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By DIANE ROSS IT'S THOMPSON'S capital budget, rather than his operating budget, that shows clearly how he plans to cut in half the increase in state spending and still "move Illinois forward" in fiscal 1982. But it's hard to tell exactly how much Thompson plans to hold down construction spending since his Bureau of the Budget writes the capital budget in terms of appropriations and cannot provide revenue and spending figures. Thompson's capital budget, which accounts for one-fifth of the state's overall $14,934 billion budget, calls for the General Assembly to appropriate a total of $3,054 billion for construction in fiscal 1982, down $362 million, or 10 percent, from the $3,417 billion actually appropriated for fiscal 1981. Appropriations, however, are only a ceiling on spending, and appropriations usually run about 30 percent ahead of actual spending. This year Thompson has obviously dropped the appropriations ceiling in an effort to hold down the increase in spending. Of the total capital budget, more than two-thirds, or $2,210 billion, would be reappropriated to continue construction begun in previous years. Less than one-third, or $844 million, would be appropriated to begin new construction in fiscal 1982. Proposed fiscal 1982 reappropriations are up $263 million or 13 percent over fiscal 1981 reappropriations. Proposed new appropriations for fiscal 1982, however, are down $625 million, or 42 percent compared to new appropriations for fiscal 1981. Since most capital projects take a number of years to complete, there is always more continuing construction, and thus reappropriations, than new construction or new appropriations. Yet new appropriations are the key to controlling spending, and this year Thompson has decreased new appropriations in an effort to hold down the increase in spending. Capital revenue comes from three general sources: state revenue including taxes and other receipts, state general obligation bond sales and federal revenue. Of the total $3,054 billion budget, $1.66 billion is appropriated from state revenue, $1.30 billion from state bond sales, and $89.6 million from federal revenue. The BOB cannot provide actual figures, but puts fiscal 1982 capital revenue at about $1.5 billion. Capital appropriations, then run about 50 percent ahead of revenue. Bond revenue may represent about one-third of total capital appropriations, and it represents only about 33 percent of actual capital revenue. As Illinois loses federal revenue and state revenue shows less of an increase, bond revenue may become more important because of its potential under Illinois' AAA credit rating. To date (as of May 1), the General Assembly over the years has authorized a total of $5,078 billion in the sale of general obligation bonds. To date, Illinois has sold a total of $3,675 billion in bonds. That means $1,403 billion of the authorization remains unsold. To date, the state bond debt is $4,674 billion ($2,869 billion in principal and $1,805 billion in interest). Bond revenue then, clearly has great potential, but the revenue generated by selling bonds must always be weighed against the inevitable increase in spending to pay back the bonds. To put this potential into perspective, if the remaining portion of the current authorization were sold, the revenue would equal about 11 percent of all the revenue Illinois will generate in fiscal 1982. But if the total current debt (scheduled to be paid over a number of years) was paid at once, the spending would equal about 38 percent of all state spending budgeted in fiscal 1982. Bond authorization, under the Thompson administration (fiscal 1978 through fiscal 1981) has increased $1,874 billion or 58 percent. That's an average increase of $468.5 million or 14 percent each year. Thompson is calling for a modest $111
Bond sales, under the Thompson administration, have stayed at the $400 million level each year, and for fiscal 1982, he is calling for $380 million in bond sales, down $10 million or 2 percent from the $390 million scheduled to be sold by the end of fiscal 1981. (He would sell even less in fiscal 1982, but some sales scheduled for fiscal 1981 have been postponed to fiscal 1982 due to the fluctuating market.) The state debt, under the Thompson administration, has increased $1.9 billion, or 67 percent. That's an average increase of $475 million or 16 percent each year. June 1981 /Illinois Issues/9 Bond repayment, or debt service, under the Thompson administration has increased $134 million or 91 percent. That's an average increase of $33 million or 22 percent each year. In fiscal 1982 Thompson is calling for $308.4 million in bond repayment (debt service), an increase of $27.3 million, or 9 percent over that actually repaid in fiscal 1981. (Debt service as a percent of overall state spending has gone from 2.6 in fiscal 1978, to 2.9 percent in fiscal 1981. Debt service is projected to reach 3.1 percent of overall state spending in fiscal 1982.) Illinois currently sells six kinds of general obligation bonds: Transportation Series A (state highways) and Transportation Series B (local mass transit), Capital Development, Anti-Pollution, School Construction, and Coal Development. The state at one time authorized the sale of Educational Institution and Public Welfare bonds, but all authorized bonds have been sold. The kinds of bonds sold correspond to the major kinds of capital programs. Transportation, the largest of the capital programs, involves construction and maintenance of state highways, improvement of local mass transit, and development of railroads, airports and waterways. Capital development, the next largest, encompasses construction, expansion, renovation, rehabilitation and maintenance of state facilities such as mental health institutions, prisons and universities. Capital development also covers fuel conversion, energy conservation and land acquisition in connection with state facilities. The three smaller capital programs involve construction of local waste water treatment (sewer) facilities, construction of local elementary and secondary schools, and development of state energy projects.
Thompson's fiscal 1982 capital development program, budgeted at $550 million on March 4, includes these major projects totaling $113.1 million: • $9.6 million to convert power plants at Eastern and Western Illinois Universities; • $5 million for overall conservation projects; • $10 million to begin conversion of Manteno Mental Health Center in Kankakee County for a number of uses including a veterans home and a correctional center; • $9.9 million to construct a combined laboratory for the Illinois Environmental Protection Agency, the Illinois Department of Public Health, and the Southern Illinois University School of Medicine; • $9.7 million to add on to the University of Illinois library; • $9.4 million for a multipurpose building at Northeastern Illinois University; • $5.5 million to add space for 350 new beds at the Sheridan Correctional Center; • $4.2 million for space to add 200 beds at the East Moline Correctional Center; • $19.4 million for rehabilitation of state prisons; • $13 million for improvement of mental health facilities; • $9 million for upgrading the electrical system in the Capitol Complex; • $2.4 million for improvements to state fairgrounds; • $2 million for upgrading military and naval department armories; • $4 million for land acquisition ($2.6 million for continuing projects and $1.4 million to preserve natural areas). Thompson replaced his March 4 "bare bones" transportation program, originally budgeted at $2,157 billion, with a meatier alternative presented March 24, but the March 24 transportation budget does not increase the amount of bonds to be sold. 10/June 1981/Illinois Issues |
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