Illinois ended August with $62 million in its General Funds account, $45 million more than the $17 million left at the end of August 1987, said Rick Davis, press secretary for the state of Illinois.

The Illinois balance at the end of July 1988 was $265 million, which is $203 million more than August’s ending balance. July and August are the first two months of fiscal year 1988.

The fiscal year runs from July 1 though June 30.

Each spring the General Assembly develops a budget based on revenue projections. “The budget conforms with the amount of money expected to be taken in with fees,” Davis said. “A balance of $200 million or more is needed to maintain a healthy balance.”

In 1986 and 1987, Ilinois spent $500 million more than the revenues it brought in, which is the reason Governor James Thompson asked for a tax increase the past two springs. “The cost flow was at a dangerously low level,” Davis said.

Taxes for cigarettes and liquor are often the first to rise when other tax increase bills do not pass.

August revenues that were higher than last year’s include individual income taxes, up $64 million, cigarette and liquor taxes, up $1 million each, and investment income tax, up $3 million. In addition, lottery funds brought the state $3 million more this August than last.

Revenues that were down last month were corporate taxes, down $7 million, public utility taxes, down $6 million, and inheritance taxes, which were down $5 million. Other funds were down $140 million from last year. Total revenues in August 1988 were $941 million and in 1987 were $954 million.

“Expenditures for higher education are up $7 million this year, but proponents (for higher education) say that’s not enough,” Davis said. Most other expenditures also were up, with the total expenditures for August 1987 at $1,089 and August 1988 at $1,144, a total of $55 million higher this year.

Davis said there are no predictions for the 1989 budget, although he said it probably will end up around $200 million again. “The General Assembly has appropriated more revenues for the FY89 budget than they did for the FY88 budget. They cut back a lot of programs and came in with a very responsible budget.”