SPRINGFIELD (AP) — A recent contract agreement with the state's largest union will save Illinois nearly $900 million in health care costs, an administration official said Tuesday, forecasting one piece of good news in what was expected to be a largely dire budget address from Gov. Pat Quinn.

Quinn's administration and the American Federation of State, County and Municipal Employees Council 31 reached a tentative agreement last week for a three-year contract after negotiating for 15 months. The proposal requires state workers to pay more toward healthcare and requires retirees to pay health insurance premiums for the first time.

That will add up to a projected $900 million savings over the three years of the agreement, according to an administration official familiar with Quinn's speech. The official, who spoke on condition of anonymity, wasn't authorized to discuss the proposal before Wednesday's address.