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MADIGAN PROPOSES
ILLINOIS BUDGET PLAN THAT OVERSPENDS BY $7 BILLION
BUDGET + TAX
Illinois Policy Institute
Despite a constitutional requirement to
do so, Illinois politicians have not passed a balanced budget since
2001. The wording in the Illinois Constitution seems clear:
“Proposed expenditures shall not exceed funds estimated to be available
for the fiscal year as shown in the budget.”
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 But for more than a decade, Illinois lawmakers have used borrowing and budget
gimmicks to pass unbalanced budgets.
Illinois House Democrats are planning to propose a state budget that is nearly
$7 billion out of balance, according to Illinois Office of Management and Budget
analysis. Illinois Comptroller Leslie Munger said this proposal could increase
Illinois’ unpaid bills to $15 billion from $7 billion, and could cause eight to
nine month payment delays for vendors.
Munger said: “That means everyone – small businesses, nonprofits, schools,
hospitals, elected leaders and others – will wait even longer for what they are
owed by the state.”
This most recent budget proposal is even worse than a 2015 plan that overspent
by $4 billion.
With just $32 billion in revenue, this new budget proposal is far out of line
with what the state can afford, and Gov. Bruce Rauner will certainly veto the
plan.
How can politicians continue to propose unbalanced budgets? Simple: Illinois’
constitutional requirement for a balanced budget allows lawmakers to push off
any budget shortfall into the future. Illinois has not had a balanced budget
since 2001. In fact, in May 2011 – less than six months after the General
Assembly enacted a 67 percent state income-tax increase – lawmakers passed a
budget that used an accounting gimmick to push more than $1 billion in unpaid
bills to the next fiscal year.
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 House Joint Resolution Constitutional Amendment 47 would
strengthen the Illinois Constitution’s balanced-budget requirement,
giving teeth to the current balanced-budget requirement by requiring
that spending can’t exceed revenue and prohibiting the use of budget
gimmicks – such as incurring more debt, refinancing or using fund
sweeps – in the calculation of revenue.
The governor has proposed passing the Unbalanced Budget Response
Act, which would temporarily allow the governor to shift funds and
reduce spending to balance the state’s budget.
The proposal would temporarily authorize the governor to:
- Set aside money as “contingency funds” to make sure the
state can pay for core services without having to borrow more.
- Reduce rates the state pays to service providers.
Move unspent money out of certain special funds and into the
state’s general-revenue fund.
Change or delay payments under continuing appropriations.
- Certain funds such as those devoted to schools, early
childhood education and debt service would remain untouched.
None of this would be necessary, however, if Illinois politicians
would do their job and spend within the state’s means. House
Democrats’ latest budget plan doesn’t provide any indication that
this will happen anytime soon.
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