Fiscal Year 2010 Budget Overview 

In these tough economic times, we must chart a fiscally responsible course for Illinois while creating jobs and protecting families.

In Illinois, the recession, combined with a lack of fiscal discipline by previous administrations, has deepened the state's dire financial situation. The combined effect of the state's structural budget deficit and the loss of revenues caused by the recession results in a budget gap of $11.6 billion for fiscal years 2009 and 2010.

This is the most challenging fiscal crisis ever in Illinois. It calls for every type of solution possible, including spending cuts, revenue increases, debt restructuring and pension reform. Fundamental spending and revenue reform, particularly of the magnitude necessary to reestablish the state's fiscal balance, means making difficult, but responsible decisions. That's why Governor Quinn's fiscal year 2010 budget proposal is based on three ideals: Reform. Responsibility. Recovery.

Reform - This is now the opportunity to take action on issues that have long been ignored and also to help families. Governor Quinn's budget will make state government honest, ethical and transparent; reform the state pension systems; and make the tax system fair for working families.

Responsibility - Extremely difficult decisions must be made to help bring the Illinois economy back to life. There are decisions that won't please everyone, but during a time of fiscal crisis, all aspects of state government must be examined, and critical programs and services must be protected. The fiscal year 2010 proposed budget closes the $11.6 billion budget gap but protects Illinois' children and families; preserves our commitment to education; reduces the Medicaid payment cycle; and increases health care for veterans.

Recovery - Job creation strategic and debt management are two ways to stimulate Illinois' stagnant economy during these difficult times. Governor Quinn's budget includes a $26 billion capital plan that will put people back to work and fix the state's aging infrastructure. At the same time, the state will take advantage of the federal recovery funds that will improve healthcare, human services, as well as the environment and educational programs.

BUDGET OVERVIEW

The two charts below identify the major revenue sources for all appropriated funds and the General Funds.

Total state revenues are projected to be $58.9 billion in fiscal year 2010, and General Funds receipts are estimated at $33.1 billion. General Funds revenues are estimated to increase by 21.7 percent, or $5.9 billion, in fiscal year 2010, though base revenues are estimated to fall by $198 million or -0.7 percent from fiscal year 2009 base revenues.

Appropriations (spending) may be grouped according to purpose. The charts below show appropriations by major purpose, identifying the principal spending activities of state government. The charts show that the major portions of the state's resources are allocated to education, healthcare and social human programs.

Approximately 27 percent of the state's All Funds total operating budget, or $14.5 billion, is dedicated for educational purposes. The recommended appropriations for Human Services and Healthcare and Family Services - which include Medicaid, other medical assistance, income support, child and community care programs and other health and social services - total $24.7 billion or nearly 47 percent of the state's total operating budget.

The following documents provide an overview of the fiscal year 2010 budget, and the complete fiscal year 2010 operating budget, capital budget and capital project tables.