#1State of Illinois General Obligation Bonds, Series of March 2021ABC Investor Presentation March 9, 2021 SEA OF THE STATE OF UNION 1868 1818 AUG. 26 1818 ILL ILLINOIS#2THE STATE AUG 9 1818 Disclaimer This Investor Presentation is provided as of March 9, 2021 for a proposed offering by the State of Illinois (the "State") of its General Obligation ("GO") Bonds, Series of March 2021ABC (the "Bonds"). If you are viewing this presentation after March 9, 2021, there may have been events that occurred subsequent to such date that would have a material adverse effect on the financial information that is presented herein, and the State has not undertaken any obligation to update this electronic presentation. All market prices, financial data and other information provided herein are not warranted as to completeness or accuracy and are subject to change without notice. This Investor Presentation is provided for your information and convenience only. Any investment decisions regarding the Bonds should only be made after a careful review of the complete Preliminary Official Statement, dated March 9, 2021. By accessing this presentation, you agree not to duplicate, copy, download, screen capture, electronically store or record this Investor Presentation, nor to produce, publish or distribute this Investor Presentation in any form whatsoever. This Investor Presentation does not constitute a recommendation or an offer or solicitation for the purchase or sale of any security or other financial instrument, including the Bonds, or to adopt any investment strategy. Any offer or solicitation with respect to the Bonds will be made solely by means of the Preliminary Official Statement and Official Statement, which describe the actual terms of such Bonds. In no event shall the the State be liable for any use by any party of, for any decision made or action taken by any party in reliance upon, or for any inaccuracies or errors in, or omissions from, the information contained herein and such information may not be relied upon by you in evaluating the merits of participating in any transaction mentioned herein. You should consult with your own advisors as to such matters and the consequences of the purchase and ownership of the Bonds. No assurance can be given that any transaction mentioned herein could in fact be executed. Past performance is not indicative of future returns, which will vary. Transactions involving the Bonds may not be suitable for all investors. You should consult with your own advisors as to the suitability of the Bonds for your particular circumstances. Clients should contact their salesperson at, and execute transactions through, an entity of the Underwriters or other syndicate member entity qualified in their home jurisdiction unless governing law permits otherwise. OF ILLINO 2#3SEAL THE STATE AUG 94 1818 Table of Contents OF ILLINOIS 1. Transaction Overview 2. Impact of COVID-19 3. Update on FY 2021 Enacted Budget and Governor's Proposed FY 2022 Budget 4. Pension Updates 5. Illinois' Strong and Diverse Economy 6. Debt Overview 7. Timeline and Contacts Appendix - Key Staff Bios 5 8 11 18 21 24 27 29 3#4SEAL OF THE STATE AUG 94 1818 OF ILLINOIS Presentation Participants Alexis Sturm Director of the Governor's Office of Management and Budget Paul Chatalas Director of Capital Markets 4#5BEAL OF THE STATE AUG 94 1818 OF ILLINOIS 1. Transaction Overview 5#6Series of March 2021ABC Pension Acceleration, Capital and Refunding Bonds - Issuance Terms and Schedule Use of Proceeds Security Financing Overview The Bonds are being issued to fund accelerated pension benefit payments, to finance capital projects under the State's capital program, to finance information technology projects, to refund for economic savings