The Democratic majority in the Illinois General Assembly last week approved a spending bill that allocates $7.8 billion to cover fiscal 2012 state pension contributions and pension debt payments.
That leaves $26 billion in expected general fund revenue — according to the Senate leadership — to complete the fiscal 2012 spending plan that lawmakers have not yet approved. Republicans criticized the move, arguing that the budget should be approved in pieces. The fiscal year begins July 1.
Senate Democrats are expected to announce more than $1 billion in cuts to Gov. Pat Quinn’s budget in the coming weeks. Republicans have argued that at least $5 billion should be cut.
Quinn’s proposed $52 billion all-funds budget for fiscal 2012 relies on $8.75 billion of bonding to help erase red ink from overdue bills. The bonding plan has stalled amid Democratic and GOP opposition and Quinn recently scaled it down to $2 billion to cover overdue Medicaid payments and other expenses.
