Illinois
Public finance
Among the larger states, Illinois is known for its low taxes and conservative fiscal policy. The Bureau of the Budget, under the governor's control, has major responsibility for the state's overall fiscal program, negotiating annually with key legislators, cabinet officers, and outside pressure groups. The governor then submits the budget to the legislature for amendment and approval. The fiscal year runs from 1 July to 30 June.
The Illinois State Budget for 2001 funded total appropriations of $46.5 billion, including $22.2 billion in general funds appropriations. Illinois started running a deficit in 2000/01. Spending increases (particularly for Medicare, Employee Group Health Insurance, pensions, and K-12 maintenance) outpaced revenue increases, and revenue declines outpaced spending reductions for 2001/02 and 2002/03. In 2001/02, cuts totaling $500 million were made in the budget after it was passed, and in 2002/03, reductions after passage totaled $202 million. The state's deficit was only $200 million (less than 1% of the state budget) in 2002/03, but was projected at 11.4% for the state budget for 2003/04. Strategies used to reduce the budget gap in 2002/03 included across-the-board cuts (exempting only the State Board of Education), early retirement of some government employees, and the governor's executive order restricting hiring, travel and equipment purchases. The expenditures fell 2.9% relative to 2001/02.
Appropriations from the General Fund totaled $22.298 billion in 2002/03, 39% for education, 23% for public aid, 22% for human and health services, 7% for public protection and justice, and 9% for general operations and other functions. General funds constituted 42% of the states total revenues of $52.564 billion in 2002/03, the other portions being accounted for by Highway Trust Funds (12%), other special state trust funds (21%), federal trust funds (11%), the general obligation bonds fund (10%), and other funds (4%).
The following table from the US Census Bureau contains information on revenues, expenditures, indebtedness, and cash/securities for 2001.
| ($000) | PERCENT | PER CAPITA | |
| Population (thousands, 2001) | 12,520 | (X) | (X) |
| Total Revenue | 47,348,197 | 100.00 | 3,781.80 |
| General revenue | 40,226,623 | 84.96 | 3,212.99 |
| Utility revenue | – | – | – |
| Liquor store revenue | – | – | – |
| Insurance trust revenue | 7,121,574 | 15.04 | 568.82 |
| Exhibit: Salaries and wages | 5,329,754 | 11.80 | 425.70 |
| Total expenditure | 45,170,257 | 100.00 | 3,607.85 |
| General expenditure | 40,244,967 | 89.10 | 3,214.45 |
| Education | 12,930,797 | 28.63 | 1,032.81 |
| Public welfare | 10,629,912 | 23.53 | 849.03 |
| Hospitals | 881,347 | 1.95 | 70.40 |
| Health | 2,331,657 | 5.16 | 186.23 |
| Highways | 3,226,467 | 7.14 | 257.71 |
| Police protection | 390,950 | 0.87 | 31.23 |
| Correction | 1,390,834 | 3.08 | 111.09 |
| Natural resources | 441,727 | 0.98 | 35.28 |
| Parks and recreation | 290,245 | 0.64 | 23.18 |
| Government administration | 1,231,059 | 2.73 | 98.33 |
| Interest on general debt | 1,986,825 | 4.40 | 158.69 |
| Other and unallocable | 4,513,147 | 9.99 | 360.48 |
| Utility expenditure | – | – | – |
| Liquor store expenditure | – | – | – |
| Insurance trust expenditure | 4,925,290 | 10.90 | 393.39 |
| Debt at end of fiscal year | 30,247,654 | 100.00 | 2,415.95 |
| Cash and security holdings | 89,509,545 | 100.00 | 7,149.32 |