FY07 Budget Address

February 15, 2006

Governor Rod R. Blagojevich

FY07 Budget Address Governor Rod R. Blagojevich

The Mess We Inherited

The Budget Puzzle
FY03

Governor Rod R. Blagojevich

FY07 Budget Address

The Mess We Inherited

Uncontrolled Spending
Total State Budget, in millions
Illinois budget was growing by 5.4% from FY93 to FY03, more than double the rate of inflation.

Governor Rod R. Blagojevich

FY07 Budget Address

The Mess We Inherited

Large Payroll

State Employees

From FY72 to FY03, headcount ranged from 62,000 to 71,000, and it averaged over 69,000 state employees during Gov. Ryans term.

Governor Rod R. Blagojevich

FY07 Budget Address

The Mess We Inherited

Underfunded Education
General State Aid Approp. Increase, in millions
General Student Aid went up by more than $150 million in only two years between FY93 and FY03. It actually went down in FY03.

Governor Rod R. Blagojevich

FY07 Budget Address

The Mess We Inherited

Limited Health Care
Eligibility as % of Federal Poverty Level

Kids
Health Care eligibility for kids didnt grow at all from FY99 to FY03. And eligibility for working parents shrank each year until it grew slightly in FY03.

Parents

Governor Rod R. Blagojevich

FY07 Budget Address

The Mess We Inherited

Growing Unemployment
In January 2003, Illinois unemployment rate had risen to 6.7%.

2001
Governor Rod R. Blagojevich

2002
FY07 Budget Address

The Mess We Inherited

Massive Pension Shortfalls
Pension Shortfall, in millions
From FY93 to FY03, pension payments were underfunded annually by at least $810 million.

Governor Rod R. Blagojevich

FY07 Budget Address

The Mess We Inherited

Inherited Deficit
The $5 billion deficit we inherited in FY04 represented more than 20% of our total general revenue budget.

$5.0B

Governor Rod R. Blagojevich

FY07 Budget Address

Making Progress

Governor Rod R. Blagojevich

FY07 Budget Address

Making Progress
Reduced Headcount
We have 13,000 fewer employees today than in FY01, saving taxpayers more than $800 million this year.

State Employees

Governor Rod R. Blagojevich

FY07 Budget Address

Making Progress
Consolidated Agencies
To cut costs, we consolidated or eliminated 19 agencies.

agencies agencies

Governor Rod R. Blagojevich

FY07 Budget Address

Making Progress
Controlled GRF Spending
GRF Spending, in millions
Weve cut the spending growth rate by 40%, even with more money for schools and health care.

5.4% growth
Governor Rod R. Blagojevich

3.3% growth
FY07 Budget Address

Making Progress
Managed Our Debt
Bonds Issued, in millions
Weve issued less in bonds than Gov. Ryan and are returning to historical levels.

Governor Rod R. Blagojevich

FY07 Budget Address

Making Progress
Special Purpose Funds for Schools
Special Funds Balance, in millions
Even after transferring $1.1 billion for schools and health care, Special Purpose Funds maintained their balance.
Transfers: $165 $508 $449

Governor Rod R. Blagojevich

FY07 Budget Address

Making Progress
Eliminated the Deficit
By eliminating the deficit, we were able to dedicate more money to programs that help people.

Deficit, in billions

No Deficit

Governor Rod R. Blagojevich

FY07 Budget Address

Making Progress
Increased Education Funding
New Education Funding, in millions
Since FY04, we have invested $2.3 billion in new funding for our schools.

$1,119 $789

$400

$2.3 Billion

Governor Rod R. Blagojevich

FY07 Budget Address

Making Progress
Increased Preschool Funding
State Early Childhood Spending, in millions
We have increased pre-K funding by 50% over the last three years.

Governor Rod R. Blagojevich

FY07 Budget Address

Making Progress
Helped Parents Get Health Care
Parents Enrolled in State Health Care Programs
Total Enrollment, in thousands
The Kaiser Foundation now ranks Illinois number one in insuring parents who need health coverage.

Governor Rod R. Blagojevich

FY07 Budget Address

Making Progress
Helped Kids Get Health Care
Kids Enrolled in State Health Care Programs
Total Enrollment, in thousands
Illinois is now the only state to guarantee access to comprehensive health care for all uninsured kids.

Governor Rod R. Blagojevich

FY07 Budget Address

Making Progress
Helped Kids Get Health Care
KidCare Eligibility Income for Family of Four
By getting rid of income limits all together with All Kids, Middle Class children can now have access to affordable health care.

Governor Rod R. Blagojevich

FY07 Budget Address

Making Progress
Helped Women Get Health Care
98,000 Free screenings through our breast and cervical cancer program. 167,000 Women offered free care through our Healthy Women

Program. 77 Womens Health grants awarded to fund local

education programs.

