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 finance government operations.  Discussion and analysis of the state’s budget 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 financed by 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 into the cost of state government, the Federation urges the General Assembly to consider consolidating these special funds wherever possible, to designate all state funds that reflect expenditures for the current cost of government programs as part of the “General Fund”, or to expand the focus during the budget process to include all funds.

February 2023

 

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