Illinois expects a drop of as much as $100 million in interest during fiscal 2010 on $8 billion of state investments due to the struggling financial markets, Treasurer Alexi Giannoulias warned last week in a letter to lawmakers.

The letter stated that Illinois now expects to earn about $130 million in the current fiscal 2009 budget, which runs through June 30. The treasurer said the level of returns could range from as low as $15 million to about $86 million during the next budget year, a record low in recent memory. The state earned a high of $431 million in 2001.

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