Illinois' financial condition continues to decline according to the state's comprehensive annual report.
Illinois' net position - assets minus liabilities - stands at nearly $48-billion according to the state auditor general. That compares to a deficit of $18-billion six years ago.
State Auditor General Bill Holland says Illinois has lacked the proper financial reporting processes to keep track of the deficit and relies too heavily on after-the-fact reviews. Holland also notes that while there have been some improvements, various state agencies were late submitting their financial statements -- something he says could jeopardize federal funding.
Holland says there has been improvement. The governor's office says it's working to implement a new accounting system, that it plans to use a new software program, and that it's increasing training. All of that may help to improve the financial reporting side of things, but lawmakers will still have difficult negotiations ahead. Illinois' income tax hike is set to rollback in less than 9 months, and that could signal more cuts or a deeper deficit.
