Comptroller Daniel W. Hynes MAY/JUNE 2001 ISSUE

IN THIS GASB 34 ISSUE ...PAGE 2

IN T Focus OnHIS Revenue ISSUE ...PAGE 4

IN T Fiscal H Forum IS IS S U ...PAGE 6 E SSttaattee PPaarrkkss aanndd RReeccrreeaattiioonn I N Vital T Statistics H is home to diverse geography and a vast array of plant IS and animal life. In addition to the flat surfaces that provide fer- ...PAGE 14 I S tile ground for corn and soybeans, the Prairie State is home to S U E canyons, swamp areas, river bluffs, and beaches. Various types of wildflowers and trees can be found throughout the state. Within the borders of Illinois live 297 kinds of birds, 63 forms of mammals, and 196 types of fish. Parks and recreation sites throughout the state offer a visual sampling of the rich land- scape and varied life forms.

COVER STORY continued, page 7 FROM THE COMPTROLLER Dear Readers:

For many people the arrival of summer presents an opportunity to get outdoors and enjoy such activi- ties as camping, picnicking, swimming, hiking, biking, boating, fishing, golfing, rock climbing, or bird watching. One of the great things about our state is that you can do all these things at Illinois State parks. The Department of Natural Resources currently oversees more than 260 sites and more than 400,000 acres of property in Illinois including 125 major parks and recreational areas. In addition to the many activities available, some parks and recreation areas include lodges, concession facilities or restaurants. Some locations in the state are set aside as nature preserves and wildlife sanctuaries, and guided tours and nature studies are often available. According to the Department of Natural Resources, expenditures for outdoor recreation increased 2.9% from $87.955 million in fiscal year 1999 to $90.487 million in fiscal year 2000. Furthermore, the cost-per-acre-managed increased 4.5% over the same period. The need to provide sufficient resources to maintain these popular programs and sites should remain an important priority for policymakers. As is our custom, I encourage you to answer the Fiscal Forum questions for this month, and to continue to let us know what you think. Our web site is www.ioc.state.il.us. Sincerely,

Daniel W. Hynes Comptroller

Fiscal Focus is one of the ways the Comptroller’s Office GASB 34 strives to assist taxpayers and the people of Illinois. This monthly report is designed to provide fiscal information of The New Governmental Reporting Model general interest and in compliance with state statutes. Editorial Staff: David Griffith and Ann Sundeen. Writers & In June 1999, the Governmental Accounting and other revenues versus general tax rev- Analysts: Charles Good, Bill Dracos, Kevin Fitzpatrick and Loren Iglarsh. Production: Brenda Voyles, Rhonda Standards Board (GASB) issued Statements enues); Rathbone, Susan Hansen, Frank Weitzel, Larry Hopkins and Mike Petropoulos. No. 34 and No. 35 (collectively referred to • Understand the extent to which the gov- Fiscal Focus is published by Comptroller Daniel W. Hynes, as GASB 34) revising the basic financial ernment has invested in capital and infra- 201 State House, Springfield, Illinois 62706. Questions or reporting model for state and local govern- structure assets; and comments may be directed to (217)782-6000. ments. The new reporting model is intend- • Make comparisons between govern- Web Address: http://www.ioc.state.il.us ed to increase the usefulness of a govern- ments. In compliance with the Americans with Disabilities Act, ment’s financial statements by providing this document may be requested in alternative formats The new reporting model will result in gov- by contacting the Office of the Comptroller at information that will enable users to: (217)782-6000 or calling the IOC Telecommunications ernmental financial statements that more Device for the Deaf (TDD) number, (217)782-1308, or by • Assess the finances of the government in visiting the Illinois state Capitol Building, 201 State closely resemble those of a private sector its entirety; House, Springfield, Illinois. entity (e.g., the government-wide financial • Determine whether the government’s The Illinois Office of the Comptroller is an equal statements) while preserving certain aspects opportunity employer and does not discriminate on the overall financial position improved or basis of race, color, religion, sex, marital status, of traditional governmental financial report- national origin, ancestry, age or disability in employ- deteriorated; ment or in the provision of any services, programs or ing (e.g., the fund level financial state- activities. • Evaluate whether the current year’s rev- ments). The new financial reporting model enues were sufficient to fund the current- Printed by Authority of the State of Illinois should provide a more accurate picture of 7/01/01 - 3,500 Job 36000. year’s services; the government’s overall financial position • Determine the cost of providing services; in both the short and long-term. Reproduction of articles from this issue or por- • Understand how the government finances tions thereof is allowed with proper attribution to Fiscal Focus, Illinois Office of the Comptroller. its various programs (through user fees GASB 34 continued, page 6

Fiscal Focus 2 May/June 2001 State Park Visitors by State in FY 1999 (thousands) 1 California 76,736 H W 2 New York 61,960 3 Ohio 60,220 Illinois Stacks 4 Washington 48,138 5 Illinois 41,891 6 Oregon 38,752 7 Pennsylvania 36,019 8 Tennessee 31,834 9 Michigan 27,745 10 Indiana 18,652 46 Wyoming 2,158 Illinois Scores High in Amount of State 47 Montana 1,507 48 Louisiana 1,469 Park Land and Visitors New Jersey sports 49 North Dakota 1,068 the highest ratio of 50 Vermont 834 state park land to For every 10,000 acres of total land, Illinois has 116 acres of state U.S. Average 15,337 park land. This ratio is more than double the national average of total land. In fis- 57 state park acres per 10,000 total acres and ranks Illinois 13th in cal year 1999, 723 Source: CQ's State Fact Finder, Rankings Across America 2001. the nation. Illinois also ranks fifth in the number of visitors to their out of every state parks with 41.891 million visitors in fiscal year 1999. 10,000 acres in New Jersey was uti- California had the most visitors to their state parks with 76.736 lized as state park land. Other states with high ratios include million. Other states with more visitors than Illinois include New Connecticut (581 out of every 10,000), Massachusetts (572), York (61.960 million), Ohio (60.220 million) and Washington Maryland (472) and New York (336). Idaho, Mississippi, (48.138 million). Wyoming, Montana, Louisiana, North Dakota Arizona, Montana and North Dakota had the least amount of land and Vermont had the fewest visitors. The national average for the utilized for state parks with their respective ratios all less than 10 1999 fiscal year was 15.337 million. acres per 10,000.