certain outstanding general obligation bonds and to pay costs of issuance of the Bonds. The Bonds are direct, general obligations of the State and, pursuant to Section 9(a) of Article IX of the Illinois Constitution and the General Obligation Bond Act of the State of Illinois, as amended (the "Bond Act"), the full faith and credit of the State is pledged for the punctual payment of interest on all bonds issued under the Bond Act, including the Bonds, as it comes due and for the punctual payment of the principal of all bonds issued under the Bond Act, including the Bonds, at maturity, or on any earlier redemption date, and redemption premium, if any. These provisions are irrepealable until all bonds issued under the Bond Act, including the Bonds, are paid in full as to both principal and interest. Maturity Date March 1 2022 Amortization* Pension Acceleration & Capital Tax-Exempt Information Technology Refunding Tax-Exempt Tax-Exempt Series A Series B Series C 34,000,000 15,000,000 89,000,000 2023 34,000,000 15,000,000 78,800,000 2024 34,000,000 15,000,000 56,500,000 2025 34,000,000 15,000,000 5,855,000 2026 34,000,000 15,000,000 2027 34,000,000 15,000,000 2028 34,000,000 15,000,000 16,000,000 2029 34,000,000 15,000,000 2030 34,000,000 15,000,000 2031 34,000,000 15,000,000 13,755,000 2032 34,000,000 2033 34,000,000 Optional* Redemption March 2021A Bonds maturing on or after March 1, 20 subject to redemption prior to maturity, at the option of the State on any date on or after March 1, 20 are 2034 34,000,000 2035 34,000,000 2036 34,000,000 Interest 2037 34,000,000 Payment Dates* September 1 and March 1, commencing September 1, 2021 2038 34,000,000 2039 34,000,000 2040 Moody's: Baa3 (Negative); S&P: BBB- (Stable); 34,000,000 Ratings 2041 Fitch: BBB- (Negative) 34,000,000 2042 34,000,000 Pricing* Week of March 15th 2043 34,000,000 2044 34,000,000 Closing* March 24th 2045 34,000,000 THE STATE OF ILLINO 2046 34,000,000 Total $850,000,000 $150,000,000 $259,910,000 6 SEAL OF AUG. 96 1818 *Preliminary, subject to change#7SEAL THE STATE AUG 9 1818 OF ILLINOI Adept Management Through the Pandemic Supports the State's Inherent Credit Strengths Inherent Illinois Credit Strengths Sovereign State with significant revenue flexibility ✓ Illinois' economy is the 5th largest in the United States and 18th largest worldwide¹ ކ v Statutory provisions give priority to debt service over other State expenditures GO Bond debt service has an irrevocable and continuing appropriation, insulating it from political debates GO Bond debt service is limited by statute, unless waived by the Treasurer and the Comptroller 1. As of 2019 ✓ Illinois' Recent Accomplishments Resolute actions to limit the pandemic's impact on public health and the economy ✓ Provided coverage of COVID-19 testing and treatment to all Illinois residents at no cost and opened all community-based testing sites to anyone regardless of insurance or symptoms Launched statewide vaccination and contact tracing efforts Provided in 2020: $325 million in emergency rental and mortgage assistance to 54,500 families; $290 million to thousands of child care providers; and $275 million in aid to small businesses Issued more than $80 million to schools to help close the digital divide for critical access to the internet Used available financial management tools to mitigate the impact of COVID-19 on the state's fiscal position A balanced FY22 proposed budget that holds the line on spending without relying on federal aid Continued investment in the State through Rebuild Illinois, a bipartisan historic $45 billion multi-year capital plan Over $7.3 billion in total capital spend from July 1, 2019 - January 31, 2021 Paid off $355 million in principal on the June 2020 Short- Term