CHICAGO — The Illinois General Assembly adjourned late last week after passing a fiscal 2011 budget that chips away at a $13 billion deficit primarily with one-time maneuvers — including a $1.7 billion tobacco bond financing — and by pushing off $6 billion in bills while leaving a $3.7 billion hole.

The shortfall in the budget that begins July 1 is tied to the state’s next pension payment. The Senate adjourned without voting on Democratic Gov. Pat Quinn’s deficit borrowing proposal to issue $3.7 billion of eight-year general obligation bonds to fund the state’s pension payment. The Democratic-controlled House narrowly approved the borrowing earlier in the week.

Subscribe Now

Independent and authoritative analysis and perspective for the bond buying industry.

14-Day Free Trial

No credit card required. Complete access to articles, breaking news and industry data.