Expand General Funds Designation

Expand General Funds Designation

Policy Statement

Expand General Funds Designation

The State of Illinois has established more than 600 separate funds to transact the “business” of the State. Discussion and analysis of the state’s finances has traditionally been limited to the funds that make up the “General Funds”. In the past most of the state government’s cost of ongoing government programs was reflected in the General Funds, so this focus was appropriate. However, more and more state government program costs are now reflected in the other state funds, to the point that today roughly 50% of the State’s revenues and expenses are not included in what is commonly referred to as the “budget.”

In order to provide more transparency of the state’s cost of government, the Federation urges the General Assembly to consider consolidating these special funds wherever possible, and to designate all state funds that reflect the expenditures for the current cost of government programs as a “General Fund”. This naturally excludes the constitutionally-separated funds into which transportation-related tax receipts are deposited.

February 2018

 

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