Certificates early 7#8BEAL OF THE STATE 2. Impact of COVID-19 AUG 94 1818 OF ILLINOIS 8#9BEAL THE STATE AUG 9 1818 The State is Committed to Preserving Liquidity Paying vendors and providers and reducing interest costs The Governor, Comptroller and Treasurer worked to address revenue shortfalls through several management tools - ensuring that billions could be paid to the State's providers while reducing potential late payment interest costs and avoiding further growth in the State's bill backlog: Federal Reserve Municipal Liquidity Facility (MLF) June 2020: $1.2 billion • Due June 5, 2021. $845 million outstanding December 2020: $2.0 billion Required set-asides to GOBRI annually each December until December 2023. $690 million is due to GOBRI in December 2021 Interfund Borrowing (IFB)/Treasurer Investment Borrowing (STO) The Comptroller interfund borrowed $312 million in March and April 2020 as the impact of the pandemic was felt in the State's revenue collections As of February 26, 2021, the State owed approximately $1.0 billion on interfund borrowing Additionally, the State Treasurer can use the investment borrowing tool allowed under the Deposit Act to invest up to $2 billion of the state's portfolio in General Funds receivables. Latest borrowing in November 2020 • $400 million is currently outstanding and scheduled to be repaid prior to the end of FY21 OF ILLINOIS 9#10BEAL THE STATE AUG 9 1818 Federal Aid Directed to Illinois for COVID-19 Response Rapid Deployment Avoided Greater Crisis • Since early March 2020, Congress has enacted five pieces of legislation to address the impact of COVID-19, not including the American Rescue Plan passed by the Senate in March 2021 • • Federal Medicaid match was enhanced by 6.2 percentage points in March 2020 for the duration of the public health emergency Additional federal stimulus from the American Rescue Plan is not reflected in the FY22 budget proposal Through these five laws (not including the American Rescue Plan), approximately $9.9 billion will flow through the state budget over the next few years to address various needs such as: Education Funding - $3 billion primarily for K-12 schools ✓ Coronavirus Relief Fund (CRF) - $3.5 billion for the State's 'necessary expenditures' in response to COVID-19 ✓ DPH costs $1 billion for enhanced lab capacity, testing, contact tracing, public health surveillance, vaccine distribution Child Care - $450 million Transportation - $1 billion for airports and highways Higher Education and Mass Transit receive direct funding from the federal government OF ILLINOIS 10#11BEAL OF 3. Update on FY 2021 Enacted Budget and Governor's Proposed FY 2022 Budget THE STATE AUG 94 1818 OF ILLINOIS 11#12• SEAL OF FY 2021 Budget Updates and FY 2022 Proposed Operating Budget In November 2020, GOMB's Economic and Fiscal Policy Report estimated a budgetary shortfall of $3.918 billion for FY 21 and $4.802 billion for FY22 The revenue estimates followed the IHS Markit pessimistic economic forecast for FY21 and a blend of the pessimistic and baseline forecasts for FY22 Since that time, the following positively impacted the FY21 fiscal budgetary outlook: Stronger than expected economic performance • Extension of enhanced Medicaid match Borrowing of $2 billion from MLF Governor's budget reserves Result is estimated funds sufficient to prepay a portion of the MLF borrowing and a revised surplus estimate of $77 million . The proposed $41.6 billion FY22 General Funds budget restores economic and budgetary stability through continued steps toward structural balance ✓ Takes a balanced approach that holds the line on spending, helping to bend the cost curve of government Strategically deploys State and federal resources Reduces total General Funds expenditures