Fiscal Focus 3 May/June 2001 rule governments are not bound by these limits. As seen in the chart, hotel tax revenue has increased steadily over the past decade F CUS except for a small decline in fiscal year 1992 which appears to be from a devia- On Revenue tion in the timing of deposits. Hotel taxes The Metropolitan Pier and Exposition collected by the state have increased from Authority imposes a tax of 2.5% of gross $101.8 million in fiscal year 1991 to receipts and the Illinois Sports Distribution of State Hotel Taxes Facilities Authority (Dollars in Millions) Hotel Taxes imposes a tax of 2% The hotel operators’ occupation tax was of 98% of gross Fund FY 1991 FY 2000 enacted in 1961 and was just another rental receipts. General Revenue $ 28.5 $ 45.4 minor source of revenue for the General In addition, local Build Illinois 41.5 79.1 Revenue Fund. That changed in 1985 governments, munic- Illinois Sports Facilities 13.0 13.0 when an additional hotel tax was added ipalities and coun- Local Tourism 0.0 12.7 and earmarked to promote tourism. Since ties, may also impose International Tourism 0.0 8.1

Hotel Taxes $ 83.0 $ 158.3

225.0

200.0 and collect a hotel 175.0 $225.2 million in fiscal year 2000. State tax up to 5% of hotel tax revenue totaled $158.3 million 150.0 gross receipts to in fiscal year 2000, up $75.3 million or 125.0 promote tourism. A 90.7% from $83.0 million in fiscal year Dollars in Millions Dollars 100.0 county may impose 1991. Local taxes collected by the state 75.0 the tax on hotels over this period increased by $48.1 mil- 50.0 outside any munici- 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 lion or 255.9%, from $18.8 million to Fiscal Year pality that imposes $66.9 million. such a tax. Home- State Local While revenues from the state hotel tax have grown over the then, additional hotel taxes past ten years, the distri- were imposed on hotel opera- bution of taxes has tors in to finance the changed. The Build construction of Comiskey 1% of 94% 5% of 94% Illinois Fund receives Park and the expansion of 50% of hotel taxes, the 40% 60% $8 million McCormick Place. Illinois Sports Facilities transferred additional hotel tax (1% Build of 94% of gross The Department of Revenue Fund Illinois receipts) plus 40% of collects the state hotel tax and $13 million Fund the original tax (5% of three local hotel taxes 94% of gross receipts) imposed in Chicago, includ- Local Tourism and this has not changed. ing the two tax rates author- Fund 8% However, the remaining ized to finance the projects 50% used to go to the previously mentioned. The General Revenue Fund state tax is imposed as the International Tourism Fund after $13 million was sum of two rates: 5% of 94% 6% deposited into the Illinois of gross rental receipts from Sports Facilities Fund. transient guests and the addi- General 21% transferred The current distribution tional tax of 1% of 94% of Revenue Fund to Tourism as seen in the flow chart gross rental receipts. State all remaining Promotion Fund is: $13 million to the law permits Chicago to levy a revenues tax up to 1% of gross receipts. FOCUS ON REVENUE continued, page 13 Fiscal Focus 4 May/June 2001 F CUS On Spending

Village of Glen Ellyn to purchase and Chicago Heights. Like the Department of Illinois FIRST Supports redevelop Marynoll. Other expenditures Commerce and Community Affairs, most Parks and Recreation over a million dollars include, $1,250,000 of the (DNR) projects were for park and Projects to Elk Grove Village to construct a bike recreation related spending, although there path over Interstate 290 and $1,000,000 to were no general support type expenditures. the Village of Evergreen Park to purchase 100 acres of land. [NOTE: Special thanks go to two staff The Governor’s Illinois FIRST public members of DCCA and DNR for their works program was designed to meet the Most of the spending by the Department assistance in providing information and critical infrastructure needs of the state. Of of Commerce and Community Affairs answering questions. However, it should the $12 billion in proposed spending, $1.8 (DCCA) went for park related expendi- be noted that a more detailed analysis of billion was for a variety of local infrastruc- tures such as purchase of playground Illinois FIRST support for parks and recre- ture projects. These projects were to be equipment, repair and renovation of parks ation, including a definitive number on identified and prioritized with input from and facilities, development of new parks, appropriations and expenditures, is not members of the General Assembly. bike trails and support for park programs. possible because Illinois FIRST did not For example, Coal Valley received segregate data specifically for a category Many projects were suggested such as local $80,000 for playground equipment, of parks and recreation.] water and sewer projects, brownfield rede- Stanton received $100,000 for soccer field velopment, and technology infrastructure lights, and Mokena received improvements. Also proposed were proj- $75,000 for a bike trail. ects for cleaning the environment and However, some funds for improving the quality of life. It is under parks were for general sup- this last grouping that proposals for spend- port like the City of Markham ing on parks and recreation are predomi- Park District which received nantly included. Illinois FIRST appropria- $500,000 and Hazel Crest tions for parks and recreation projects in Park District which received fiscal years 2000 and 2001 were primarily a $50,000 grant for general allocated to two agencies, the Department operation expenses. Also, a of Commerce and Community Affairs and few park districts received the Department of Natural Resources. monies to purchase vehicles.

Project Examples The Department of Natural Resources (DNR) has spent Over the past two years, the Department of almost $19 million over the Commerce and Community Affairs has past two years on Illinois spent approximately $34 million on vari- FIRST projects for parks and ous parks and recreation projects. The recreation. Of the more than spending for over 350 projects varies in 100 projects, spending varied dollar amount from $1,500 to $2,000,000. from $5.3 million to the Harrisburg Park District received $1,500 to Chicago Park District for repair a baseball field as did the Haas Park shoreline protection to $5,000 Advisory Council for park renovations. for the Grant School Dugout The $2,000,000 expenditure went to the in the Village of South

