FY2015 Revenue and Budget Overview

Estimated FY 15 General Revenue Funds by Source$35.752 Billion

Personal Income

42%

Corporate Income Tax 8%Sales Tax

22%

Other Sources and

Trans-fers14%

Inter-fund BorrowingOne-time Revenue Source2%

Federal Sources12%

Personal Income - $15.2 B

Corporate Income - $2.8 B

Sales Tax - $7.8 B

Other Sources and Transfers - $5.0 B

Inter-Fund Borrowing (One-time) - $650 M

Federal Sources - $4.3 B

One-time Revenue Sources• Inter-fund Borrowing represents 2% of the

General Revenue Budget and is a one-time revenue source.

• $650 million is the maximum that can be borrowed for FY 15.

• Borrowed funds must be paid back in 1 year with interest, which is determined by the Treasurer.

• The last inter-fund borrowing was in FY 11.

$0 $50,000 $100,000 $150,000 $200,000 $250,0000%

1%

2%

3%

4%

5%

6%

7%

8%

9%

10%Individual Marginal Income Tax Rates of Midwestern

States

Illinois Current

Missouri

Kentucky

Indiana

Wisconsin

Iowa

Illinois 2015

Income (Single Filer)*Indiana's tax rate includes an average county tax rate of 1.28%

Tax R

ate

Top Corporate Income Tax Rates of Midwestern States

Illin

ois in

201

5

Illin

ois Cur

rent

Rat

e

Misso

uri

Kent

ucky

Indi

ana

Wisco

nsin

Iowa

0.00%1.00%2.00%3.00%4.00%5.00%6.00%7.00%8.00%9.00%

10.00%

3.75%

5.00%6.00% 6.00%

6.53%7.65%

8.98%

Top Individual Marginal Income Tax Rates of Midwestern States

Incom

e T

ax R

ate

Illinois in 2

015

Kent

ucky

Miss

ouri

Illinois Cur

rent

Rat

e

Indian

a

Wisc

onsin

Iowa

0.00%

2.00%

4.00%

6.00%

8.00%

10.00%

12.00%

14.00%

5.25% 6.00% 6.25%7.00% 7.00%

7.90%

12.00%

Top Corporate Marginal Income Tax Rates of Midwestern States

Incom

e T

ax R

ate

FY 13 FY 14 FY 15 Est. FY 16 Est. FY 17 Est.$30.0

$31.0

$32.0

$33.0

$34.0

$35.0

$36.0

$37.0

$38.0

$39.0

$40.0

$36.0 $36.6$35.7

$32.5 $33.2

$38.5$38.6

$39.7

Estimated General Revenue Fund Total Sources with Temporary Income Tax Expiration vs. Extension (in billions)

Extension Expiration

FY 15 Est. FY 16 Est.$0.0

$5.0

$10.0

$15.0

$20.0

$25.0

$30.0

$35.0

$40.0

$15.2 $12.9

$2.8 $2.5

$7.8 $8.0

$5.0 $4.7

$4.3 $4.4

FY 15 vs. FY 16 Estimated General Revenue Fund Sources

(in billions)

Federal Sources

Inter-Fund Borrowing (One-time)

Other Sources and Transfers

Sales Tax

Corporate Income

Personal Income

$32.5 B$35.7 B

FY15 State Budget• $74.3 billion in All Funds spending• $35.7 billion in GRF spending• Pension costs increase by $109 million, a 2%

increase over FY14• Pension costs rose by $900 million (18%) from

FY13 to FY14• Employee health insurance costs increase by

$130 million, an 8.4% increase over FY14• Funding for state agencies is largely kept level to

FY14• K-12 spending increases by $150 million (2%) to

keep aid to schools level with previous year

$8.0 Billion12%

$27.8 Bil-lion40%

$35.4 Bil-lion48%

FY15: All Funds Budget$74 Billion

Federal Funds Other State Funds General Revenue Funds

Government Services 3%

Public Safety and Regulation5%

Human Services 15%

P- 12 19%

Higher Ed 5%

Medicaid/Healthcare

23%

Pensions 17%

Debt Service on Pension Bonds

5%

Debt Service on Capital Bonds

1% Statutory Transfers Out 7%

FY 2015 GRFDiscretionary and Non-Discretionary Appropriations

$35.752 Billion

Government Services - $1,115

Public Safety and Regulation - $1,687

Human Services - $5,207

P- 12 - $6,840

Higher Ed - $1,991

Medicaid/Healthcare - $8,811

Pensions - $6,108

Debt Service on Pension Bonds - $1,503

Debt Service on Capital Bonds - $711

Statutory Transfers Out - $2,276

Operation of State Government consists of $4 billion (11%).

Unfunded Liabilities

• The FY15 budget does not accommodate agency requests for personal services costs associated with bargaining unit contracts or entitlement program spending.

• Underfunding entitlement programs, such as the Community Care Program at the Dept. on Aging, will result in an increase in bill backlog.

$-

$500.0

$1,000.0

$1,500.0

$2,000.0

$2,500.0

$3,000.0

$2,637.3

$250.0

$16.0

FY15 GRF Personal ServicesActual Appropriations vs. Requested Funding

Level

Appropriated Additional needed to fulfill bargaining unit contract

$ In

Million

s

$250.0 million represents the un-funded liability associated with bargaining unit contracts

$0.0

$500.0

$1,000.0

$1,500.0

$2,000.0

$2,500.0

$3,000.0

$3,500.0

$2,984.8

$521.8

FY15 Human Services Entitlement ProgramsAppropriations vs. Actual Liability

FY15 Appropriation Additonal needed to fulfill agency request

$ in M

illions

$521.8 million represents un-funded liabilities including con-tractually required rate in-creases, spending needed to comply with consent decrees and client growth.

$0.0

$200.0

$400.0

$600.0

$800.0

$1,000.0

$1,200.0

$1,400.0

$1,600.0

$650.0

$521.8

$250.0

FY15 Liabilites Impacting the FY16 Budget

Interfund Borrowing Human Services Entitlement Programs Personal Services

$ in M

illions