1. 2012 Funding Sources
Where the money comes from…
Budget Funding Sources:
• General Revenue Fund (50.3%):
This is the state’s main fund. Most of the state’s
budget priorities are funded from this source. Its
primary revenue sources include income tax and
Other State sales tax.
Funds, 36.0%
General • Other State Funds (36.0%): Most of
Revenue this money is generated by specific fees for
designated purposes. For example, there is a
Fund, 50.3% checkoff on your income tax return that, when
selected, puts money into the Illinois Military Family
Relief Fund for grants to families of National
Guardsmen called to active duty after 9/11.
Federal • Federal Funds (13.7%): Many federal
funds are “matching funds,” where the state must
Funds, 13.7%
spend money to receive a matching amount from
the federal government. Many of the federal funds
go to specific purposes, like education.

2. 2012 Spending in Illinois
Where the money goes…
Public Safety
5% All Other
State
Spending
8%
Human Spending Totals:
Services
45%
• Human Services: $13.039
• Education: $12.168
• Public Safety: $1.475
• Other: $2.231
Education
42%

3. Breaking down IL spending
2007-2012
Education Spending 2007-2012
8.0
7.5
Billion Dollars
7.0
6.5
6.0
2007 2008 2009 2010 2011 2012

4. Breaking down IL spending
2007-2012
Higher Education Spending 2007-2012
2.2
2.2
2.2
2.2
2.1
Billion Dollars
2.1 *Funding cuts
2.1
contribute to
higher tuition
costs!
2.1
2.1
2.0
2.0
2007 2008 2009 2010 2011 2012

5. Breaking down IL spending
2007-2012
Human Services Spending 2007-2012
4.4
4.2
4.0
Billion Dollars
3.8
3.6
3.4
3.2
3.0
2007 2008 2009 2010 2011 2012

6. Breaking down IL spending
2007-2012
Agriculture and Natural Resources Spending
0.09
0.08
0.07
Billion Dollars
0.06
0.05
0.04
0.03
0.02
2007 2008 2009 2010 2011 2012
Agriculture Natural Resources

7. State Medicaid Pressure
$18,000.00
$16,000.00
$14,000.00
$12,000.00
$10,000.00
$8,000.00
($ in millions)
$6,000.00
$4,000.00
$2,000.00
$0.00
2007 2008 2009 2010 2011 2012 2013
(est.) (est.)

8. State Pension Pressure
$6,000
$5,000
$4,000
$3,000
($ in millions)
$2,000
$1,000
$0
2007 2008 2009 2010 2011 2012 2013

9. What’s happening?
• Cuts to spending on education, agriculture, and
state services…
• BUT increased spending on Medicaid & pensions?

10. So will these trends continue?
Spending Projections for the next 5 years
Pension & Medicaid Spending All Other Spending
$8.0
$22.0
$7.5 $21.0
$20.0
$7.0
$19.0
$6.5
$18.0
$6.0
$17.0
$5.5
$16.0
$5.0
FY12 FY13 FY14 FY15 FY16 FY17 $15.0
FY12 FY13 FY14 FY15 FY16 FY17
Pensions Medicaid

11. Pensions & Medicaid squeeze
spending on all other state
programs, including
education, agriculture, and all other
state services.
2012 In 5 years…
Pensions
Pensions
All Other All Other
Spending Medicaid Spending
Medicaid

12. Who is on Medicaid?
Seniors, 6.1
%
Other
Adults
, 23.4%
Children, 61
.1%
Disabled
Adults, 9.3%

13. Who are we paying for?
Patients Medicaid Spending
Seniors by population
Other
Adults Seniors
Children
Children
Disable
Adults
Other Adults
Children make up the
majority of Medicaid Disabled
patients, yet receive Adults
less than half of the
services.

14. Who gets a state pension?
• TRS: Teachers’ Retirement System
• SURS: State Universities Retirement System
• SERS: State Employees’ Retirement System
• JRS: Judges’ Retirement System
• GARS: General Assembly Retirement System
Average state employee
pension? $29,063

15. Recent Pension Reforms Bring BIG Savings
Pensions Savings from Recent Reforms
$35.0
Total Savings =
$25.0
over $38
Billion Dollars
billion!
$15.0
$5.0
FY10 FY15 FY20 FY25 FY30 FY35 FY40 FY45
Before Reform After Refom
The Illinois Senate passed major reforms for new state employees’ pensions in 2010.

16. Why can’t we just CUT pensions and Medicaid?
Article XIII, Section 5
of the Illinois Constitution
provides that:
• Simply put: federal “Membership in any pension or
laws and the Illinois retirement system of the
State, any unit of local
State Constitution government or school district, or
prohibit many cuts. any agency or instrumentality
thereof, shall be an enforceable
contractual relationship, the
benefits of which shall not be
diminished or impaired."