Initial FY13 framework set spending limit of 337 billion in general funds FY13 supplemental appropriations have pushed spending to 355 billion Fed by one time revenue spike resulting from fear of federal tax law changes ID: 569431
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FY14 Budget UpdateSlide2
Initial FY13 framework set spending limit of $33.7 billion in general funds.
FY13 supplemental appropriations have pushed spending to $35.5 billion.Fed by one time revenue spike resulting from fear of federal tax law changes$315 million Community Care Program
$220 million DHS-Developmentally Disabled
$350 million – Group Insurance Program$42 million Department of Corrections
FY13 General Funds Budget ReviewSlide3
State of Illinois FY14 GRF Budget
Total Old Bill Payment set aside equals $651 million including $50 million set aside in HB 206. This compares to $800 million set aside in FY13. Slide4
State of Illinois FY14 Operating BudgetSlide5
FY14 Budget Highlights
Concerns
Maintains record spending level established in FY13 despite the fact that FY13 was based on one time revenues.
Does not prepare for coming fiscal cliff in FY15 as income tax increase is set to phase downReduces old bill set aside from $800 million in FY13 to $651 in FY14.Revenue estimate increased last day of session to allow for higher spending level. Slide6
FY14 Budget Highlights
FY14 Spending
Makes the FY14 certified pension payment - $6.0 billion
Increases K-12 General State Aid by $155 million to maintain 89% prorationK-12 Transportation held flat.Fully funds anticipated Group Insurance Program liability.Universities generally reduced 1%.
Medicaid appropriation increases 2% for liability growth.
No additional Correctional facility or DHS facility closures.Slide7
GRF Revenue & SpendingSlide8
Unpaid Bills
The backlog in December of 2012, including bills held at agencies, stood at $8.9 billion. Comptroller estimates that FY13 ended with a total of $7.00 billion including bills at agencies. Slide9
State Supported Bond Debt
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Credit Rating
Illinois has the lowest credit rating of any state in the nation.
Every other state in the nation is operating in the same national economy, yet we are rated worst. We’re not just like every other state. We’re worse than every other state.
Over half of all the credit downgrades in the history of Illinois have occurred under this administration.
We’ve been downgraded 21 times in total with 12 occurring under Quinn.
Lower credit ratings mean higher interest payments for Illinois taxpayers.
These downgrades will cost taxpayers hundreds of Millions of dollars.
Illinois has one of the highest risks of default of any sovereign government in the world.
Lately, Illinois regularly ranks in the top 10 highest default risks with countries like Iraq, Greece, Pakistan and Iceland.Slide12
Pensions
Illinois’ pension systems are the worst funded pension systems in the nation.
Assets in the state pension systems are
$96 Billion short of covering our estimated liabilities.This is a debt that will eventually have to be paid. The payments on this debt threaten our financial solvency. Slide13
$10 B Pension Bonds
Unfunded LiabilitySlide14
Total Pension Contribution as Projected in 1996Slide15
GRF Pension Contributions
Total Pension costs, including debt service and Other State Funds for FY13 totals $7.4 billion. FY14 totals $8.3 billion.Slide16
Future
Pension ContributionsSlide17
Losing Jobs
Illinois ranks 47th in the nation in job growth.
Only three states in the nation have performed more poorly than Illinois over that time period. (Michigan, Ohio & Rhode Island).Illinois has LOST almost 250,000 jobs.
During that same time period, 30 other states added jobs.
Illinois LOST over 4% of its jobs while the average state INCREASED jobs by 1.7%.
If Illinois had simply grown at the national average, we’d have 350,000 more jobs today.
If Illinois had grown jobs at the rate of Texas, which grew jobs at over 10%, we’d have over 850,000 more jobs today and almost $3 Billion in associated state revenue annually.Slide18
Since early 1990s, Illinois’ employment growth rate has fallen behind the US and the rest of the Midwest. Illinois has added jobs at 40% the U.S. rate over the last two decades.
Source: Regional Economics Applications Laboratory, Department of Economics, University of Illinois.
Employment Growth Rate
Total Non-FarmSlide19
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Medicaid currently covers 2.8 million enrollees.
Historical Medicaid EnrollmentSlide20
General Revenues Projection
COGFA April 2013 3 Year Budget Forecast
($ millions)Slide21
Questions
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