A stopgap spending plan that Illinois lawmakers approved this summer in the midst of a long-lasting budget crisis is quickly draining the state's rainy day fund. Experts say Illinois should have $1.5 to $3 billion to help weather an economic downturn.
As of Friday, it had about $180 million. In a matter of weeks, the balance will be zero. Using the rainy day fund for cash flow is nothing new in financially troubled Illinois.
Financial watchdogs and at least one major credit rating agency warn that it's a bad move to empty the $275 million fund to pay for items such as food and medicine in the absence of a full budget.
They say it means that when a recession hits, new taxes or spending cuts will be severe.
