Historical Illinois budget and finance information

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The historical Illinois budget and finance information below applies to years prior to the most current fiscal year. With the exception of the tab labeled "Prior fiscal year budgets," the tabs below display information, from several different fiscal years, as it was presented on Ballotpedia in prior calendar years. For more current information regarding Illinois' budget and finances, click here.

As published 2016

Illinois budget and finances

General information

Budget calendar: Annual

Fiscal year: 2017

State credit rating: A- (as of 2014)

Current governor: Bruce Rauner

Financial figures

Total spending (state and federal funds): $69.4 billion (estimated for 2015)

Per capita spending: $5,397.36 (estimated for 2015)

Total state tax collections: $39.2 billion (2014)

Per capita tax collections: $3,041.63 (2014)

State debt: $321.4 billion (as of 2014)

Per capita state debt: $24,959 (as of 2014)

State budget and finance pages • Total state expenditures • State debt • Tax policy in Illinois

In Illinois, as in other states, lawmakers and public officials are elected in part to manage the state's finances. This includes generating revenues (money coming into the state from various sources) and approving expenditures (the money spent on governmental functions and servicing state debt). State budgets are complex and fluid, as they depend on anticipated revenues and planned expenditures, which may alter over the course of a fiscal year. If revenues do not keep pace with expenditures, states generally have to raise taxes, cut services, borrow money, or a combination of the three. State budget decisions are also influenced by policy decisions at the national level, such as the Affordable Care Act or energy and environmental regulations, and issues at the local level, such as crime and the quality of education.

HIGHLIGHTS

Between fiscal years 2014 and 2015, total government spending in Illinois increased by approximately $10.8 billion—from $58.6 billion in fiscal year 2014 to an estimated $69.4 billion in 2015. This represents a 15.52-percent increase.

In Illinois in fiscal year 2014, 51.9 percent of total tax revenues came from income taxes. Sales taxes and gross receipts accounted for 40.2 percent of total state tax collections.

Education accounted for 18.7 percent of state expenditures in fiscal year 2015, while 26.1 percent went to Medicaid.

The Illinois state budget and financial data presented here come from different years because the states and the federal government report and publish the information at different times.

Definitions

The following terms are used to describe a state's finances:

• Revenues come mainly from tax collections, licensing fees, federal aid, and returns on investments.
• Expenditures generally include spending on government salaries, infrastructure, education, public pensions, public assistance, corrections, Medicaid, and transportation.
• State debt refers to the money borrowed to make up for a deficit when revenues do not cover spending.
• The state credit rating is the grade given by a credit rating agency based on the general financial health of the state's government and economy.
• State funds include general and other state-based funds. A general fund is "the predominant fund for financing a state's operations." Other state funds are "restricted by law for particular governmental functions or activities."
• Federal funds are "funds received directly from the federal government."
• Total spending is calculated by adding together the totals for state and federal funds used for expenditures.

Note: In comparing dollar amounts across the states, it is important to note that the cost of living can from state to state and within a state. The amounts given on this page have not been adjusted to reflect these differences. For more information on "regional price disparities" and the Consumer Price Index, see the U.S. Department of Commerce, Bureau of Economic Analysis.

Revenues

2014 revenues

See also: State government tax collections by source

The table below breaks down state government tax collections by source in 2014 (comparable figures from surrounding states are also provided to give additional context). Figures for all columns except "2013 population" and "Per capita collections" are rendered in thousands of dollars (for example, $2,448 translates to $2,448,000). Figures in the columns labeled "2013 population" and "Per capita collections" have not been abbreviated.

Compared to neighboring states, Illinois had the highest state tax collections per capita, at $3,042.

