 The state's 44 regional superintendents learned the hard way that
the state constitution does not automatically force Illinois to pay
workers, vendors, Medicaid providers and even elected officials --
particularly once "subject to appropriation" language is applied.
Gov. Pat Quinn used the "subject to appropriation" line when he
vetoed money for the regional superintendents from the fiscal 2012
state budget and announced plans to close seven state facilities.
"The Legislature simply did not provide enough money to keep them
open," Quinn said of the state facilities.
Kent Redfield, a political science professor at University of
Illinois at Springfield, said the Illinois Constitution does not
include a requirement to pay its workers, because no one ever
thought the state would run out of money.
Illinois has not yet run out of money, but is suffering. Tax
increases in January helped close Illinois' structural deficit, when
the state does not have enough money to cover day-to-day expenses.
But the Civic Foundation, a Chicago-based nonpartisan policy
watchdog organization, said Illinois will still be looking at an $8
billion deficit by the end of June 2012. The state also has a $3.5
billion backlog of unpaid bills, which is expected to grow by over
$5 billion by the end of the current budget, according to state
estimates.
"If the pension system goes broke, or the state can't afford to
pay anyone's salary, that isn't something that anybody at (the 1970
Illinois Constitutional Convention) anticipated," Redfield said. "It
wasn't even thought of, philosophically, when the U.S. Constitution
was created."
Redfield said the state is far from the point where it will
default on paying its financial obligations.
But there is a difference between what Illinois must do, and what
Illinois should do, according to Jim Nowlan, a fellow at the
Institute of Government and Public Affairs at the University of
Illinois.
"Illinois may not have a constitutional obligation, but the state
certainly has a moral obligation to pay its bills," Nowlan said.
And Nowlan said it is not known if a judge would have found the
governor in violation of the law, had the regional superintendents
taken their case further in the courts this year.
"I think the regional superintendents may have had a case in
small-claims court," Nowlan added.
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But Redfield said the fight over the $14 million in salary
payments owed Illinois' regional superintendents was more a question
of who would pay, not whether the state could pay.
"The regional superintendents (standoff) wasn't a question of us
not having sufficient money," Redfield stated. "That was a way to
pick a political fight."
The state is paying its bills, though in many cases months past
due.
Brad Hahn, spokesman for Illinois Comptroller Judy Baar Topinka,
said the state is months behind in payments to schools, Medicaid
providers and state vendors.
"As of this week, the state has 162,934 unpaid vouchers totaling
$3.525 billion, dating back to July 8, 2011," Hahn said.
Hahn is quick to say that before Illinois pays its bills, it
covers Illinois' $3 billion in payroll to the state's 50,000
employees.
Redfield said Illinois would have to go bankrupt, or worse, for
the state to miss payroll.
But while there is no guarantee that state workers or Medicaid
providers be paid, Redfield said the constitution may guarantee that
retired state workers get their checks.
"With something like pensions, you could imagine a situation
where the courts would require -- essentially order -- that the
Legislature raise the revenue (for the pension payments)," Redfield
said.
[Illinois
Statehouse News; By BENJAMIN YOUNT]
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