Illinois state budget (2011-2012)

Note: This article was last updated in 2012. Click here for more recent information on state budgets and finances.

## Contents

* 1 Passing the budget
* 1.1 Education spending
* 1.2 Money Owed and State Debt
* 2 State's Credit Rating
* 3 Budget Panel
* 4 Proposed Budgets
* 4.1 Governor's Proposed Budget
* 5 Legislative Budget Proposal
* 5.1 House Proposal
* 5.2 Senate Proposal
* 6 Footnotes

See also: Archived Illinois state budgets

Illinois ended FY 2012 with a deficit of $8.3 billion, according to a September 26, 2011, study by The Civic Foundation.[1]

## Passing the budget[edit]

Gov. Pat Quinn signed the state's FY 2012 budget on June 30, 2011, with the general fund totaling $32.98 billion after the governor vetoed $376 million in spending approved by the legislature.[2]

The state's FY 2012 Operating Budget can be found here. Illinois' Capital Budget for FY 2012 can be found here.

### Education spending[edit]

Illinois consistently devotes approximately 27 to 28 percent of total spending to K-12 education.[3]

Fiscal Year  | Total Spending[4] | Education Spending[5] | Percent Education Spending

|
|
|

2009 | $123.1 billion | $35.3 billion | 28.6%
2010 | $129.7 billion | $35.5 billion | 27.3%
2011 | $127.7 billion | $35.2 billion | 27.5%
2012 | $125.4 billion | $35.6 billion | 28.3%

### Money Owed and State Debt[edit]

The comptroller's office said that it took 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.[6] Nearly half of that amount was more than a month overdue, according to an Associated Press analysis of state documents. Hundreds of bills dated back to 2010.[7]

The Chicago-based Civic Federation in 2012 warned that the state government’s $9.2 billion backlog of unpaid bills would reach an unprecedented $34.8 billion by 2017 without immediate action by Gov. Pat Quinn and state lawmakers.[8]

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 2011.[9]

## State's Credit Rating[edit]

Illinois was the lowest-rated state in Moody’s estimation, at A1.[10] Standard & Poor’s had it at A.[11]

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. 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 affected $32 billion of debt, according to the statement.[12] "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.[13]

In August 2012 Standard & Poor's Ratings Services lowered Illinois' rating from A+ to A because of "weak pension funding levels and lack of action on reform measures." The firm also said the financial outlook for Illinois was negative, in part because the state's temporary income tax was scheduled to expire in 2015.[14]

Standard & Poor's Ratings Services downgraded the state's credit rating to A- in January 2013. 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 unfunded public pension liability.[15]

## Budget Panel[edit]

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:[16]

* 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.

## Proposed Budgets[edit]

### Governor's Proposed Budget[edit]

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.[17][18] The borrowing was a key part of the governor's $35.4 billion budget proposal.[19]

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. A super-majority or a three-fifths legislative majority in both chambers was required for passage because the bills would increase the state’s bond limit.[20] 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.[21]

## Legislative Budget Proposal[edit]

The Illinois Senate accepted House revenue projects and crafted a 2011-12 budget that cut nearly $1 billion from the Senate’s earlier spending plan.[22]

### House Proposal[edit]

On May 13, 2011, the House approved a $25.2 billion budget for FY 2012 which spent $600 million, or 2.4 percent, less than the previous year's budget.[23]The House version of the budget was roughly $1 billion smaller than the version approved by the Senate and $2 billion below the governor's proposal.[23]

### Senate Proposal[edit]

Senate Democrats passed parts of a budget on May 4, 2011.[24]The Illinois Senate added $431 million to the Illinois House’s proposed budget. The biggest portion — $151 million — funded elementary and high schools statewide. Another large portion — $49.3 million — went to mental health grants and programs.[25] The additions would be paid for with money from the general revenue fund. The Senate estimated the state would 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. The budget was smaller than Quinn's original proposal of $35.4 billion.[26]

## Footnotes[edit]

1. ↑ The Chicago Tribune "Illinois budget deficit to hit $8 billion despite tax increase" Sept. 26, 2011
2. ↑ Reuters "Illinois governor signs budget but state's problems mount" June 30, 2011
3. ↑ State Budget Solutions "Throwing Money At Education Isn't Working" Sept. 12, 2012
4. ↑ USGovernmentSpending.com "Illinois Government Spending Chart - Total Spending" Aug. 4, 2012
5. ↑ http://www.usgovernmentspending.com/spending_chart_1997_2017ALb_13s1li111mcn_20t USGovernmentSpending.com "Illinois Government Spending Chart - Education Spending"Aug. 4, 2012
6. ↑ The Chicago Sun-Times "Deadbeat Illinois owes billions" Oct. 16, 2011
7. ↑ Chicago Sun Times, Deadbeat Illinois Owes Billions, Oct.17, 2011
8. ↑ "State action urged to stop pension debt from ballooning," Chicago Sun-TImes, January 30, 2012
9. ↑ Jacksonville Journal Courier, Deadbeat Illinois: Unpaid bills undercut state's business partners, Oct. 17, 2011
10. ↑ San Francisco Chronicle "Illinois Becomes Moody's Lowest-Rated State After Downgrade" Jan. 9, 2012
11. ↑ Chicago Tribune "S&P lowers Illinois credit rating over pensions" Aug. 29, 2012
12. ↑ Bloomberg, Illinois Becomes Moody’s Lowest-Rated U.S. State With Debt Downgrade to A2, Jan. 6, 2012
13. ↑ Chicago Tribune "S&P lowers Illinois credit rating over pensions" Aug. 29, 2012
14. ↑ Fox Chicago, S&P lowers Illinois credit rating over pensions, Aug. 29, 2012
15. ↑ Chicago Tribune, S&P downgrades Illinois to A-minus, citing pension inaction, Jan. 25, 2013
16. ↑ Illinois Government News Network, Governor Quinn Convenes Budget Reform Commission, Aug. 22, 2011
17. ↑ here
18. ↑ The Chicago Tribune "Quinn asking for $1.7B spending boost" Feb. 16, 2011
19. ↑ CNNMoney.com "Illinois governor proposes borrowing $8.7 billion" Feb. 16, 2011
20. ↑ Illinois Farm Bureau, State lawmakers advance budget ideas, congressional map, May 27, 2011 (dead link)
21. ↑ State Journal Register, Illinois Senate to accept House Revenue estimates, cut budget further, May 26, 2011
22. ↑ State Journal Register, Illinois Senate to Accept House Revenue Estimates, Cut Budget Further, May 26, 2011
23. ↑ 23.0 23.1 Businessweek "Ill. House OKs deep cuts in preliminary budget" May 13, 2011
24. ↑ Businessweek "Ill. Senate begins tackling state budget" May 4, 2011
25. ↑ State House News, Senate Adds 431 Million to Illinois Budget, May 31, 2011
26. ↑ State House News, Senate Adds 431 Million to Illinois Budget, May 31, 2011

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