Fiscal Focus 5 May/June 2001 GASB 34 continued on page 13 The government-wide financial state- ments consist of a Statement of Net Under GASB 34, a government’s finan- Fiscal Forum Assets and a Statement of Activities. cial statements will consist of the follow- The Statement of Net Assets will report ing key components: 1) Management’s Last month’s questions concerned a all of the assets, liabilities, and net assets Discussion and Analysis (MD&A), 2) public safety issue related to correc- of the State. It will distinguish between Basic Financial Statements, and 3) tions and the State budget. The ques- the primary government and the dis- Required Supplementary Information tions and the responses from our read- cretely presented component units as (RSI). ers are presented below: well as between the primary govern- Although the three components of the ment’s governmental and business-type Do you think, given prison overcrowd- financial statements are targeted at differ- activities while excluding information ing, that the State should continue to ent users, the components cannot be sep- on fiduciary funds and component units build new prisons? arated for financial reporting purposes. that are fiduciary in nature. The Thus, if a government wishes to present Statement of Net Assets will specifical- YES …51% interim financial statements, all three ly: include information on the long- NO …49% components must be prepared and pre- term assets and liabilities of the govern- Do you think that the State should put sented. ment, resembling the balance sheet of a more emphasis on home detention for business; be presented on the accrual non-violent offenders? 1. MANAGEMENT’S DISCUS- basis of accounting; account for all cap- SION & ANALYSIS ital assets as part of the government’s YES …75% general and business type activities and NO …25% The Management’s Discussion and include depreciation expense of these Analysis (MD&A) section is a new com- capital assets; and report information on This month’s questions concern the ponent of governmental financial state- infrastructure assets. current policy of not charging an ments that is intended to introduce users to admission fee for state parks and recre- the information contained in the basic The Statement of Activities, much like ation areas. financial statements and provide an analyt- an operating statement, will: present ical overview of the government’s finan- consolidated information on a govern- Do you think Illinois should charge an cial activities. This section is targeted pri- ment’s revenues and expenses on an admission fee for state parks and recre- marily at citizens and other lay users of the accrual basis; display the expenses and ation areas to support operations? financial statements. As such, it will related revenues of the government by Do you think Illinois should charge an include a discussion of current year finan- major activity; classify revenues into admission fee for state parks and recre- cial results at the government-wide level several categories on the statement ation areas if the funds raised are used and compare these to the previous fiscal including charges for services, operat- to acquire new land and maintain year’s results. The MD&A section will ing grants and capital contributions; and existing areas? also be used to discuss significant changes show net cost of each activity before tax in net assets or large budgetary variances, revenues and other non-program rev- To respond to these questions, simply significant changes in capital assets or enues are applied to support the remain- log onto the Comptroller’s Web site at long-term debt, or other matters that ing expenses. www.ioc.state.il.us. impacted the government during the reporting period (e.g., corporate reloca- GASB 34 retains the traditional fund tions, lawsuits, tax rate changes, etc.). The level financial statements. Although the have been eliminated. Governments will information presented in the MD&A must fund financial statements closely follow typically reclassify these funds either as be based on currently known facts as of the current governmental financial state- permanent funds, special revenue funds date of the auditor’s opinion. ments, two significant changes in fund or private purpose trust funds. definitions have been introduced. First, GASB 34 also introduces the major fund GASB 34 defines a new fund type, the 2. BASIC FINANCIAL STATEMENTS concept in the presentation of the fund permanent fund, in the governmental financial statements. Unlike the current The Basic Financial Statements provide fund category. Permanent funds are to be governmental reporting model, the major two distinct levels of reporting on a gov- used to account for funds in which the fund concept allows governments to dis- ernment’s financial activities: govern- earnings of the fund are used to support cretely report only its major governmen- ment-wide and fund level. Traditionally, government programs (the principal must tal and enterprise funds in the fund finan- governments have only presented fund be legally restricted). Second, expend- cial statements. Major funds are defined level information in their financial state- able and nonexpendable trust fund types ments. GASB 34 continued, page 13

Fiscal Focus 6 May/June 2001 Cover Story continued from front cover State statutes dating from 1917 and the Currently, the Department of Natural or leased land are factored in, the depart- creation of the former Department of Resources administers 125 major parks ment oversees more than 260 sites and Conservation in 1925 attest to the fact that and recreational areas in Illinois. A num- more than 400,000 acres of property. State government involvement in parks ber of satellite parks also fall under the and recreation is not a new phenomenon. department’s jurisdiction. When all major Abundant Activities/Free Ownership of land and facilities not only parks, satellites, and other related owned Admission The parks and recreation areas that are Fishing License Sales (Number of Licenses) managed by the Department of Natural Resources are dispersed throughout five Type of License 1996 19971998 1999 2000 regions of the state. The geographic Resident ($13.00) 548,656 558,062 545,693 535,799 526,098 breakdown and number of major Non-Resident ($24.50) 21,238 21,756 22,077 21,856 21,270 10-Day Non-Resident ($13.00) 16,029 17,077 17,438 12,000 11,417 parks/recreational areas in each region are 1-Day Lake Michigan ($5.50) 16,569 17,486 19,218 X X shown on the map (see pages 8-9). 24-Hour Sport Fishing ($5.50) X X X 37,472 42,313 A wide variety of options are available to Combination ($19.25) 110,559 108,283 106,790 107,349 106,137 Senior Fishing ($6.75) 62,834 65,687 64,469 67,465 66,294 those who visit Illinois state parks and Senior Combination ($10.00) X X X 9,132 10,531 recreation areas. Camping, hunting, and Total Fishing License Sales 775,885 788,351 777,683 783,940 775,529 fishing space and related services are widely available. Among the range of SOURCE: Illinois Department of Natural Resources. other activities that can be accommodated or services allows the state to preserve land, water, offered at state plant and animal resources, but also to sites are picnick- provide recreational opportunities to state ing, swimming, residents. The Illinois Department of boating, golfing, Natural Resources (DNR) was established hiking, horse- on July 1, 1995, through an Executive back riding, Order of the Governor that combined the canoeing, rock functions of several agencies including the climbing, snow- Department of Conservation. As part of mobiling, ice its established mission to preserve, culti- skating, cross vate and promote the natural and cultural country and resources of Illinois, DNR oversees state water skiing, and parks and recreation facilities. The depart- bird watching. ment’s Office of Land Management and Many parks and Education is primarily responsible for the recreation areas outdoor recreation effort include lodges, beaches, conces- sion facilities or restaurants, Hunting License Sales trails, and horseshoe courts. Guided tours (Number of Licenses) and nature studies are often available. Type of License 1996 19971998 1999 2000 Specific areas are also set aside as nature Resident ($7.50) 190,257 180,834 178,658 173,298 165,174 preserves and wildlife sanctuaries. Non-Resident ($50.75) 6,805 6,576 6,206 7,098 6,944 5 Day Non-Resident ($28.75) 6,761 6,637 5,522 6,597 5,838 Camping is available at 80 locations, rang- Combination ($19.25) 110,559 108,283 106,790 107,349 106,137 ing from Anderson lake in the northwest- Senior Hunting ($4.00) 15,589 16,307 16,082 9,719 8,333 ern portion of Illinois to at the Senior Combination ($10.00) X X X 9,132 10,531 state’s southern tip. DNR also offers a Lifetime Hunting ($210.00) 25 58 70 72 111 rent-a-tent program for persons who want Lifetime Sportsmen's ($550.00) 21 40 57 29 47 to camp but do not have the equipment. Total Hunting License Sales 330,117 318,735 313,385 313,294 303,115 For the less adventurous, cabins, lodges SOURCE: Illinois Department of Natural Resources. and conference centers are available for over night stays. Over 125 locations offer

