A look at a non-budget future
Friday, Jun 10, 2016 - Posted by Rich Miller
* Let’s revisit Comptroller Munger’s press release from yesterday so that we can take a quick look at what could be ahead if there is no new budget…
While court orders, consent decrees and statutory authorization of some payments will continue, Munger noted that $23 billion in existing spending for schools, 911 call centers, domestic violence shelters, federally-funded social and human services and higher education will stop next month without new legislation. In addition, businesses and organizations that have signed contracts and provided services to the state this year face the very real possibility of having to go to Court to be paid in the absence of a stopgap budget. […]
Compounding Illinois’ challenges, Munger noted businesses that have provided goods and services to the state in good faith in the current fiscal year will continue to go unpaid without legislation in Springfield. Typically, unpaid vendors would go before the Court of Claims to compel payment, but without an appropriation that Court is not an option. As a result, the state faces the possibility of a wave of costly lawsuits.
* The 82 social service providers which sued the state for not honoring their contracts have a court hearing next month…
Attorneys this week set a July hearing for the lawsuit, which Diana Rauner’s group joined weeks after it was first filed.
* I asked the attorney general’s office yesterday what happens to the St. Clair County court order regarding state employee pay when the new fiscal year begins…
The order reads: “…the court finds that this order authorizing payment is applicable to all other state employees [in addition to union members] at their normal rates of pay until further order of this court.”
So, until the court revisits this topic, workers will continue to be paid after June 30th.
* But lots of other things won’t get any funding if there is no budget deal by the end of the fiscal year. Back to the Munger release…
Munger highlighted four budget bills that were passed by the General Assembly and signed by the Governor that will sunset in the new fiscal year. The legislation authorized spending that included:
* $13.7 billion for K-12 education
* $3.1 billion that funded local governments, 911 call centers, domestic violence shelters, lottery winners and other programs and services
* $5.4 billion in federal spending including the Low Income Energy Assistance Program, child nutrition programs, HIV prevention and home-delivered meals for seniors
* $600 million for colleges, universities and MAP grants
Discuss.
- Anon221 - Friday, Jun 10, 16 @ 10:11 am:
June 30- the next push back date for Armmagedon.
- Honeybear - Friday, Jun 10, 16 @ 10:12 am:
Thanks for checking on the pay issue. That really relieves me. Really relieves me. At least my spouse will continue to get paid during The Great Labor War.
- Johnny Pyle Driver - Friday, Jun 10, 16 @ 10:12 am:
i still have no idea how much it cost for my daughter to be brought into this world nearly 1 year ago. It’s pretty tough to plan much of anything with a completely unknowable log of bills just waiting to drop
- 4 percent - Friday, Jun 10, 16 @ 10:14 am:
Leslie Munger should be the adult in the room and stop paying state workers in light of the Supreme Court decision on AFSCME backpay. She has a constitutional obligation and the ISCOTUS has spoken
- DuPage Moderate - Friday, Jun 10, 16 @ 10:17 am:
If our “leaders” don’t care and the voters keep sending these losers back to Springfield, why should I care? It’s out of my control anyways.
- Robert the Bruce - Friday, Jun 10, 16 @ 10:18 am:
She also tweeted yesterday one indication of a priority for payment: MAP students & instutions most in need, naming CSU, NEIU, EIU, WIU.
- Shemp - Friday, Jun 10, 16 @ 10:23 am:
Does the $3.1b for local govt include the LGDF? If so, confused as Statute calls for it to come off the top.
- illinois manufacturer - Friday, Jun 10, 16 @ 10:24 am:
WIU got its share of the 600 million. But since no one can cover MAP then the new round is needed by fall.Also isn’t the judge under an obligation to rescind his order based on the IL SC ruling?
- Politix - Friday, Jun 10, 16 @ 10:28 am:
“Leslie Munger should be the adult in the room and stop paying state workers in light of the Supreme Court decision on AFSCME backpay.”
Great idea. This will go a long way in solving the budget crisis.
[banned word.]
- AC - Friday, Jun 10, 16 @ 10:29 am:
The court order only regarding employee pay appears to reference only the 2016 fiscal year:
http://www.illinoiscourts.gov/SupremeCourt/SpecialMatters/2015/071315_119525_MOT.pdf
- AlabamaShake - Friday, Jun 10, 16 @ 10:29 am:
**She has a constitutional obligation and the ISCOTUS has spoken**
The IL Supreme Court (its not a “ISCOTUS” - they’re not a “US” court) did NOT rule on state employee pay. Their ruling on the AFSCME case would imply that they would rule similarly on basic state employee pay. But the court did not rule against currently paying state employees.
Munger is currently under a court order to pay state employees. Someone will have to take this to court if folks don’t want state employees to be paid.
- A Jack - Friday, Jun 10, 16 @ 10:30 am:
State Employees continue to be paid, but what about travel vouchers for those state employees that have to travel as a condition of employment?