State tax collections by source ($ in thousands), 2014
State	Property taxes	Sales and gross receipts	Licenses	Income taxes	Other taxes	Total	2013 population	Per capita collections
Illinois	$54,710	$15,758,509	$2,675,943	$20,343,042	$350,690	$39,182,894	12,882,189	$3,042
Indiana	$8,052	$10,395,150	$590,483	$5,763,064	$90,212	$16,846,961	6,597,880	$2,553
Michigan	$1,919,910	$12,309,564	$1,511,695	$8,755,723	$307,081	$24,803,973	9,916,306	$2,501
Ohio	N/A	$15,617,920	$2,928,276	$8,424,843	$49,586	$27,020,625	11,596,998	$2,330
Wisconsin	$159,069	$7,359,539	$1,040,619	$7,779,733	$71,965	$16,410,925	5,759,432	$2,849
United States	$14,232,835	$411,414,175	$51,120,024	$357,104,785	$31,880,270	$865,752,089	318,907,401	$2,715
Source: U.S. Census Bureau, "2014 annual survey of state government tax collections by category," accessed April 4, 2016

Illinois tax collections by source in 2014.
Source: U.S. Census Bureau

The table below lists 2014 tax collections by source as percentages of total collections. About 51.9 percent of Illinois' total state tax collections came from income taxes.

State tax collections by source (as percentages), 2014
State	Property taxes	Sales and gross receipts	Licenses	Income taxes	Other taxes
Illinois	0.1%	40.2%	6.8%	51.9%	0.9%
Indiana	0.0%	61.7%	3.5%	34.2%	0.5%
Michigan	7.7%	49.6%	6.1%	35.3%	1.2%
Ohio	N/A	57.8%	10.8%	31.2%	0.2%
Wisconsin	1.0%	44.8%	6.3%	47.4%	0.4%
Source: U.S. Census Bureau, "2014 annual survey of state government tax collections by category," accessed April 4, 2016

Federal aid to the state budget

See also: Federal aid to state budgets

State governments receive aid from the federal government to fund a variety of joint programs, mainly in the form of grants for such things as Medicaid, education, and transportation. In 2013 federal aid to the states accounted for roughly 30 percent of all state general revenues. Federal aid varies from state to state. For example, Mississippi received approximately $7.5 billion in federal aid in 2013, accounting for about 43 percent of the state's general revenues, the highest percentage of all of the states. By contrast, North Dakota received about $1.5 billion in federal aid in 2013, or just 19 percent of the state's general revenues, the lowest percentage in the nation.

The table below notes what share of Illinois’ general revenues came from the federal government in 2013. That year, Illinois received approximately $17 billion in federal aid, 25.9 percent of the state's general revenues. Taking into consideration the state's 2013 population, this came out to about $1,318 in federal aid per capita. Figures from surrounding states are provided for additional context.

Federal aid to state budgets, 2013
State	Total federal aid ($ in thousands)	Federal aid as a % of general revenues	Ranking (by % of general revenues)	Est. 2013 population	Aid per capita
Illinois	$16,973,577	25.9%	40	12,882,135	$1,318
Indiana	$11,192,452	33.4%	20	6,570,902	$1,703
Michigan	$17,829,882	32.8%	23	9,895,622	$1,802
Ohio	$20,482,575	33.6%	19	11,570,808	$1,770
Wisconsin	$8,952,020	27.7%	36	5,742,713	$1,559
Sources: United States Census Bureau, "State Government Finances: 2013," accessed April 4, 2016 United States Census Bureau, "State totals: Vintage 2013," accessed April 8, 2016 Note: Per-capita figures were generated by Ballotpedia by dividing total federal aid for the state by the estimated population of that state in 2013.

Spending

Estimated 2015 expenditures

See also: Total state expenditures

The table below breaks down estimated spending totals for fiscal year 2015 (comparable figures from surrounding states are included to provide additional context). Figures for all columns except "Population” and “Per capita spending" are rendered in millions of dollars (for example, $2,448 translates to $2,448,000,000). Figures in the columns labeled "Population” and “Per capita spending" have not been abbreviated.

Illinois' total estimated government spending in fiscal year 2015 was $69.4 billion, which was the highest amount when compared to surrounding states.