Governor Rod R. Blagojevich

FY07 Budget Address

Making Progress
Helped Seniors Keep Health Care
The New Federal Medicare Part D Program Illinois Medicare Wrap Fills the Donut Hole $250 - $2,250 Federal Coverage $2,250 - $5,100 THE DONUT HOLE $5,100+ Federal Coverage

Governor Rod R. Blagojevich

FY07 Budget Address

Making Progress
Increased Public Safety
State Violent Crimes State Property Crimes

Down 9%
Governor Rod R. Blagojevich

Down 6%
FY07 Budget Address

Making Progress
Increased Public Safety
Highest Levels of Homeland Security
Illinois is one of only three states that has achieved the highest level of bioterrorism preparedness and emergency management according to federal agencies.

Governor Rod R. Blagojevich

FY07 Budget Address

Making Progress
64,000 New Jobs
State Unemployment Rate (2001 - Present)

Unemployment has fallen back to pre-9/11 levels.

2001
Governor Rod R. Blagojevich

2002

2003

2004

2005
FY07 Budget Address

Making Progress
Corporate Profits Are Up
Corporate Profits, in millions

Corporate Illinois corporate profits in 2004 were higher than theyve been since 1997.

Governor Rod R. Blagojevich

FY07 Budget Address

Making Progress
Lanark 250 jobs Belvidere 1,000 jobs Macomb 480 jobs Edwardsville 230 jobs
Governor Rod R. Blagojevich

Increased Job Creation Programs

Naperville 1,500 jobs DeKalb 500 jobs Champaign 150 jobs Marion 800 jobs
FY07 Budget Address
HEADQUARTERS

Making Progress
No Increase to Income or Sales Tax
We have kept Illinois income tax at the lowest average of all neighboring states.

5.4%7.9% 4.6%6.8% 0.4%9.0% 3.0% 1.5%6.0% 3.9% 0.7%7.5%

3.4%

2.0%6.0%
FY07 Budget Address

Governor Rod R. Blagojevich

Making Progress
Invested in Our Pensions
We will have invested more in pensions than any administration in history.

Investment, in billions

Edgar I
Governor Rod R. Blagojevich

Edgar II

Ryan

Blagojevich
FY07 Budget Address

Making Progress
Invested in Our Pensions
Our pensions are better funded today than they were in 2003 -- a 25% increase.

Pension Funding Level

Governor Rod R. Blagojevich

FY07 Budget Address

Proposed FY07 Budget

New Investments in Education and Health Care New Investments in Public Safety and Job Creation Strengthening Our Pension System Streamlining Government and Cutting Costs
Governor Rod R. Blagojevich FY07 Budget Address

Proposed FY07 Budget: Cutting Costs Remaking Government

Payroll Human Resources Accounting

SYSTEMS SYSTEMS

38

SYSTEMS SYSTEMS

104
SYSTEMS SYSTEMS
FY07 Budget Address

Governor Rod R. Blagojevich

Proposed FY07 Budget: Cutting Costs Remaking Government

Combines state agency back-office functions to make them more efficient. Functions that every agency has like accounting and payroll will be put in one place to cut down on repetitive costs. This is expected to save taxpayers over $115 million a year.

Governor Rod R. Blagojevich

FY07 Budget Address

Proposed FY07 Budget: Health Care

Who We Can Help With This Budget

Enrolling All Kids

Launching Veterans Care

Closing the Nursing Shortage

Funding Stem Cell Research

FY07 Budget Address

Governor Rod R. Blagojevich

Proposed FY07 Budget: Health Care

Closing the Nursing Shortage
Illinois will face a shortage of over 21,000 nurses by the year 2020. Our proposal will increase nursing faculty, decrease education costs, and attract more nursing candidates. Cost would be $50 million over 15 years.
Governor Rod R. Blagojevich FY07 Budget Address

Proposed FY07 Budget: Health Care

Funding Stem Cell Research
Stem cell research will help treat and cure major illnesses. Illinois was the first state in the Midwest to publicly fund stem cell research. Would provide $100 million of funding over five years from tobacco settlement.
Governor Rod R. Blagojevich FY07 Budget Address

Proposed FY07 Budget: Job Creation

How This Budget Will Create More Jobs in Illinois

Riverfront Redevelopment

Film Tax Credit

Jobs Bill

Licensing Reform

Governor Rod R. Blagojevich

FY07 Budget Address

Proposed FY07 Budget: Job Creation Riverfront Redevelopment

Provides tax credits to develop contaminated land in riverfront communities and create thousands of new jobs.

Governor Rod R. Blagojevich

FY07 Budget Address

Proposed FY07 Budget: Job Creation Film Tax Credit

Projects filmed in Illinois created 15,000 new jobs last year. A new film credit will help us stay competitive with other states.

