Wednesday, July 08, 2009

Home State News - Illinois, Quinn vetos Operating Budget

Quinn's press release:

CHICAGO - July 7, 2009. Governor Pat Quinn today vetoed House Bill 2145 saying the General Assembly's bill fails to make any significant cuts in state operations. Instead, the Governor proposed passing a responsible "Tough Choices" budget, which calls for cutting an additional $1 billion in state costs.

"I am vetoing this bill in its entirety because it favors preserving the government status quo and fails to make the necessary cuts and reductions in state government operations," said Governor Quinn. "It does not reflect the spirit of shared sacrifice that must prevail throughout our state government, particularly during these harsh economic times."

HB 2145 appropriates $3.8 billion to fund state operations. However, HB 2145 fails to adequately cut the cost of state operations, including the budget of the General Assembly and other Constitutional Officers, including the Attorney General, Treasurer, Comptroller and Secretary of State. (Attached is the Governor's veto message)

Governor Quinn said the General Assembly and all statewide officers should cut their budgets by at least 10 percent, a cost-cutting move that includes an option of ordering up to 12 furlough days for all employees.

"I presented my budget to the General Assembly on March 18 with a clear message: When it comes to making cuts, we have to make tough choices, not bad choices. It was true then and it's true today," said Governor Quinn. "My goal has always been to pass a fair and comprehensive state budget that serves the fundamental needs of the people of Illinois."

The Governor's "Tough Choices" budget proposes cutting $1 billion from the state budget including:

* $185 million from state operations, including approximately 2,600 layoffs and 12 furlough days for state employees
* $140 million from Medicaid and health insurance
* $250 million in targeted reductions in grant programs
* $125 million from the Department of Corrections
* $175 million cut from proposed increases for K-12 education
* $25 million from other state offices, departments and agencies not under the Governor
* $100 million in additional reserves


There are real problems here in Illinois. Governor Quinn wants to raise the income tax, temporarily, to get funds to pay for services but the Illinois House and Senate don't want to raise taxes.

From the Chicago Tribune:

For the second time in a week, Gov. Pat Quinn backed off his threats to make major cuts in state spending, instead vetoing much of the state budget Tuesday and trying to pressure lawmakers to help him find a solution.

But legislative leaders said Quinn's latest move only deepens mistrust of the rookie governor. House Speaker Michael Madigan and Senate President John Cullerton have urged Quinn to avoid a crisis situation, but state government edged closer to that as Illinois entered its second week with no budget in place.

As recently as Monday, Quinn said he would cut $1 billion in state spending as part of plans to fill a budget hole he estimates at $9 billion. On Tuesday, however, Quinn vetoed another budget bill, saying it was flawed from "beginning to end" and should be completely rewritten to reflect spending cuts across state government.

The decision allowed Quinn to try to spread responsibility for budget cuts. He called for a "partnership" as he said lawmakers must "start from scratch" to come up with a spending plan he can sign.

"If the General Assembly passed a budget that's out of balance, the proper thing for the governor, the executive, to do is to veto it and send it back and say, 'Do it again, do it right,' " said Quinn, who wants an income tax increase to raise more money. "Now if you need some help, I'm here to help."

The latest veto was a repeat of Quinn's budget maneuver last week. With the deadline to get a spending plan in place approaching, Quinn vetoed a different budget bill on social services after threatening for weeks that he would slash such spending by 50 percent.

Legislative leaders derided Quinn's vetoes, but said it was too early to say if they would seek to override them when they return to the Capitol on Tuesday.

"It looks at the front end as sort of his biggest flip-flop yet," said Madigan spokesman Steve Brown.

Cullerton spokeswoman Rikeesha Phelon said the governor's veto came as a surprise and was not mentioned during a meeting between Quinn and the Senate president earlier in the day. Phelon questioned why Quinn didn't instead use his amendatory veto powers to alter the budget bill instead of rejecting it outright, and said the decision will add further tension to negotiations.

"If we just had to deal with the budget gap in these meetings, that would be one thing.Now we have to maneuver around his credibility gap," Phelon said.

Quinn did move forward with some cuts, however. His administration sent layoff notices to 2,600 of the state's 58,000 employees, including 1,000 corrections workers. He said he also has started negotiating with worker unions for 12 unpaid days off. Combined, those measures are expected to save the state $185 million. If an agreement isn't reached on the furlough days, Quinn said another 2,500 workers could lose their jobs.


There has to be an agreement between Quinn and the Illinois legislature soon or there will be major problems for the most vulnerable in Illinois. Many of us. here in Illinois have been calling, emailing, and writing to both Gov. Quinn and our local Reps and Senators to pass something soon. I also added that I would like to see more transparency for the government of Illinois so we know where this money is going. A web site would be nice.

So far we haven't had to send IOUs like California but if they don't agree on something soon...

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