor could sign the budget into law, veto the entire budget or change individual lines of spending.<ref> [http://illinois.statehousenewsonline.com/6265/senate-adds-431m-to-illinois-budget// State House News, Senate Adds 431 Million to Illinois Budget, May 31, 2011] </ref>
+
 
+
According to Senate President John Cullerton's office, the plan fully funds the pension systems.<ref> [http://mystateline.com/fulltext-news/?nxd_id=255327/ My Stateline, Illinois Senate Passes Budget, May 31, 2011] </ref>
+
 
+
Cullerton did made no apologies during an interview last week for the way his caucus sought to hold the state’s public works bill hostage by tacking on $430 million in additional budget items.<ref> [http://www.illinoistimes.com/Springfield/article-8834-the-senate-presidentrss-side-of-the-budget-story.html/ Illinois Times, The Senate president's side of the budget story, June 30, 2011] </ref>
+
 
+
==State's Credit Rating==
+
 
+
Illinois, which borrowed to make its two most recent annual pension payments, is the lowest-rated state in Moody’s estimation, at A1.<ref>[http://www.sfgate.com/cgi-bin/article.cgi?f=/g/a/2012/01/06/bloomberg_articlesLXEHTI6S9729.DTL San Francisco Chronicle "Illinois Becomes Moody's Lowest-Rated State After Downgrade" Jan. 9, 2012]</ref> Standard & Poor’s has it at A-, also the lowest in the nation.<ref name=worst>[http://articles.chicagotribune.com/2013-01-25/news/chi-illinois-credit-rating-sinks-to-worst-in-nation-20130125_1_action-on-pension-reform-robin-prunty-illinois-credit The Chicago Tribune "Illinois credit rating sinks to worst in nation" Jan. 25, 2013]</ref>
+
 
+
In January 2012 Moody's lowered Illinois' rating to A2 from A1. The downgrade to the sixth-highest rating came after a legislative session that “took no steps to implement lasting solutions to its severe pension under-funding or to its chronic bill payment delays,” Moody’s said in a report. Illinois, it said, has “weak management practices.” Moody’s revised its outlook on the debt to stable from negative, citing the state’s sovereign power over revenue and spending, and laws that establish the priority of payment for general-obligation bonds. The downgrade affects $32 billion of debt, according to the statement.<ref> [http://www.bloomberg.com/news/2012-01-06/illinois-rating-lowered-to-a2-by-moody-s-with-32-billion-of-debt-affected.html/ Bloomberg, Illinois Becomes Moody’s Lowest-Rated U.S. State With Debt Downgrade to A2, Jan. 6, 2012] </ref> "The downgrade reflects the state's weak pension funding levels and lack of action on reform measures intended to improve funding levels and diminish cost pressures associated with annual contributions," said Standard & Poor's credit analyst Robin Prunty in a statement.<ref>[http://articles.chicagotribune.com/2012-08-29/news/chi-sp-lowers-illinois-credit-rating-over-pensions-20120829_1_pension-funds-robin-prunty-weak-pension Chicago Tribune "S&P lowers Illinois credit rating over pensions" Aug. 29, 2012] </ref>
+
 
+
In August 2012 Standard & Poor's Ratings Services lowered Illinois' rating from A+ to A because of "weak [[Illinois public pensions | pension]] funding levels and lack of action on reform measures." The firm also said the financial outlook for Illinois is negative, in part because the state's temporary income tax is scheduled to expire in 2015.<ref> [http://www.myfoxchicago.com/story/19407957/standard-poors-lowers-illinois-credit-rating-over-pensions/ Fox Chicago, S&P lowers Illinois credit rating over pensions, Aug. 29, 2012] </ref>
+
 
+
Illinois' credit standing took another tumble in Jan. 2013 as Standard & Poor's Ratings Services downgraded the state by one notch to A-minus and raised the possibility it could fall further. S&P placed a negative outlook on the lower rating, saying legislative consensus and action would be needed to tackle challenges, including the state's huge unfunded public pension liability.<ref> [http://www.chicagotribune.com/business/breaking/chi-sp-downgrades-illinois-to-aminus-citing-pension-inaction-20130125,0,5893672.story/ Chicago Tribune, S&P downgrades Illinois to A-minus, citing pension inaction, Jan. 25, 2013] </ref> Illinois has the same rating as [[California]], but Standard & Poor's gave California a positive outlook and Illinois a negative outlook, and thus Illinois is considered worst than California.<ref name=worst/> The reason for the downgrade was the failure of lawmakers to address the state’s hemorrhaging pension system during a lame-duck session earlier in Jan. 2013.<ref name=worst/>
+
 
+
The lower rating means taxpayers will likely pay a higher interest when the state issues bonds, or borrows money, for big items such as construction projects.<ref name=worst/>
+
  
 
==Budget transparency==
 
==Budget transparency==
:''See also: [[Evaluation of Illinois state website]]''
+
{| class="wikitable" style="float:right; margin:1em 1em 1em 1em; text-align:center; width:15%;"
 +
! colspan="3" align="center" style="background-color:#008000; color: white;" | Transparency evaluation
 +
|-
 +
! valign="bottom" style="background-color:#444; color: white;" |
 +
! valign="bottom" style="background-color:#444; color: white;" | Illinois Open Book
 +
! valign="bottom" style="background-color:#444; color: white;" | Illinois Transparency and Accountability
 +
|-
 +
|[[Criteria for evaluating databases|Searchability]] || {{Yes (Sunshine Review)}} || {{Yes (Sunshine Review)}}
 +
|-
 +
|[[Criteria for evaluating databases|Grants]] || {{No (Sunshine Review)}} || {{Yes (Sunshine Review)}}
 +
|-
 +
|[[Criteria for evaluating databases|Contracts]] || {{Yes (Sunshine Review)}} || {{Yes (Sunshine Review)}}
 +
|-
 +
|[[Criteria for evaluating databases|Line item expenditures]] || {{No (Sunshine Review)}} || {{Yes (Sunshine Review)}}
 +
|-
 +
|[[Criteria for evaluating databases|Dept./agency budgets]] || {{No (Sunshine Review)}} || {{Yes (Sunshine Review)}}
 +
|-
 +
|[[Criteria for evaluating databases|Public employee salaries]] || {{No (Sunshine Review)}} || {{Yes (Sunshine Review)}}
 +
|-
 +
|colspan="3"|<small>Last evaluated in 2009.</small>
 +
|}
 +
::''See also: [[Evaluation of Illinois state website]] and [[Constitutional provisions regarding reading of bills]]''
  
===Multi-Measure Budget Transparency Profile===
+
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.<ref>[http://www.cyberdriveillinois.com/publications/handbook/ilcon.pdf ''Illinois Constitution'', "Article 4, Section 8," accessed 2009]</ref>
 