Total estimated state spending, FY 2015 ($ in millions)
State	State funds	Federal funds	Total spending	Population	Per capita spending
Illinois	$51,506	$17,904	$69,410	12,859,995	$5,397.36
Indiana	$19,037	$10,305	$29,342	6,619,680	$4,432.54
Michigan	$31,232	$22,633	$53,865	9,922,576	$5,428.53
Ohio	$48,593	$13,994	$62,587	11,613,423	$5,389.19
Wisconsin	$34,275	$11,122	$45,397	5,771,337	$7,865.94
Per-capita figures are calculated by taking the state's total spending and dividing by the number of state residents according to United States Census Bureau estimates. Source: National Association of State Budget Officers, "Examining fiscal 2013-2015 state spending," accessed April 4, 2016

Spending by function

Breakdown of spending by function in FY 2014.
Source: National Association of State Budget Officers

See also: State spending by function as a percent of total expenditures

State spending in Illinois can be further broken down by function (elementary and secondary education, public assistance, etc.). Fiscal year 2014 information is included in the table below (information from neighboring states is provided for additional context). Figures are rendered as percentages, indicating the share of the total budget spent per category.

In fiscal year 2014, Medicaid accounted for 26.1 percent of Illinois' total expenditures.

State spending by function as a percent of total expenditures, FY 2014
State	K-12 education	Higher education	Public assistance	Medicaid	Corrections	Transportation	Other
Illinois	14.6%	4.1%	0.3%	26.1%	2.4%	9.3%	43.1%
Indiana	32.0%	6.6%	1.5%	32.0%	2.8%	5.9%	19.2%
Michigan	26.9%	4.3%	0.5%	27.6%	4.4%	7.5%	28.7%
Ohio	16.8%	4.2%	1.3%	35.8%	3.0%	6.3%	32.5%
Wisconsin	16.1%	14.2%	0.4%	18.4%	2.8%	6.6%	41.5%
Source: National Association of State Budget Officers Note: "Other" expenditures include "Children's Health Insurance Program (CHIP), institutional and community care for the mentally ill and developmentally disabled, public health programs, employer contributions to pensions and health benefits, economic development, environmental projects, state police, parks and recreation, housing and general aid to local governments."

Spending trends

Between 2010 and 2014, the share of the Illinois state budget spent on K-12 education from 18.2 percent in 2010 to 14.6 percent in 2014. See the table below for further details (figures are rendered as percentages, indicating the share of the total budget spent per category).

Spending by function from 2010 to 2014 (as percentages)
Year	K-12 education	Higher education	Public assistance	Medicaid	Corrections	Transportation	Other
2014	14.6%	4.1%	0.3%	26.1%	2.4%	9.3%	43.1%
2013	13.3%	3.7%	0.3%	23.8%	2.1%	8.4%	48.4%
2012	15.8%	5.5%	0.1%	19.7%	2.2%	8.5%	48.1%
2011	18.9%	5.6%	1.0%	32.9%	2.9%	11.4%	27.4%
2010	18.2%	4.5%	0.2%	23.6%	2.0%	8.1%	43.3%
Source: National Association of State Budget Officers Note: "Other" expenditures include "Children's Health Insurance Program (CHIP), institutional and community care for the mentally ill and developmentally disabled, public health programs, employer contributions to pensions and health benefits, economic development, environmental projects, state police, parks and recreation, housing and general aid to local governments."

Fiscal year budgets

See also: Historical Illinois budget and finance information

Fiscal year 2016

Governor Bruce Rauner proposed his fiscal year 2016 budget in February 2015. In June, the Republican governor signed a fiscal year 2016 education budget, but the state's general budget had not yet been passed as of December 18, 2015.

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

State debt

See also: State debt

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

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

Taxpayer burden

TIA Methodology: To figure a state’s taxpayer burden or surplus, TIA looked at a state’s total reported assets minus capital assets and assets restricted by law (buildings, roads, land, etc.) to calculate “available assets,” which were then compared to the amount of money the state owes in bills, including retirement obligations such as pension plans and healthcare benefits for retirees. If the difference between available assets and total bills was positive, TIA called this a surplus; if it was negative, this was a burden. This amount was then divided by the number of individual tax returns with a positive tax liability, thus expressing the total state surplus or burden on a per-taxpayer basis.

