Financial Institutions' budget reflects governor's goal of deficit reduction

SPRINGFIELD, ILL. - Gov. Rod R. Blagojevich today proposed a fiscal year 2004 budget totaling $9.3 million for the Illinois Department of Financial Institutions to fund regulatory and consumer protection operations for the citizens of the state.

The proposed FY 04 budget represents a decrease of 10.8 percent, or $1.1 million, from the department's FY 03 budget. Under the proposed spending plan, the department maintains its status as a self-supporting agency. It receives no General Revenue funds, but instead generates revenue in the form of licensing and regulatory fees from the entities it regulates.

In line with Blagojevich's directive to streamline state government by reducing personnel and operational costs in state agencies, the department has cut staffing levels from the 117 positions authorized in the FY03 budget to 90. Other cuts are in operational areas such as electronic data processing, equipment, printing, commodities and contractual services. Most of the department's savings have come from reductions in administrative spending.

The department licenses, examines and regulates state chartered credit unions, currency exchanges, and various consumer credit and finance companies. In addition to enforcing the laws and regulations pertaining to these financial institutions, the department works to protect Illinois consumers who do business with these entities.