The State's Credit Fundamentals Continue to Improve slide image

The State's Credit Fundamentals Continue to Improve

($ millions) RESOURCES State Sources: Revenues STATE OF ILLINOIS GENERAL FUNDS FINANCIAL WALK DOWN GOVERNOR'S OFFICE OF MANAGEMENT & BUDGET Final FY 2018 Estimated Projected FY 2019 FY 2020 Net Individual Income Taxes Net Corporate Income Taxes 17,725 18,251 18,851 2,017 2,207 2,338 Net Sales Taxes Public Utility Taxes All Other Sources 7,810 8,229 8,537 896 868 846 2,555 2,581 Total State Sources: Revenues 31,003 32,135 2,961 33,533 State Sources: Transfers In Lottery 719 731 745 Riverboat Gaming 272 263 258 Other Transfers 917 1,061 820 Total State Sources 32,911 34,190 35,356 Federal Sources 4,032 3,220 3,547 SUBTOTAL, RESOURCES 36,943 37,410 38,903 Interfund Borrowing/Fund Reallocations 802 250 Treasurer's Investment Borrowing 700 TOTAL RESOURCES 37,745 38,360 38,903 EXPENDITURES 1. Education K-12 Education Higher Education 3. Public Safety 9,728 10,173 10,804 7,995 8,385 8,883 1,733 1,789 1,920 2. Economic Development 82 62 56 2,218 1,735 1,855 4. Human Services 6,219 5,906 6,448 5. Healthcare 7,613 7,930 7,228 6. Environment and Culture 60 59 59 7. Government Services 3,244 3,390 3,417 Group Health Insurance Government Services 8. Pensions 1 K-12 Education Pensions State Universities' Pensions 1,858 2,026 2,028 1,386 1,364 1,389 7,014 7,478 7,124 4,107 4,467 4,238 1,414 1,440 1,427 State Employees' Pensions 1,493 1,571 1,460 9. Unspent Appropriations (770) (1,050) (975) Total Operating Budget 35,409 35,684 36,016 Statutory Transfers Out 582 434 364 Debt Service: Capital and Pension Bonds 2,372 1,851 1,208 Debt Service: Backlog Borrowing 527 801 Debt Service: Pension Acceleration Bonds 7 982 92 Interfund Borrowing Repayment 128 60 85 Treasurer's Investment Borrowing Repayment 713 Total Additional Expenditures 3,609 3,865 TOTAL EXPENDITURES 39,018 39,549 2,731 38,748 Comptroller Budgetary Basis Adjustment (167) General Funds Surplus/(Deficit) (1,440) (1,190) 155 Backlog Borrowing Proceeds 2,500 600 Federal Revenue Due to Medicaid Backlog Payments 1,206 166 3,4 Potential Liability from Retroactive AFSCME Step Increases (381) Supplemental Appropriations Needed (92) Adjusted General Funds Surplus/(Deficit) 2,266 (897) 155 6 Revenue Adjustment if Proposed Revenue Enhancements are Not Enacted Appropriation Decrease: 4.0 Percent Cut Across All Agencies Adjusted General Funds Surplus/(Deficit) (1,121) 1,121 1 FY 2019 pension values represent the certified values for the fiscal year. Savings from enacted buyout programs for TRS and SERS will not be known until June. 2 The Governor is proposing a $1.5 billion backlog borrowing to address remaining interest accruing bills, of which $600 million would be estimated to be deposited into the General Revenue Fund. 155 3 The State and AFSCME have been in litigation to determine the amount owed on retroactive step payments. The administration is moving employees to the proper step effective April 1, 2019. The current estimate listed would be the higher end of the potential range for retroactive payments, not including any potential interest owed. Supplemental appropriations would be needed to cover these costs. Appropriations to cover AFSCME step increases in fiscal year 2020 are reflected in each of the agency lines. See Table I-C for details on fiscal year 2019 supplementals needed. The Governor is proposing new revenue enhancements and adjustments totaling $1,121 million. If these changes are not enacted, an equal amount of cuts must be applied. A 4.0 percent cut across agencies, excluding pensions, debt service, and group health insurance, would be required. 6 2,266 (897) General Fund Summary FY2018 – FY2020 Projections The proposed FY20 budget projects a budgetary surplus of $155 million. Table from FY20 Budget Book. AUG. 1818 3. 261
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