According to a report released in September 2015 by the nonprofit Truth in Accounting (TIA), Illinois ranked 3rd worst in the country in “taxpayer burden.” Rather than using per capita state debt, TIA ranked states based on what it called a “taxpayer burden,” a term that reflects “the amount each taxpayer would have to send to their state’s treasury in order for the state to be debt-free.” On the other hand, states that had sufficient resources to pay their bills were said to have a “taxpayer surplus,” which represents the amount that each taxpayer would receive if the state were to disburse its excess funds.

Based on analysis of Illinois’ Comprehensive Annual Financial Report from June 30, 2014 and actuarial reports for the state’s retirement plans, TIA concluded that $157.5 billion in promised retirement benefits were unfunded, but only $39.8 billion of these liabilities were reported on Illinois’ balance sheet. With all of the unfunded retirement benefits included in the total debt, the state had a shortfall of $184.3 billion, or a taxpayer burden of $45,000.

Public pensions

See also: Illinois public pensions and Illinois public employee salaries

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

Credit ratings

See also: State credit ratings

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

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

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

Economic indicators

See also: Economic indicators by state

Illinois' GDP increased by 1.2 percent in 2014. Click the image to view a larger version.

Broadly defined, a healthy economy is typically one that has a "stable and strong rate of economic growth" (gross state product, in this case) and low unemployment, among many other factors. The economic health of a state can significantly affect its healthcare costs, insurance coverage, access to care, and citizens' physical and mental health. For instance, during economic downturns, employers may reduce insurance coverage for employees, while those who are laid off may lose coverage altogether. Individuals also tend to spend less on non-urgent care or postpone visits to the doctor when times are hard. These changes in turn may affect the decisions made by policymakers as they react to shifts in the industry. Additionally, a person's socioeconomic status has profound effects on their access to care and the quality of care received.

In September 2014, Illinois had an unemployment rate of 6.6 percent, higher than any of its neighboring states. Most residents in Illinois earned incomes at least 400 percent above the federal poverty level, with a median annual household income of $54,083.

Note: Gross state product (GSP) on its own is not necessarily an indicator of economic health; GSP may also be influenced by state population size. Many factors must be looked at together to assess state economic health.

Various economic indicators by state
State	Distribution of population by FPL* (2013)				Median annual income (2011-2013)	Unemployment rate		Total GSP (2013)†
	Under 100%	100-199%	200-399%	400%+		Sept. 2013	Sept. 2014
Illinois	13%	17%	31%	39%	$54,083	9.1%	6.6%	$720,692
Indiana	12%	23%	31%	35%	$48,178	7.3%	5.7%	$317,102
Iowa	11%	18%	35%	36%	$53,364	4.5%	4.6%	$165,767
Wisconsin	11%	15%	31%	42%	$54,205	6.6%	5.5%	$282,486
United States	15%	19%	30%	36%	$52,047	7.2%	5.9%	$16,701,415
* Federal Poverty Level. "The U.S. Census Bureau's poverty threshold for a family with two adults and one child was $18,751 in 2013. This is the official measurement of poverty used by the Federal Government." † Median annual household income, 2011-2013. ‡ In millions of current dollars. "Gross State Product is a measurement of a state's output; it is the sum of value added from all industries in the state." Source: The Henry J. Kaiser Family Foundation, "State Health Facts"

Budget process

State documents and agenciesBelow are links to official Illinois budget and financial documents. The first is the state's Comprehensive Annual Financial Report (CAFR). A CAFR is a detailed presentation of a government entity's financial condition. This includes fiscal activities and balances for a fiscal year. The second link is to the state's relevant budget agency or office. Illinois CAFR Illinois budget agency

Illinois operates on an annual budget cycle. The sequence of key events in the budget process is:

1. In September and October 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. Budget hearings with the public are held from February through May.
4. On the third Wednesday in February, the governor submits his or her proposed budget to the Illinois General Assembly.
5. The General Assembly passes a budget in May.

