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For Immediate Release:                                                                                  

August 10, 2007

Fiscally Sound Budget Passed by General Assembly

Springfield, IL – In the midst of the longest overtime session in recent history, the Illinois House of Representatives today passed a one-year budget for Fiscal Year 2008.  State Representative Jim Watson supported the budget because it will fund essential state services without raising taxes.

“The House passed a fiscally sound budget that reflects our shared priorities,” Watson said.  “It provides a significant increase for education, it fully funds our pension obligations and it increases staffing levels at our state facilities.  It accomplishes all of these things without raising taxes on working families and seniors."

The FY08 budget increases education funding by nearly $600 million.  It will provide a $400 increase in the foundation level of funding, raising it to $5,734 per pupil.  Mandated categorical programs such as special education and transportation reimbursements are fully funded.

In addition to the $600 million increase for elementary and secondary education, the FY08 budget includes the following:  $59.5 million increase for higher education; $400 million increase for Medicaid; full funding for the state’s labor contracts; and $550 million to fully fund the state’s pension contributions.

The budget also includes $25 million to hire 925 AFSCME employees to increase staffing levels at state facilities.  Corrections will be able to hire 500 additional frontline staff for Illinois prisons.  Veterans Affairs will be able to hire 40 additional frontline staff to serve the needs of Illinois veterans.

“It is critical that we increase staffing levels at our prisons in order to prevent violent incidents like we had in Jacksonville,” Watson stated.  “And I am pleased that we are taking care of our veterans with this budget.”

The FY08 budget passed by the General Assembly totals approximately $55 billion.  General Revenue Fund spending totals $27.9 billion, which is an increase of $2.2 billion from FY07.  The FY08 budget is based on a state revenue estimate of $30.2 billion, which is $800 million higher than the Governor’s original estimate.  Final tax revenues for FY07 performed better than estimated.

The General Assembly still has to consider a capital program for infrastructure improvements and a new revenue source to fund the program.  It has been seven years since the State made a major investment in roads, school construction and other infrastructure needs.

“Illinois needs a new capital program,” said Watson.  “We can’t continue to put off road construction and bridge repairs.  There are many school districts on the waiting list for school construction grants.  It’s time to pass a capital program.”