Budget Summary

              BUDGET SUMMARY
The Illinois State budget enacted for fiscal year 2002 maintains the state’s strong financial
position, keeps Governor Ryan’s commitment to provide additional resources for education and further
enhances Illinois’ role as a leader in the changing economy of the new century.
The fiscal year 2002 budget, signed into law on June 11, 2001, funds total appropriations of
$51.75 billion, including $23.36 billion in general funds appropriations. General funds revenues are
projected to total $25.0 billion, an increase of $894 million. Fiscal year 2002 expenditures are projected
to total $25.126 billion. On June 30, 2001, the fiscal year 2001 general funds balance was
$1.126 billion. On July 2, 2001, an additional $225 million was transferred from the Tobacco
Settlement Recovery Fund to the Budget Stabilization Fund to give the state a total cash balance of
$1.351 billion. The fiscal year 2002 projected end of year general funds balance is $1.0 billion, and the
balance in the Budget Stabilization Fund is projected to be $230 million. In each year, the general funds
balance is projected to exceed lapse period spending, resulting in positive budgetary balances.
The enacted budget takes into account the state’s slower economic growth by establishing clear
and consistent funding priorities. School districts statewide receive additional resources, and an
enhanced capital program includes a new initiative for community colleges. The budget protects the
state’s natural resources and supports scientific and technological advances through an expanded
VentureTECH program. A projected $270 million gap in the state’s Medicaid budget was closed, and
Illinois will continue to pay its bills on time. Community agency workers who serve persons with
developmental disabilities were funded for a $1 per hour pay raise, retroactive to March 1, 2001.
General funds appropriations increase $644 million in fiscal year 2002, with $460 million of the
increase, or nearly 71 percent, dedicated to education. For the third year, the budget fulfills the
Governor’s pledge to allocate at least 51 percent of new general funds revenues to education.
Allocation of FY2002 Appropriation Increase
$644 Million General Funds
All Other
$90 $80
$460
$37 ($23)
-$100
$0
$100
$200
$300
$400
$500
Education/ Job
Training
Corrections Dept. of Human
Services
Elected/ Judicial
The fiscal year 2002 budget is based on Illinois’ strong and diverse economy, but reflects the
slower economic growth realized during fiscal year 2001. Revenue projections are premised on
forecasts of slower economic growth, as well as anticipated low rates of inflation and slightly higher
unemployment. Economists also project lower gains in wages and salaries, personal income and
nonfarm payroll jobs.