By Kevin Lee Illinois Statehouse News
SPRINGFIELD – Democratic lawmakers say the state’s budget for the upcoming fiscal year will be finalized in a matter of days, even though consensus on key matters is still lacking.
Lawmakers are planning to return to Springfield next week and Democrats want to finalize a budget to pass to Gov. Pat Quinn before May 31.
State Rep. Frank Mautino, D-Spring Valley, a leading House budget negotiator, said there are two roadblocks with budget negotiations — whether or not the state makes its annual pension contribution and whether or not lawmakers should grant Quinn emergency budget powers.
Lawmakers are trying to decide between a borrowing plan to make a $3.7 billion contribution to the state’s public employee pension systems, or skipping this year’s contribution and losing out on millions of dollars in interest that would have been gained by pension system investments.
Last year, lawmakers from both parties voted for a borrowing plan that would allow the state to make its annual contribution.
This year, the atmosphere has changed – Republicans have taken a harder line against borrowing for the pensions.
But with the state mired in $6 billion in unpaid bills, Democrats claim the state is fiscally limited in alternatives.
State Sen. Mike Jacobs, D-East Moline, said Republicans are posturing for November’s general election and aren’t being realistic with the state’s fiscal crisis.
Jacobs added that unless the state wants to lose out on essential services, a tax increase is going to occur, no matter if Quinn or state Sen. Bill Brady, R-Bloomington, becomes governor.
As for granting Quinn emergency powers, Mautino said Democratic lawmakers are concerned Quinn could make widespread cuts to important education and human service programs.
But Mautino added that House Democrats are likely to vote for providing Quinn broad spending authority by May 31, or risk stalling the budget process.
Democrats currently have 70 members in the House and any proposals debated after May 31, including budget proposals, would require 71 votes for passage.
Jacobs said there was “no profit” for Democrats to hold out after May 31 when they can pass a budget to the governor without Republican support.
Lawmakers are planning to return next week but could not provide a specific timeline.
Illinois’ Budget Crisis
Illinois is facing an unprecedented and historic economic crisis.
Unbalanced budgets, shrinking revenue, and cash-flow problems have led to unparalleled payment delays and serious threats to vital services in Illinois. Recent estimates are projecting an $11.5 billion deficit, threatening all services across the state. Even after receiving funds through the American Recovery and Reinvestment Act, the state is still projected to have an $8.5-9.5 billion deficit – and it’s only going to get worse.
Simply put, it’s impossible for Illinois lawmakers to cut one-third of the state’s budget without slashing education and health care – which constitute 97% of the state’s spending -and it isn’t in the state’s best interest to do so.
The state of Illinois already has:
• The fifth lowest tax burden in the country;
• The eighth lowest spending level in the country; and
• The lowest number of state workers per capita in the country.
What would budget cuts mean for Illinois families?
Education
• Cutting one third of the budget is equivalent to cutting 56, 057 Illinois teachers – 3 teachers for every 100 students in the state. (At your average 1,000-student school, that’s 30 teachers!)
• Eliminating regional superintendents and their assistants, the School Breakfast Incentive program, the Illinois Free Lunch and Breakfast program, Early Childhood Education, Driver Education and Advanced Placement statewide would only save $450 million – 4.5% of the education budget – hardly enough to balance the budget.
Health Care
• Cuts to Medicaid would have a ripple effect throughout Illinois’ health care system. A one-third reduction in the state’s Medicaid spending is equivalent to cutting:
o 7,000 nursing home workers statewide – that would mean 5 fewer caregivers in every publicly-funded nursing home in the state.
o 40,000 hospital workers statewide – that would mean 200 fewer workers in every publicly-funded community hospital in the state.
• In order to cut home care spending by one third, the state would need to cut 17,000 seniors from the Community Care Program , a long-term care option that allows seniors to stay in their homes at a lower cost than institution-based care.
• The state could also reduce the amount the state reimburses health care providers – doctors, hospitals, nursing homes, pharmacists, dentists and more – for services provided through Medicaid.
o Reducing reimbursements to nursing homes by one third would save the state $170 million.
o Reducing reimbursements to hospitals by one third would save the state $1 billion
Colleges & Universities
• Increasing tuition by $1,000 per state college or university student would only save the state $202.5 million.
• To save $1 billion, the state would need to increase tuition by $5,000 per state college or university student.
State Parks
• Closing one park in Illinois saves the state $1 million. In order to reduce spending on state parks by one third, the state would need to close 43 state parks.
State Employees
• Illinois has fewer employees now than it did in 1972-despite needed expansion of state programs and services. The result is higher caseloads and safety issues at state facilities.
o Cutting 5,000 state employees would only save the state $302 million.
o Eliminating half of all the state employees in Illinois would save $1.75 billion annually.
See Campaign for Illinois Future (above) for possible solution!