+
The Institute of Government and Public Affairs at the University of Illinois] has created a multi-measure transparency profile for Illinois, which measures state transparency as of September 2011 using indicators from a range of organizations.<ref>[http://igpa.uillinois.edu/system/files/Illinois_Profile_IGPA_093011.pdf Transparency profile for Illinois]</ref>  These indicators measure both website transparency and other recognized facets of governmental transparency.  In addition, IGPA presents 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.
+
 
+
Illinois ranks near the bottom of all states on two of IGPA's four indicators. 
+
 
+
In addition to the individual state profile, IGPA offers a 50-state comparison and profiles for other states.<ref>[http://igpa.uillinois.edu/system/files/50_States_Transparency_Profiles.pdf 50-state comparison]</ref><ref>[http://igpa.uillinois.edu/content/state-transparency-profiles State Profiles]</ref>
+
===U.S. PIRG "Following the Money" report===
+
{{Following the Money 2014 Advancing States|State=Illinois|Grade=B+|Score=88|Level=advancing}}
+
 
+
===Review of Appropriation Bills===
+
 
+
:: ''See also: [[Constitutional provisions regarding reading of bills]]''
+
 
+
Article 4, Section 8 of the Illinois state 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.<ref>[http://www.cyberdriveillinois.com/publications/handbook/ilcon.pdf Article 4, Section 8]</ref>
+
 
+
===[[State budget websites and analysis]]===
+
As of May 2009, the Illinois Office of Management and Budget website does not post copies of the budget proposals from previous fiscal years. This is unusual, given that many other states' budget offices to keep up archived copies of past budgets.<ref>[http://illinoispolicyinstitute.org/blog/blog.asp?ArticleSource=985 ''Illinois Policy Institute'', "Where can I find past copies of the Illinois state budget?," May 11, 2009]</ref> For the 2011 budget, the state adopted a more transparent method of publishing it's budget, providing the information on a quarterly and annual basis.  The new process will not affect how agency's budgets will be [[Illinois audit|audited]], these reports will continue to be released a year or more after revenue and costs are available.<ref>[http://chicagopressrelease.com/news/governor%E2%80%99s-office-of-management-and-budget-improves-transparency-by-releasing-quarterly-financial-reports-financial-statements-now-available-without-delay ''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]</ref>
+
 
+
The [[Illinois Policy Institute]] posted the PDF budget books from 2005, 2006, 2007, 2008, 2009, and 2010.<ref>[http://illinoispolicyinstitute.org/news/article.asp?ArticleSource=993 2005-2010 PDF Budgets]</ref>
+
 
+
According to the [[Illinois Policy Institute]], Illinois ranks 48th in economic performance, doing better than Michigan and Ohio<ref>[http://www.illinoispolicy.org/news/article.asp?ArticleSource=553 ''Illinois Policy Institute'', "Illinois Fast Facts."]</ref>:
+
*42nd in economic outlook.  Neighboring Indiana and Missouri rank well ahead in terms of future opportunity, at 12th and 17th respectively.
+
*44th in GDP growth, averaging only 3.83% over the last decade. Illinois GDP growth has declined since 1977 at a rate from 7.6% to 5.9%.
+
*46th in debt burden.  Illinois continues to spend government revenue growth on government expansion rather than funding past debt obligations, including pensions.
+
*44th in personal income growth over the past decade, averaging at 3.83% while the U.S. average is 4.19%.
+
*47th in employment growth from 1977 till 2006, ranking ahead of only Michigan, Ohio and Louisiana.
+
*37th in improving its standard of living, growing at only 1.13% per year over the past decade. While Illinois ranks relatively high in standard of living (18th), the state continues to fall farther down the ranks.
+
*48th in net migration, with over 727,150 people having left the state from 1997-2006.
+
*7th highest in median property taxes paid. 
+
*14th highest overall tax burden in the nation. 
+
*9th highest in property tax burden. 
+
*4th highest gas tax burden (approximately 40 cents per gallon).
+
*1st in sales tax burden (Chicago & Cook County).
+
*Illinois is shrinking in wealth, once ranking as high as 6th in per capita personal income and dropping to 18th today.
+
*The growth of the Illinois economy has lagged the rest of the country for each of the last three decades.
+
  
 
===Government tools===
 
===Government tools===
As of March 2009, Gov. Pat Quinn launched "Budget Illinois," which summarizes the proposed budget for 2010, offers budget figures and also details a capital projects list including information on the recommended and actual appropriations and expenditures going forward.<ref>[http://budget.illinois.gov/default.htm Budget Illinois]</ref><ref>[http://budget.illinois.gov/ethicsreform.htm State of Illinois - Budget, March 19, 2009]</ref>
+
The table to the right is helpful in evaluating the transparency of the [http://www.openbook.illinoiscomptroller.com/ Illinois Open Book] and [http://accountability.illinois.gov/ Illinois Accountability and Transparency] websites.
  
According to Joe Calomino, Illinois State Director of [[Americans for Prosperity]], Illinois's <blockquote>"current opaque spending process creates the perception, or possible reality, of legislators or bureaucrats using the state budget to fund unnecessary, wasteful, or even corrupt programs, confident that most Illinoisans will never know about it. Giving taxpayers the tools to understand where and how their money is being spent will make state government more accountable and reduce waste, fraud, and abuse."<ref>[http://www.helium.com/items/1355507-americans-for-prosperity-transparency ''Helium.com'', "Should the salaries of all Illinois state employees be available for public viewing on a Web site, as suggested in a bill in the General Assembly?"]</ref></blockquote>
+
In March 2009, [[Governor of Illinois|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.<ref>[http://budget.illinois.gov/default.htm Budget Illinois]</ref><ref>[http://budget.illinois.gov/ethicsreform.htm State of Illinois - Budget, March 19, 2009]</ref>
  
However, thanks to leaders on the local level, transparency is spreading.<ref>[http://www.illinoispolicy.org/news/article.asp?ArticleSource=677 ''Illinois Policy Institute'', "Compass Online: 'Citizen Action: A Growing Movement,'" January 22, 2009]</ref>
+
===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.<ref>[http://illinoispolicyinstitute.org/blog/blog.asp?ArticleSource=985 ''Illinois Policy Institute'', "Where can I find past copies of the Illinois state budget?," May 11, 2009]</ref> 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.<ref>[http://chicagopressrelease.com/news/governor%E2%80%99s-office-of-management-and-budget-improves-transparency-by-releasing-quarterly-financial-reports-financial-statements-now-available-without-delay ''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]</ref>
  
