Gov. Quinn's 'Tough Choices' budget proposal

[July 07, 2009]  SPRINGFIELD -- Under the Illinois Constitution, the governor is required to submit a balanced budget to the Illinois General Assembly. Although faced with a record deficit, Gov. Quinn is proposing a financially and socially responsible balanced budget for fiscal 2010.

The governor's "Tough Choices" budget proposal will greatly improve the state's financial health, preserve more than 100,000 jobs statewide, pay off debts to vendors and small businesses on time, support a strong bond rating and put Illinois back on the road to economic recovery.

The governor's budget proposal:

• Maintains the state of Illinois' fundamental commitment to education, health care, social services and public safety.

• Focuses funding on cost-effective, fiscally responsible ways to deliver necessary services.

• Funds programs and services as required by federal and state law.

• Invests in programs to make sure that Illinois receives every possible dollar in federal matching and stimulus funds.

• Fulfills the state's obligation to the public employee retirement systems.

• Includes $1 billion in targeted spending cuts.

The state of Illinois faces a $9.2 billion gap in its fiscal 2010 budget. To close that gap, the governor is proposing a budget that includes:

• $2.2 billion in pension obligation notes, which free up cash for vital state services.

• $4.2 billion in revenues from an income tax increase.

• $1.8 billion in additional federal matching funds.

• $1 billion in targeted spending cuts.

These proposed cuts are necessary to balance the fiscal 2010 budget, as required by the Illinois Constitution. These cuts also are needed to keep the burden on taxpayers as low as possible while allowing the state of Illinois to provide fundamental services to residents hit hard by the current economic recession.

The General Assembly's 50 percent budget would force devastating, across-the-board cuts in funding to social service providers and result in more than 100,000 lost jobs statewide.

The governor's budget makes difficult but responsible cuts that will preserve as many vital state services as possible and support Illinois' economy.

The proposed cuts include:

• $185 million in state operations, employee furloughs and layoffs -- 12 furlough days; more than 1,600 layoffs of non-DOC staff.

• $140 million in Medicaid and health insurance -- Includes $100 million saved by moving Medicaid patients to managed care.

• $250 million in grants -- Cuts will be targeted to maximize federal matching funds.

• $175 million from education -- Maintains funding at fiscal 2009 levels and preserves all federal ARRA funds.

• $125 million from the Department of Corrections -- More than 1,000 layoffs of DOC personnel.

• $100 million in reserves.

• $25 million from other state offices, departments and agencies not under the governor.

[Text from the Illinois governor's office]