Thursday, August 05, 2010
 
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Quinn outlines planned agency cuts; lawmakers react

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[August 05, 2010]  SPRINGFIELD -- With the state mired in a record budget deficit, Gov. Pat Quinn announced this week a slate of $1.4 billion in proposed cuts to state agencies.

The announcement comes just more than a month after Quinn approved the state's budget package for the fiscal year, which left the state's budget an estimated $13 billion in the red. At the time, Quinn said he would cut $1.4 billion in government spending but did not give details.

As part of the budget package, lawmakers provided Quinn exceptional latitude to reduce and allocate funds within state agencies as he saw fit.

"The Legislature in the past has gone line-by-line over the budget, decided what agency gets how much money, what program gets how much money. (Lawmakers) didn't do that (this year)," Quinn said when approving of the budget package last month. "They didn't want to make any … put their fingerprints on any reductions or cuts whatsoever. They want the governor to do it."


The state Department of Human Services would lose more than $575.8 million in this year's budget compared with last year's budget, a difference of more than 14 percent. The state agency provides resources to the state's community care network and helps oversee mental health patients, the developmentally disabled and individuals prone to alcohol and substance abuse.

According to government documents, the department will eliminate $515.7 million in grants that would normally have gone to help those seeking rehabilitation or aid. The department will also save $60 million by streamlining operations in offices and locales throughout the state.

State Sen. Dave Syverson, R-Rockford, said the state should not cut from the private institutions providing care to vulnerable populations.

"I think that there's a frustration that human service providers are once again taking the brunt of the cuts, and this after the massive pay raises that took place. It's just not something that sits very well with a lot of people in Illinois," he said.

Last month, Quinn granted salary raises of up to 20 percent for some of his closest aides.

The state Department of Healthcare and Family Services, which oversees the state's Medicaid and public insurance programs, is set to lose $215.7 million, or about 2.7 percent compared with last year. Quinn said last month that the state agency would not be losing funding.

But questions remain on what happens at the end of December, when the improved rate of return on Medicaid expires. The federal government provided the additional Medicaid assistance as part of the stimulus package, but if it's not renewed, the state could be on the hook for an additional $750 million.

The U.S. Senate on Wednesday approved a proposal that would extend the enhanced match through the first half of 2011. The U.S. House of Representatives will vote on the proposal next week.

Government documents proclaim that the 2.7 percent cut to DHFS assumes a "continued enhanced Medicaid match."

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The state agency that regulates public K-12 schools, the Illinois State Board of Education, will see its budget sliced by about $311 million, or 4.2 percent compared with last year. The reductions include $146 million in student transportation services and $68.5 million in grants directed at improving reading.

State Sen. Toi W. Hutchinson, D-Olympia Fields, said cutting education could have a trickle-down effect on this and future generations.

"I'm concerned about the children of our state. So when you cut preschool funding, what does that do to parents who need to work? What does that do to the developmental possibilities of kids we know who do better with preschool than without?" she said.

Some state agencies will see increases compared with last year's budget. The state Department of Veterans' Affairs will receive about $7.7 million more than last year, an increase of more than 12 percent.

The state Department of Juvenile Justice, which oversees delinquent youths, will receive a $6 million boost, about 5.4 percent more than last year, while the state Department of Transportation will get about a $1 million hike, a 1.2 percent increase.

A list of the changes in funding by state agency can be found at http://www2.illinois.gov/budget/Pages/default.aspx.

[Illinois Statehouse News; By KEVIN LEE]

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