to $41.6 billion, a $1.8 billion (4.2%) decrease from FY21 estimated expenditures Proposes closure of various corporate tax loopholes to generate a total of $932 million in additional revenue Closes the previously estimated shortfall and estimates a surplus of $120 million Protects key investment areas Increases funding for safety net human services agencies, while spending for most agencies is held flat Protects education funding Fully pays the certified FY22 pension contribution of $9.4 billion • THE STATE OF ILLINOIS AUG 94 1818 12 12#13- General Funds Monthly Revenues, Feb 2019 – Jan 2021 ($ millions) Fiscal Year 2020 Fiscal Year 2021 Feb-20 Mar-20 Apr-20 May-20 Jun-20 Jul-20 Aug-20 Sep-20 Oct-20 Nov-20 Dec-20 Jan-21 State Source Revenues: Individual Income Tax 1,439 1,980 1,793 1,250 1,712 2,339 1,453 1,676 1,379 1,275 1,618 2,096 Corporate Income Tax 34 167 291 58 331 323 70 477 106 46 436 124 Sales Tax 596 647 544 564 661 734 767 745 769 739 852 766 Other Sources/Transfers In 420 337 339 316 631 378 338 633 294 221 363 451 State Source Revenues 2,488 3,131 2,967 2,188 3,335 3,775 2,629 3,531 2,548 2,282 3,270 3,437 Federal Sources 84 464 267 44 955 304 329 154 19 852 1,325 74 Total Base Revenues 2,572 3,595 3,234 2,232 4,290 4,078 2,957 3,685 2,567 3,134 4,595 3,511 Short-Term Borrowing 1,198 1,998 Interfund Borrowing 105 207 Treasurer's Investment Borrowing (370STOINV) Total Revenues 400 2,572 3,700 3,441 2,232 5,488 4,078 2,957 3,685 2,567 3,534 6,593 3,511 Fiscal Year 2019 Fiscal Year 2020 Feb-19 Mar-19 Apr-19 May-19 Jun-19 Jul-19 Aug-19 Sep-19 Oct-19 Nov-19 Dec-19 Jan-20 State Source Revenues: Individual Income Tax 1,224 1,816 3,471 1,253 1,562 1,332 1,207 1,723 1,371 1,262 1,492 1,910 Corporate Income Tax 37 192 668 60 364 75 41 451 78 103 383 68 Sales Tax 540 632 690 745 735 764 759 713 725 749 798 736 Other Sources/Transfers In 445 462 388 433 650 803 554 597 510 341 432 423 State Source Revenues 2,246 3,102 5,217 2,491 3,311 2,974 2,561 3,484 2,684 2,455 3,105 3,137 Federal Sources 187 319 757 82 771 353 97 413 250 210 61 353 Total Base Revenues 2,433 3,421 5,974 2,573 4,082 3,327 2,658 3,897 2,934 2,666 3,166 3,490 Short-Term Borrowing Interfund Borrowing 150 Treasurer's Investment Borrowing (370STOINV) Total Revenues 50 400 2,433 3,471 5,974 2,573 4,082 3,327 2,658 4,297 2,934 2,816 3,166 3,490 THE STATE OF ILLINOI SEAL OF AUG 96 1818 13#14SEAL OF THE STATE Closing the FY 2022 Projected Deficit FY22 Surplus/(Deficit) from November 2020 Report: ($4,802 million) FY22 Required MLF Repayment ($690 million) Revised FY22 Budgetary Surplus/(Deficit): ($5,492 million) Prepay FY22 MLF Repayment in FY21 Eliminate 48-Month Deadline for Interfund Borrowing Repay Updated Revenue Forecasts/Debt Service Needs Updated Federal Revenue Forecast $690 million $276 million $1,459 million $421 million OF ILLINOI AUG 96 1818 Adjusted FY22 Budgetary Surplus/(Deficit): ($2,646 million) Spending Modifications to Achieve Budgetary Freeze Redirection of Existing Revenue Streams Review of Tax Expenditures/Loopholes $1,269 million $565 million $932 million Introduced FY22 Budgetary Surplus/(Deficit): $120 million 14 14#15SEAL OF THE STATE FY 2021 and FY 2022 General Funds Revenues Summary • Base FY22 General Funds revenues are • estimated to total $41.7 billion, a $226 million, or 0.5%, increase from FY21 revised base estimates Total General Funds revenues for FY22 reflect a $1,772 million, or 4.1%, decrease from FY21 due to the one-time nature of the $1,998 million in MLF borrowing proceeds Does not rely on additional borrowing Individual income taxes are forecasted to be below FY21 due to the extension of the April 2020 tax filing deadline to July 2020 - in FY21 • Federal revenue forecast equals $3,971 million, a