Fund Sweeps Not So Funny

Being on multiple legislative e-mail lists, I received alerts in fall, 2008 advising me that the enormous hole in the state budget had been patched, again, through the practice of "fund sweeps." This phrase, one of those like "credit default swaps" that makes ordinary taxpayers' eyes glaze over, means that money sitting in various "special funds," instead of being used for the purposes for which it was intended and collected, would instead be diverted into the General Funds pool. Think of it as if you'd set up a special savings account for your children's education, or had a cookie jar in the kitchen where you put pin money to save for an upcoming wedding, but instead, when things are tight, you dip into it to pay your electric bill.

Interestingly, not one of the e-mails I got detailed which funds were being raided. So I checked. The bill itself, which got completely amended about a dozen times, was online. As a public service I listed the funds, the amounts diverted, and a link to the bill (see the end of this page).

The list was mind-boggling. First, the total: $224 million in raided funds. That's a lot of lettuce.

Second, the sources. Probably you had no idea that we had 300 different funds to plunder, with opaque monikers such as the "Auction Regulation Administration Fund" from which we're plucking half a million bucks in FY2009, the "Professions Indirect Cost Fund" from which we're diverting $2 million, or the "Subtitle D Management Fund" that will involuntarily donate a quarter-million dollars to general revenue. Probably you also have no idea what all those funds do. I wonder if our legislators do.

Some of the funds tapped have names suggesting that their mission might actually be important. We are going to sweep, this year, a combined $24.75 million from the Drycleaner Environmental Response Trust Fund, Energy Efficiency Trust Fund, Environmental Protection Permit and Inspection Fund, Fish and Wildlife Endowment Fund, Hazardous Waste Fund, Illinois Forestry Development Fund, Park and Conservation Fund, Renewable Energy Resources Trust Fund, Wildlife and Fish Fund, Illinois Clean Water Fund, Environmental Protection Trust Fund, and EPA Special State Projects Trust Fund. Sounds to me like $24 million intended to make our state greener is now going to green some other pockets.

Similarly, our representatives decided that we don't need to spend $3 million, after all, on the Nuclear Safety Emergency Preparedness Fund. So which is it, folks: were the dangers of Byron and Braidwood going Chernobyl on us overstated, in order to scare the Land of Lincoln into greater spending? Or are all Illinoisans being put at risk of glowing in the dark as a result of necessary, allocated monies going unspent?

Other fund names are intuitive but make one wonder. Who set up the Used Tire Management Fund, and why is it so flush that it can spare an extra million bucks this year? Does your company or nonprofit have an extra million lying around? Who or what is the State Pheasant Fund and why do they have an extra $250,000? Or does this mean pheasants had to cut corners and eat macaroni and cheese this last winter like the rest of us?

Scan the list and you'll come up with your own questions. Are the missions of the Fish and Wildlife Endowment Fund so different from the Wildlife and Fish Fund that we need both? Does one even know the other exists? One thing is for sure: when each and every one of these funds was established, politicians issued press releases and had public announcements, and probably received awards, for their valiant efforts in "fighting for" whatever societal good was supposed to be served by each of these funds. Probably they posed for grip-and-grins with Mothers Against Piles of Used Tires and received plaques from the Friends of the Pheasant, all duly printed in the local paper and constituent newsletters.

Another thing is for sure: the establishment of each and every of these funds results in computer fields having to be re-programmed, accounts having to be set up, personnel having to input, review, and output data, meetings being held, budgets being prepared, and reports being generated. For all I know that's all that goes on, and no actual work related to the mission is ever accomplished -- not one used tire or pheasant saved. But it can't possibly be efficient.

Ask yourself: would your life be easier or more complicated if instead of one checking account you had one for your electric bill, another for your gas bill, three related to your car, seven different accounts for various subcategories for groceries, one for your dry-cleaning and another for your spouse's, and a hundred others for various expenses you may or may not incur in the coming year? Would you have more or less time in the day?

The list is so bizarre, and the inefficiency so obvious and overwhelming, that if it wasn't real, I'd swear someone made it up as satire. But no, this isn't
The Onion, it's Springfield in action. These sweeps have been an annual rite since at least 2003 and are now generally accepted practice in our capitol. The 2008 sweep meant that we diverted, in six fiscal years, over a billion dollars total. And I'll bet you've never heard your representative utter a peep against it. It's just business as usual -- with our money.

Whether the funds are unnecessary and overfunded in the first place, or are necessary but being annually hamstrung by fiscal irresponsibility, is hard for the average citizen to figure out. Do we even have a deficit, or are we better-funded than we thought? When the sweeps were announced, neither Gov. Blagojevich nor comptroller Hynes were even sure the funds had the surpluses designated. If they don't know, how can we? And it looks like it's set up that way. Among the many other things we need in government are some representatives willing to put an end to this annual shell game.

A little more on how these funds work (or don't work) is on p. 25 of the useful report,
Citizens Guide to the Illinois State Budget and Tax System, from those budget watchdogs at The Center for Tax and Budget Accountability, who label this an "unsound fiscal practice." Click here to view an online copy of the final version of the "fund sweep" legislation. And the full list of the swept funds, with amounts, hereby follows for your edification and enjoyment. Ignore the first numbers on the left, those are just page numbers from the printed bill.