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

The governor is constitutionally required to submit a balanced budget. In turn, the legislature must pass a balanced budget.

Agencies, offices and committees

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

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

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

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

Transparency

See also: "Following the Money" report, 2015

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 March 2015. The report, entitled "Following the Money," measured how transparent and accountable state websites were with regard to state government spending. According to the report, Illinois received a grade of A- and a numerical score of 93, indicating that Illinois was "Leading" in terms of transparency regarding state spending.

As published 2015

State finances in the U.S.
State tax policy in the U.S.
Pension Policy
State finances on the ballot Taxes on the ballot Glossary of state budget terms Public pensions

The information on this tab contains: Spending (fiscal years 2013 and 2014) Revenues (fiscal year 2013) State debt (fiscal year 2012) Federal aid to the state budget (fiscal year 2012) Budget process

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

HIGHLIGHTS

In 2014 total estimated spending in Illinois amounted to $70.4 billion.

In 2012 Illinois ranked fifth in the nation for state debt per capita, which amounted to $24,959.

Spending

Definitions

The following terms are used to describe a state's finances:

• Revenues come mainly from tax collections, licensing fees, federal aid, and returns on investments.
• Expenditures generally include spending on government salaries, infrastructure, education, public pensions, public assistance, corrections, Medicaid, and transportation.
• State debt refers to the money borrowed to make up for a deficit when revenues do not cover spending.
• The state credit rating is the grade given by a credit rating agency based on the general financial health of the state's government and economy.
• State funds include general and other state-based funds. A general fund is "the predominant fund for financing a state's operations." Other state funds are "restricted by law for particular governmental functions or activities."
• Federal funds are "funds received directly from the federal government."
• Total spending is calculated by adding together the totals for state and federal funds used for expenditures.

2014 expenditures

See also: Total state expenditures

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

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

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

Spending by function

Breakdown of spending by function in FY 2013
Source: National Association of State Budget Officers

See also: State spending by function as a percent of total expenditures

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

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

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

Spending trends

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

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

Revenues

2013 revenues

See also: State government tax collections by source

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

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

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

Illinois tax collections by source in 2013
Source: Tax Policy Center

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

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

State debt

See also: State debt

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

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

Taxpayer burden

According to a report released in September 2015 by the nonprofit Truth in Accounting (TIA), Illinois ranked 3rd worst in the country in “taxpayer burden.” Rather than using per capita state debt, TIA ranked states based on what it called a “taxpayer burden,” a term that reflects “the amount each taxpayer would have to send to their state’s treasury in order for the state to be debt-free.” On the other hand, states that had sufficient resources to pay their bills were said to have a “taxpayer surplus,” which represents the amount that each taxpayer would receive if the state were to disburse its excess funds.

To figure a state’s taxpayer burden/surplus, TIA looks at a state’s total reported assets minus capital assets and assets restricted by law (buildings, roads, land, etc.) to calculate “available assets.” TIA then compares available assets to the amount of money the state owes in bills, which includes retirement obligations such as pension plans and health care benefits for retirees. If the difference between available assets and total bills is positive, TIA calls this a surplus; if it’s negative, this is called a burden. TIA then divides this amount by the number of taxpayers in the state (specifically, the number of individual tax returns with a positive tax liability), thus expressing the total state surplus or burden on a per-taxpayer basis.

Based on analysis of Illinois’ Comprehensive Annual Financial Report from June 30, 2014 and actuarial reports for the state’s retirement plans, TIA concluded that $157.5 billion in promised retirement benefits were unfunded, but only $39.8 billion of these liabilities were reported on Illinois’ balance sheet. With all of the unfunded retirement benefits included in the total debt, the state had a shortfall of $184.3 billion, or a taxpayer burden of $45,000.

