CHICAGO — Illinois Gov. Pat Quinn Wednesday will unveil a proposed fiscal 2011 budget that cuts spending and calls for new deficit borrowing to help trim a $13 billion deficit, but a gaping hole will remain unless lawmakers approve revenue increases, Quinn aides said Tuesday.
The budget anticipates raising $4.7 billion through a strategic note borrowing that could include a mix of tax-exempt issuance and internal fund borrowing. “It’s very important that the state use our borrowing tools,” said budget director David Vaught at a budget briefing. A specific plan won’t be proposed in the budget, but Vaught said it’s anticipated that any bonding would extend beyond the five-year maturity schedule used on the state’s $3.5 billion note issue sold to fund fiscal 2010 pension payments.