FUND NAME AND NUMBER AMOUNT
8 Alternate Fuels Fund (0422)....2,000,000
9 Alternative Compliance Market Account Fund (0738)...200,000
10 Appraisal Administration Fund (0386)........250,000
11 Asbestos Abatement Fund (0224)...2,000,000
12 Assisted Living and Shared
13 Housing Regulatory Fund (0702)....100,000
14 Whistleblower Reward and Protection Fund (0600)...8,250,000
15 Auction Recovery Fund (0643).....200,000
16 Auction Regulation Administration Fund (0641).....500,000
17 Audit Expense Fund (0342)......3,250,000
18 Build Illinois Capital Revolving Loan Fund (0973)..2,000,000
19 Capital Development Board Revolving Fund (0215)...250,000
20 Care Provider Fund for Persons
21 with a Developmental Disability Fund (0344)...1,000,000
22 Child Labor and Day and Temporary
23 Labor Services Enforcement Fund (0357)......500,000
24 Child Support Administrative Fund (0757)......1,000,000
25 Community Water Supply Laboratory Fund (0288).....200,000
26 Conservation 2000 Fund (0608)....3,000,000
1 Corporate Franchise Tax Refund Fund (0380)......200,000
2 Death Certificate Surcharge Fund (0635).......500,000
3 Department of Corrections Reimbursement
4 and Education Fund (0523)....1,500,000
5 Dram Shop Fund (0821)........500,000
6 Drivers Education Fund (0031)....1,000,000
7 Drug Rebate Fund (0728)......3,000,000
8 Drycleaner Environmental Response Trust Fund (0548).2,000,000
9 Energy Efficiency Trust Fund (0571).......1,000,000
10 Environmental Protection Permit and
11 Inspection Fund (0944).....1,500,000
12 Fair and Exposition Fund (0245)....500,000
13 Federal Asset Forfeiture Fund (0520)........500,000
14 Feed Control Fund (0369).......250,000
15 Fertilizer Control Fund (0290).....250,000
16 Financial Institution Fund (0021).......2,000,000
17 Fish and Wildlife Endowment Fund (0260).......500,000
18 Food and Drug Safety Fund (0014)...250,000
19 Fund for Illinois' Future Fund (0611)......10,000,000
20 General Professions Dedicated Fund (0022).....5,000,000
21 Group Workers' Compensation Pool
22 Insolvency Fund (0739).......250,000
23 Hazardous Waste Fund (0828)....1,000,000
24 Health and Human Services Medicaid Trust Fund (0365).5,000,000
25 Health Facility Plan Review Fund (0524).......500,000
26 Health Insurance Reserve Fund (0907)......5,000,000
1 Home Inspector Administration Fund (0746).....500,000
2 Horse Racing Fund (0632).......250,000
3 Illinois Affordable Housing Trust Fund (0286)...2,000,000
4 Illinois Charity Bureau Fund (0549).......200,000
5 Illinois Clean Water Fund (0731)........5,000,000
6 Illinois Community College Board Contracts
7 and Grants Fund (0339).......250,000
8 Illinois Forestry Development Fund (0905).....500,000
9 Illinois Habitat Fund (0391).....1,000,000
10 Illinois Health Facilities Planning Fund (0238)...1,000,000
11 Illinois Historic Sites Fund (0538).......250,000
12 Illinois State Dental Disciplinary Fund (0823)....1,000,000
13 Illinois State Medical Disciplinary Fund (0093)...5,000,000
14 Illinois State Pharmacy Disciplinary Fund (0057)....250,000
15 Illinois State Podiatric Disciplinary Fund (0954)...200,000
16 Illinois Tax Increment Fund (0281)........250,000
17 Innovations in Long-term Care Quality
18 Demonstration Grants Fund (0371)........1,000,000
19 Insurance Financial Regulation Fund (0997)....5,000,000
20 Insurance Producer Administration Fund (0922)...3,000,000
21 International Tourism Fund (0621).......5,000,000
22 Large Business Attraction Fund (0975).......500,000
23 Law Enforcement Camera Grant Fund (0356)......800,000
24 Lead Poisoning, Screening, Prevention,
25 and Abatement Fund (0360)......250,000
26 Local Tourism Fund (0969)......5,000,000
1 Long Term Care Monitor/Receiver Fund (0285).....1,000,000
2 Low-Level Radioactive Waste Facility
3 Development and Operation Fund (0942).......250,000
4 Medicaid Buy-In Program Revolving Fund (0740).....500,000
5 Medical Special Purpose Trust Fund (0808).....500,000
6 Mental Health Fund (0050)......5,000,000
7 Metabolic Screening and Treatment Fund (0920).....500,000
8 Nuclear Safety Emergency Preparedness Fund (0796)..3,000,000
9 Nursing Dedicated and Professional Fund (0258)....2,000,000
10 Off-Highway Vehicle Trails Fund (0574)......250,000
11 Optometric Licensing and Disciplinary
12 Board Fund (0259)........200,000
13 Park and Conservation Fund (0962).......2,000,000