COVER STORY continued, page 8

Fiscal Focus 7 May/June 2001 Cover Story continued from page 7 Top Ten Sites In Attendance DAILY CAMPING FEE EXAMPLES (January - December 2000)

Service Class Fee Range Recorded Electric, Water, Sewer, Showers $3 - $15 Rank Site Visitors Region Electric and Showers $3 - $11 1 Illinois Beach State Park 2,540,340 Northeast Electric $3 - $10 2 Kankakee River State Park 1,886,429 Northeast Showers No Fee - $8 3 1,653,903 Northwest Rent-a-Cabin $27 - $35 4 Fort Massac State Park 1,561,871 South Rent-a-Tent (Large) $11 - $19 5 Wayne Fitzgerrell State Park 1,390,783 South Lower fees apply to special groups such as seniors 6 Chain O'Lakes State Park 1,350,346 Northeast 62 years and older, disabled veterans, former prisoners 7 1,217,714 South of war. 8 Pere Marquette State Park 1,186,865 West-Central 9 Rock Cut State Park 994,712 Northwest SOURCE: Illinois Department of Natural Resources. 10 Clinton Lake State Recreation Area 972,616 East-Central

SOURCE: Illinois Department of Natural Resources boating opportuni- Camping Revenue ties, and 15 facilities Illi have swimming 1996 $3,355,179 cases, park admission is free. ing license, thereby facilities. 1997 $3,719,276 DNR charges a $1 entry fee expanding the 1-day 1998 $3,821,328 for sites with beaches, and fishing option to the Fishing and hunting 1999 $4,055,242 there is an admission charge entire state. It should opportunities 2000 $4,335,836 for near also be pointed out 39 Parks/ abound, with non- Peoria. that the Combination Recreation Sites discounted license SOURCE: Illinois Department and Senior fees ranging from of Natural Resources. Combination license $5.50 to $550. Fees and Revenues fees allow for the pur- Special rates are Despite free admission to state parks, chase of both a fish- available for seniors. Camping, hunting, DNR does charge a number of fees for ing and hunting and fishing opportunities are also provided parks and recreation related activities. license. Camping fees are broken down State Parks/Recreation Areas, into various cate- Annual Site Attendance gories ranging from 50,000,000 Class AA (electricity, 45,000,000 water, sewer, and 40,000,000 showers) to Class D 35,000,000 30,000,000 (walk-in) based on 25,000,000 varying levels of 20,000,000 service available. 15,000,000 Additional charges 10,000,000 also apply to organ- 5,000,000 ized group activities. 0 Camping revenue fig- 1993 1994 1995 1996 1997 1998 1999 2000 ures do not include Year 25 Parks/ Source: Illinois Department of Natural Resources. campground reserva- tion and overnight Recreation Sites housing charges. for the disabled. Nature enthusiasts will Fishing, hunting, and camping charges be pleased by the diversity of plant and comprise the bulk of those fees. Fishing Site Attendance animal life and the availability of hiking and hunting costs are primarily connected trails found throughout Illinois parks and with the purchase of licenses. The tables Recorded attendance recreation areas. As demonstrated by the on page 7 display the different license at Illinois parks and vast array of available activities and costs. The tables also convey the revenue recreational facilities accommodations, Illinois parks and recre- generating ability of each recreational totaled 43,506,000 in ation areas offer something for almost activity. It should be noted that the 1-Day the year 2000. A everyone. Lake Michigan fishing license was discon- review of the past It is important to note that in virtually all tinued in favor of the 24-Hour Sport fish- several years of atten-

Fiscal Focus 8 May/June 2001 dance figures reveals that the number of attendance figures at DNR’s parks and Education, which is part of its Office of visitors has been increasing. DNR repre- recreation facilities from 1993 to 2000 and Land Management and Education. The sentatives note that most declines are relat- the table lists the top ten sites in recorded Division of Education is responsible for ed to such factors as weather conditions in attendance for the year 2000. developing and presenting informational a particular year. The disastrous flooding programs, including outdoor educational of 1993 led to a drop in attendance that year. However, another decline occurred Percent of Park Visitors Expressing High Satisfaction with in 1991 and was budget related. After Overall Park Facilities and Programs

major cuts in DNR programs, many parks 100 operated on a seasonal schedule with 91 89 91 90

reduced hours and reduced staff for the 80 duration of the budget shortfall. The bar

chart on page 8 provides an overview of 60

Percent 40 inois State Parks 20

0 FY97 FY98 FY99 FY00 Source: Illinois Department of Natural Resources.

/ s Visitor and recreational activities. The Division 17 Parks/ Satisfaction also works with state agencies in the area of environmental education. Among the Recreation Sites Customer satisfaction programs offered to the general public, surveys are made under ordinary circumstances without available to those who charge, are the following: visit state parks and recreation areas. In • Safety Education Programs - fiscal year 2000, 90% Instructional courses aimed at improv- of site attendees who ing safety are provided in four areas: responded to surveys hunting, boating, snowmobiling, and indicated the highest trapping. The courses are designed for level of satisfaction young people between the ages of 12 16 Parks/ with facilities and pro- and 18, but anyone planning to under- take those activities would be encour- Recreation Sites grams. Additionally, 95% of those respond- aged to participate in a class. The ing conveyed high courses are mandatory for those satisfaction with between the ages of 12 and 21, depend- park/recreation area ing upon the program. Each of the cleanliness and 87% courses offers a minimum of 8 hours of expressed the highest instruction. level of satisfaction • Hunter Skills Clinics - Instructional with safety condi- courses aimed at enhancing hunting tions. Over the past abilities are provided in the following several years, satisfac- areas: women’s shotgun instruction, tion levels have white tail deer, waterfowl, and wild 28 Parks/ remained constant, as turkey. The clinics provide information Recreation Sites the bar chart illus- on safe, ethical, and helpful hunting trates. methods. Each program presentation is between 3 and 4 hours in length. Educational Opportunities COVER STORY continued, page 10 SOURCE: Illinois Department of Natural Resources In 1995, DNR estab- lished a Division of

