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    Illinois state budget (2010-2011)

    From Ballotpedia - Reading time: 6 min
    Note: This article was last updated in 2011. Click here for more recent information on state budgets and finances.


    Gov. Pat Quinn signed the state's $25 billion FY2011 state budget on July 1, 2010.[1]

    The state ended Fiscal Year 2010 with a general fund balance at negative $4.7 billion[2].

    Going into the fiscal year Illinois had a total state debt of $120,743,173,392 when calculated by adding the total of outstanding debt, pension and OPEB UAAL’s, unemployment trust funds and the 2010 budget gap as of July 2010.[3]

    2011 State spending & deficit in billions[4]
    Total spending Pension Healthcare Education Welfare Protection Transport Debt
    $63.8 $8.8 $18.3 $7.9 $10.3 $2.4 $5.8 $57
    2011 Local spending & deficit in billions[4]
    Total spending Pension Healthcare Education Welfare Protection Transport Deficit
    $65.7 $4.4 $2.6 $26 $3 $8.3 $8.5 $65.7

    FY2011 State Budget[edit]

    The state legislature approved a bill on Jan. 12, 2011, to generate $6.5 billion by increasing taxes over a full year period, retroactive to Jan. 1, 2011.[5] It increased the personal income tax rate from 3% to 5% until 2015, when it was set to drop to 3.75%, and then drop again in 2025 to 3.25%.[5] The corporate tax rate would rise from 4.8% to 7% until 2015, when it would drop to 5.25%, and then drop again in 2025 back to 4.8%.[5]

    The bill tied the higher tax rates to state spending in the next four budget years, and if the state auditor general were to find that lawmakers and the governor exceeded specific spending levels, the higher income tax rates would revert to original levels. The set spending limits not to be exceeded were:

    • $36.8 billion in the 2012 budget year
    • $37.5 billion in 2013
    • $38.3 billion in 2014
    • $39 billion in 2015.[5]

    In Dec. 2010, the National Conference of State Legislatures said that the state faced a midyear shortfall of $13 billion, which represented 47% of the FY2011 state budget.[6] Other experts said that Illinois faced a $15 billion budget deficit.[7]

    On May 27, 2010, the Illinois legislature passed a budget for FY2011 with a $13 billion shortfall.[8]

    Budget background[edit]

    The 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 was 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, they may either veto a specific line item or reduce it. The rest of the appropriation bill was unaffected by these vetoes and becomes effective. Line items that had 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.[9]

    Budget figures[edit]

    FY2010 Operating Appropriations by fund group FY 2010:[9]

    • General Funds 53.7%
    • Special State Funds 22%
    • Federal Trust Funds 16.7%
    • Highway Funds 4%
    • Debt Service Funds 2.9%
    • State Trust Funds 0.6%

    Total cuts made after passage of FY2010 budget[10]

    Category Amount cut (in millions)
    K-12 Education 85.2
    Higher Education 6.7
    Public Assistance 41.1
    Medicaid 140.0
    Transportation 1.7
    Other 108.2
    Total 382.9

    Fiscal 2010 Tax Collections Compared With Projections Used in Adopting Fiscal 2010 Budgets (Millions)[10]

    Category Amount
    Sales Tax Original Estimate 6,394
    Sales Tax Current Estimate 6,200
    Personal Income Tax Original Estimate 9,206
    Personal Income Tax Current Estimate 8,460
    Corporate Income Tax Estimate 1,133
    Corporate Income Tax Estimate 1,310

    General Fund[11]

    Category FY2009 Amount in millions Actual FY 2010 Amount in millions Estimated
    Beginning Balance 141 280
    Revenues 27,551 25,828
    Adjustments 1,593 2,167
    Total Resources 29,285 28,275
    Expenditures 26,982 23,714
    Adjustments 2,023 4,281
    Ending Balance 280 280
    Budget Stabilization Fund 276 276

    The Illinois state government appropriated $67,693,357,273.26 to be spent in the 2007 fiscal year.[12]