Public pensions

See also: Illinois public pensions and Illinois public employee salaries

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

Credit ratings

See also: State credit ratings

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

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

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

Federal aid to the state budget

See also: Federal aid to state budgets

State governments receive aid from the federal government to fund a variety of joint programs, such as Medicaid. Federal aid varies 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.

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

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

Stimulus

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

Budget process

Illinois operates on an annual budget cycle. The sequence of key events in the budget process is:

1. In September and October 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. Budget hearings with the public are held from February through May.
4. On the third Wednesday in February, the governor submits his or her proposed budget to the Illinois General Assembly.
5. The General Assembly passes a budget in May.

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

The governor is constitutionally required to submit a balanced budget. In turn, the legislature must pass a balanced budget.

Agencies, offices, and committees

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

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

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

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

Studies and reports

U.S. PIRG "Following the Money" report

See also: "Following the Money" report, 2014

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

As published 2014

The information on this tab contains: Spending (fiscal year 2013) Spending by function (fiscal year 2012) Spending trends (fiscal years 2008 to 2012) Revenues (fiscal year 2013) Historical spending (fiscal years 2009 to 2012) Budget transparency

Between fiscal year 2009 and fiscal year 2013, total expenditures in Illinois increased by approximately $17.1 billion, from $49.3 billion in 2009 to $66.4 billion in 2013. This represented 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).

Spending

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:

• 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."

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). Figures for all columns except "Per capita expenditures" are rendered in millions of dollars (for example, $2,448 translates to $2,448,000,000). Figures in the column labeled "Per capita expenditures" have not been abbreviated.

Total state expenditures, FY 2013 ($ in millions)
State	General fund	Federal funds	Other funds	Bonds	Total	Per capita expenditures**
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. Source: National Association of State Budget Officers

Spending by function

2012

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 percentages, indicating the share of the total budget spent per category.

Expenditures by function, FY 2012 (as percentages)
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 Note: "Other" expenditures include "Children's Health Insurance Program (CHIP), institutional and community care for the mentally ill and developmentally disabled, public health programs, employer contributions to pensions and health benefits, economic development, environmental projects, state police, parks and recreation, housing and general aid to local governments."

Spending 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 percentage points, a 2.4 percent increase in the share of the budget, and expenditures for other budget items increased by 16.9 percentage points, a 54.2 percent increase in the share of the budget. The table below details changes in expenditures from 2008 to 2012.

Figures are rendered as percentages, indicating the share of the total budget spent per category.

Expenditures from 2008 to 2012 (as percentages)
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 Note: "Other" expenditures include "Children's Health Insurance Program (CHIP), institutional and community care for the mentally ill and developmentally disabled, public health programs, employer contributions to pensions and health benefits, economic development, environmental projects, state police, parks and recreation, housing and general aid to local governments."

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). Figures for all columns except "Per capita revenue" are rendered in millions of dollars (for example, $2,448 translates to $2,448,000,000). Figures in the column labeled "Per capita revenue" have not been abbreviated.

Revenue sources in the general fund, FY 2013 ($ in millions)
State	Sales tax	Personal income tax	Corporate income tax	Gaming tax	Other taxes and fees	Total	Per capita revenue
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. 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. Figures for all columns except "Per capita revenue" are rendered in millions of dollars (for example, $2,448 translates to $2,448,000,000). Figures in the column labeled "Per capita revenue" have not been abbreviated.

Revenue sources in the general fund, Illinois ($ in millions)
Year	Sales tax	Personal income tax	Corporate income tax	Gaming tax	Other taxes and fees	Total	Per capita revenue
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. Source: National Association of State Budget Officers

Historical spending

The information on state budget historical spending below was compiled by the National Association of State Budget Officers. Figures reflect the reported "Total Expenditures" in Table 1. Figures for all columns are rendered in millions of dollars (for example, $2,448 translates to $2,448,000,000).

