Tag: Illinois Budget

Senate Reluctantly Passes Budget – Pension Reform Delayed

Observations and comments about state government by State Representative Robert W. Pritchard.

June 1, 2012

In this Issue:
· Senate Reluctantly Passes Budget
· Pension Reform Delayed
· Voters to Decide on Pension Sweeteners
· Park Sustainability Fee Stalls
· New Prison Release Program Approved
· Efforts to Control Fracking Delayed
· Enhancement to Enterprise Zones Passes
· Website Alerts When to Lower Flag

The spring session of the 97th General Assembly ended on May 31 as scheduled with the passage of the House budget, gaming expansion, and a number of pro- and anti-business measures. Everyone seemed ready to adjourn for the summer even though several issues including pension reformed went unresolved. I’ll provide a review of the major issues addressed by this legislature in the next issue of the Perspective.

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Budget is No April Fools’ Joke

Observations and comments about state government by State Representative Robert W. Pritchard.

An observer in the House chamber last week might have thought April Fools’ Day had come early. One of the sponsors of a resolution to pay non-discretionary bills had a monkey on his back while several Chicago legislators spoke about raising more taxes to avoid budget cuts.

The toy monkey was a symbolic way of saying Illinois must get the monkey off our backs and start paying the backlog of unpaid bills. The idea of raising taxes further so the state can avoid making program reductions and budget choices is indeed foolish to most citizens.

It’s no joke that the Illinois House has passed the budget framework that reduces spending, pays some of the unpaid bill backlog and puts Illinois’ finances on the path to recovery. With the passage of House Resolution 706 and House Joint Resolution 69, spending caps for the state’s Fiscal Year 2013 budget were set at $32.9 billion – less than what was spent last year and $800 million less than anticipated revenue.

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House Passes Budget in Historic Fashion

Observations and comments about state government by State Representative Robert W. Pritchard.

It was ironic last week to hear the Speaker of the House, who has done much to consolidate power in our state, congratulate the chamber for taking control of the budgeting process this year.  Not since political leaders wrestled control of the budgeting process in 1991 have representatives worked in a bipartisan fashion going line by line to write the budget.

The House passed nearly 10 budget bills for various areas of government instead of the usual one omnibus bill.  Citizens can now see the detailed budget weeks before it will be finalized instead of hours before it is called for a vote.  Finally, it’s noteworthy that the budget discussions involved legislative members of all five appropriation committees instead of just the four party leaders and governor.

The House budget is indeed historic but now it must be reconciled with the Senate version which passed in usual partisan fashion and garner the signature of the governor who has been basically cut out of the process.

For years, I have talked of the need for fiscal discipline—a balanced budget—in order to climb out of our fiscal hole.  Last week we took a dramatic first step by not only authorizing less spending than revenue but also less spending than last year.

Certainly groups that received less money will object over the next few days but let’s look at the priorities established by the committees in the budget.

Human Services Takes Biggest Cuts

Human services comprise 50 percent of the budget so was given the biggest challenge to meet the spending limit.  The committee had to reduce the general revenue spending by $358 million and $700 million in other funds—mostly federal stimulus funding– that will not be renewed next year.  Nevertheless, the committee prioritized spending and kept many of the programs that the governor had proposed eliminating and awarded $12.1 billion from general revenue and $22.7 billion from all funds.

Hospital rates for Medicaid patients were not reduced but the payment cycle was increased to nearly two months.  Home services were funded at last year’s levels as were prevention and treatment programs for alcohol and substance abuse.  Priorities for funding were given to community based services over state run facilities, and funding for hospice programs were actually increased.

Like other committees, the Human Services Committee made sharp reductions to state department operations and staffing.  The legislators directed funding to consumer services rather than employee payrolls.

House Approves First Education Reduction in Years

For at least the last decade, governors have directed more funding for K-12 education each year.  In FY2012, the foundation level per student will stay the same but funding for other K-12 programs will be cut $168 million and higher education will see a $34 million reduction.

More funding will be available to pay for busing, and mandated categorical programs (special education) were funded at levels to capture all the available federal matching funds.  Make no mistake about it; I was not pleased with the reductions especially to early childhood education, new textbooks, various career courses, and programs to improve student learning and turn around poor performing schools.

