fy15 revenue-and-budget-garrison (updated 7.1.14)
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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