Governor Rod R. Blagojevich

FY07 Budget Address

Proposed FY07 Budget: Job Creation Jobs Plan

$3.2 Billion in Capital Will Create 230,000 Jobs

Road Construction

Mass Transit Construction

School Construction

$2.3 Billion 140,000 jobs

Governor Rod R. Blagojevich

$425 Million 85,000 jobs

$500 Million 7,000 jobs

FY07 Budget Address

Proposed FY07 Budget: Streamlining

State Business Portal

Governor Rod R. Blagojevich

FY07 Budget Address

Proposed FY07 Budget: Streamlining

Licensing Reform to Help Businesses
New systems would reduce processing time for most state licenses from 4-19 weeks to 1-4 weeks. Impacts 1 million professionals in Illinois. Total cost to implement new processing systems is $1.6 million.
Governor Rod R. Blagojevich FY07 Budget Address

Proposed FY07 Budget: Public Safety

How We Can Improve Public Safety With This Budget

Provide Funding for New Police Officers

Governor Rod R. Blagojevich

Launch the Prairie State DNA Institute

Create Meth Prison Unit

FY07 Budget Address

Proposed FY07 Budget: Public Safety Prairie State DNA Institute

We have invested $62 million in DNA testing and reduced the backlog from 10 months to under 3. But as long as we outsource cases, the backlog is not fully in our control. The DNA institute gives us more control to reduce the backlog even more.

Governor Rod R. Blagojevich

FY07 Budget Address

Proposed FY07 Budget: Public Safety Prairie State DNA Institute

The DNA Institute would improve training and retention of forensic scientists. The program would expand State DNA laboratories and offer scholarships to train students at Illinois universities. This institute would help create a cottage industry of forensic scientists in Illinois.

Governor Rod R. Blagojevich

FY07 Budget Address

Proposed FY07 Budget: Pensions

Guaranteeing Pensions

Governor Rod R. Blagojevich

FY07 Budget Address

Proposed FY07 Budget: Pensions

Guaranteeing Pensions
Use 10th license to strengthen pensions. Create incentives to work longer. Contribute sale of surplus property to pensions. Identify new sources of revenue for pensions.

Governor Rod R. Blagojevich

FY07 Budget Address

Proposed FY07 Budget: Education

How We Can Improve Education With This Budget

Increase K-12 and Higher Ed Funding

Reduce Classroom Sizes

Make College More Affordable

Improve Early Childhood Education

FY07 Budget Address

Governor Rod R. Blagojevich

Proposed FY07 Budget: Education

$400 Million Increase in K-12 Funding
New Education Funding, in billions
Since FY04, we will have invested an additional $3.8 billion in our schools. $1,519

$1,119

$789

$400

$3.8 Billion

Governor Rod R. Blagojevich

FY07 Budget Address

Proposed FY07 Budget: Education

Increase in Higher Education Funding
Funding for higher ed would increase by almost $40 million in our proposed budget. Universities would receive over $18 million to attract and retain the best faculty. Community college grants would increase by almost $7 million.
Governor Rod R. Blagojevich FY07 Budget Address

Proposed FY07 Budget: Education

Universal Preschool

Governor Rod R. Blagojevich

FY07 Budget Address

Proposed FY07 Budget: Education

How We Can Improve Education
START Children in Illinois Can: Save $1,000 per year on college Enter preschool at 3 years old Attend schools with smaller class sizes

Take more math, science, writing, and reading.

Governor Rod R. Blagojevich

Benefit from $3.8 billion in new state funds for our schools
FY07 Budget Address

Moving Forward

Governor Rod R. Blagojevich

FY07 Budget Address

Moving Forward: Fiscal Picture

FY03

Massive Deficit

FY04 FY06

Balanced the Budget

FY07

Remaking Government

Governor Rod R. Blagojevich

FY07 Budget Address

Moving Forward: Economy

FY03

Recession and Job Loss

FY04 FY06

Created 64,000 Jobs in 2005

FY07

Pass the Jobs Bill, New Tax Credits, Faster Licensing

Governor Rod R. Blagojevich

FY07 Budget Address

Moving Forward: Education

FY03

Underfunded Education

FY04 FY06

$2.3 Billion Increase in K-12 Funding

FY07

Universal Preschool, $3.8 billion in New funding, College Tuition Tax Credit

Governor Rod R. Blagojevich

FY07 Budget Address

Moving Forward: Health Care

FY03

Underfunded Health Care

400,000 More People Enrolled, Health Care for All Kids, Rx Help for Seniors

FY04 FY06

FY07

Veterans Care, More Nurses, Stem Cell Research

Governor Rod R. Blagojevich

FY07 Budget Address

Moving Forward: Public Safety

FY03

Fight Both Crime and Terrorism

Crime Fell, Highway Fatalities Dropped, Recognized for Homeland Security

FY04 FY06

FY07

More Police Officers, DNA Institute, Meth Prisons

Governor Rod R. Blagojevich

FY07 Budget Address

Moving Forward

FY03

FY07

Governor Rod R. Blagojevich

FY07 Budget Address