[http://www.wh1.ioc.state.il.us/Expert/Exp/EEFramesQuery.cfm?Control=State&GroupBy=Fund&Max=20&FY=08&Type=A&ShowBudg=YES&ShowMo=NO&ShowLapse=NO&FundSel=&FundClsSel=&FundGrpSel=&FundTypSel=&FundCatSel=&AgcySel=&AgcyClsSel=&AgcyGrpSel=&AgcyTypSel=&AgcyCatSel=&ApprSel=&ApprClsSel=&ApprGrpSel=&ApprTypSel=&ApprCatSel=&ObjeSel=&ObjtSel=&ObjtClsSel=&ObjtGrpSel=&ObjtTypSel=&ObjtCatSel=&SortName=No&CFID=647570&CFTOKEN=48679831 "Open Book"] is a searchable database of state contracts and campaign contributions that is hosted by the Illinois State Comptroller. Also available from the Comptroller's Office is [http://www.wh1.ioc.state.il.us/Expert/Exp/EEFramesQuery.cfm?Control=Agcy&Max=20&FY=09&Type=A&ShowBudg=NO&ShowMo=NO&ShowLapse=NO&FundSel=&FundClsSel=&FundGrpSel=&FundTypSel=&FundCatSel=&AgcySel=201&AgcyClsSel=&AgcyGrpSel=&AgcyTypSel=&AgcyCatSel=&ApprSel=&ApprClsSel=&ApprGrpSel=&ApprTypSel=&ApprCatSel=&ObjeSel=&ObjtSel=&ObjtClsSel=&ObjtGrpSel=&ObjtTypSel=&ObjtCatSel=&SortName=No&GroupBy=Objt&ObjeSel=1302 aggregate expenditure information] that can be sorted in a variety of ways. Line-item information is not available.
+
====Limitations and Suggestions====
 +
*Add a copy of the actual contracts to [http://www.openbook.illinoiscomptroller.com/ Open Book].
 +
*Provide line-item spending information on the Comptroller's [http://www.wh1.ioc.state.il.us/Expert/Exp/EEFramesQuery.cfm?Control=Agcy&Max=20&FY=09&Type=A&ShowBudg=NO&ShowMo=NO&ShowLapse=NO&FundSel=&FundClsSel=&FundGrpSel=&FundTypSel=&FundCatSel=&AgcySel=201&AgcyClsSel=&AgcyGrpSel=&AgcyTypSel=&AgcyCatSel=&ApprSel=&ApprClsSel=&ApprGrpSel=&ApprTypSel=&ApprCatSel=&ObjeSel=&ObjtSel=&ObjtClsSel=&ObjtGrpSel=&ObjtTypSel=&ObjtCatSel=&SortName=No&GroupBy=Objt&ObjeSel=1302 aggregate expenditure information] website.
  
[http://www.ilga.gov/legislation/fulltext.asp?DocName=&SessionId=76&GA=96&DocTypeId=HB&DocNum=35&GAID=10&LegID=39973&SpecSess=&Session= House Bill 35] is a 2009 reintroduction of Rep. Michael Tryon's 2008 transparency bill [http://www.ilga.gov/legislation/BillStatus.asp?DocNum=4765&GAID=9&DocTypeID=HB&LegId=35512&SessionID=51&GA=95#actions House Bill 4765], and would require the state to create and maintain a Web site on state employees’ salaries, state contracts, state expenditures, state tax credits and revocations and suspensions of state professional licensesHB 35 was sent to Governor [[Pat Quinn|Pat Quinn]] on June 12, 2009.<ref>[http://www.ilga.gov/legislation/BillStatus.asp?DocNum=35&GAID=10&DocTypeID=HB&LegID=39973&SessionID=76 Bill Status, Illinois House Bill 35 (2009)]</ref> The only high ranking state official listed on the site, however, is Gov. Quinn; other state employees, including Attorney General Lisa Madigan and Secretary of State Jesse White and legislators are not included.<ref>[http://www.sj-r.com/news/x2145963661/Web-site-that-lists-state-workers-salaries-lacks-prominent-officials State Journal Register "State worker salary site lacks prominent officials" Aug. 18, 2009]</ref>
+
===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 transparencyIn 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.<ref>[http://igpa.uillinois.edu/ ''Institute of Government and Public Affairs at University of Illinois'', "Home page," accessed February 21, 2014]</ref><ref name=allstates>[http://igpa.uillinois.edu/system/files/50_States_Transparency_Profiles.pdf ''Institute of Government and Public Affairs at University of Illinois'', "Budget Transparency Profiles - All 50 States," September 2011]</ref>
  
Some cities and school districts have put expenditures up online; a list of these transparent entities can be found [http://illinoispolicyinstitute.org/news/article.asp?ArticleSource=529 here].
+
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.<ref name=allstates/>
  
Illinois launched Sunshine.Illinois.gov to publish state expenditures, grants, public facilities’ inspection reports and more.<ref>[http://civsourceonline.com/2010/03/18/illinois-launches-sunshine-portal/ ''Civs Source Online'', Illinois launches sunshine portal, March 18, 2010]</ref>
+
{| class="wikitable" style="text-align:center; width:55%;"
 
+
! colspan="2" align="center" style="background-color:#008000; color: white;" | Illinois - IGPA score for budget process, contents and disclosure
The following table is helpful in evaluating the level of transparency provided by the state.
+
|-
 
+
! valign="bottom" style="background-color:#444; color: white;" | Budget transparency indicator
{|style="width:100%" class=wikitable
+
! valign="bottom" style="background-color:#444; color: white;" | Yes or no?
|+ '''Criteria for evaluating spending databases'''
+
|-
!State Database!![[Criteria for evaluating databases|Searchability]]!![[Criteria for evaluating databases|Grants]]!![[Criteria for evaluating databases|Contracts]]!![[Criteria for evaluating databases|Line Item Expenditures]]!![[Criteria for evaluating databases|Dept/Agency Budgets]]!![[Criteria for evaluating databases|Public Employee Salary]]
+
| Performance measures || {{Yes}}
 +
|-
 +
| "Generally Accepted Accounting Principles" budget || {{Yes}}
 +
|-
 +
| Multi-year forecasting || {{Yes}}
 
|-
 
|-
|align=center|[http://www.openbook.ioc.state.il.us/ Illinois Open Book]||{{yes}}||{{no (Sunshine Review)}}||{{yes}}||{{no (Sunshine Review)}}||{{no (Sunshine Review)}}||{{no (Sunshine Review)}}
+
| Annual cycle || {{Yes}}  
 +
|-
 +
| Binding revenue forecast || {{No (Sunshine Review)}}  
 +
|-
 +
| Legislative revenue forecast || {{No (Sunshine Review)}}  
 +
|-
 +
| Non-partisan staff || {{No (Sunshine Review)}}  
 +
|-
 +
| Constitution or statutory tax/spend limitations || {{No (Sunshine Review)}}  
 +
|-
 +
| '''TOTAL''' || '''4'''
 
|-
 
|-
|align=center|[http://accountability.illinois.gov/default.aspx Illinois Transparency and Accountability]||{{yes}}||{{yes}}||{{yes}}||{{yes}}||{{yes}}||{{yes}}
 
 
|}
 
|}
 +
In addition to the individual state profile, IGPA offers a 50-state comparison and profiles for other states.<ref name=allstates/>
  