Higher education reductions were focused on public universities (1.2 percent) and monetary assistance grants to students attending for-profit private colleges.  The committee felt that funding for public universities would have to be cut even more to continue giving funding to for-profit private colleges.

Corrections Consumes Public Safety Budget

While the public safety budget passed by the House holds most lines at FY11 levels, employee compensation was reduced by 10 percent across the board.  HB 2165 holds most lines for the Department of Corrections at FY11 levels, but does give slight increases for repairs, maintenance and equipment.  The Department of Corrections comprises about 80 percent of the budget.

I recently visited two prisons in central Illinois and found them understaffed and buildings in needed major repairs and renovation.  Staffing for juvenile correction centers continues to be inadequate to provide a necessary high school education and job training for young people while they are in prison.  It’s not surprising then that we have a high rate of repeat crime and imprisonment.

General Services Receive Small Allocation

This expense grouping covers the most number of state agencies but only about 5 percent of the budget.  Like the agencies, constitutional offices under this category received smaller allocations than last year.

Funding for agriculture programs continued the decade long trend of reductions.  The budget which regulates, promotes and protects our food supply now totals $95 million.  The cuts this year affected programs to improve water quality and reduce soil erosion.

Sweeping Education Reforms Passed

Last week the legislature continued making major reforms to the state’s educational system.  SB7 passed the House and now moves to the governor with changes to teacher tenure, dismissal, and collective bargaining.  It also requires school board member training and a survey of learning conditions in each school.

Under the approved reforms, teacher tenure will no longer be based simply on years served, but also will include merit and student growth in learning.  In addition, teacher reduction in force (RIF), recall, and the filling of vacant positions will be based on teacher performance before a board considers years of relevant experience.

Another provision of SB7 strives to avert teacher strikes.  Under the bill when negotiations stall, the public will be able to see the final offers of the district and local bargaining unit prior to a strike.  With this information, the public could pressure one side or the other to settle and avoid a strike.  Finally, the State Superintendent of Education will have the ability to revoke a teaching certificate when a teacher receives two unsatisfactory evaluations within a seven-year period.

SB 7 is the result of months of negotiations between all interested parties – from the State Board of Education to the reform groups, teacher unions, and school management.  These reforms combined with others over the past two years have the potential for major improvements in student learning and school operations.

District Office 815-748-3494 or E-Mail to bob@pritchardstaterep.com

Sen. Christine J. Johnson proposes budget reductions

SPRINGFIELD, Ill. – State Senator Christine J. Johnson (R-Shabbona) stood with the Senate Republican Caucus on Thursday to introduce more than $5 billion in spending reductions and cuts to the state’s budget, saying such an act of tough discipline was crucial to keeping Illinois from falling into a fiscal black hole.

“Illinoisans know that several things cannot continue: the 67-percent income tax increase, the out-of-control spending, the growing deficit year-to-year and Springfield’s resistance to tightening its budget belt and reducing spending,” Sen. Johnson said. “This plan today puts an end to all of those bad habits and can set us on the path to financial recovery to grow business and pay our bills on time.”

Sen. Johnson pointed to the future $22.6 billion deficit Illinois faces in just five years, which could create a financial environment to make the current “temporary” income tax permanent – a scenario the state should avoid in order to grow the economy and attract businesses to create jobs.

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Sen. Christine J. Johnson: Illinois budget woes means now is the time for cuts

State Senator Christine J. Johnson (R-Shabbona) joined her Senate Republican colleagues on Thursday to warn about the state’s worsening fiscal condition that could make the “temporary” income tax hike permanent.

Pointing to the governor’s own budget plan at a Statehouse news conference, Sen. Johnson and the Senate GOP caucus said that in five years Illinois would be left with a $22.6 billion cumulative deficit.

“We have a situation where every year this 67-percent tax hike is in effect, the state will keep running a deficit in the billions of dollars each year,” Sen. Johnson said. “And despite the taxpayers feeling the pinch every year, we still won’t have a balanced budget. Frankly, we’re headed for a disaster and it’s time to take action.”

Sen. Johnson said the problem comes from the built-in “spending caps” of the tax-increase language, which allows the state to increase spending each year – spending that Illinois cannot continue to afford.

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