 Their decisions will
affect tax rates for millions of Illinoisans, aid to the sick and
needy, and a broad array of government services across the state.
Here's a look at where things stand:
Q: How bad is the state's financial situation?
A: Worse than ever. The combined budget deficit for this year
and the next is at least $11.6 billion. Federal money and proposed
spending cuts will fill that hole a bit, but state officials still
face a gap of roughly $7 billion.
Q: Didn't the General Assembly pass a budget?
A: Sort of. They approved a level of spending that doesn't
come close to covering state government's expenses, but they haven't
technically sent the budget to Quinn's desk. That budget doesn't
specify where to make the enormous cuts that would be necessary to
balance state expenses and income. That problem would simply be
dumped in Quinn's lap.
Q: So what's happening now?
A: Rank-and-file lawmakers have been sent home. Quinn and
legislative leaders are meeting about once a week in Chicago to
discuss the situation. There have been no signs of significant
progress.
Q: What are lawmakers' options?
A: They could agree on some mix of tax increases and spending
cuts. They could stick with the budget that legislators approved and
let Quinn figure out where to make cuts. Or they could use that
budget as a placeholder and pass a new version when they convene in
six months.
Q: What would be the advantage of waiting?
A: Lawmakers wouldn't have to decide on tax hikes until after
the November filing deadline for legislative races, shielding them
from potential challenges in the primary election. Also, passing a
budget in January would require only a simple majority, instead of
the three-fifths majority it now needs.
Q: Is there a disadvantage?
A: It would force state agencies to decide whether to keep
spending as if they've got a full year's budget or act as if they'll
only get six months' worth of funding and begin slashing assistance
programs and services.
Q: Is there a deadline to reach a decision?
A: The current budget expires June 30. Without a new budget
after that, government would have very limited authority to spend
money and would soon have to start cutting services.
Q: So where do they disagree?
A: The governor and legislative leaders haven't offered many
details about what they're seeking. But in general, Quinn wants to
raise taxes and is reluctant to cut services more than absolutely
necessary. Republican leaders see the shortfall as an opportunity to
make deep cuts and launch long-term reforms that they favor.
Democratic leaders say they support a tax increase, but many party
members don't, at least not until more cost-cutting takes place.
[to top of second column] |
 Q: Are they getting anywhere?
A: They haven't reached a consensus on whether the budget
problem must be resolved by July 1, but they have agreed to set up
commissions on job creation and implementing cost-cutting proposals.
These steps aren't major, but they indicate an effort to show the
public that officials will do more than just raise taxes.
Q: Why are state finances in such poor shape?
A: The state is bringing in less money. Revenues aren't
simply lower than expected, they're lower than previous years by
billions of dollars, an extremely rare situation. At the same time,
expenses are climbing. That's because of a mix of increasing costs
for health care and employee benefits, new spending approved by
legislators and former Gov. Rod Blagojevich, and state law requiring
a much larger contribution to government pensions.
Q: Could lawmakers balance the budget by cutting government
waste?
A: There's not enough waste to come anywhere close to filling
the deficit. Illinois officials control about $28 billion. (There's
billions more in federal money that flows through state government,
but that's essentially off-limits.) With a hole of roughly $7
billion left to fill, officials would have to slash one dollar in
every four -- money that pays for schools, prisons, parks, Medicaid
and more.
Some of that money may be misspent but not 25 percent of it.
Q: What would happen if all $7 billion had to be cut from the
budget?
A: It would depend on how Quinn implements the cuts, what
limits lawmakers place on him and to what degree federal regulations
prevent certain cuts. For instance, if lawmakers insist on
protecting education and federal rules prevent Medicaid cuts -- the
two biggest chunks of the state budget -- then the deeper cuts would
be needed in other areas, such as mental health programs, state
police and prisons.
Q: Didn't Illinois go through a budget impasse last year?
A: Yes, and the year before that, too. As the state's budget
problems grow each year, officials find it harder to work together
and choose from the unpleasant options available to them.
[Associated Press; By CHRISTOPHER WILLS]
Copyright 2009 The Associated Press. All rights reserved. This
material may not be published, broadcast, rewritten or
redistributed.
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