    Fiscal Year General Funds Expenditures % Change from Previous Year
    1999 $21,527,000,000[13] 9.4%[13]
    2000 $22,976,000,000[13] 6.7%[13]
    2001 $24,583,000,000[13] 7.0%[13]
    2002 $25,125,000,000[13] 2.2%[13]
    2003 $24,861,000,000[14] -1.0%[13]
    2004 $26,365,000,000[15] 6.0%[15]
    2005 $28,247,000,000[16] 7.1%[16]
    2006 $28,452,000,000[17] 0.7%[17]
    2007 $30,116,000,000[13] 5.8%[13]
    2008 $27,162,717,000[9] -9.8%
    2009 $29,787,690,000[18] 9.7%
    2010 $26,031,201,000[18] -7.7%
    2011 - Proposed $24,508,432,000[18] -5.8%

    See Illinois state budget (2008-2009) for more details.


    Accounting principles[edit]

    The Illinois Auditor General was William G. Holland. Since August 1992, William G. Holland had served as Auditor General of the State of Illinois. He was appointed by the General Assembly to a 10-year term commencing August 1, 1992. He was unanimously re-appointed to a second 10-year term, effective August 1, 2002.[19] The Auditor General was 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 were available online.[20]

    The Illinois State Comptroller was Daniel W. Hynes, who had served three 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.[21]


    Credit Rating Fitch Moody's S&P
    Illinois[22] 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 were open and accessible to the public. The website makes the State’s expenditures and employee pay data available through a single, searchable portal.[23][24]

    See also[edit]


    Footnotes[edit]

    1. ↑ ABC 7 Chicago "Quinn budget long on cuts, short on details" July 1, 2010
    2. ↑ Bloomberg "Illinois would Probably Raise Income-Tax Rate to 5%, Budget Director Says" July 28, 2010
    3. ↑ State Budget Solutions “States Hide Trillions in Debt” July 22, 2010
    4. ↑ 4.0 4.1 USA Spending, State Guesstimated* Government Spending
    5. ↑ 5.0 5.1 5.2 5.3 Cite error: Invalid <ref> tag; no text was provided for refs named hike
    6. ↑ The Wall Street Journal “States Face Budget Shortfalls of $26.7 Billion“ Dec. 8, 2010
    7. ↑ Cite error: Invalid <ref> tag; no text was provided for refs named grows
    8. ↑ Business Week "Ill. Legislature adjourns, leaving big budget hole" May 28, 2010
    9. ↑ 9.0 9.1 9.2 State of Illinois, “Illinois State Budget FY 2010,” March 16, 2009
    10. ↑ 10.0 10.1 National Association of Governors and National Association of State Budget Officers Fiscal Survey of States Table 1-C June 2010
    11. ↑ National Governors Association and National Association of State Budget Officers Fiscal Survey of States June 2010 (dead link)
    12. ↑ Illinois Comptroller Office, "In-Depth Analysis of Expenditures"
    13. ↑ 13.00 13.01 13.02 13.03 13.04 13.05 13.06 13.07 13.08 13.09 13.10 Executive Summary FY2007
    14. ↑ Executive Summary FY2003
    15. ↑ 15.0 15.1 Executive Summary FY2004
    16. ↑ 16.0 16.1 Executive Summary FY2005
    17. ↑ 17.0 17.1 Executive Summary FY2006
    18. ↑ 18.0 18.1 18.2 [1] (dead link)
    19. ↑ Office of the Illinois Auditor General Web site, accessed October 20, 2009
    20. ↑ Office of the Illinois Auditor General Web site, accessed October 20, 2009
    21. ↑ Office of the Illinois State Comptroller Web site, accessed October 20, 2009
    22. ↑ California State Treasurer, “Comparison of Other States’ General Obligation Bond Ratings”
    23. ↑ Accountability.Illinois.gov
    24. ↑ Gov. Quinn Press Release, “Governor Quinn Signs Major Legislation to Increase Transparency in State Government,” August 17, 2009
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