 Munger, R-Lincolnshire, said she bases her estimate on the absence of about $5
billion in revenue from the temporary income tax increase that rolled back in
January 2015 and an additional $1.2 billion in spending beyond estimated income.
Without an overall budget, the state is making payments on roughly 90 percent of
the bills it covered in the previous year simply by paying for costs mandated in
continuing appropriations, by court decrees, in the primary education budget
that did pass and in debt service, she said.
And, as of Tuesday, Illinois also was sitting on about $7 billion in unpaid
bills, Munger told reporters in Chicago.
Without action by the Legislature and governor, the unpaid-bill pile likely will
grow to $10 billion to $12 billion by June 30, the end of fiscal year 2016, she
said.
Munger said Illinois has to take control of its finances, otherwise the red-ink
spending will continue uncontrolled.
“There is simply no substitute for an appropriated, balanced budget,” Munger
said.
“Taxpayers are going to have to pay this bill,” she added.
Munger said the governor and legislative leaders need to get together, stop
blaming each other and focus on solutions.
Munger said she thinks there are budget cuts that can be made, and she wouldn’t
necessarily be opposed to new taxes. But, she added, she doubts taxes alone will
get the job done.
She also echoed Republican Gov. Bruce Rauner’s call for political and economic
policy changes that the administration says are necessary if the state is to
halt the loss of jobs and population and regain its competitiveness.
“I do believe we are going to have to look at revenue improvements, although I
will tell you that if we solve this problem on revenue alone, we will be looking
at raising our (personal income) tax rate in Illinois from 3.75 percent up to
somewhere between 7 percent and 8 percent,” Munger said.
“I don’t know (of) any legislators that would vote for that, and I don’t know
many businesses that would stay in Illinois for that.
“And so, as a result, we must look at some reforms — some that will help our
business be more competitive so that they can absorb some increase in taxes and
still put people back to work and brings jobs.”
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 THE REACTION
Monday marked the start of Month 8 of fiscal year 2016 with no state
budget, as the Republican governor and Democratic legislative
leaders who hold supermajorities in both chambers of the General
Assembly have been unable to come to an agreement,.
Rauner complains Democrats knew the temporary tax-hike money was no
longer available yet still sent him a spending plan $4 billion
heavier in spending than estimated revenue.
Democrats complain Rauner and the GOP have been unwilling to work
with them on a plan until the governor gets movement on his own
agenda items, which Democrats consider overly business friendly and
not directly related to the annual budget.
Senate President John Cullerton, D-Chicago, “agrees that we need to
find ways to work together, find common ground and build solutions,”
spokesman John Patterson said Tuesday.
A spokesman for House Speaker Michael Madigan, D-Chicago, said the
lack of a budget was a result of the governor vetoing the
appropriations bills sent to him the Legislature in May.
“It is what it is. Hopefully we can get a budget (and) hopefully we
can get it all worked out,” said Madigan spokesman Steve brown.
Rauner, speaking at a separate event in Springfield on Tuesday,
said, “All the Legislature has done … is put out spending bills with
a $5 billion deficit (and) no money to pay for it.”
PAYING THE BILLS
Illinois does have revenue coming daily and does pay some of its
bills every day, the comptroller said. The problem is the income and
expense columns are incredibly lopsided.
“In one sense, we run out of money every day,” Munger said.
For instance, she said, with $100 million available and $7 billion
in bills to pay, her office is faced with the question, “Today, do
we pay foster care or do we send the education payment or do we pay
the developmentally disabled? … We can’t pay it all in the same
day.”
She compared the state’s bad finances to a household having $100 in
the checkbook and $7,000 in bills due or past due.
Still, Illinois’ projected deficit spending for 2016 is a lot money,
Munger noted, saying $6.2 billion could buy both of this year’s
Super Bowl teams, Chicago’s Willis Tower and a trip to the moon and
back — with money left over.
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