Illinois Political News, Gov. Quinn

From David Ormsby at Huffington Post:

Gov. Pat Quinn's office said the widely reported 86 percent funding level for state human services in the new Illinois budget signed by Quinn is purely "speculative."

Elizabeth Austin, the communications director at the Governor's Office of Management and Budget, said Friday the 86% figure -- which is currently swirling and bobbing in the media -- is only speculative because in addition to the $2.3 billion the legislature committed to human services, there is $1.2 billion available to the Quinn to spend at his "discretion."

Moreover, Austin noted that agency directors were still preparing budget plans for submission to the governor's office, so the funding level is unknown.

Austin refused to speculate on whether any of the $1.2 billion may be allocated to human services, only to repeat that the governor could spend that dough at his "discretion."

That emphasis on "discretion" is enough of a signal, however, to human service lobbyists: start your engines boys and girls.

Additionally, Austin was unable to clarify whether and what portion the $1.1 billion in budget reserves -- which House Democrat budget documents refer to as "mandated" reserves until new revenue materializes this year (cue the flying pigs) -- are included in the estimated 86% human services funding level, except to reiterate that agency budget plans were in formation.

What Austin could confirm, however, is that the state -- with a $3.9 billion bill backlog from last year -- is now on six-month bill payment cycle. Submit a bill on July 17, 2009; expect payment on January 17, 2010. Ouch.

With those financial institutions formerly known as banks shrinking and shriveling credit lines, that six-month stretch will almost certainly drive many social service agencies into bankruptcy. Poof.

Of the new Illinois budget's plan to push $3 billion in money owed to state service-provider payments into next year, one state human services association estimated that of that amount, $1.5 billion would be money owed to human-services providers. Austin was unable to confirm that number.

Whatever the human services spending percentage may be, Quinn's real -- and thankless -- job is to cut the budget. A lot. More at link.

There are many people in Illinois sweating out this budget on Humane Services. I called my State Representative's office to give them my view and was told that I was on a long list of people concerned about this issue. I'm hoping for the best because many people will suffer if this issue isn't funded.

Illinois Political News

Mark Kirk Denies Report He's Out Of Senate Race, Deciding Over Weekend

U.S. Rep. Mark Kirk is denying a report that he has decided not to run for the Senate in part to avoid a primary with the Illinois Republican Party Chairman.

The Washington Post's Chris Cilliza reported Friday afternoon that Kirk would not make a Senate bid, despite signaling to party leaders just days ago that he was planning to run.

The North Shore Republican appeared set to enter the race after Illinois Attorney General Lisa Madigan announced she would not run. A potential sticking point for Kirk, Cilliza reported, is his vote for the administration's climate change bill and a potential primary with state GOP chairman Andy McKenna:

[Kirk's decision] followed a meeting of the Illinois Republican congressional delegation on Thursday in which his colleagues refused to back Kirk in a primary against Illinois Republican Party Chairman Andy McKenna due, in large part, to his vote in favor of President Barack Obama's climate change bill.

This is the idiot guy that told the Chinese not to believe the US Budget



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Quinn Shelving Tax Increase Push Until Fall

Illinois Gov. Pat Quinn is putting aside his call for an income tax increase until November.

In an interview Friday with The Associated Press, Quinn said he now wants to pass a state budget with significant spending cuts. Then in November, he would ask lawmakers to choose between balancing the budget by cutting even further or by raising taxes.

Quinn said delaying the decision for five months would provide time to study Medicaid spending, pension reforms and other cost-cutting measures.

Then officials would be in a better position to decide the best way to finish erasing a roughly $11.6 billion budget deficit.

The Democratic governor says he'll ask lawmakers to consider the idea when they return to Springfield next week.

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Giannoulias takes lead in fund-raising for a Senate bid

Illinois Treasurer Alexi Giannoulias has raised $1.8 million for his Senate bid, while his likely Democratic rivals have zero dollars in their war chests.

Giannoulias has been fund-raising since March. Federal fund-raising reports, public next week, will show that Giannoulias raised about $670,000 in the second quarter of 2009.

Giannoulias is also in a position to pour some of his own money into his campaign; his federal financial disclosure statement will show that he is worth between $13 million and $62 million, I'm told.

Lisa Madigan is running again as State's Attorney but will Have Joe Birkett, from DuPage County as her opponent again. My opinion...Birkett doesn't have a chance!

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...