A sorry state of fiscal affairs

The state budget crisis is not a new development but rather the result $13 billion problem. Any significant budget cuts would have to come
of years of accumulated budget shortfalls made worse by the from the general funds, the portion of the budget over which
recession. Now state lawmakers must decide how to alleviate a nearly lawmakers have the most discretion.

State budget revenues come from many sources ... ... and fund a variety of services.
FISCAL YEAR 2010 REVENUES (TOTAL: $54.3 billion) Other sources/ FY 2010 APPROPRIATIONS (TOTAL: $54.3 billion)
For July 1, 2009-June 30, 2010 transfers: 11%
Environment and
Individual Corporate Human business regulation: 2%
Other funds General
income tax: income tax: 4% services:
(capital funds: Public safety: 5%
31% 41%
projects, $26.1 billion Public utility
federal funds, (48%) tax: 4% Economic
etc.): development/
Lottery/
REVENUE SOURCES infrastructure: 10%
$28.2 billion riverboat
(52%) casinos: 4%
Federal aid: Government
Education:
24% Sales taxes: services: 17%
25%
22%

Unpaid bills have accumulated and are expected to grow ... ... with no end in sight.
TOTAL ACCOUNTS PAYABLE Projected imbalance nearly TOTAL SPENDING AND REVENUE In billions of 2009 dollars
At end of fiscal year between expenditures
and revenues at the end $6 billion $120
Projected
FY2010: Nearly $6 billion Spending
+
of the current fiscal year
(projected) in June Revenue
$5 BILLION New contributions
owed to state $4.1 billion 100

+
pension systems
4
Repay installments on
money borrowed to
meet pension payments
$1.1 billion 80

+
3 FY 2009
in prior years
actual:
One-time federal $58.7 billion

2
stimulus aid that $1.5 billion 60
disappears in the new
fiscal year
Miscellaneous
+ Bulk of deficit comes from
1
revenue losses $350 million $52.9 billion
shortfall in general funds revenue

nearly 2000 2010 2020 2030

2002 ’03 ’04 ’05 ’06 ’07 ’08 ’09 ’10

PROJECTED
FY 2011 DEFICIT = $13 billion NOTE: 2010-11 projections not available

Rising costs add to the strain ... ... making Illinois among the worst states.
TOTAL MEDICAID SPENDING REQUIRED YEARLY BIGGEST BUDGET SHORTFALLS
KEY State general funds STATE PENSION PAYMENTS
PROJECTED FY 2011 FY 2011 SHORTFALL
Other state and local FY2009 total: $25 BILLION STATE SHORTFALL (BILLIONS) PER CAPITA
Federal $14.5 billion (estimate)
20 California $14.4 $390
$15 BILLION
$4.4 billion FY 2010: Illinois 12.8 991
12 15
(30.3%) $4 billion New Jersey 8.0 918
9
$2.3 billion 10 New York 7.4 379
6 (15.9%)
5 Connecticut 4.7 1,336
3 $7.8 billion Florida 4.7 254
(53.8%)
2001 '02 '03 04 05 '06 '07 '08 09 2010 2020 2030 2040 North Carolina 4.4 469
NOTE: Percentages may not total 100 due to rounding.
SOURCES: Commission on Government Forecasting & Accountability, Center for Tax and Budget Accountability, The Civic Federation, Tribune reporting,
University of Illinois Institute of Government and Public Affairs Fiscal Futures Model, National Association of State Budget Officers, U.S. Census Bureau ADAM ZOLL AND PHIL GEIB/TRIBUNE