Ill. budget has $900 million hole - KMOV.com

Ill. budget has $900 million hole

SPRINGFIELD, Ill. (AP) -- Gov. Pat Quinn's office says Illinois government faces a new $900 million budget deficit because of declining revenues linked to unemployment.

In an interview Wednesday with The Associated Press, Quinn budget director David Vaught said fixing the deficit will require more spending cuts, additional borrowing and quick action to raise income taxes early next year.

Vaught said he now expects income tax revenue to be $850 million lower than projected, largely because unemployment has continued to climb.

In addition, gambling revenue is now expected to be off $50 million because a Joliet casino was closed for several months after a fire.

The state budget already depends heavily on debt, unpaid bills and shortcuts to close a deficit that had topped $11 billion.

(Copyright 2009 by The Associated Press. All Rights Reserved.)

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