*Contracts are searchable on the Comptroller's Open Books webpage.<ref>[http://www.openbook.ioc.state.il.us/index.cfm Open Book]</ref>
+
===U.S. PIRG "Following the Money" report===
*Line item expenditures are searchable.<ref>[http://accountability.illinois.gov/Expenditures/Default.aspx Expenditures, ITAP]</ref>
+
{{Following the Money 2014 Advancing States|State=Illinois|Grade=B+|Score=88|Level=advancing}}
*Grants are included as an expenditure category.
+
*Contract search is available.<ref>[http://accountability.illinois.gov/Expenditures/Contract/Default.aspx Search by Contract]</ref>
+
*Employee salaries are posted.<ref>[http://accountability.illinois.gov/Employees/Agency/Default.aspx Employees]</ref>
+
*Budgeted expenditures are listed by agency or department.<ref>[http://www2.illinois.gov/sunshine/Pages/FY11BudgetProcess.html Agency Allocations]</ref>
+
  
====Limitations and Suggestions====
+
==Accounting principles==
*Add a copy of the actual contracts to [http://www.openbook.illinoiscomptroller.com/ Open Book].
+
::''See also: [[Illinois government accounting principles]]''
*Provide line-item spending information on the Comptroller's [http://www.wh1.ioc.state.il.us/Expert/Exp/EEFramesQuery.cfm?Control=Agcy&Max=20&FY=09&Type=A&ShowBudg=NO&ShowMo=NO&ShowLapse=NO&FundSel=&FundClsSel=&FundGrpSel=&FundTypSel=&FundCatSel=&AgcySel=201&AgcyClsSel=&AgcyGrpSel=&AgcyTypSel=&AgcyCatSel=&ApprSel=&ApprClsSel=&ApprGrpSel=&ApprTypSel=&ApprCatSel=&ObjeSel=&ObjtSel=&ObjtClsSel=&ObjtGrpSel=&ObjtTypSel=&ObjtCatSel=&SortName=No&GroupBy=Objt&ObjeSel=1302 aggregate expenditure information] website.
+
  
===[[Independent transparency sites]]===
+
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.<ref>[http://www.auditor.illinois.gov/ ''Office of the Illinois Auditor General Web site'', accessed October 20, 2009]</ref>
*The [[Illinois Policy Institute]] has launched an [[Independent transparency sites|Independent transparency site]], [http://www.openillinois.org/ www.openillinois.org.] 
+
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 [http://www.auditor.illinois.gov/Audit-Reports/ABC-List.asp here].<ref>[http://www.auditor.illinois.gov/ ''Office of the Illinois Auditor General Web site'', retrieved October 20, 2009]</ref>  
 
+
====Illinois Open Gov====
+
[[Illinois Open Gov]] is a transparency website sponsored by the organization.<ref>[http://illinoischannel.blogspot.com/2009/12/illinois-open-government-webpage-now-up.html ''Illinois Channel'', Illinois Open Government Webpage Now Up and Running, December 2, 2009]</ref><ref>[http://www.openillinois.org/wasteful-spending/new-transparency-site/ ''Open Illinois'', New Transparency Site!, December 2, 2009]</ref> The site will list state [[Illinois state government salary|employee salary]], retiree pensions, and vendor information. The site states plans to eventually include all state spending.

<ref name=IPI>[http://www.illinoispolicy.org/news/article.asp?ArticleSource=1765 ''Illinois Policy Institute'', Putting the Spotlight on State Spending, December 2, 2009]</ref> 
+
 
+
Illinois Open Gov exceeds the current state sponsored site for government employee salary information by also factoring in information about employee's benefits and providing information about retired state employees.<ref name=IPI/>
+
 
+
The site also allows others to repurpose the data by allowing it to be downloadable in Excel or CSV file formats.  It also host's a forum for public conversation to discuss particular spending items.<ref name=IPI/>
+
 
+
==Business Climate==
+
Since the legislature passed an increase in personal and corporate income taxes in January 2011. Indeed, several businesses, including Caterpillar and sandwich maker Jimmy Johns have suggested they may leave the state to avoid the higher tax rate. Governors from sefveral states, including Indiana, Wisconsin and New Jersey have courted Illinois-based businesses. Illinois remains 48th in job creation while it wallows in a $13 billion deficit.
+
 
+
On Wednesday, Terence Duffy, chairman of CME Group Inc., which owns the two institutions as well as the New York Mercantile Exchange, and Chief Financial Officer James Parisi announced the financial giant is considering moving operations and jobs out of the state in response to massive increases in state taxes. Parisi told the company's annual meeting of shareholders that the state legislature's tax hike on corporations from 4.8 percent to 7 percent costs CME an extra $50 million a year. Corporations in Illinois also pay 2.5 percent tax on income, called a personal property replacement tax, which is collected by the state and flows to local governments. The two rates taken together come to 9.5 percent, the third highest corporate tax rate in the nation, according to the Tax Foundation. In February, CME reported a 3 percent drop in fourth-quarter earnings partly because of expenses it booked related to the tax hike.<ref> [http://www.investors.com/NewsAndAnalysis/Article/575088/201106101902/Will-The-Chicago-Merc-Flee-Illinois-Taxes-.htm/ Investors, Will The Chicago Merc Flee Illinois Taxes?, June 10, 2011] </ref>
+
Other businesses that have threatened to leave Illinois over the corporate rate include:<ref> [http://www.chicagotribune.com/business/breaking/ct-biz-illinois-companies-leaving,0,5325079.photogallery/ Chicago Tribune, Illinois companies eyeing an exit, June 12, 2011] </ref>
+
*Sears - In May the retail giant said it was in talks with other states to relocate. Sears has made Chicago its home since 1887
+
*Motorola Mobility
+
*Navistar
+
*Mitsubishi Motors North America
+
*U.S. Cellular
+
*Continental Tire
+
* Modern Drop Forge
+
 
+
Modern Drop Forge is expected to announce it will relocate to Indiana taking more than 200 jobs. The reason for the company's move is the state's high corporate taxes and high workman's compensation payments.<ref> [http://abclocal.go.com/wls/story?section=news/local&id=8321272/ ABC, Blue Island business to move to Indiana, Aug. 22, 2011] </ref>
+
 
