State Stix

ON June 30, the end of fiscal year 1983, the state's general funds balance was $110.15 million — achieved by borrowing $150 million in June from a $200 million line of credit established with the First National Bank of Chicago. (The money must be paid back June 1, 1984, at 5.01 percent interest, or less if the prime rate drops.) Fiscal 1984 could be another tough year. The sales tax increase is not effective until January.

The Bureau of the Budget (BOB) sees a weak cash flow outlook for the first six months of fiscal 1984 and expects the state to borrow the remaining $50 million from its credit line in July or August.

In September, lapse period spending (bills that must be paid in the 90-day period after the end of the fiscal year) could take another chunk out of general funds. Last year it was a record $495 million.

The General Assembly has again granted the governor the authority to make discretionary transfers into general funds from other state funds. This time the maximum to be transferred is $100 million; last year it was $45 million. Transfers can take place between July and December 1983 and must be restored by June 30, 1984. The delayed school payment must also be made up by then and the first payback to state pension plans, funded at 60 percent instead of 71 percent to keep the state solvent in fiscal 1983. Neither the BOB nor the Illinois Economic and Fiscal Commission sees a quick surge in state revenues.

Besides the June 30 end-of-month/end-of-year balance of $110.15 million, the state had an average daily available balance in general funds of $52.24 million in June and a combined funds end-of-month balance of $179.32 million.

The Illinois Extended Benefit Program, a 13-week extension to the state Unemployment Insurance Program, was suspended the week ending June 25. Illinois is the 35th state to suspend this program which automatically terminates when the insured unemployment rate falls below 6 percent. Unemployed workers affected by the suspension may qualify for benefits under the 12-week Federal Supplemental Compensation Program.

The final statewide seasonally adjusted unemployment rate in June was 12.4 percent, up .4 percent from May. The unemployment rate in Illinois is lower than in the other major industrial states: Michigan, 15.2 percent; Ohio, 12.8 percent; and Pennsylvania, 12.6 percent.

There were dramatic upturns in Illinois construction and retail sales hiring in June. Automobile and steel production also increased but even if full production is achieved, there will be fewer workers employed due to advances in automation.

The final seasonally adjusted unemployment rates in April in the state's Standard Metropolitan Statistical Areas were: Bloomington-Normal, 8.2 percent; Champaign-Urbana-Rantoul, 6.6 percent; Chicago, 10.8 percent; Davenport-Rock Island-Moline (Illinois Sector), 17.1 percent; Decatur, 16.4 percent; Kankakee, 17.9 percent; Peoria, 16.3 percent; Rockford, 15.6 percent; Springfield, 9.2 percent; East St. Louis (Illinois Sector), 12.3 percent. The unemployment rate had decreased in all areas since March, except for Champaign-Urbana-Rantoul where it remained the same.

August 1983 | Illinois Issues | 31