14 Pesticide Control Fund (0576)....500,000
15 Pet Population Control Fund (0764)........250,000
16 Plumbing Licensure and Program Fund (0372)......750,000
17 Presidential Library and Museum Operating Fund (0776).500,000
18 Professions Indirect Cost Fund (0218).......2,000,000
19 Provider Inquiry Trust Fund (0341)........250,000
20 Public Health Laboratory Services
21 Revolving Fund (0340)......500,000
22 Public Infrastructure Construction
23 Loan Revolving Fund (0993).....1,000,000
24 Public Pension Regulation Fund (0546).......250,000
25 Public Utility Fund (0059).....5,000,000
26 Rail Freight Loan Repayment Fund (0936).....1,000,000
1 Real Estate License Administration Fund (0850)....5,000,000
2 Registered Certified Public Accountants'
3 Administration and Disciplinary Fund (0151).....500,000
4 Renewable Energy Resources Trust Fund (0564)....5,000,000
5 School Technology Revolving Loan Fund (0569)....500,000
6 Solid Waste Management Fund (0078)........2,000,000
7 State Asset Forfeiture Fund (0514)........1,000,000
8 State Boating Act Fund (0039)....500,000
9 State Migratory Waterfowl Stamp Fund (0953).....500,000
10 State Offender DNA Identification System Fund (0537).250,000
11 State Parks Fund (0040)......250,000
12 State Pensions Fund (0054).....5,000,000
13 State Pheasant Fund (0353).....250,000
14 State Police DUI Fund (0222).....250,000
15 State Police Services Fund (0906).......6,000,000
16 State Police Whistleblower Reward
17 and Protection Fund (0705).....2,000,000
18 State Police Wireless Service Emergency Fund (0637).1,000,000
19 State Rail Freight Loan Repayment Fund (0265)...2,000,000
20 Subtitle D Management Fund (0089).........250,000
21 Tax Compliance and Administration Fund (0384).....250,000
22 Tax Recovery Fund (0310).......250,000
23 Teacher Certificate Fee Revolving Fund (0016).....250,000
24 Tobacco Settlement Recovery Fund (0733).....3,000,000
25 Tourism Promotion Fund (0763)....5,000,000
26 Traffic and Criminal Conviction
1 Surcharge Fund (0879)......1,000,000
2 Transportation Regulatory Fund (0018).......500,000
3 Trauma Center Fund (0397)......2,000,000
4 Underground Resources Conservation
5 Enforcement Trust Fund (0261)....200,000
6 Used Tire Management Fund (0294)........1,000,000
7 Weights and Measures Fund (0163)........1,000,000
8 Wildlife and Fish Fund (0041)....5,000,000
9 Wireless Carrier Reimbursement Fund (0613)....5,000,000
10 Petroleum Violation Fund (0900).........1,000,000
11 Communications Revolving Fund (0312)......1,000,000
12 Facilities Management Revolving Fund (0314).....1,000,000
13 Professional Services Fund (0317).......2,000,000
14 State Garage Revolving Fund (0303)........1,000,000
15 Statistical Services Revolving Fund (0304)....2,000,000
16 Workers' Compensation Revolving Fund (0332).....1,000,000
17 Working Capital Revolving Fund (0301).......500,000
18 Abandoned Mined Lands Reclamation
19 Set Aside Fund (0257)......5,000,000
20 DHS Private Resources Fund (0690).........500,000
21 DHS Recoveries Trust Fund (0921)........1,000,000
22 DNR Special Projects Fund (0884)...500,000
23 Early Intervention Services Revolving Fund (0502)..1,000,000
24 EPA Special State Projects Trust Fund (0074)....1,000,000
25 Environmental Protection Trust Fund (0845)......250,000
26 Land Reclamation Fund (0858).....250,000
1 Local Government Health Insurance
2 Reserve Fund (0193)......1,000,000
3 Narcotics Profit Forfeiture Fund (0951).......250,000
4 Public Aid Recoveries Trust Fund (0421).....3,000,000
5 Public Health Special State Projects Fund (0896)..3,000,000
6 CDB Contributory Trust Fund (0617)........2,000,000
7 Department of Labor Special State Trust Fund (0251)..250,000
8 IPTIP Administrative Trust Fund (0195)......250,000
9 Illinois Agricultural Loan Guarantee Fund (0994)..2,000,000
10 Illinois Farmer and Agri-Business
11 Loan Guarantee Fund (0205).....1,000,000
12 Illinois Habitat Endowment Trust Fund (0390)....2,000,000
13 Illinois Tourism Tax Fund (0452)...250,000
14 Injured Workers' Benefit Fund (0179)........500,000
15 Natural Heritage Endowment Trust Fund (0069)....250,000
16 Pollution Control Board State Trust Fund (0207)...250,000
17 Real Estate Recovery Fund (0629)...250,000
18 TOTAL 224,250,000

Adapted from an essay originally published on
Prairie State Blue Oct. 15, 2008.

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