Skip to main content

Illinois' finances worst ever in FY 2012: auditor

Illinois' finances sank deeper into the red in fiscal 2012, with the general revenue fund deficit hitting a record $9.1 billion as increased spending outran a jump in revenue, according to a report released on Thursday by the state auditor general.

_0">

The deficit for the fiscal year that ended June 30, 2012, was up $1.1 billion from fiscal 2011 when measured by generally accepted accounting principles, according to the comprehensive annual financial report.

 

The bigger deficit was driven by a nearly $4.7 billion increase in spending that eclipsed revenue growth of $3.7 billion, the audit said. General fund revenue totaled $37.3 billion.

Illinois' financial condition continued to be the worst of any U.S. state.

Its assets, including land, buildings, investments, and cash on hand, increased by $3.9 billion over the previous fiscal year, but its liabilities jumped by nearly $6.3 billion mainly because of the issuance of $3.2 billion of general obligation bonds and growing costs for public pensions and retiree health care, according to the report.

That left Illinois with negative net assets of $46.6 billion at the end of fiscal 2012 versus a negative $43.6 billion in fiscal 2011.

Only four other states had negative net assets in fiscal 2012: California, Connecticut, Massachusetts and New Jersey, which was slightly better off than Illinois at a negative $40.4 billion, according to the Illinois auditor.

All of the other states included in the auditor's report had positive net assets, with Texas at the top with $101.8 billion.

Illinois' inability to rein in pension costs and its huge backlog of unpaid, overdue bills have led to a series of downgrades by credit rating agencies that have left it with the lowest general obligation ratings among U.S. states.

The legislature's spring session ended on May 31 with an impasse on pension reform. Lawmakers have agreed to a July 9 deadline to act on a plan to be produced by a legislative conference committee to deal with a nearly $100 billion unfunded pension liability.

Governor Pat Quinn, who has been pushing for a pension fix, has been cutting spending and paying off bills with higher-than-expected April income tax revenue, according to Abdon Pallasch, a spokesman for the governor's budget office.

He said the bill backlog, which stood at $8.5 billion on April 1, has dropped to $6.3 billion and is on track to fall to $5.9 billion at the end of fiscal 2014. Until the boost in revenue in April, Illinois was running four months behind in paying many of its bills.

Meanwhile, the state is scheduled to sell $1.3 billion of GO bonds next week for its ongoing capital improvement program.

Investors in the $3.7 trillion U.S. municipal market have been demanding higher yields for the state's bonds. Illinois' so-called credit spread over the market's benchmark triple-A scale was 145 basis point for 10-year bonds in the latest week. That is the second highest spread behind Puerto Rico among large muni debt issuers tracked by Municipal Market Data, a unit of Thomson Reuters.

(Reporting by Karen Pierog; editing by David Greising and Jim Marshall)

Popular posts from this blog

Study Abroad USA, College of Charleston, Popular Courses, Alumni

Thinking for Study Abroad USA. School of Charleston, the wonderful grounds is situated in the actual middle of a verifiable city - Charleston. Get snatched up by the wonderful and customary engineering, beautiful pathways, or look at the advanced steel and glass building which houses the School of Business. The grounds additionally gives students simple admittance to a few major tech organizations like Amazon's CreateSpace, Google, TwitPic, and so on. The school offers students nearby as well as off-grounds convenience going from completely outfitted home lobbies to memorable homes. It is prepared to offer different types of assistance and facilities like clubs, associations, sporting exercises, support administrations, etc. To put it plainly, the school grounds is rising with energy and there will never be a dull second for students at the College of Charleston. Concentrate on Abroad USA is improving and remunerating for your future. The energetic grounds likewise houses various

Best MBA Online Colleges in the USA

“Opportunities never open, instead we create them for us”. Beginning with this amazing saying, let’s unbox today’s knowledge. Love Business and marketing? Want to make a high-paid career in business administration? Well, if yes, then mate, we have got you something amazing to do!   We all imagine an effortless future with a cozy house and a laptop. Well, well! You can make this happen. Today, with this guide, we will be exploring some of the top-notch online MBA universities and institutes in the USA. Let’s get started! Why learn Online MBA from the USA? Access to More Options This online era has given a second chance to children who want to reflect on their careers while managing their hectic schedules. In this, the internet has played a very crucial in rejuvenating schools, institutes, and colleges to give the best education to students across the globe. Graduating with Less Debt Regular classes from high reputed institutes often charge heavy tuition fees. However onl

Sickening moment maskless 'Karen' COUGHS in the face of grocery store customer, then claims she doesn't have to wear a mask because she 'isn't sick'

A woman was captured on camera following a customer through a supermarket as she coughs on her after claiming she does not need a mask because she is not sick.  Video of the incident, which has garnered hundreds of thousands of views on Twitter alone, allegedly took place in a Su per Saver in Lincoln, Nebraska according to Twitter user @davenewworld_2. In it, an unidentified woman was captured dramatically coughing as she smiles saying 'Excuse me! I'm coming through' in the direction of the customer recording her. Scroll down for video An unidentified woman was captured dramatically coughing as she smiles saying 'Excuse me! I'm coming through' in the direction of a woman recording her A woman was captured on camera following a customer as she coughs on her in a supermarket without a mask on claiming she does not need one because she is not sick @chaiteabugz #karen #covid #karens #karensgonewild #karensalert #masks we were just wearing a mask at the store. ¿ o