Fiscal Focus 9 May/June 2001 Cover Story continued from page 9 Special Events from the ages of 10-15 who have vides assistance to local govern- permits are eligible to participate in ments in purchasing and/or develop- Illinois residents can also take part in a these activities. The first event (duck ing land for public parks and open number of special events that DNR hunting) will be held at the Donelly space. Funding assistance of up to sponsors throughout the year. These State Wildlife Area in DePue. The 50% of approved project expenses is activities largely center around camping, second outing (goose hunting) will possible (maximum award of hunting, and fishing. A monthly calen- $750,000 for acquisi- dar of events is available via the DNR tion projects and website. The following summary of $400,000 for develop- selected special events for 2001 provides ment/renovation proj- a representative sampling of offerings: ects). • Free Fishing Days (June 8-11) - This • The Boat Access annual statewide event includes fam- Area Development ily fishing clinics and fishing derbies Grant - This state for children, among other communi- funded program pro- ty activities. The free fishing period vides assistance to is seen as an excellent way to pro- local governments in mote its recreational value. purchasing, construct- • National Hunting and Fishing Days ing, and expanding/ (September 22-23) - Illinois’ official repairing public boat observance of this occasion (honor- and canoe access ing the contributions of anglers and areas on Illinois lakes hunters to wildlife conservation and and rivers. Funding natural resource protection) takes assistance of up to place at two sites this year: Silver 100% of approved project construction costs and up to Springs State Park in the northern take place at the Union County 90% of approved land acquisition part of the state and John A. Logan Conservation Area. College in the southern region. expenses is possible (maximum Events focus on family entertain- annual award of $200,000 per proj- ment and education. Grant Assistance for Local ect). Parks and Recreation • Fort Massac Encampment (October • The Open Lands Trust Grant 20-21) - This 29th annual event pro- In addition to managing state parks and Program - This state funded program vides a recreation of British, French, recreation areas, DNR administers a provides an opportunity for local and colonial American military occu- number of grant programs to assist governments to compete for the pur- pation of Ft. Massac between 1757 local governments and non-profit chase of land from a willing seller for and 1814. Military re-enactments groups acquire and/or develop local public conservation, open space, and and fireworks are among the other recreational areas. Grants are awarded natural resource-related recreation activities featured as part of the on a competitive basis to local govern- purposes. Funding assistance of up event. ments and not-for-profit entities. Each to 50% of qualifying project expens- program operates on a cost reimburse- es or 90% for agencies meeting crite- • Youth Waterfowl Hunts (November ment basis. There are eight specific ria of being economically disadvan- 10-11 and December 26-27) - Youth outdoor recreation grant programs taged (maximum annual award of $2 available million per project). This program is through DNR. currently authorized for only four fis- A summary of cal years, beginning with FY 2000. each program follows: • Illinois Trails Grant Programs - There are five grant programs that • The Open fall under this category area: Space Lands Acquisition and 1) Illinois Bicycle Path Program - This Development state funded grant assists local gov- Grant - This ernments purchase, build, and repair state funded public, non-motorized bike paths and program pro- directly related sports facilities.

Fiscal Focus 10 May/June 2001 Cover Story concluded Funding assistance of up to 50% of ation trails. approved project costs is possible Funding aid (maximum award of $200,000 per of up to 80% annual request). on approved projects is 2) Snowmobile Grant Program - This possible, with state funded grant helps local govern- the require- ments construct public snowmobile ment of at areas and trails. Funding assistance of least a 20% up to 50% of approved facility con- non-federal struction/repair costs and 90% of funding approved trail corridor land purchasing match. expenses is possible. 3) Snowmobile Trail Establishment Fund Growth - This state program offers assistance to Continues Illinois’ incorporated, private snowmo- bile clubs. Funding aid of up to 100% Illinois residents do acres of property including 125 major of eligible project costs is possible. not have to travel far to take advantage of parks and recreation areas. Furthermore, the state has been in a position to increase FOR MORE INFORMATION . . . its assets. In 1993, for example, 16,550 DNR provides a wide range of material to further public education on parks and acres of farm, forest and grass lands in recreation issues. A full listing can be obtained by visiting the agency's Web west- were purchased from site at http://dnr.state.il.us. Among the offerings available: Commonwealth Edison to later become Outdoor Illinois Magazine - Published twelve times a year, this periodical the Jim Edgar Panther Creek State Fish provides an in-depth profile of one state park or recreational area in each issue. and Wildlife Area. As recently as March, A yearís subscription is available for $10. 2001, 2,272 acres of land in Brown Illinois State Parks Magazine - This annual publication offers a comprehensive County known as the Buckhorn Ranch look at state parks and recreation areas (including lodges and beaches). It is were acquired for resource protection and available free of charge. public recreation. Illinois Fishing Guide - This is a 47-page annual summary of fishing sites, tips, According to DNR, approximately $90.5 and rules and regulations. It can be obtained without cost. million was spent in fiscal year 2000 for Digest of Hunting and Trapping Regulations and the Digest of Waterfowl Hunting outdoor recreation, an increase of $2.5 Regulations - These resources provide information on hunting sites, tips, and rules million or 2.9% over fiscal year 1999 and and regulations. Each is published annually and is available for no charge. $23.4 million (34.9%) over fiscal year 1998. This level of spending yielded a cost-per-acre-managed of $91.91 in fiscal 4) Off-Highway Vehicle Recreation state park and recreation sites and witness year 2000, up from the $87.92 for fiscal Program - This state funded grant is the wonderful variety that nature has to year 1999. However, the cost-per-visitor available to government agencies, not- offer. The Department of Natural remained steady at $0.85 for both years. for-profit groups, and other qualifying Resources oversees more than 400,000 agencies or individuals to establish, operate, maintain, and purchase land for off-highway vehicle parks and trails (with the stipulation that the areas must Outdoor Recreation Program be available and accessible to the pub- (expenditures in thousands) lic). Funding assistance of up to 100% FY 1998 FY 1999 FY 2000 % Change of eligible project costs is available. Actual Actual Actual FY 1999-2000 5) Recreational Trails Program - This fed- Expenditures $67,085.6 $87,954.8 $90,487.2 2.9% erally funded grant available from Cost-per-acre-managed $81.60 $87.92 $91.91 4.5% DNR provides assistance for state and Cost-per-visitor $0.80 $0.85 $0.85 0.0% local government agencies and not-for- profit organizations for the purchase, Source: Illinois Department of Natural Resources, FY 2000 Public Accountability development, repair and maintenance Project submission. of motorized and non-motorized recre-

Fiscal Focus 11 May/June 2001 Illinois Stats: Economic and Financial

Inflation Rate Illinois Personal Income Change From Prior Year Change From Prior Year (Reported Quarterly) Current economic indicators include several signs of a slowing 4.0%

