2. $8.0 Billion
11%
$27.8 Billion
39.0%
$35 Billion
50%
FY14: All Funds Budget
$71 Billion
Federal Funds Other State Funds General Revenue Funds
$3.6 billion of $35
billion GRF is
attributed to
federal match on
Medicaid
spending.
3. Personal Income
45%
Corporate Income
8%
Sales
21%
Other Sources
15%
Federal Receipts
11%
FY14 General Revenue Funds by Source
$35.5 Billion
Personal Income - $16.0B
Corporate Income - $2.9B
Sales - $7.4B
Other Sources - $5.1B
Federal Receipts - $4.0B
4. Government Services
3.3%
Public Safety
and Regulation
4.8%
Human Services
14.7%
P- 12
18.9%
Higher Ed
5.6%
Medicaid/Healthcare
23.5%
Pensions
16.9%
Debt Service on Pension
Bonds
4.7%
Debt Service on
Capital Bonds
1.7%
Public Transportation
1.9%
Transfers to
Local
Governments
4.3%
FY 2014 Enacted GRF
Discretionary and Non-Discretionary Appropriations
$35 billion
Government Services - $1,178
Public Safety and Regulation - $1,692
Human Services - $5,202
P- 12 - $6,687
Higher Ed - $1,991
Medicaid/Healthcare - $8,311
Pensions - $5,988
Debt Service on Pension Bonds - $1,655
Debt Service on Capital Bonds - $527
Public Transportation - $664
Transfers to Local Governments - $1,508
State Employees =
$4 billion (11%)
$ below in millions
6. Paying Bills
• The budget office
estimates that we will end
the current fiscal year with
$3.5 billion less bills on
hand when compared with
FY12
•Major reforms to state law
will continue to drive this
number down in later years
$9.1
$6.1
$2.8
$0.0
$1.0
$2.0
$3.0
$4.0
$5.0
$6.0
$7.0
$8.0
$9.0
$10.0
FY12 FY13 est. FY14 est.
Unpaid Bills: End of Fiscal Year
($ in Billions)
By FY14 half of the unpaid bills
will be less than 60 days old.
$2.8
$5.6 total
7. Pension Obligation
Bonds Issued in
FY10 and FY11
• For fiscal years 10 and
11, the state issued $7.166
billion in bonds to make the
required contribution to the
pension systems
• By the end of fiscal year
14, the state will retire $3.8
billion in costs associated
with those bonds $802,477
$1,791,240
$2,765,815
$3,817,370
$5,036,678
$5,818,607
$6,870,770
$7,874,648
$8,827,541
$0
$1,000,000
$2,000,000
$3,000,000
$4,000,000
$5,000,000
$6,000,000
$7,000,000
$8,000,000
$9,000,000
$10,000,000
2011 2012 2013 2014 2015 2016 2017 2018 2019
Cumulative Debt Service Paid
by the End of Each Fiscal Year
($ In Thousands)
8. Pension Obligation
Bonds Issued in
FY10 and FY11
• Strong performance has
meant a return of nearly
$1.52 billion to the pension
systems, or $806 million
more than the interest costs
•Bonds will retire by FY20
$715,392,200
$1,521,163,041
$0
$200,000,000
$400,000,000
$600,000,000
$800,000,000
$1,000,000,000
$1,200,000,000
$1,400,000,000
$1,600,000,000
Interest Return
FY10 and FY11 POBs
Interest vs. Return
July 1, 2010 through July 1, 2013
Difference = $805.77 million
13. Government Services - $1,178
3%
Public Safety and
Regulation - $1,692
5%
Human Services - $5,202
15%
P- 12 - $6,687
19%
Higher Ed - $1,991
6%
Medicaid/Healthcare - $8,311
23%
Pensions - $5,988
17%
Debt Service on
Pension Bonds - $1,655
5%
Debt Service on
Capital Bonds - $527
1%
Public Transportation - $664
2%
Transfers to Local
Governments - $1,508
4%
FY 2014 Enacted GRF
$35 billion
$ in Millions
State Employees =
$4 billion (11%)
Human
Services,
P-12, and
Higher
Education
Total
$13.88
billion
15. 0%
5%
10%
15%
20%
25%
30%
GRF Pension Cost as a Percentage of Total General
Funds
Current Law; Assuming No Expiration of Tax Increase
FY 1996 - FY 2046 (Projected)
Notes: All future projections of State pension contributions come from the Retirement System Actuaries.
Only the GRF portion of the regular pension appropriation plus pension bond debt service is shown here.
GRF FY 2013-2016 projections provided by CoGFA's revenue staff; figures for FY 2017 - 2045 used an assumed growth rate of 2.3%.
