Illinois Trims Budget by $50 Million

By CHRISTOPHER WILLS Associated Press Writer

September 25, 2001, 7:49 PM EDT

SPRINGFIELD, Ill. -- Gov. George Ryan announced $50 million in budget cuts Tuesday, blaming heightened economic uncertainty in the wake of the Sept. 11 terrorist attacks.

The cuts include a freeze on most state hiring and new equipment purchases, and reductions in out-of-state travel. New restrictions were also put on how state agencies can spend unused money in their accounts.

The terror attacks "just absolutely torpedoed consumer confidence, at least in the near term," said Stephen Schnorf, Ryan's budget director. That could leave Illinois without hundreds of millions of dollars in expected tax revenue, he said.

"The assumptions on which we had built this year's budget are now out the window," he said.

Although the cuts apply only to agencies under Ryan's control, the governor will ask other segments of government, including the secretary of state's office and public universities, to tighten their belts, too.

Schnorf said that even before the terror attacks, Illinois' $53.4 billion budget faced pressure because income tax revenues were lower than expected. Copyright © 2001, The Associated Press

-- Anonymous, September 25, 2001