8.0% Illinois economy. The May Illinois unemployment rate equaled 5.2%. 3.6% 7.0% This was 0.8% greater than the May 3.2% Up national rate, 0.2% less than the 0.4% 0.7% From a 6.0% Growth April Illinois rate, and 0.9% greater 2.8% Year Rate Up Ago From a than its prior year level. The May 5.0% Year 2.4% Ago Chicago Purchasing Managers Jul Apr Oct Jan Jun Mar Feb Nov Dec Aug Sep 4.0% Index (38.7) was an indicator of May-01 Q4/99 Q1/00 Q2/00 Q3/00 Q4/00 declining economic activity for the May-00 eighth consecutive month. An Illinois Direct Exports New Claims Unemployment Insurance index below 50 indicates more reports of decreasing economic 2.8 52 activity rather than increasing activ- 2.7 48 51.3% ity from purchasing managers. In Change 2.6 44 0.7% From a May, the average Illinois manufac- Change Year 40 turing work week was 0.7 hours 2.5 From a Ago Year

below its prior year level, while Billions of Dollars Thousands 36 2.4 Ago new claims for unemployment 32 2.3 insurance had jumped over 50%. Jul Oct Jan Jun Mar

28 Feb Nov Dec Aug Sep May Jul Apr Oct Jan Jun Apr-01 Apr-00 Mar Feb Nov Dec Aug Sep May-01 May-00 Chicago Purchasing Managers Index Average Hours Worked Illinois Manufacturing Illinois Unemployment Rate 60 42.0 55 14.9 5.5 Change 41.6 50 From a 5.2 Year 41.2 Change Up Ago 45 From a From a 40.8 4.9 Year Year 40 40.4 Ago 0.7 Ago 4.6 hrs. 0.9% 35 40.0 4.3 30 39.6 Jul Jul Apr Oct Jan Jun Apr Oct Jan Jun Mar Feb Nov Dec Aug Sep Mar Feb Nov Aug Sep 4.0 Dec May-01 May-00 Jul May-01 May-00 Apr Oct Jan Jun Mar Feb Nov Dec Aug Sep May-01 May-00 Interest Rate Trends Illinois Housing Permits The latest DRI-WEFA forecast of 10% 6.0 the U.S. economy expects modest 9% 8% 5.5 economic growth during the next 5.6% 7% Change year. After increasing at a 1.3% 5.0 From a 6% Year annual rate during the second quar- 5% 4.5 Ago ter of calendar 2001, the growth rate 4% 3%

Thousands 4.0 for U.S. real Gross Domestic 2% 3.5 Product (GDP) is expected vary 1% 0% 3.0 between 1.8% and 2.7% during the 2000 Apr-01 May-01 Jul Oct Jan Jun Prime Interest Rate Mar Feb Nov Dec Aug Sep following four quarters. After May 3-Month Treasury Bill Rate Apr-01 Apr-00 increasing at a 3.7% rate during the General Obligation Municipal 20-Year Rate second quarter of 2001, the inflation Sources: rate is forecast to decline to 2.6% Illinois Department of Employment Security: during the third quarter of 2001 and Economic Outlook Hours Worked in Manufacturing, Unemployment fall below 2.0% during the follow- 4% Insurance Claims ing three quarters. U.S. Census Bureau: 3% Direct Exports, Housing Permits U.S. Bureau of Labor Statistics: 2% Unemployment Rates, Consumer Price Index U.S. Bureau of Economic Analysis: DRI — WEFA: 1% Personal Income Economic Forecasts 0% Purchasing Managers Association of Chicago: Federal Reserve System: Q2/01 Q3/01 Q4/01 Q1/02 Q2/02 Purchasing Managers Index Interest Rates Change in U.S. GDP Inflation Rate

Fiscal Focus 12 May/June 2001 GASB 34 concluded as those that have revenues, expendi- approach for reporting infrastructure be developed. Phase 2, which began in tures, assets, or liabilities that account for assets will provide supportive data such early 2001, is the actual implementation at least 10 percent of corresponding as the results from their regular asset of the Master Plan. totals for all governmental or enterprise conditional assessments, estimated main- The IOC is currently working closely funds and at least 5 percent of the aggre- tenance and preservation costs, the con- with KPMG, Deloitte & Touche, gate amount for all governmental and dition level intended to be maintained Washington, Pittman and McKeever, enterprise funds. Other funds deemed and budgetary trend information. Hill/Taylor and several other consulting integral to understanding a state’s finan- firms to implement the Master Plan. cial position can be added at the discre- IMPLEMENTATION IN THE Major implementation activities include: tion of management. STATE OF ILLINOIS educating IOC staff, State agency per- The financial reporting requirements for The State of Illinois is required to imple- sonnel and our constituents on the new the fund level statements are determined ment the provisions of GASB 34 for its reporting requirements; developing/ by the fund type. The fund level finan- financial statements for the period end- revising accounting and reporting poli- cial statements include the following: ing June 30, 2002. The Illinois Office of cies; revising the State of Illinois GAAP Governmental Funds, Proprietary Funds, the Comptroller (IOC) is leading the reporting packages; providing training and Fiduciary Funds. State’s implementation efforts by spon- on the new reporting requirements and the new reporting packages; and estab- Finally, the basic financial statements soring the “GASB 34 Financial lishing regular agency communication will still include explanatory footnotes. Reporting Project.” The Project’s goal is and an assessment tool to ensure State GASB is in the process of issuing a new to produce GASB 34 compliant State of Agency preparedness for the new report- accounting standard that would signifi- Illinois financial statements for the peri- ing requirements. cantly change the footnote disclosure od ending June 30, 2002 and to continue requirement and would be effective at to earn the GFOA Certificate of The State’s implementation efforts will the same time GASB 34 would be imple- Achievement for Excellence in Financial continue through 2002. Information mented. Reporting. regarding the status of the GASB 34 The Project has been divided into two implementation project is available on the 3. REQUIRED SUPPLEMENTARY phases: Phase 1 - Readiness Assessment Comptroller’s Website, www.ioc.state.il.us. INFORMATION and Phase 2 - Implementation. Phase 1, Training presentations, including compo- nent unit training, implementation Although the MD&A section is consid- which was completed in August 2000, updates, Fiscal Focus newsletter articles ered part of Required Supplementary included an assessment of the State’s and other GASB 34 resources are avail- Information (RSI), it precedes the basic readiness to implement GASB 34 and able by clicking on the site. Further financial statements. Other RSI, as the development of a GASB 34 imple- information regarding GASB 34 imple- required by GASB 34, will be presented mentation work plan called the Master mentation may be received by contacting following the footnotes to the basic Plan. The Master Plan addresses the Don Templeman, Project Sponsor, at financial statements. The RSI section policies and procedures that will need to 217-782-5258. will include information on budgetary be reviewed and revised, the system’s comparisons for the general fund and capabilities that will need to be assessed major special revenue funds. RSI is the and modified and training courses and section in which users of the modified communications tools that will need to

