 However, if the state borrows the $6.2 billion for its bills,
Illinois may have another mountain of debt in a few years.
Democrats are pushing the plan to borrow $6.2 billion in order to
pay some of Illinois' $8.2 billion in past-due bills.
Republicans say lawmakers have to stop borrowing and start
cutting spending if Illinois is ever going to pay its bills and live
within its means.
Comptroller Judy Baar Topinka, who actually writes the checks for
the state's bills, said spending money now is not the solution.
"The basic restructuring has not been done; the cuts have not
been made. The budget has not been brought back in line, which has
to be basically flat," said Topinka.
Topinka said Illinois is still spending more than it is taking
in. She did not offer an amount to be cut from the budget, but she
did say the $7 billion in revenue from the largest income tax
increase in the state's history has been committed.
"It will be gone, and in four years it will be gone completely
unless the Legislature wants to make it permanent to underpin what
again is excessive spending," Topinka said.
However, Gov. Pat Quinn's budget director, David Vaught, said the
tax increase was never designed to pay the backlog of bills; rather
the revenue is to pay for pensions and general spending.
"What it does is take us down to a normal payment cycle," said
Vaught, who added that even borrowing is not a solution for
addressing the backlog of bills.
Quinn and Vaught originally had wanted to borrow $8.7 billion,
but the governor's office now says they are "supporting" the
proposal to borrow $6.2 billion.
Vaught estimates Illinois will have to "manage" about $2.5
billion in bills even after borrowing. After that, Vaught adds,
Illinois' economy is going to have to grow.
"What we gotta do in (fiscal years) '12, '13 and '14 is address
these longer-term spending pressures," said Vaught. "Three percent
growth in spending needs to match up to 3 percent growth in revenues
to maintain a balanced budget."
Medicaid spending and pensions, alone, are growing at a much
faster pace than 3 percent a year, Vaught said. In fact, Illinois
would like to trim Medicaid growth to 6 percent a year, he said,
adding that he didn't have a target for pensions.
[to top of second column]
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That kind of math has state Sen. Dave Luechtefeld, R-Okawville,
asking Democrats: "Where's your plan to say that all of a sudden
this borrowing plan is going to work, that this borrowing plan will
pay off (our bills)?"
State Sen. John Sullivan, D-Rushville, who is trying to shepherd
the borrowing proposal through the General Assembly, said the plan
is to craft realistic budgets and pay the state's bills.
"How it's different is the fact that we are doing a
revenue-generated budget. We're anticipating what our revenues are
and are spending from that basis," said Sullivan. "We're going to
have to live within our means."
But even that anticipated revenue is raising eyebrows. The Civic
Federation's Laurence Msall said the governor's proposed budget of
$35.4 billion is $2.4 billion out of balance. Msall blames
"increased appropriations and overestimated revenue."
The Civic Federation, a nonpartisan organization that researches
the quality and cost-effectiveness of government services in
Illinois, has been a loud advocate of cutting state spending and
avoiding more debt.
A vote on Sullivan's plan is not known at this time.
[Illinois
Statehouse News; By BENJAMIN YOUNT]
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