Sen. Bomke: Legislators back to the drawing board on budget

[June 06, 2009]  SPRINGFIELD -- The General Assembly may have passed a stopgap budget on May 31 that will keep state government functioning, but state Sen. Larry Bomke, R-Springfield, says the state's legislative leaders have gone back to the drawing board to negotiate a new budget that will keep Illinois operating long-term.

The four ranking Republican and Democratic leaders in the House and Senate have met several times this week, working together to identify areas to cut and reform. It is likely that the leaders will look to suggestions from the Taxpayer Action Board, which Gov. Pat Quinn established to examine state government and identify long-term solutions to the state's financial and operational problems.

The board presented its final report on June 4 after reviewing various areas of state government, including pensions and health care, Medicaid, education, human services, government administration, public safety, and regulatory operations. The panel's report identified reforms and cuts that could initially save taxpayers $500 million a year but could ultimately save $2 billion to $3 billion annually.

Among the suggestions advanced by the board was a 2-3 percent across-the-board cut in current state operating funds, freezing spending at last year's level in all departments that haven't seen reduced spending, and limiting the payroll burden through means such as a pay freeze for all state employees or eliminating certain paid holidays.

The panel also suggested the state revamp its approach to long-term care, moving from institutionalized care to more community-based long-term care services. This would save the state money and provide more appropriate care for those in the system.

The board acknowledged that the state's Medicaid system is growing rapidly, with approximately one in five residents receiving benefits. As the largest state expense, Medicaid accounts for more than 40 percent of General Revenue Fund appropriations. In order to reduce these costs and improve access to and quality of health care for Medicaid patients, the board suggested the state transition to a primary care case management system of health care that would provide beneficiaries with a "medical home" -- a proposal long supported by the Senate Republican Caucus.

Reforms to the state's pension system were also advanced as ways to reduce costs, including increasing the retirement age to 67, introducing a new pension plan for new hires and increasing contributions for current employees. The report also supported lengthening the time period used to determine final salary, implementing a system that isn't susceptible to artificial inflation near retirement and avoiding the temptation to defer pension payments.

Bomke stressed that while the short-term gains aren't enough to address Illinois' current budget deficit, the long-term gains that would be realized by implementing some of the suggestions advanced by the board deserve further consideration.

[Text from file sent on behalf of Sen. Larry Bomke by Illinois Senate Republican staff]