Historical state 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	45%	$14,944	23%	$19,407	30%	$2,122	3%	$65,730
2010-2011	$25,237	45%	$14,375	25%	$14,821	26%	$1,957	3%	$56,390
2009-2010	$26,316	53%	$10,021	20%	$12,083	25%	$895	2%	$49,315
Averages:	$26,937	47%	$13,113	23%	$15,437	27%	$1,658	3%	$57,145

Budget transparency

Transparency evaluation
	Illinois Open Book	Illinois Transparency and Accountability
Searchability	Y	Y
Grants	N	Y
Contracts	Y	Y
Line item expenditures	N	Y
Dept./agency budgets	N	Y
Public employee salaries	N	Y
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 three "title" reads on three separate days. It also requires that a bill must be printed in its 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.

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.

State budget websites and analysis

Until 2011, 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 archived copies of past budgets. For the 2011 budget, the state adopted a more transparent method of publishing its budget, providing the information on a quarterly and annual basis. The new process did not affect how agency budgets would be audited. These reports were to be released for a year or more after revenue and costs were available.

Limitations and Suggestions

• Add a copy of the actual contracts to Open Book.
• Provide line-item spending information on the Comptroller's aggregate expenditure information website.

Multi-measure budget transparency profile

The Institute of Government and Public Affairs at the University of Illinois created a multi-measure transparency profile for Illinois, which measured state transparency as of September 2011 using indicators from a range of organizations. These indicators measured both website transparency and other recognized facets of governmental transparency. In addition, IGPA presented four unique indicators of non-transparency based on the observation that transfers or reassignments between general and special funds can obscure the true fiscal condition of a state.

IGPA devised a budget transparency index based on information available from the National Association of State Budget Officers. Illinois tied for 33rd in the nation with 12 other states, earning four out of eight possible points.

Illinois - IGPA score for budget process, contents and disclosure
Budget transparency indicator	Yes or no?
Performance measures
"Generally Accepted Accounting Principles" budget
Multi-year forecasting
Annual cycle
Binding revenue forecast	N
Legislative revenue forecast	N
Nonpartisan staff	N
Constitution or statutory tax/spend limitations	N
TOTAL	4

In addition to the individual state profile, IGPA offered a 50-state comparison and profiles for other states.

U.S. PIRG "Following the Money" report

See also: "Following the Money" report, 2014

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

Prior fiscal year budgets

Fiscal year 2016

Governor Bruce Rauner proposed his fiscal year 2016 budget in February 2015. In June, the Republican governor signed a fiscal year 2016 education budget, but the state's general budget was not passed as of March 31, 2016.

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

Fiscal year 2015

See budget bill: Fiscal Year 2015 Budget

Governor Pat Quinn announced his fiscal year 2015 budget proposal on March 26, 2014. Under the governor's proposal, the operating budget for fiscal year 2015 would have equaled approximately $65.9 billion, including $32.2 billion in general fund expenditures. For all funds, this represents a 2.4 percent increase over fiscal year 2014.

On June 30, 2014, Quinn signed into law the fiscal year 2015 budget. The enacted operating budget totaled $66.4 billion, including $31.5 billion in general fund spending. Quinn vetoed approximately $250 million for state capitol renovations.

Fiscal year 2014

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 Vetoes

The fiscal year 2014 budget was signed into law by Governor Pat Quinn on July 2, 2013, after using line item and reduction vetoes. The enacted budget reduced the backlog of unpaid bills to $5.8 billion, but pension costs totaled $7.65 billion, representing 24.3 percent of General Funds revenues. According to the Institute for Illinois' Fiscal Sustainability, such pension costs represented an unsustainable level and were expected to rise in coming years without reform.

Fiscal year 2013

See also: Illinois state budget (2012-2013)

Fiscal year 2012

See also: Illinois state budget (2011-2012)

Fiscal year 2011

See also: Illinois state budget (2010-2011)

Fiscal year 2010

See also: Illinois state budget (2009-2010)

See also

• Illinois state budget and finances