FOCUS ON REVENUE concluded Illinois Sports Facilities Fund, 8% to the Of the $13 million deposited into the pared to $32.9 million in fiscal year 2000. Local Tourism Fund, 6% to the Illinois Sports Facilities Fund, $8 million As a result, the General Revenue Fund, International Tourism Fund, and the is paid back to the General Revenue Fund. which at one time received all hotel tax remaining monies to the General Revenue Currently, 21% of hotel taxes deposited revenue, now can utilize only a small por- Fund. Therefore, while state hotel tax rev- into the General Revenue Fund are trans- tion of hotel taxes for general spending. enue has increased 90.7% over the past ferred to the Tourism Promotion Fund and decade, hotel taxes deposited into the this percent has been increased several General Revenue Fund have increased only times over the past ten years. In fiscal year 59.3%. 1991, $18.1 million was transferred com-

Fiscal Focus 13 May/June 2001 General Funds Spending Through Eleven Months Up 6.2% Over FY 2000 A Monthly Look Through May, General Funds cash spend- At State Finance ing totaled $22.270 billion, $1.307 billion or 6.2% above last year. This increase includes a $108 million decrease in lapse ital period spending, a $1.077 billion increase in spending from current year appropriations, Statistics and $338 million more in transfers out. Awards and grants spending increased The Heartbeat of Illinois’ Finance $685 million or 5.2% while operations increased $306 million or 5.2% and trans- fers out jumped $338 million or 19.3% General Funds Balance Ends May at $750 Million (including the $260 million Illinois FIRST transfer). After eleven months of fiscal The General Funds cash balance (which have recorded increases through May year 2001, expenditures have exceeded includes the General Revenue Fund and include: federal sources (up $169 mil- revenues by $767 million resulting in a three school funds) ended May at $750 lion or 4.7%); riverboat gambling trans- decrease in the available cash balance from million, $732 million or 49.4% below fers (up $110 million or 36.7%); invest- $1.517 billion at the beginning of the fiscal last May. Nearly all of the decline can be ment income (up $44 million or 20.7%); year to $750 million at the end of May. attributed to the General Revenue Fund, public utility taxes (up $36 million or which dropped $725 million while the 3.5%) and insurance taxes and fees (up Of the $685 million increase in grant three school funds’ cumulative balance $27 million or 15.9%). spending, Public Aid is up $285 million or declined $7 million. Since the beginning 6.5% through May while the Department of Major sources of revenue to the General of the fiscal year the General Funds bal- Human Services has increased by $95 mil- Funds that have decreased through May ance has declined by $767 million. lion or 4.1%. Awards and grants education are corporate income taxes (down $166 spending is up $219 million from last May Three factors help explain this year’s million or 15.3%), other transfers in with the State Board of Education up $99 significant decline in the General Funds (down $86 million or 18.8%) and sales million, teacher’s retirement up $76 million balance. First, revenues have increased taxes (down $41 million or 0.7%). The and higher education up $44 million. only $409 million or 1.9% through decline in corporate income taxes is due eleven months and will fall well below in large part to a one-time payment of Spending for operations totaled $6.166 bil- both the Bureau of the Budget and the approximately $130 million last March. lion through May, $306 million higher Economic and Fiscal Commission esti- The decrease in other transfers in is due than comparable expenditures last year. mates. Second, compared to this time to the fact that last fiscal year $76 mil- Higher education operations are up 7.6% last year, appropriations are up $1.122 lion had been transferred from the or $115 million, while all other operations billion providing ample room for the Income Tax Refund Fund and $71 mil- increased $191 million (4.4%). $1.077 billion increase in eleven-month lion had been transferred from the spending from this year’s appropriations. University of Illinois Hospital Services Looking Ahead Third, $260 million was transferred in Fund to the General Revenue Fund. Over the past few years, General Funds July from the General Revenue Fund to Through eleven months of fiscal year expenditures in the first three-quarters of the Fund for Illinois’ Future as part of the 2001, only $37.4 million has been trans- the fiscal year have increasingly outpaced Illinois FIRST infrastructure program. ferred from the University of Illinois revenues. This growing imbalance has Hospital Services Fund. The $41 mil- mandated a sizeable General Funds bal- General Funds Revenues lion decrease in sales tax receipts reflects ance to start the fiscal year in order to avert Through Eleven Months Up the loss of an estimated $150 to $175 cash flow problems. Even the $1.517 bil- 1.9% Over FY 2000 million due to the temporary exemption lion balance to start this fiscal year was not of motor fuel sales from the tax base. enough to avoid cash flow difficulties Through eleven months of fiscal year However, since the expiration of the throughout the year. It now appears that 2001, General Funds revenues totaled temporary exemption at the end of the General Funds balance to start fiscal $21.503 billion, $409 million or 1.9% December, sales taxes have failed to year 2002 will be approximately $400 mil- higher than last year. Of this year-over- show any growth. The $24 million lion less than last year. If this occurs, cash year increase, individual income taxes decline in sales taxes revenue from last flow difficulties could very well return to accounted for $296 million or 72.4%. May to this May is particularly disap- the General Funds throughout a large part Other major sources of revenue that pointing. of the 2002 fiscal year. Fiscal Focus 14 May/June 2001 MAY 2001

GENERAL FUNDS ANALYSIS OF EXPENDITURES GENERAL FUNDS REVENUES, EXPENDITURES AND BALANCES (Dollars in Millions) (Dollars in Millions) Eleven Months Eleven Months Change From Change From May Prior Year May Prior Year Expenditures: 2001 FY 2001 $ % Total General Funds 2001 FY 2001 $ % Awards and Grants: Available Balance $ 577 $ 1,517 $ 166 12.3 % Public Aid $ 520 $ 4,652 $ 285 6.5 % Revenues 2,146 21,503 409 1.9 Elem. & Sec. Education: Expenditures 1,973 22,270 1,307 6.2 State Board of Education 320 4,111 99 2.5 Ending Balance $ 750 $ 750 $ (732) (49.4) % Teachers Retirement 61 671 76 12.8 Total, Elem. & Sec. Education $ 381 $ 4,782 $ 175 3.8 % General Revenue Fund Available Balance $ 250 $ 997 $ (19) (1.9) % Human Services 182 2,440 95 4.1 Revenues 1,836 18,437 292 1.6 Higher Education 95 782 44 6.0 Expenditures 1,759 19,107 998 5.5 All Other Grants 86 1,32486 6.9 Ending Balance $ 327 $ 327 $ (725) (68.9) % Total, Awards and Grants $ 1,264$ 13,980 $ 685 5.2 % Common School Special Account Fund Operations: Available Balance $ 61 $ 69 $ 1 1.5 % Other Agencies $ 406 $ 4,533 $ 191 4.4 % Revenues 127 1,353 (11) (0.8) Higher Education 92 1,633 115 7.6 Expenditures 118 1,352 (14) (1.0) Total, Operations $ 498 $ 6,166 $ 306 5.2 % Ending Balance $ 70 $ 70 $ 46.1 % Transfers Out $ 215 $ 2,088 $ 338 19.3 % Education Assistance Fund All Other $ 4 $ 52 $ (42) (44.7) % Available Balance $ 253 $ 415 $ 205 97.6 % Vouchers Payable Adjustment $ (8) $ (16) $ 20 N/A Revenues 97 1,010 120 13.5 Total, Expenditures $ 1,973 $ 22,270 $ 1,307 6.2 % Expenditures 25 1,100 336 44.0 Ending Balance $ 325 $ 325 $ (11) (3.3) %

