For Immediate Release

January 4, 2004

GOVERNOR ANNOUNCES BOARD FOR NEW ILLINOIS FINANCE AUTHORITY

IFA to help spur job creation and training throughout state in various industries and every region; Will absorb functions of five former statewide bonding authorities

CHICAGO-Governor Rod R. Blagojevich announced today that finance professionals from throughout the state with expertise in the farming, banking, education, agriculture and health care communities will serve on the board of the new Illinois Finance Authority (IFA). The IFA will serve as a cornerstone of the Governor's regional economic development plans, helping to fire up job training and creation in every region of Illinois and assisting local industries and governments.

The Illinois Finance Authority, one of several initiatives proposed by Governor Blagojevich to bring innovative change to state government, became operational as of January 1st. It will absorb the responsibilities of five former statewide bonding authorities, which will result in significant cost savings to the state due in part to reductions in staff and leasing space.

"The new IFA is another example of how we are bringing change to state government ? change that will help us make smarter choices, be more efficient and more accountable to the people of Illinois," said Governor Blagojevich. "The IFA will be pro-active, using its $5 billion in bonding authority to foster economic development in every region, and target resources to address the specific needs of our local industries and governments."

The IFA will focus on providing debt issuance for agriculture and farming industries, health care institutions, local governments and higher education institutions, among others, once served by the five statewide bonding authorities. The IFA board will also review all carry-over transactions of the five authorities. These authorities included:

• Illinois Development Finance Authority
  
• Illinois Health Facilities Authority
  
• Illinois Educational Facilities Authority
  
• Illinois Farm Development Authority
  
• Rural Bond Bank

The new IFA structure will significantly reduce operating costs, staff and bureaucracy. Staff will be cut nearly in half, from 40 to approximately 22 employees. The number of executive directors will be reduced from five to one. The number of offices in Springfield and Chicago will also be reduced from five to two, with one in Chicago and one in Springfield.

Until a permanent headquarters is established, the IFA will operate out of offices in the Sears Tower, 233 S. Wacker, 33rd floor. They will also have a temporary location in Springfield at 427 E. Monroe. The Springfield office will serve the needs of the rural and farming communities.

IFA board members will meet for the first time on Monday, January 5th, 2003 at the Sears Tower location at 10:30 am. During this meeting, members will name an executive director and adopt a series of operational resolutions, including: meeting dates for the remainder of FY 04; a partial year budget; name a Secretary and Treasurer; and adopt by-laws.

In all, fifteen unpaid members will be appointed by the Governor to the IFA board. As of January 5th, nine members have been appointed. The remaining six will be appointed in the coming weeks.