In Illinois all of the funds are classified as appropriated or non-appropriated. Appropriated funds are then classified into eight major funds. Non-appropriated funds are made up of federal and state trust funds (State of Illinois, 2012). The following are the major funds in the State of Illinois:
The funds from the General Fund are generated from income taxes, sales tax, and other taxes and fees from the State. The funds from the general fund maintain operating and administrative expenses of the majority of the state agencies. The funds that make up the General Fund are the General Revenue Fund, Education Assistance Fund, Common School Fund and The General Revenue-Common School Special Account Fund (State of Illinois, 2012).
The funds are generated from taxes from motor fuel, vehicle registrations, as well as licenses and fees from vehicles. The highway fund receives and distributes special assessments at the state and local level in relation to transportation-related activities (State of Illinois, 2012).
Special State Funds
The funding is generated from taxes and fees. This fund symbolizes the accounts that are restricted to revenues and expenditures of a specific source. The special state fund is responsible for maintaining medical assistance, children’s services, environmental cleanup, financial regulation and health insurance. They are specifically designated in Section 5 of the State Finance Act (30 ILCS 105/5) as special funds in the State Treasury and not classified anywhere else (State of Illinois, 2012).
Bond Financed Funds
Bond Financed Funds are generated from Build Illinois and General Obligation bonds. This fund receives and administers the earnings to a number of state bond issues. This fund also takes care of the capital improvements of local schools, state facilities, higher education facilities, as well as the development of coal brining power plants, local water and wastewater treatment facilities, public transportation, airports, environmental programs and economic development projects (State of Illinois, 2012).
Debt Service Funds
These funds are generated from transfers of other funds. This fund is responsible for the payment of interest and principal on debt obligation resources. The debt service fund also provides for the debt service payments on state bonds (State of Illinois, 2012).
Federal Trust Funds
The funds are generated from federal grants. This fund supports grants and contracts between state agencies and the federal government. The funds are only administered for specific purposes based on the terms of grants and contracts. This fund helps a variety of programs which includes education, healthcare, human services, community development, transportation and energy (State of Illinois, 2012).
The funds come from repayment on loans from projects. This fund assists with the operations of state agencies that offer their services to other state agencies on a cost reimbursement basis and also supports local capital projects. The money allocated in this fund depends on the requirements of intra-governmental service requirements and the allocation of money to other state agencies (State of Illinois, 2012).
State Trust Funds
The funds are generated from various sources. This fund keeps the funds on behalf entities such as pensions. This fund is established by law and is only allowed to be used for specific purposes (State of Illinois, 2012).
In conclusion, the major funds are appropriated and need to be set aside and only allowed to be used for specific purposes. Non-appropriated funds are made up federal, state, and some special state funds.
Illinois State Budget Fiscal Year 2013. (2012, January). In www.state.il.us. Retrieved April 1, 2012, from http://www.state.il.us/budget/FY2013/FY13OperatingBudget.pdf