+
CN, one of the nation's largest railroad lines, announced it will invest $165 million to expand the Kirk Rail Yard in rail in Gary, Indiana, over the next three years. The company wants the yard to handle more train traffic. CN also announced it will relocate a locomotive repair shop from Homewood, Illinois, to Gary. Company spokesman Patrick Waldron says the state of Indiana, the Northwest Indiana Regional Development Authority and the city of Gary tipped the balance by coming through with tax incentives and grants.<ref> [http://www.wbez.org/node/90101/ WBEZ, CN shifts rail jobs from south suburbs to Gary, Aug. 4, 2011] </ref>
+
 
+
Illinois’ economic growth is well ahead of its neighboring states, according to a quarterly report by the U.S. Department of Commerce’s Bureau of Economic Analysis. The report ranks the growth in real gross domestic product, or GDP, among the states. The numbers for 2011 are not in yet, but the 2010 figures tell an interesting tale. The GDP is the sum of all goods and services produced within given borders, in this case, per state. Illinois’ GDP grew at 1.9 percent and added about $11 billion to the state's economy.<ref> [http://illinois.statehousenewsonline.com/6662/illinois-productivity-is-ahead-of-its-neighbors/ Illinois Statehouse News, Illinois’ productivity is ahead of its neighbors, Aug. 2, 2011] </ref>
+
 
+
Illinois lost more jobs during the month of July 2011 than any other state in the nation, according to the most recent Bureau of Labor Statistics report. After losing 7,200 jobs in June, Illinois lost an additional 24,900 non-farm payroll jobs in July. The report also said Illinois’s unemployment rate climbed to 9.5 percent. This marks the third consecutive month of increases in the unemployment rate.<ref> [http://illinoisreview.typepad.com/illinoisreview/2011/08/illinois-loses-most-jobs-in-the-nation-in-july.html/ Illinois Review, Illinois Loses Most Jobs in the Nation in July, Aug. 22, 2011] </ref>
+
 
+
Kelly Kraft, a spokeswoman for Quinn's budget office, said there is "no connection" between the tax increases and the unemployment increase.<ref> [http://illinois.statehousenewsonline.com/6726/illinois-jobs-picture-worsening/ Statehouse News, Illinois jobs picture worsening, Aug. 22, 2011] </ref>
+
 
+
====Tollway Expansion====
+
Tollway directors adopted a construction agenda for the next 15 years they say will create 120,000 permanent jobs and 13,000 temporary construction jobs.<ref> [http://dailyherald.com/article/20110826/news/708269901/ Daily Herald, Will tollway expansion create 120,000 jobs?, Aug. 26, 2011] </ref>
+
 
+
==Budget background==
+
The [[Illinois Constitution|Illinois Constitution]] requires the governor to prepare and present a State budget recommendation for the state to the General Assembly. The Constitution also requires that the proposed budget be balanced and include recommended spending levels for state agencies, estimated funds available from tax collections and other sources, and state debt and liabilities. The Governor’s Office of Management and Budget (GOMB) estimates revenues in consultation with the Department of Revenue and GOMB subsequently develops budget recommendations that reflect the governor’s programmatic and spending priorities.
+
 
+
The Governor presents the Budget Address in February. After the Governor’s Budget Address, legislative review of the governor’s budget recommendations begins almost immediately with hearings before House and Senate appropriation committees.
+
 
+
Final approval of the budget usually occurs at the end of the legislative session, typically by the end of May. The Illinois Constitution requires a simple majority vote of the General Assembly for a bill passed on or before May 31 to take effect immediately. On or after June 1, a three-fifths super majority vote of the General Assembly is required in order for a bill to take effect for the upcoming fiscal year.
+
 
+
Once the General Assembly passes the budget, the governor must sign appropriation bills before funds can be spent. If the Governor chooses not to approve a specific appropriation, he may either veto a specific line item or reduce it. The rest of the appropriation bill is unaffected by these vetoes and becomes effective. Line items that have been vetoed or reduced must be reconsidered by the General Assembly during the fall session. The General Assembly may return an item to the enacted level by simple majority vote in both chambers in the case of a reduction veto and by a three-fifths super majority vote in the case of a line item veto.<ref name=case>[http://www.state.il.us/budget/FY2010/FY2010_Operating_Budget.pdf  ''State of Illinois'', “Illinois State Budget FY 2010,” March 16, 2009]</ref>
+
 
+
==Stimulus==
+
Illinois has received $9.1 billion in federal stimulus funding between February 2009 and June 2013.<ref>[http://www.recovery.gov/Pages/default.aspx ''Recovery'', "Stimulus Spending by State"]</ref>
+
 
+
==Public Employees==
+
:''See also: [[Illinois public employee salaries]] and [[Illinois public pensions]]''
+
According to 2008 Census data, the state of Illinois and local governments in the state employed a total of 790,539 people.<ref name=census>[http://www2.census.gov/govs/apes/08stlil.txt 2008 Illinois Public Employment U.S. Census Data]</ref> Of those employees, 566,872 were full-time employees receiving a net pay of $2,491,829,151 per month and 233,667 were part-time employees paid $212,405,146 per month.<ref name=census/>  Sixty percent of those employees, or 450,443 employees, were in education or higher education.<ref name=census/>
+
 
+
[[Illinois]] [[Pat Quinn|Governor Quinn]] signed a bill that will shed sunshine through “Illinois Transparency and Accountability Portal,” a piece of transparency legislation that [http://www.americansforprosperity.org/national-site Americans for Prosperity] and [[Michael Tryon|State Representative Michael Tryon]] (R – Crystal Lake) spearheaded.  The bill, House Bill 35, which created the [http://accountability.illinois.gov/ Illinois Accountability Portal] as a law, requiring the Department of Central Management Services to create a transparent website with information regarding state expenditures, tax credits, state employee salaries and state contracts.<ref>[http://accountability.illinois.gov/Information.aspx State of Illinois Transparency and Accountability Website]</ref>  The only high ranking state official listed on the site is Gov. Quinn; other state employees, including Attorney General Lisa Madigan and Secretary of State Jesse White and legislators are not included.<ref>[http://www.sj-r.com/news/x2145963661/Web-site-that-lists-state-workers-salaries-lacks-prominent-officials State Journal Register "State worker salary site lacks prominent officials" Aug. 18, 2009]</ref>
+
 
