Noting that welfare reform offers new opportunities to apply dollars toward several initiatives beyond cash grants, this special report of the Voices for Illinois Children provides a detailed accounting of Illinois welfare expenditures for federal fiscal years (FFY) 1998 and 1999 and is intended to serve as a starting point toward greater clarity in future budget debates. The report identifies welfare funds as comprised of a fixed federal block grant and a minimum requirement for maintaining spending at 75 percent of the FY 1994 welfare allocations. State mechanisms for funding welfare-related programs are discussed, along with the resulting federal requirements regarding the use of TANF funds. In addition, the report presents a breakdown for welfare spending for FFY 1998 and 1999, noting that Illinois spent its entire TANF Federal Block Grant. Specific line items are annotated, and selected cross-year comparisons are presented. Expenditures are discussed and presented in tabular format in the following areas: (1) cash and work- based assistance, including emergency assistance and basic cash welfare; (2) work activities, including state and local funds that community colleges invest in services to welfare clients; (3) child care and transfers to the Child Care Development Fund; (4) administration for the Department of Human Services and the Department of Children and Family Services; and (5) the Social Service Block Grant. (KB)