Illinois Comptroller Dan Hynes came
out with the state’s FY 2010 Budgetary
Outlook on Wednesday. The
Comptroller reports a budget
deficit of approximately $8.95
billion. Even with potential money
coming from the Federal
Economic Stimulus Package the
State would still face an
approximately $6 billion shortfall.
The report stated that no
action taken by the Federal
Government can rescue Illinois
from these financial difficulties.
The State must take action
to eliminate the debt.
According to the Governor’s Office
of Management and
Budget (GOMB), the General Assembly authorized
spending in excess of $2.1 billion over
then anticipated revenues and
former Governor Blagojevich
cut approximately $1.5 billion,
leaving a $600 million debt. Since then Illinois’
revenues have declined due to the national
recession. Estimates from
GOMB and the Commission on
Government Forecasting
and Accountability show a fiscal
year 2009 General Funds
forecast that is lower than the
actual 2008 revenues, and
$1-1.3 billion below the
unofficial budget assumptions.
Revenue collections over the past two
months and a significant decrease in expected
gaming license proceeds indicate
that lower than expected revenues
are anticipated. The report stated that without
a major infusion of money
from borrowing or another source,
the state will be virtually insolvent.
This will come with dire consequences to the
state’s healthcare infrastructure,
educational community and
state workforce.
out with the state’s FY 2010 Budgetary
Outlook on Wednesday. The
Comptroller reports a budget
deficit of approximately $8.95
billion. Even with potential money
coming from the Federal
Economic Stimulus Package the
State would still face an
approximately $6 billion shortfall.
The report stated that no
action taken by the Federal
Government can rescue Illinois
from these financial difficulties.
The State must take action
to eliminate the debt.
According to the Governor’s Office
of Management and
Budget (GOMB), the General Assembly authorized
spending in excess of $2.1 billion over
then anticipated revenues and
former Governor Blagojevich
cut approximately $1.5 billion,
leaving a $600 million debt. Since then Illinois’
revenues have declined due to the national
recession. Estimates from
GOMB and the Commission on
Government Forecasting
and Accountability show a fiscal
year 2009 General Funds
forecast that is lower than the
actual 2008 revenues, and
$1-1.3 billion below the
unofficial budget assumptions.
Revenue collections over the past two
months and a significant decrease in expected
gaming license proceeds indicate
that lower than expected revenues
are anticipated. The report stated that without
a major infusion of money
from borrowing or another source,
the state will be virtually insolvent.
This will come with dire consequences to the
state’s healthcare infrastructure,
educational community and
state workforce.
