Illinois faces major budget problems including uncontrolled spending increases, large debts, and the worst funded pension system in the nation. Medicaid costs are rising significantly due to more enrollment and higher costs. The state's business climate and economy have declined, with Illinois now ranking near the bottom nationally in measures like job growth, debt levels, and credit ratings. Proposed solutions include cutting spending, reforming pensions and Medicaid, selling state assets, consolidating offices, and bringing more transparency to spending.