FW Rank: 47

1992 Rank: 42

Population: 11.5 million

Moody's bond rating: Aa

Standard & Poor's bond rating: AA-

Governor: Jim Edgar, Republican

Legislature: Democratic majority in House; Republican Majority in Senate

-- Ranking pluses: Strategic planning at agency level; some attempts at quality management and pilot program to develop better efficiency measures; very good financial reporting with GFOA Certificate of Achievement and efforts made at making financial material understandable to non-CPAs.

-- Ranking minuses: Very short outlook on public revenue estimates; annual shift of liabilities into next year grew to over $1 billion in fiscal 1992, though it will come down somewhat in current year; GAAP deficit has risen steadily from $557 million in fiscal 1990 to $1.7 billion in fiscal 1992; some use of non-recurring revenues in fiscal 1992; payments behind schedule on pension funding; extremely slow at paying Medicaid bills; declining bond ratings.

-- Comments: "High Noon" department: Showdown in progress as governor threatens to make state's temporary income tax surcharge permanent and take revenues it generates away from Illinois cities and put them entirely in state coffers. If this happens, Chicago claims it will face a $35 million hole in the current budget and a $65 million loss next year. Frustrated Chicago Mayor Richard Daley even joked to reporters about secession. Other heated issue is state's highly unpopular one-year Medicaid tax, including "granny tax" of $6.30 a day on privately paying nursing home patients.

Source: "The State of the States," Financial World Magazine, May 11, 1993 (Vol. 161, No. 10); New York, NY.