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 On Thursday morning, the first day of the new fiscal year, Quinn
approved of the budget package passed by lawmakers in May that
leaves state finances billions of dollars in the red.
In doing so, Quinn granted himself extraordinary powers to dictate
how much funding state agencies and programs are granted during the
fiscal year.
"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). They didn't want to
... put their fingerprints on any reductions or cuts whatsoever.
They want the governor to do it," he said.
Illinois is facing a combined $12 billion budget deficit for both
this fiscal year and last fiscal year, according to David Vaught,
director of Quinn's Office of Management and Budget.
About half of that deficit is the result of state government's
expenses exceeding estimated revenues, while the other half
represents the total cost of the large backlog of unpaid bills the
state owes to vendors.
Part of the budget package Quinn inked into law is a $24.9 billion
spending plan for this fiscal year, a $1.4 billion reduction
compared with last year's budget.
Quinn is looking to cut $509 million overall from major state
agencies and programs compared with last year, including:
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$241 million cut to preschool through high school education.
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$96 million cut to higher education.
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$313 million cut to the Department of Human Services.
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$42 million cut to the Department of Corrections.
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$15 million cut to the Illinois State Police.
The Department of Healthcare and Family Services will receive a $162
million increase in spending, a 2 percent increase compared with
last year. The Department of Veterans will also see an $8 million
increase in spending, a 13.3 percent increase compared with last
year.
Quinn is also planning to set aside almost $900 million in emergency
reserves that would not be immediately spent by state agencies.
The state payroll will also drop, as a result of the state not
replacing more than 1,100 workers leaving the public sector through
retirement and new job opportunities.
Vaught said the Quinn administration would continue to negotiate
with unions on various concessions, such as delaying pay raises.
Vaught added that there was no plan for laying off state employees.
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Quinn also issued an executive order to implement spending controls
on state agencies on a variety of operational costs, including
in-state travel and transportation, phone costs, printing, and
magazine subscriptions. Under this year's budget package, state government will have until
the end of December to pay off the $6 billion in unpaid bills
accrued during the last budget period.
Typically, state government has had until July or August to make
late payments to vendors, but lawmakers opted to extend the payment
period this year because of the large backlog. Vaught said the state is looking to a number of borrowing measures
included in the budget plan to make those late payments to vendors
such as schools and community care centers.
The measures could bring in immediate revenues of $3.3 billion,
which would still leave state government about $2.7 billion in the
red with unpaid bills.
 Vaught said the state has to
rely on new borrowing proposals and restructured debt payments
because lawmakers have not considered increasing revenue through an
increase in the state's income tax.
"Strategic borrowing is what we do. Is that the best option? Under
the circumstances, it is," Quinn said.
Another borrowing option on the table would allow state government
to borrow against the state pension funds.
The Illinois House passed the pension borrowing proposal in May, but
the Illinois Senate has yet to take up the matter.
Quinn said the proposal could bring in an additional $3.7 billion
that would also help the state meet its late bill payments and
pension obligations.
Throughout the year, lawmakers have not discussed an income tax
increase, despite Quinn advocating for a 33 percent income tax hike
to help close the budget deficit and provide funds for education.
"I don't really anticipate any revenue from the Legislature in the
near term. After the election, I think some of them may be more
willing to take a look at the issue. I do believe a surcharge for
education is necessary if we're going to have a good state," Quinn
said.
Quinn's gubernatorial opponent, state Sen. Bill Brady,
R-Bloomington, criticized the governor for his approach to the
state's budget crisis.
"Gov. Quinn has done nothing to address the structural problems in
state government. Instead he continues to propose his 33 percent
income tax increase that takes more money out of the pockets of
Illinois residents," Brady said in a statement.
[Illinois
Statehouse News; By KEVIN LEE] |