reduction from FY21 due to only a half year of enhanced Medicaid match • Includes assumption enhanced match extends through CY21 Does not assume new federal stimulus dollars FY22 revenue forecast benefits from proposed closure of several tax loopholes and redirection of existing revenue streams Resources ($ millions) State Sources: Revenues Net Individual Income Taxes Net Corporate Income Taxes Net Sales Taxes Total Income and Sales Taxes Other State Revenues Transfers In Total State Sources Federal Sources Total Base Resources State of Illinois General Funds Financial Walkdown Interfund Borrowing and Fund Reallocations Treasurer's Investment Borrowing Municipal Liquidity Facility Total General Fund Resources Actual FY 2020 Estimated FY 2021 Forecast FY 2022 Change: FY 2021 to FY 2022 Forecast $ % $ 34,509 $ 37,098 $ 37,737 $ 639 $18,471 2,081 $20,523 2,620 $20,151 (373) (1.8%) 3,058 438 16.7% 8,255 8,873 9,518 645 7.3% $ 28,807 $ 32,016 $ 32,726 $ 710 2.2% $3,271 $3,295 $3,170 (125) (3.8%) 2,431 1,787 1,841 54 3.0% 1.7% $3,551 $4,384 $3,971 (413) (9.4%) $ 38,060 $ 41,482 $ 41,708 $ 226 0.5% $462 $0 $0 0.0% 400 0 0 0.0% 1,198 1,998 0 (1,998) (100.0%) $ (1,772) (4.1%) $ 40,120 $ 43,480 $ 41,708 OF ILLINOIS AUG. 96 1818 Note: Totals may not add due to rounding 15#16SEAL THE STATE OF ILLINO AUG. 96 1818 FY 2021 and FY 2022 General Funds Expenditures Summary • . • Proposed FY22 General Funds operating expenditures total $30.0 billion, a $4 million decrease from FY21 The State expects to pay the entire certified FY21 pension contribution The proposed budget reflects full payment of the certified FY22 pension contribution • Total FY22 General Funds expenditures are $41.6 billion, a $1.8 billion (4.2%) decrease from FY21 • Estimated FY22 budgetary surplus of $120 million Expenditures ($ millions) General Funds Expenditures Operating Expenditures Pensions GO Bond Debt Service Transfers Statutory Transfers Out State of Illinois General Funds Financial Walkdown Forecast Actual FY 2020 Estimated FY 2021 FY 2022 Change: FY 2021 to FY 2022 Forecast $ % $29,273 8,113 $30,030 $30,025 (4) 0.0% 8,624 9,363 739 8.6% 1,870 1,872 1,836 (35) (1.9%) 440 424 363 (61) (14.4%) Interfund Borrowing Repayment 280 150 0 (150) (100.0%) Treasurer's Investment Borrowing Repayment Short Term Borrowing Repayment Total General Fund Expenditures Supplemental Appropriations 7 402 0 (402) (100.0%) 0 1,899 0 (1,899) (100.0%) $ 39,982 $ 43,402 $ 41,588 $ (1,813) (4.2%) 0 1 0 (1) (100.0%) (4.2%) Adjusted Total General Funds Expenditures $ 39,982 $ 43,403 $ 41,588 $ (1,815) Note: Totals may not add due to rounding 16#17SEAL OF THE STATE OF ILLINOIS AUG 94 1818 • Backlog Reduction Paying vendors and providers and reducing interest costs According to the Comptroller's Debt Transparency Act Reports, the Estimated General Funds Bill Backlog dropped from $6.2 billion on June 30, 2020 to $5.1 billion on January 31, 2021 The Governor's FY22 proposed budget calls for the removal of the 48-month interfund borrowing repayment deadline The State took advantage of the MLF program to provide liquidity and avoid increasing the backlog Estimated General Funds Bill Backlog ($ Billions) $18.0 $16.7 $16.0 $14.0 $12.0 $10.0 $8.0 $6.2 $6.0 $5.1 $4.0 $2.0 $- 8-Nov-17 30-Jun-20 31-Jan-21 Source: Office of the Comptroller. November 2017 data is from the Backlog Voucher Report; subsequent years are from the Debt Transparency Report 17#18BEAL OF THE STATE AUG 94 1818 OF ILLINOIS 4. Pension Updates 18#19SEAL THE STATE Pension Overview History of Employer Contributions ($ millions) • The State provides funding for five systems - the Teachers' Retirement System, the State Universities Retirement System, the State Employees' Retirement System, the Judges' Retirement System