CHICAGO - Illinois' budget deficit, officially pegged by the state at $800 million yesterday, could grow to $1 billion if income and sales tax revenue collections don't pick up, the state's debt manager warned.

Faced with rising unemployment, slowed consumer spending, and reduced business activity, the state first reported a shortfall earlier this fall when it announced that revenue collections for the first quarter of fiscal 2009 from July through September were $200 million below original estimates.

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