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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