Gov. Pat Quinn will give his annual budget address on Wednesday. (Photo by B Corbin/WJBC)

By The Associated Press

CHICAGO - Gov. Pat Quinn says the state budget he'll present this week will be ``hard and difficult'' because of Illinois' massive pension debt.

The Democrat told reporters yesterday he has to lay out the facts for the lawmakers to see the strain Illinois' nearly $100 billion in unfunded liability is going to affect other areas. He says that includes education.

Quinn gives his budget address tomorrow.

His administration has already projected a cut of about $400 million to education.

Quinn says the agreement reached with the state's largest union last week is a good step forward.

After 15 months at the bargaining table, Quinn's administration and the American Federation of State, County and Municipal Employees reached an agreement where workers will pay more of their health costs.