Illinois investments hit by financial meltdown

The financial turmoil on Wall Street is costing Illinois money.

State finance officials predict less money coming in because of a drop in interest income, and they say some pension investments took a hit.

The Illinois treasurer's office predicts interest income on the $14 billion it invests could be as much as $237 million less this fiscal year than the $375 million it made last year.

That money is contributed to the state's general revenue fund to help pay operating expenses.

The Illinois State Board of Investment oversees state pension system money. Its more than $11 billion portfolio saw $34 million in losses because of stocks and bonds tied to firms like bankrupt Lehman Brothers and troubled insurer AIG.