+
==Accounting principles==
+
:''See also: [[Illinois government accounting principles]]''
+
The Illinois Auditor General is William G. Holland. Since August 1992, William G. Holland has served as Auditor General of the State of Illinois. He was appointed by the General Assembly to a ten-year term commencing August 1, 1992. He was unanimously re-appointed to a second ten-year term, effective August 1, 2002.<ref>[http://www.auditor.illinois.gov/ ''Office of the Illinois Auditor General Web site'', retrieved October 20, 2009]</ref>
+
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 [http://www.auditor.illinois.gov/Audit-Reports/ABC-List.asp audits] are available online.<ref>[http://www.auditor.illinois.gov/ ''Office of the Illinois Auditor General Web site'', retrieved October 20, 2009]</ref>  
+
  
The [[Illinois Comptroller|Illinois State Comptroller]] is [[Dan Hynes|Daniel W. 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.<ref>[http://www.ioc.state.il.us/index.cfm ''Office of the Illinois State Comptroller Web site'', retrieved October 20, 2009]</ref>   
+
The [[Illinois Comptroller|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.<ref>[http://www.ioc.state.il.us/index.cfm ''Office of the Illinois State Comptroller Web site'', retrieved October 20, 2009]</ref>   
  
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.<ref>[http://truthinaccounting.org/news/listing_article.asp?section=451&section2=451&CatID=3&ArticleSource=567 ''Institute for Truth in Accounting'', “The Truth About Balanced Budgets—A Fifty State Study,” Page 35]</ref> Illinois’ CAFRs [http://www.ioc.state.il.us/Office/ResearchFiscal/Index.cfm?FuseAction=CAFR CAFRs] are published online by the Illinois State Comptroller.<ref>[http://www.ioc.state.il.us/ the Illinois State Comptroller]</ref><ref>[http://www.ioc.state.il.us/Office/ResearchFiscal/Index.cfm?FuseAction=CAFR ''Office of the Illinois State Comptroller, Research and Fiscal Information Department Web site'', retrieved October 20, 2009]</ref>   
+
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.<ref>[http://truthinaccounting.org/news/listing_article.asp?section=451&section2=451&CatID=3&ArticleSource=567 ''Institute for Truth in Accounting'', “The Truth About Balanced Budgets—A Fifty State Study,” Page 35]</ref> Illinois’ CAFRs [http://www.ioc.state.il.us/Office/ResearchFiscal/Index.cfm?FuseAction=CAFR CAFRs] are published online by the Illinois State Comptroller.<ref>[http://www.ioc.state.il.us/ the Illinois State Comptroller]</ref><ref>[http://www.ioc.state.il.us/Office/ResearchFiscal/Index.cfm?FuseAction=CAFR ''Office of the Illinois State Comptroller, Research and Fiscal Information Department Web site'', retrieved October 20, 2009]</ref>   
  
 
{| {{table}}
 
{| {{table}}
Line 487: Line 412:
 
| align="center" style="background:#f0f0f0;"|'''S&P'''
 
| align="center" style="background:#f0f0f0;"|'''S&P'''
 
|-
 
|-
| Illinois<ref>[http://www.treasurer.ca.gov/ratings/current.asp ''California State Treasurer'', “Comparison of Other States’ General Obligation Bond Ratings”]</ref>  ||A||A1||AA-
+
| Illinois<ref>[http://www.treasurer.ca.gov/ratings/current.asp ''California State Treasurer'', “Comparison of Other States’ General Obligation Bond Ratings,” accessed 2009]</ref>  ||A||A1||AA-
 
|-
 
|-
 
|  
 
|  
 
|}
 
|}
  
Governor Pat Quinn joined with 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 strengthens the Illinois Freedom of Information Act (FOIA) and ensures the state’s boards and commissions are open and accessible to the public. The website makes the State’s expenditures and employee pay data available through a single, searchable portal: [http://accountability.illinois.gov/ Accountability.Illinois.gov].<ref>[http://www.illinois.gov/PressReleases/ShowPressRelease.cfm?SubjectID=3&RecNum=7760 ''Gov. Quinn Press Release'', “Governor Quinn Signs Major Legislation to Increase Transparency in State Government,” August 17, 2009]</ref>
+
[[Governor of Illinois|Governor]] [[Pat Quinn]] joined [[Illinois Attorney General|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: [http://accountability.illinois.gov/ Accountability.Illinois.gov].<ref>[http://www.illinois.gov/PressReleases/ShowPressRelease.cfm?SubjectID=3&RecNum=7760 ''Gov. Quinn Press Release'', “Governor Quinn Signs Major Legislation to Increase Transparency in State Government,” August 17, 2009]</ref>
 +
 
 +
==Contact information==
 +
Office of Management and Budget<br>
 +
401 South Spring<br>
 +
603 Stratton Building<br>
 +
Springfield, Illinois 62706<br>
 +
Email: GOMB@illinois.gov<br>
 +
Phone: (217) 782-4520<br>
 +
Fax: (217) 524-4876
  
 
==See also==
 
==See also==
 
* [[Illinois government sector lobbying]]
 
* [[Illinois government sector lobbying]]
* [[Illinois state government salary]]
 
 
* [[Illinois public pensions]]
 
* [[Illinois public pensions]]
 +
* [[Governor of Illinois]]
 +
* [[Illinois State Senate]]
 +
* [[Illinois House of Representatives]]
 +
* [[Illinois State Legislature]]
 +
* [[Illinois Auditor]]
  
 
==External links==
 
==External links==
{{colbegin|2}}
 
 
*[http://www.statebudgetsolutions.org/state/detail/illinois State Budget Solutions, Illinois]
 
*[http://www.statebudgetsolutions.org/state/detail/illinois State Budget Solutions, Illinois]
*Model transparency legislation from the [[American Legislative Exchange Council]] is available [http://www.showmethespending.org/uploads/Taxpayer_Transparency_Act.pdf at this link.]
+
*[http://www.showmethespending.org/uploads/Taxpayer_Transparency_Act.pdf American Legislative Exchange Council]
 
*[http://www.illinoispolicyinstitute.org/ Illinois Policy Institute]
 
*[http://www.illinoispolicyinstitute.org/ Illinois Policy Institute]
 
*[http://www.openillinois.org/ OpenIllinois.org]
 
*[http://www.openillinois.org/ OpenIllinois.org]
Line 511: Line 448:
 
*[http://illinoisopengov.org/ Illinois Open Gov]
 
*[http://illinoisopengov.org/ Illinois Open Gov]
 
*[http://accountability.illinois.gov/Information.aspx Illinois Transparency & Accountability Portal]
 
*[http://accountability.illinois.gov/Information.aspx Illinois Transparency & Accountability Portal]
{{colend (Sunshine Review)}}
 
 
===Helpful budget links===
 
{{colbegin|2}}
 
* [http://www.illinois.gov/GOV/ Office of the Governor, Pat Quinn]
 
* [http://budget.illinois.gov/default.htm Illinois State Budget]
 
* [http://budget.illinois.gov/documents/FY10BudgetPowerpointFINAL.pdf Illinois Fiscal Year 2010 Budget]
 
* [http://recovery.illinois.gov/default.htm Illinois Recovery]
 
* [http://www.state.il.us/budget/FY%202009%20Operating%20Budget%20Book%20v2.pdf Illinois State Budget Book Fiscal Year 2009]
 
{{colend (Sunshine Review)}}
 
*The [http://www.state.il.us/budget/ Governor's Office of Management and Budget] prepares the Governor's annual state budget and advises the Governor on the availability of revenues and the allocation of those resources to agency programs.
 