and the General Assembly Retirement System • Actuarial Assets as of FY 2020 for the 5 systems combined are $95.6 billion and the Asset Market Value is $92.3 billion • The State Retirement Systems, in aggregate, were funded at 40.4% as of FY 2020 based on the asset smoothing method and 39.0% using asset market value; individual percentages for each fund vary • The systems are required by statute to be 90% funded by 2045 FY Amount Contributed¹ Actuarially Required Contribution Percentage Contributed 2017 7,803.6 10,422.7 74.9% 2018 7,788.9 11,882.4 65.5% 2019 8,541.5 12,794.5 66.8% 2020 9,191.1 13,475.1 68.2% Investment Rate of Return Assumptions Used by the Retirement Systems 2011 2020 TRS 8.50% 7.00% •FY 2020 State contributions to the retirement systems totaled $9.2 billion SURS 7.75% 6.75% SERS 7.75% 6.75% • The State has consistently made its statutorily required contributions to the five retirement systems GARS 7.00% 6.50% JRS 7.00% 6.50% National Median² 7.23% OF ILLINO AUG. 96 1818 Notes: Annual Actuarial valuations of the Retirement Systems as of June 30, 2020. Comprehensive Annual Financial Reports of the Retirement Systems for the fiscal years ending June 30, 2011 and June 30, 2020. 1. Includes all State Funds. TRS also includes local employers and federal funds that count towards the Actuarially Required Contribution (ARC). 2. NASRA Issue Brief: Public Pension Plan Investment Return Assumptions, February 2021 19#20Update on Accelerated Pension Benefits Program • Accelerated Pension Benefit Programs (P.A. 100-587) • The Pension Buyout Program: Eligible members of SERS, TRS and SURS who have terminated service may forfeit all rights to future benefit payments in exchange for an accelerated pension benefit payment equal to 60% of the present value of the pension benefit to which the member is entitled • The AAI Reduction Program: At the time of retirement, eligible Tier 1 members of SERS, TRS and SURS may forfeit the 3%, compounded automatic annual increase ("AAI") in exchange for (i) a delayed 1.5% non-compounded AAI and (ii) an accelerated pension benefit payment from the State equal to 70% of the difference in the present value of such AAls • Public Act 101-0010 (enacted June 5, 2019) extended the end date of the programs from June 30, 2021 to June 30, 2024 BEAL · Updates: THE STATE OF ILLINOIS AUG 94 1818 • As of March 4, 2021, the balance in the Pension Obligation Acceleration Bond Fund was approximately $65 million • As of February 6, 2021, SERS' AAI Reduction Program participation was 25% and its Pension Buyout Program participation was 1% • As of February 15, 2021, TRS' AAI Reduction Program participation was 17% and its Pension Buyout Program participation was 10% 20 20#215. Illinois' Strong and Diverse Economy BEAL OF THE STATE OF ILLINOIS AUG 94 1818 21 21#22SEAL OF THE STATE Illinois' Strong Economic Foundation Strong and Diverse Economy . Broad employment base with industry accounting for more than 21%¹ no • • Illinois is well-positioned for long-term stability through economic cycles State's deep and diversified economy is a major attraction for workers and recent graduates across the nation Expansive Transportation and Logistics Network The State is home to the 3rd and 28th busiest U.S. airports in O'Hare and Midway² •Illinois is the only state where all 7 class I railroads in the United States operate³ Construction 4% Financial Activities 7% Manufacturing Professional & Business Services 15% Government 14% Education & Mining, Health Services Logging, 16% Information Trade, Transportation & Utilities 20% 10% • • Highly Educated Population Illinois is home to top ranked universities, bringing talented individuals to the State and educated 35.8% of Illinois residents have college