Ill. governor signs new budget, outlines deep cuts

[July 02, 2010]  CHICAGO (AP) -- Illinois Gov. Pat Quinn has signed a state budget that cuts spending and has warned that further cuts are likely.

The new budget includes $1.4 billion in cuts to schools, hospitals and prisons as the state grapples with a roughly $13 billion deficit -- the biggest deficit in its history.

But Quinn postponed a decision that could lead to far more painful cuts. The Chicago Democrat didn't say how he'll make $3.7 billion in payments to government pension systems. He hopes that legislators will reverse themselves and vote to borrow the pension money.

Lawmakers gave Quinn authority to paper over the deficit by taking money out of special funds, borrowing against future revenue and simply letting bills go unpaid until the next fiscal year.

[Associated Press]

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