Thursday, July 16, 2009
 
sponsored by Graue Inc.

Legislature OKs budget built on debt, governor quickly signs it

Send a link to a friend

[July 16, 2009]  SPRINGFIELD -- Illinois lawmakers sent the governor a new state budget Wednesday, trying to end gridlock with a plan built around borrowing money and leaving bills unpaid. The governor signed the bill within two hours of receiving it.

The budget left out the sharp tax increase that Gov. Pat Quinn and other top Democrats wanted, but it also prevented the extensive service cuts that Quinn had warned would be necessary under an earlier spending plan approved by lawmakers.

That would be made possible by borrowing about $3.5 billion and not paying about $3.2 billion in bills.

"It's time to cut up our credit card. We've tripled our state's debt," said Sen. Kirk Dillard, R-Hinsdale.

But some lawmakers defended the plan as the only viable way to keep government running when the Legislature refuses to support either a tax increase or harsh budget cuts.

Autos

"The responsible vote is a 'yes' vote because we have run out of options," said House Majority Leader Barbara Flynn Currie, D-Chicago.

The vote on the key budget bill was 90-22 in the House and 45-10 in the Senate -- totals that reflected support from both Democrats and Republicans.

Quinn and other supporters say major changes probably will have to be made later in the year. They predict the layoffs and service cuts it includes will show the need for a tax increase.

Top lawmakers met for about two hours with Quinn earlier in the day and reached the tentative deal on how to react to an $11.6 billion budget deficit, the worst in Illinois history.

The state's new budget year began July 1 without a budget in place, endangering paychecks for state employees and raising questions for the many contractors and community groups that receive state money.

The American Federation of State, County and Municipal Employees asked a St. Clair County court to order the state to pay employees even without a budget. At least 5,000 checks were held up Wednesday because the state doesn't have authority to pay its workers.

[to top of second column]

Auto Sales

The union said the case was ordered to federal court at the request of the Illinois attorney general's office. Union spokesman Anders Lindall said it appeared to be a delaying tactic to increase pressure on lawmakers to approve a budget.

"Such a tactic, which jeopardizes the paychecks of tens of thousands of state employees, is disappointing to say the least," he said.

The tentative budget includes billions of dollars of financial gimmicks and one-time sources of revenue: borrowing about $3.5 billion to help pay annual pension costs, using about $1.1 billion worth of vaguely defined "inter-fund borrowing" and not paying about $3.2 billion owed to businesses such as pharmacies.

At least some of the money would be put into lump sums for Quinn to spend as he sees fit.

The budget is meant to prevent further disruption, and no one is describing it as a sound plan that will last for a full 12 months.

Quinn and Senate President John Cullerton, D-Chicago, continue to argue that a tax increase will be the logical next step, despite widespread opposition among lawmakers to that idea.

"We did not just magically move out of a deficit. What we're looking at now is a temporary fix," said Cullerton spokeswoman Rikeesha Phelon. "Things will not go smoothly just because we have this temporary fix."

[Associated Press, BY CHRISTOPHER WILLS; LDN staff]

< Top Stories index

Back to top


 

News | Sports | Business | Rural Review | Teaching and Learning | Home and Family | Tourism | Obituaries

Community | Perspectives | Law and Courts | Leisure Time | Spiritual Life | Health and Fitness | Teen Scene
Calendar | Letters to the Editor