Special state funds have money in them meant for specific purposes
The Illinois House last week approved a bill that would allocate $817 million to human-services programs and higher education. Proponents said the bill will not make the state’s financial problems worse since the cash is available to cover the spending for the rest of the fiscal year that ends June 30.
The reason the money is available is the complex (some would say convoluted) way state finances operate.
Q: So where is the money coming from?
A: Essentially, it is state income tax revenue. Specifically, it is coming from two funds set up in 2011 when the temporary income tax increase was enacted. The funds were specifically created to help human services and education. Each gets a tiny part of income tax revenue as it comes into the state. Money is deposited into the funds automatically. Since income taxes continually come into the state, the two funds continually get additional money.
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