 Quinn has drafted legislation that
would allow him, among other
things, to temporarily suspend payments to local governments in
Illinois from the Local Government Distributive Fund.Under the
law now, municipalities and other local governments get a slice of
many state taxes, like the income and sales taxes, which averages to
be about $1 billion annually.
Quinn's plan would hold off paying local governments until the
General Assembly could come up with $4.5 billion, either through
revenue or general obligation bonds.
"As the budget process continues, we need to develop alternatives
to address the state's backlog of bills," said Kelly Kraft, Quinn's
Office of Management and Budget spokeswoman. "The $4.5 (billion) is
the minimum the draft legislation stipulates that would be needed in
the form of revenue or (general revenue) bonds to end the suspension
of local distributive share."
But Quinn's proposal needs broad legislative support, something
the governor's original idea for paying the bills -- borrowing $8.75
billion -- did not have.
Kraft said that Quinn isn't abandoning the idea of borrowing
$8.75 billion. He's simply seeking this as a different possible
solution.
Most, if not all, of the projected $33.2 billion to $34.3 billion
in revenue for the upcoming fiscal year already has been allocated,
or at least assigned to a general area, which leaves only borrowing
for Quinn's plan.
Borrowing requires a three-fifths vote by the General Assembly,
which means some Republicans would have to vote "yes."
Senate Republican Leader Christine Radogno said it isn't that her
caucus is completely opposed to borrowing, but if it is to be
considered, it must be considered within a bigger picture of
belt-tightening.
Earlier this spring the GOP laid out a menu of more than $6.7
billion in possible cuts, out of which they say $5 billion worth of
cuts must be made.
Radogno said Quinn has taken an uncompromising approach to the
budget -- an approach that doesn't include any input from her party.
"I am really annoyed by this tactic of 'We're going to hold
somebody hostage until the General Assembly does something,'" the
Lemont Republican said. "That is not the way to solve this problem."
[to top of second column] |
Senate President John Cullerton, D-Chicago, said he believes the
idea of borrowing isn't bad, but said he "is not interested in
adding local government to the long list of state vendors and school
districts and hospitals that are already waiting payment from the
state," spokeswoman Rikeesah Phelon said.
"The Senate president agrees that (local governments) have a
vested interest in seeing a refinance plan. He's not arguing against
that," she said.
Phelon went on to say that another major reason Cullerton isn't
willing to pursue the idea is because of Republicans' refusal to
consider borrowing alone to pay off the old bills.
The state already is three months behind, or just less than $300
million, on paying cities. Extending that would make it more
difficult for cities to operate, said Roger Huebner, deputy
executive director for the Illinois Municipal League.
"Imagine if you didn't know when you were going to get your next
paycheck and your employer hasn't paid you for three months,"
Huebner said. "I mean, we have no alternative, but the money's due
the cities."
Kraft, Quinn's OBM spokeswoman, said at least the Local
Government Distributive Fund payments are only three months behind,
compared with payments to health care providers, schools and social
service providers. Those payments are six months late on average.
[Illinois
Statehouse News; By ANDREW THOMASON]
 |