degrees, above the US at 33.1% and the Midwest region at 31.6%4 ILLINOIS HWESTERN MQUE UNIV SUNT IVERSIT OF LOYOLA UNIVERSITY CHICAGO 1870 OREM AD MAJOR GLORIAM DEI G 1851 HAVE IT AB assa 1890 1890 UIC SIU CARBONDALE NIU Northern Illinois University SLEYAN LINOISS and teach RST ATE STA DEPAUL UNIVERSITY SAHEVESH INSTIT ILLINOIS & Other Services 6% OF ILLINOIS Leisure & Hospitality 8% inois RR Passenger Stations incis RR Future Passenger Hous illinois Railroads Burlington Northem Santa Fe (BNSF Canadian National (CNI CP Rai Systems (CPRS) CSX Transportation Inc. (CST) Elgin Joliet and Easter Ry Co (EJE) Kansas City Southem Ry (KCS) Norfolk Southern Ry (NS Union Jup 1. Bureau of Labor Statistics, preliminary, as of February 2021 2. FAA, Commercial Service (Rank Order) based on Calendar Year 2019 data as of September 25, 2020 3. IDOT, http://idot.illinois.gov/transportation-system/Network-Overview/rail-system/index 4. 2019 American Community Survey 1 year estimates, those with a bachelor's degree or higher as a share of population 25 years or older. AUG. 96 1818 2890 OLOGY 22 22#23BEAL THE STATE AUG. 96 1818 OF ILLINOIS $60,000 $55,000 $50,000 $45,000 Illinois' Economic Indicators Per Capita Personal Income Exceeds National and Regional Levels 1,4 Employment (Thousands) Unemployment Fell Below 4% pre-COVID, and Increased in Line with the Nation² 12 $40,000 2015 2016 2017 2018 2019 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 ■Illinois United States Great Lakes IL Unemployment Rate 2 National Unemployment Rate ● ● By December 2020, Illinois' unemployment had fallen to 8.0%, 8.5 percentage points down from its April peak² Illinois' per capita income is ranked 1st among the Great Lakes region and 3rd among the 10 most populous states¹ Illinois is home to 37 Fortune 500 companies, ranking fourth in the U.S. 5 1: Bureau of Economic Analysis as of September 24, 2020. 2. Bureau of Labor Statistics, seasonally adjusted, 2020 numbers. 3. Bureau of Economic Analysis, as of April 7, 2020 4. The Great Lakes region includes Illinois, Indiana, Michigan, Ohio and Wisconsin. The measures here reported are the averages of those states' measures. 5. Fortune 500 rankings for 2020 23 10 Unemployment Rate (%)#24BEAL OF THE STATE AUG 94 1818 OF ILLINOIS 6. Debt Overview 24#25SEAL THE STATE OF ILLINOI $ Millions General Obligation Bond Overview General Obligation bonds are backed by the full faith and credit of the State • There is a continuing appropriation in place to ensure bond repayment without action by the General Assembly • GOBRI is a separate fund in the Treasury that is dedicated to the payment of debt service on GO bonds and short-term debt • Segregation of funds for debt service begins 12 months in advance for principal payments and 6 months in advance for interest payments on GO Bonds • All of the State's outstanding debt is fixed rate, with no variable rate debt or interest rate swap agreements 3,500 3,000 2,500 2,000 1,500 1,000 500 2021 General Obligation Debt Service by Fiscal Year¹ 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035 2036 2037 2038 2039 2040 2041 2042 2043 Principal Interest AUG. 96 1818 1. Chart does not include debt service on MLF borrowings, which mature in June 2021 and December 2023. 