In April, 2003, Illinois Governor Rod Blagojevich presented the fiscal year 2004 proposed budget in the midst of a severe state fiscal crisis. Despite the deficit, the proposal maintains or expands investments in many important programs for children and families, and includes a variety of cuts to programs and administrative costs with unclear consequences. This document examines appropriations and revenues comprising the governor's budget proposal, and analyzes how state investments in children and families fare in the FY 2004 budget recommendations relative to previous fiscal years. Areas of investment examined include: PreK-12 education and child care, health and income supports, community health and prevention, interventions for children at risk, out-of-school time and community schools, and department of corrections. The report's three appendices include a graphic revenue analysis, historical funding trends, and proposed shifts in Illinois State Board of Education (ISBE) grants. (HTH)