Illinois Update

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Where does the State get its revenue?

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Where do we spend the revenue?

($'s in millions)

Agency Appropriations

$24,849 70%

Pension Contribution

$6,214 18%

Statutory Transfers

$4,289 12%

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5 agencies consume 80% of spending.

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FY16 Outlook – Status Quo Budget Creates a Massive Deficit.

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  FY15 Spending $35,352     

  FY15 Gimmicks that add Pressure to FY16 Budget: $1,600  

 

Interfund Borrowing, group insurance, Medicaid, Court of Claims, other program cost moved into FY16 Not Repeated in FY16

 

  Other FY16 Pressures:    Pension Contribution Increase $580    Medicaid (natural growth) $150    Community Care Program Liability $35    Retiree GHI Contribution Refunds $30    Group Health Insurance Liability Growth $190    DHS Child Care - FY15 Shortfall & FY16 Program $500    Department of Corrections Staffing $120    AFSCME Contract ?  

  Total Identified FY16 Pressures $1,550     

  Total Identified FY16 Pressures $3,150    Plus Estimated FY16 Net Loss of Revenue $3,600  

  Potential FY16 Shortfall $6,700         

The Budget Game Plan

$30 Billion Revenue$32 Billion Spending$ 2 Billion Hole$ 2 Billion Reduction Pension Payment$ 0 Now Balanced

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The Budget Game Plan

$31 Billion Revenue$34 Billion Spending$ 3 Billion Hole$ 2 Billion Reduction Pension Payment$ 1 Billion Remaining Hole $ 1 Billion Delay Bill Payments$ 0 Now Balanced

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The Budget Game Plan$32 Billion Revenue$35 Billion Spending$ 1 Billion Carried Over$ 4 Billion Hole$ 2 Billion Reduction in Pension $ 2 Billion Short$ 2 Billion in Delay Payments$ 0 Now Balanced

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Reality Hits in 2010

• Pension Underfunding hits $140 Billion

• Unpaid bills climb to $ 8 Billion• Payment delays 6 – 12 Months• Credit Rating drops to Lowest In

Illinois History

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The temporary tax increase to pay old bills brought in $30 Billion

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Turn Around Plan

1) Implement Jobs Reforms2) Cut Fat & Waste3) Pension Reform4) Targeted Reasonable & Humane Cuts5) Restore Temporary Tax with 4 Year Sunset

(only after 1-4 completed) 6) Capital Plan

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