*The [http://www.ioc.state.il.us/ Illinois State Comptroller] provides a number of fiscal reports, including appropriations, bond indebtedness, annual reports, executive summaries, fee impositions, fiscal state of the state, and tax expenditure reports.
 
* [http://illinoisisbroke.com/ Illinois Is Broke], supported by the [http://www.civiccommittee.org/ Civic Committee of the Commercial Club of Chicago], a non-profit company
 
  
==Additional reading==
+
===Additional reading===
* [http://www.illinois.gov/publicincludes/statehome/gov/documents/2010%20SOS%20Transcript.PDF ''Gov. Pat Quinn'',"2010 State of the State Address," January 13, 2010]
+
*[http://uspirg.org/reports/usp/following-money-2014 ''U.S. PIRG'', "Report: Transparent & Accountable Budgets," April 8, 2014]
 +
*[http://www.nytimes.com/2014/02/03/us/battles-loom-in-many-states-over-what-to-do-with-budget-surpluses.html?hp&_r=0 ''The New York Times'', "Battles loom in many states over what to do with budget surpluses," February 3, 2014]
  
 
==References==
 
==References==
Line 534: Line 459:
 
{{Illinois}}
 
{{Illinois}}
  
[[Category:Illinois]]
+
[[category:Illinois]]
 
[[Category:Budget information by state]]
 
[[Category:Budget information by state]]

Revision as of 08:21, 23 April 2014

Illinois state budget

Flag of Illinois.png
Budget calendar:  Annual
Fiscal year:  2014
State credit rating:  A+
Current governor:  Pat Quinn
Financial figures
GF expenses[1]:  $29.3 billion
All funds expenses:  $66.4 billion
Spending % change:  Green Arrow Up Darker.svg.0001%[2]
% from federal funding:  25.66%
State debt:  $321,354,115,000
Per capita state debt:  $24,959
Other state budgets
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Policypedia Budget Policy-logo-no background.png
This page contains information about budget processes and policy issues in Illinois, including:
  • 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).[3][4]

Budget process

Illinois operates on an annual budget cycle. The sequence of key events in the budget process is as follows:[5][6]

  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.[6]

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.[6]

Expenditures

Definitions

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:[7]

  • 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."[7]
  • 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."[7]
  • Federal funds: "Funds received directly from the federal government."[7]
  • Bonds: "Expenditures from the sale of bonds, generally for capital projects."[7]

2013 expenditures

Breakdown of expenditures in FY 2013.
Source: National Association of State Budget Officers

The table below breaks down expenditures for fiscal year 2013 (comparable figures from surrounding states are provided to give additional context).[7] 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)[7]
State General fund Federal funds Other funds Bonds Total Per capita expenditures**
Illinois $29,260 $15,407 $19,825 $1,955 $66,447 $5,158.07
Indiana $14,189 $10,357 $3,220 $0 $27,766 $4,225.60
Michigan $9,164 $19,295 $20,107 $182 $48,748 $4,926.22
Ohio $31,514 $12,630 $12,950 $1,174 $58,268 $5,035.78
Wisconsin $14,042 $10,815 $17,912 $0 $42,769 $7,447.53
**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.[8][9]
Source: National Association of State Budget Officers

Expenditures by function

Breakdown of expenditures by function in FY 2012.
Source: National Association of State Budget Officers

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)[7]
State Elementary and secondary ed. Higher ed. Public assistance Medicaid Corrections Transportation Other
Illinois 15.8% 5.5% 0.1% 19.7% 2.2% 8.5% 48.1%
Indiana 32.9% 6.5% 1.5% 27.3% 2.9% 9.3% 19.7%
Michigan 27.2% 4.1% 0.9% 26.1% 4.7% 6.9% 30.2%
Ohio 20.6% 4.2% 1.5% 24.4% 3.1% 5.1% 41.2%
Wisconsin 16.7% 14.1% 0.4% 16.5% 2.9% 6.9% 42.5%
Source: National Association of State Budget Officers

Expenditure trends

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.[7][10][11][12][13] 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
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%
2008 21.8% 6.0% 0.3% 29.5% 3.0% 8.3% 31.2%
Change in % -6.0% -0.5% -0.2% -9.8% -0.8% 0.2% 16.9%
Source: National Association of State Budget Officers

Revenues

2013 revenues

Breakdown of general fund revenue sources in FY 2013.
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).[7] 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)[7]
State Sales tax Personal income tax Corporate income tax Gaming tax Other taxes and fees Total Per capita revenue**
Illinois $7,335 $16,630 $3,086 $340 $8,899 $36,290 $2,817.08
Indiana $6,796 $4,978 $968 $555 $1,165 $14,462 $2,200.92
Michigan $1,832 $5,844 $438 $0 $1,075 $9,189 $928.59
Ohio $8,445 $9,508 $262 $0 $11,344 $29,559 $2,554.62
Wisconsin $4,410 $7,497 $925 $0 $1,254 $14,086 $2,554.62
**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.[8]
Source: National Association of State Budget Officers

Revenue trends

The table below details the change in revenue sources in the general fund from 2009 to 2013.[7][10] 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)[7][10]
Year Sales tax Personal income tax Corporate income tax Gaming tax Other taxes and fees Total Per capita revenue**
2013 $7,335 $16,630 $3,086 $340 $8,899 $36,290 $2,817.08
2012 $7,226 $15,512 $2,461 $340 $8,083 $33,622 $2,612.80
2011 $6,833 $11,225 $1,851 $324 $9,930 $30,163 $2,346.23
2010 $6,308 $8,510 $1,360 $383 $4,884 $21,445 $1,670.21
2009 $6,772 $9,223 $1,710 $430 $4,441 $22,577 $1,748.74
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.[8][9]
Source: National Association of State Budget Officers

State budgets by year

Fiscal year 2014

DocumentIcon.jpg See budget bill: House Bill 215

Illinois state budget -- 2014
Illinois State Legislature
Text:HB 215
Legislative history
Introduced:January 25, 2013
House:May 28, 2013
Vote (lower house):69-47
Senate:May 31, 2013
Vote (upper house):38-20
Governor:Pat Quinn
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.[14] 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.[15]

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)

Historical spending

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).[7][11]

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
2011-2012 $29,257 44.5% $14,944 22.7% $19,407 29.5% $2,122 3.2% $65,730
2010-2011 $25,237 44.8% $14,375 25.5% $14,821 26.3% $1,957 3.5% $56,390
2009-2010 $26,316 53.4% $10,021 20.3% $12,083 24.5% $895 1.8% $49,315
Averages: $26,936.67 47% $13,113.33 23% $15,437 27% $1,658 3% $57,145
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.