2044 • 2045 2045 2046\ Par Outstanding as of March 1, 2021 Bill Backlog Bonds $4.5 Billion Capital Improvement and Refunding Bonds $13.4 Billion Pension Funding Bonds $8.6 Billion Pension Acceleration Bonds $0.6 Billion Total $27.1 Billion Outstanding Debt Fixed Rate 100% 25 25#26Strength of the State's GO Pledge Monies are transferred monthly to the GOBRI Fund and, by law, are used for the payment of GO Bonds issued under the Bond Act, and for the payment of Short-Term Debt and Coronavirus Urgent Remediation Emergency Borrowing Act debt. • The Bond Act constitutes an irrevocable and continuing authority for and direction to the Treasurer and Comptroller to make the necessary transfers to the GOBRI Fund • The State can draw from all State funds in the State Treasury that are not restricted by law to another use if needed to pay debt service on GO bonds As of March 1, 2021, $1.2 billion was available in GOBRI Fiscal Year End All Fund Cash Balances ($ Billions)¹ Transfers to GOBRI for Payment of Debt Service² $14 ($ Millions) $12 $11 $12 $12 $12 FY 2016 FY 2017 $12 Actual Actual FY 2018 Actual FY 2019 Actual FY 2020 Actual $10 General Revenue Fund Capital Bonds $557 $626 $797 $670 $436 $8 Pension Bonds 1,423 1,609 1,576 1,242 646 $6 Section 7.6 Bonds 527 782 757 Pension Acceleration 7 $4 31 Road Fund 334 305 349 339 379 $2 School Infrastructure Fund 212 115 172 107 145 $0 Capital Projects Fund 533 477 285 431 638 2016 2017 2018 2019 2020 Total³ $3,057 $3,133 $3,706 $3,579 $3,031 THE STATE SEAL OF OF ILLINOIS 1. 2. 3. AUG. 96 1818 Does not include Federal Trust Funds. Includes GOBRI. Does not include debt service transfers on MLF borrowings and short-term debt as may have been from time to time outstanding. Totals may not add due to rounding. 26#27BEAL OF THE STATE AUG 94 1818 OF ILLINOIS 7. Timeline and Contacts 27#28SEAL OF THE STATE OF ILLINOIS AUG 94 1818 Tentative Transaction Timeline and Contacts Date* Event* March 2021 S M T W Th F S March 17th Pricing (Negotiated Sale) 1 2 3 4 5 6 7 8 9 10 11 12 March 24th Closing 14 15 16 17 18 19 21 22 23 24 25 26 322 13 20 27 28 29 30 31 *Preliminary, subject to change State of Illinois Governor's Office of Management and Budget Paul Chatalas Director of Capital Markets [email protected] (312) 814-0023 Municipal Advisor Columbia Capital Management, LLC Courtney Shea Managing Member [email protected] (312) 499-9200 Underwriter Morgan Stanley & Co., LLC Jason Tejada Investor Relations Coordinator [email protected] (212) 761-9131 28#29Appendix - Key Staff Bios BEAL OF THE STATE OF ILLINOIS AUG 94 1818 29 29#30SEAL OF THE STATE AUG 94 1818 OF ILLINOIS Presentation Participants Alexis Sturm, Director of the Governor's Office of Management and Budget Ms. Sturm, who joined GOMB as director in January 2019, has nearly 25 years of experience in Springfield working on state fiscal policy, debt management, and administration. Most recently, she was the director of cash management and bond reporting for the Office of the Comptroller. She previously worked at GOMB. From 2015 to 2017, she served as chief of staff and deputy director for debt, capital, and revenue and from 1997 to 2004, she worked in senior roles in debt management and revenue and economic analysis. From 2004 to 2015, Ms. Sturm served as director of research and fiscal reporting and senior fiscal advisor for the Office of the Comptroller. She received her Bachelor of Arts in Economics from Miami University and a Master of Arts in Economics from Washington University in St. Louis. Paul Chatalas, Director of Capital Markets Mr. Chatalas has more than 25 years of combined public policy and public finance experience, most recently as a Managing Director in US Bancorp's Municipal Products Group. His public finance experience spans more than 15 years and began with UBS Investment Bank in New York. He holds a Master of Public Administration from Columbia University's School of International and Public Affairs. Mr. Chatalas spent several years working on Capitol Hill for members of the U.S. House and Senate, including members of the Budget and Appropriations Committees. He is on the President's Leadership Council of the Field Museum, and currently sits on the Exhibitions Committee of the Board of Trustees. 30