Approximately 66% of SERS' total annual appropriation is assumed to come from GRF while the rest comes from other State Funds not shown here.
FY 2010 and FY 2011 amount do not reflect the pension bond/note proceeds pursuant to P.A. 96-0043 and P.A. 96-1497.
16. 0%
5%
10%
15%
20%
25%
30%
GRF Pension Cost as a Percentage of Total General
Funds
Comparison; Assuming No Expiration of Tax Increase
FY 1996 - FY 2045 (Projected)
Statutory Contributions
SB 2404
SB 1
Notes: All future projections of State pension contributions come from the Retirement System Actuaries.
Only the GRF portion of the regular pension appropriation plus pension bond debt service is shown here.
GRF FY 2013-2016 projections provided by CoGFA's revenue staff; figures for FY 2017 - 2045 used an assumed growth rate of 2.3%.
Approximately 66% of SERS' total annual appropriation is assumed to come from GRF while the rest comes from other State Funds not shown here.
FY 2010 and FY 2011 amount do not reflect the pension bond/note proceeds pursuant to P.A. 96-0043 and P.A. 96-1497.
Projections including transfers pursuant to the PSA were not available for neither GARS nor JRS.
SB 2404 choice: Younger 50% of Actives Elect Choice A, Older 50% of Actives and 100% of Inactives Elect Choice B, Option 2; Retirees: 100% Elect Choice A
The red slice of the pie represents Other State Funds. There are over 700 state funds, or checking accounts. Examples include the Road Fund, which funds road construction and maintenance, and the Medical Disciplinary Fund, which doctors pay into through their license fees and then use to fund the agency that regulates physicians.
Other sources include gaming proceeds and utility taxesFederal receipts are the match we generate on Medicaid spending
The Governor’s introduced budget include a $145 million cut to money the state uses to reimburse school districts for the cost of transporting students
So here is Illinois personal rate at 5%. It is flat, regardless of income level.Now, let’s take a look at: (Illinois 5% rate will appear first, followed by this list)Indiana, which yes, is lower although individual counties can assess an income tax on top of the state rateKentuckyMissouriWisconsinAnd IowaOh and wait, as a reminder, Illinois rate drops to 3.75% on January 1, 2015. That’s law. And THAT puts us lower than Indiana. DatesIndividual Corporate1/1/11-12/31/14 5.0% 7.0%1/1/15 – 12/13/24 3.75% 5.25%1/1/25 – 3.25% 4.8%Illinois’ corporate income tax rate is sometimes listed as 9.5%. That rate includes 2.5% Personal Property Tax Replacement Income Tax collected for local governments. (corporations: 2.5% of federal taxable income; partnerships, trusts, and “S” corporations: 1.5% of federal taxable income)
DatesIndividual Corporate1/1/11-12/31/14 5.0% 7.0%1/1/15 – 12/13/24 3.75% 5.25%1/1/25 – 3.25% 4.8%Illinois’ corporate income tax rate is sometimes listed as 9.5%. That rate includes 2.5% Personal Property Tax Replacement Income Tax collected for local governments. (corporations: 2.5% of federal taxable income; partnerships, trusts, and “S” corporations: 1.5% of federal taxable income)
$5.4 billion dollars lostWhat does that mean in terms of state spending?Well, we can’t cut debt service costs. We already have the lowest ratio of state employees to population in the nation.So let’s look at three major areas of discretionary spending: human services, p-12, and higher educationA $5.4 billion loss is a 39% hit to those budgetsIf we were to spread that proportionally, p-12 would lose $2.6 billion. That’s more than half of the $4.4 billion we will spend on state aid to school districts this year
In FY10 and FY11, TRS and SURS DID receive GRF before bonds were sold and bond proceeds were distributed to the systems. The GRF they received prior to the bond sale was NOT returned to GRF. This is why the 5.1% and 4.8% , respectively, appears.
I’m proud of many of the accomplishments made by Senate Democrats in the last few years. Many of those successes were on issues of vital importance to this region. Here are just a few: We passed a responsible concealed-carry measure. In the wake of a ruling by the U.S. 7th Circuit Court of Appeals that declared the state’s ban on the right to carry unconstitutional, Forby has been collaborating with colleagues from both sides of the aisle to bring Illinois in line with the 49 other states who have some form of concealed carry. We passed fracking legislation. And it goes without saying that Southern Illinois has been known as a resource-rich area with deep coal deposits and an abundance of fertile farm ground. During the spring session, a push has been made by Forby and other local lawmakers to tap what is being called one of the largest natural gas reserves in the Midwest. We are proud of our commitment and fight to keep Tamms open as both an important jobs center for the region and a deterrent within the criminal justice system.