State debt

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.[16][17]

Total state debt in Illinois[18]
Type Totals U.S. rank
Total state debt $321,354,115,000 4
Per capita debt $24,959 5
State and other fund expenditures $44,201,000,000 3

Public pensions

See also: Illinois public pensions and Illinois public employee salaries

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.

Credit ratings

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.[19]

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).[19]

S&P credit ratings from 2001 to 2012
Illinois Indiana Michigan Ohio Wisconsin
2012 A+ AAA AA- AA+ AA
2011 A+ AAA AA- AA+ AA
2010 A+ AAA AA- AA+ AA
2009 A+ AAA AA- AA+ AA
2008 AA AAA AA- AA+ AA
2007 AA AA+ AA- AA+ AA-
2006 AA AA+ AA AA+ AA-
2005 AA AA AA AA+ AA-
2004 AA AA AA+ AA+ AA-
2003 AA AA+ AA+ AA+ AA-
2002 AA AA+ AAA AA+ AA-
2001 AA AA+ AAA AA+ AA

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.[20]

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.[20]

Federal aid to state budgets in 2012
State Federal aid as % of general revenue Total federal aid National rank
Illinois 25.66% $15,647 43
Indiana 32.96% $10,441 27
Michigan 33.74% $17,850 24
Ohio 34.88% $20,688 17
Wisconsin 28.19% $8,855 38

Stimulus

Illinois received $9.1 billion in federal stimulus funding between February 2009 and June 2013.[21]

Budget transparency

Transparency evaluation
Illinois Open Book Illinois Transparency and Accountability
Searchability Y
600px-Yes check.png
Y
600px-Yes check.png
Grants N
600px-Red x.png
Y
600px-Yes check.png
Contracts Y
600px-Yes check.png
Y
600px-Yes check.png
Line item expenditures N
600px-Red x.png
Y
600px-Yes check.png
Dept./agency budgets N
600px-Red x.png
Y
600px-Yes check.png
Public employee salaries N
600px-Red x.png
Y
600px-Yes check.png
Last evaluated in 2009.
See also: Evaluation of Illinois state website and Constitutional provisions regarding reading of bills

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.[22]

Government tools

The table to the right is helpful in evaluating the transparency of the Illinois Open Book and Illinois Accountability and Transparency websites.

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.[23][24]

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.[25] 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.[26]

Limitations and Suggestions

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.[27][28]

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.[28]

Illinois - IGPA score for budget process, contents and disclosure
Budget transparency indicator Yes or no?
Performance measures
{{{1}}}
"Generally Accepted Accounting Principles" budget
{{{1}}}
Multi-year forecasting
{{{1}}}
Annual cycle
{{{1}}}
Binding revenue forecast N
600px-Red x.png
Legislative revenue forecast N
600px-Red x.png
Non-partisan staff N
600px-Red x.png
Constitution or statutory tax/spend limitations N
600px-Red x.png
TOTAL 4

In addition to the individual state profile, IGPA offers a 50-state comparison and profiles for other states.[28]

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.[29] 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.[29]

Accounting principles

See also: Illinois government accounting principles

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.[30] 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.[31]

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.[32]

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.[33] Illinois’ CAFRs CAFRs are published online by the Illinois State Comptroller.[34][35]

Credit Rating Fitch Moody's S&P
Illinois[36] A A1 AA-

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.[37]

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. Refers to General Fund spending. Typically in state budgets the General Fund is spending that is most directly controlled by state legislators.
  2. 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.
  3. Bureau of Labor Statistics, "CPI Detailed Report Data for February 2014," accessed April 9, 2014
  4. InflationData.com, "Cumulative Inflation Calculator," February 28, 2014
  5. National Conference of State Legislatures "State Experiences with Annual and Biennial Budgeting," updated April 2011
  6. 6.0 6.1 6.2 National Association of State Budget Officers "Budget Processes in the States, Summer 2008," accessed February 21, 2014
  7. 7.00 7.01 7.02 7.03 7.04 7.05 7.06 7.07 7.08 7.09 7.10 7.11 7.12 7.13 National Association of State Budget Officers "State Expenditure Report, 2011-2013," accessed February 21, 2014
  8. 8.0 8.1 8.2 United States Census Bureau, "Annual Estimates of the Resident Population: April 1, 2010 to July 1, 2013," accessed February 26, 2014
  9. 9.0 9.1 United States Census Bureau, "Vintage 2009: Annual Population Estimates," accessed February 26, 2014
  10. 10.0 10.1 10.2 National Association of State Budget Officers, "State Expenditure Report, 2009-2011," accessed February 24, 2014
  11. 11.0 11.1 National Association of State Budget Officers, "State Expenditures Report, 2010-2012," accessed February 24, 2014
  12. National Association of State Budget Officers, "State Expenditure Report, 2009," accessed February 24, 2014
  13. National Association of State Budget Officers, "State Expenditure Report, 2008," accessed February 24, 2014
  14. Illinois General Assembly, "Bill Status of HB0215," accessed April 22, 2014
  15. 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
  16. State Budget Solutions, "State Budget Solutions' Fourth Annual State Debt Report," January 8, 2014
  17. Washington Examiner, "EXography: Unfunded public employee pensions drive state debts skyward," January 21, 2014
  18. State Budget Solutions "State Budget Solutions' Fourth Annual State Debt Report," January 8, 2014
  19. 19.0 19.1 Stateline: The Daily News Service of The Pew Charitable Trusts, "Infographic: S&P State Credit Ratings, 2001-2012," July 13, 2012
  20. 20.0 20.1 United States Census Bureau, "State Government Finances: 2012," accessed February 24, 2014
  21. Recovery, "Stimulus Spending by State"
  22. Illinois Constitution, "Article 4, Section 8," accessed 2009
  23. Budget Illinois
  24. State of Illinois - Budget, March 19, 2009
  25. Illinois Policy Institute, "Where can I find past copies of the Illinois state budget?," May 11, 2009
  26. 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
  27. Institute of Government and Public Affairs at University of Illinois, "Home page," accessed February 21, 2014
  28. 28.0 28.1 28.2 Institute of Government and Public Affairs at University of Illinois, "Budget Transparency Profiles - All 50 States," September 2011
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