Common School Fund COMPARISON OF SPENDING FOR OPERATIONS BY OBJECT Available Balance $ 13 $ 36 $ (21) (36.8) % (Dollars in Millions) Revenues 320 2,62499 3.9 Eleven Months Expenditures 305 2,632 78 3.1 Change From Ending Balance $ 28 $ 28 $ 0 0.0 % May Prior Year 2001 FY 2001 $ % Note: Total General Funds excludes interfund transfers while the individual funds include Personal Services: such transfers. Numbers may not add due to rounding. Regular Positions $ 200 $ 2,159 $ 100 4.9 % Other Personal Services 22 23413 5.9 Total, Personal Services $ 222 $ 2,393 $ 113 5.0 % Contribution Retirement 41 440 21 5.0 GENERAL FUNDS REVENUES Contribution Social Security 14152 7 4.8 (Dollars in Millions) Contribution Group Insurance 53 582 (7) (1.2) Eleven Months Contractual Services 36 476 28 6.3 Change From Travel 2 22 0 0.0 May Prior Year Commodities 10 119 (4) (3.3) Revenues: 2001 FY 2001 $ % Printing 1 8 (1) (11.1) State Sources: Equipment 5 41 (3) (6.8) Cash Receipts: Electronic Data Processing 5 44 0 0.0 Income Taxes: Telecommunications 446 0 0.0 Individual $ 803 $ 7,290 $ 296 4.2 % Automotive Equipment 1 17 2 13.3 Corporate 48 922 (166) (15.3) Other Operations 1041,826 150 8.9 Total, Income Taxes $ 851 $ 8,212 $ 130 1.6 % Total, Operations $ 498 $ 6,166 $ 306 5.2 % Sales Taxes 510 5,443 (41) (0.7) Other Sources: Public Utility Taxes 126 1,053 36 3.5 Cigarette Taxes 33 366 0 0.0 COMPARISON OF SPENDING FOR AWARDS AND GRANTS Inheritance Tax (gross) 31 325 1 0.3 (Dollars in Millions) Liquor Gallonage Taxes 14113 1 0.9 Eleven Months Insurance Taxes and Fees 2 197 27 15.9 Change From Corporation Franchise May Prior Year Tax and Fees 11 130 6 4.8 2001 FY 2001 $ % Investment Income 21 257 44 20.7 State Board of Education: Cook County IGT 0 222 8 3.7 General State Aid $ 248 $ 2,491 $ (8) (0.3) % Other 20 208 0 0.0 Categoricals 72 1,620 107 7.1 Total, Other Sources $ 258 $ 2,871 $ 123 4.5 % Other 0 0 0 0.0 Total, Cash Receipts $ 1,619 $ 16,526 $ 212 1.3 % Public Aid 520 4,652 285 6.5 Transfers In: Lottery Fund $ 59 $ 452 $ 1 0.2 % Human Services 182 2,440 95 4.1 State Gaming Fund 35 410 110 36.7 Higher Education: Protest Fund 1 9 3 50.0 Student Assistance Commission 12 385 29 8.1 (86)Other (18.8) Funds 24372Community College Board 64315 18 6.1 Total, Transfers In $ 119 $ 1,243 $ 28 2.3 % Other 19 82 (3) (3.5) Total, State Sources $ 1,738 $ 17,769 $ 240 1.4 % Teacher's Retirement 61 671 76 12.8 Federal Sources: Children and Family Services 24612 (13) (2.1) Cash Receipts $ 397 $ 3,638 $ 195 5.7 % Aging 18 202 28 16.1 Transfers In 11 96 (26) (21.3) Revenue 0 91 10 12.3 Total, Federal Sources $ 408 $ 3,734 $ 169 4.7 % All Other 44 419 61 17.0 Total, Revenues $ 2,146 $ 21,503 $ 409 1.9 % Total, Awards and Grants $ 1,264$ 13,980 $ 685 5.2 %

Fiscal Focus 15 May/June 2001 Legislative Update...

Comptroller Hynes’ legislative agenda must be paid off or scheduled under a stealing cemetery artifacts with the intent received strong support from the General deferred payment plan before a contract to resell. Assembly that sent four of his five legisla- can be entered into. Also allows agencies Local Government (HB 1883) contains tive proposals to the Governor’s desk. to access the Comptroller’s Offset system administrative changes relating to the These include: to check if a contract is delinquent in debt reporting requirements of special districts to the state. Prompt Payment Reform (HB1728) to the Comptroller’s Office. lowers the payment period from 3 months Cemetery Care and Funeral Home Fiscal Responsibility Agenda/Rainy to 2 months before state agencies must pay Reforms (HB 2283) caps a two-year effort Day Reforms (HB 2159) contains late interest penalties on payments to ven- of Comptroller Hynes to gain additional Comptroller Hynes’ plan for leading dors. Further, requires state agencies to protections for consumers of pre-need Illinois to fiscal stability which was held in track the payment process so vendors can contracts in part by eliminating the “fine the State Senate. Nonetheless, a compo- find out if late interest penalties are owed print” in contracts and requiring the distri- nent of his package was included in to them. bution of a consumer protection booklet so HB3493 (Public Act 92-11) which author- consumers are informed of their rights. Contract Debt Certification (SB1039) izes the Comptroller to tap into the Budget Further, gives local governments tempo- requires state contractors to certify that Stabilization Fund to help lessen the rary access to abandoned cemeteries for they don’t owe debt to the state. Debt impact of revenue shortfalls. clean-up purposes and creates penalties for

COMPTROLLER DANIEL W. HYNES Contact us at our web address: http://www.ioc.state.il.us

COMPTROLLER Capitol Building Springfield, Illinois 62706