Travel vouchers are in arrearages, along with all other vendor payments, will those end up in court at the end of the fiscal year?
- cdog - Friday, Jun 10, 16 @ 10:31 am:
We get little hints here and there about how basic agency operations are getting FUBAR’d.
Gosh darn, it’s hard to compromise.
DOC Dir quote from the other day is my favorite, “Lack of a balanced budget or stopgap will impact the department’s ability to feed offenders, keep the lights on and the water running, and fulfill other day-to-day duties. Our vendors, including many mom and pop businesses that provide food supplies, fire equipment examination services, building repair parts, and maintenance services, depend on our payments. These local businesses will continue to suffer without payment and will eventually have to pull their services. That could cripple the department in a matter of days.”
In a matter of days? I wonder why that didn’t make Comptroller’s list?
When voters voted for change with Rauner, I am sure they were not voting for a public health crisis, etc.
- Illinois Bob - Friday, Jun 10, 16 @ 10:37 am:
Rauner should work with Munger to put out a plan for appropriation of the $32 billion in anticipated revenues, and either put it into a budget for submittal or work with his people in the GA to prepare a fleet of appropriation bills to meet those requirements.
Matching funds, health care issues, safety and court ordered disbursements need to be covered. It’s unreasonable to budget for any “general” increases in last year’s line items at this time.
Ms Flynn Curie’s “Because it has value” budget line item or “because it’s a continuing expense” excuses just don’t cut it.
Serious “zero based” budgeting needs to happen.
Is ANYONE doing this now? You wouldn’t think so based on press releases.
- Sangamo Sam - Friday, Jun 10, 16 @ 10:47 am:
I’m still waiting for a cost/benefit analysis on the turnaround agenda from the “Governor”. He now needs to add another chart to show us when we recover from all the costs incurred by his impasse.
- DuPage Moderate - Friday, Jun 10, 16 @ 10:50 am:
Yeah, this is just Rauner’s impasse. The last 20 years of Madigan leadership put us in such a great spot. Give me a break.
Numbers don’t lie - something needs to change - and Madigan & Co. and the rest of the complicit Republicans don’t seem to have the testicular virility to do it.
- Blue Bayou - Friday, Jun 10, 16 @ 10:56 am:
Sangamo Sam +1
- Sangamo Sam - Friday, Jun 10, 16 @ 10:56 am:
==something needs to change===
On this we agree, but the “Governor” has yet to demonstrate that the turnaround agenda is the answer.
- illinois manufacturer - Friday, Jun 10, 16 @ 10:57 am:
I ran into a social service provider and I assume it’s the same with any vendor. They are getting the federal money of any Fed state mix but no state money ..until an appropriation.
- SAP - Friday, Jun 10, 16 @ 10:59 am:
==So, until the court revisits this topic, workers will continue to be paid after June 30th.== That is welcome news. I don’t mean to minimize all the other damage the lack of a budget has caused, because they are huge and have disproportionally impacted the poor and the desperate. If State employees stop getting paid and quit showing up to work, this whole thing goes up way past 11. And A Jack, you are right. There are plenty of state employees who are owed thousands for travel–auditors, investigators, case workers, examiners-you name it. Not all of those employees are those pesky union types either. Tough to complain when compared to HIV prevention for pregnant women isn’t getting funded, but it is causing very real damage.
- Saluki - Friday, Jun 10, 16 @ 11:01 am:
I get so tired of hearing about this being “Madigan’s Impasse” or “Rauner’s Impasse.” The fact is, it really does not matter who or what got us here. That very attitude is what continues to drive this disaster. Illinois needs revenue, and it needs reform. The Governor should put a single demand on the table coupled with a tax increase. Tackle 1 issue. Say a package that includes a thoughtful workers comp bill packaged with an increase in the income tax to 5.5% with a 10 year fall back to 4.5%. What he should stop doing is babbling on about the “turn around agenda” and barnstorming the state sowing discontent.
- Jocko - Friday, Jun 10, 16 @ 11:01 am:
The correct term is “Madigan and the legislators he controls”
I’m looking forward to Bruce saying the T-word (Taxes) in the near future…kind of like those times when the fonz says he was wrong.
- Anonymous - Friday, Jun 10, 16 @ 11:02 am:
Maybe too Machiavellian, but Bruce may be planning on further demonizing state workers in the eyes of the public if they keep getting paid when nobody else does.
- SAP - Friday, Jun 10, 16 @ 11:02 am:
That Dept of Corrections deal sounds like it is veering real close to an 8th Amendment violation for cruel and unusual punishment. Yikes.
- State Employee - Friday, Jun 10, 16 @ 11:11 am:
Interesting how non-state workers would like US to work for no pay so THEY can continue to receive services. Interesting!
- Illinois bob - Friday, Jun 10, 16 @ 11:18 am:
@State Employee
=Interesting how non-state workers would like US to work for no pay so THEY can continue to receive services.=
I’m not aware of anyone posting here expecting you to work for NO pay. The most austere thing I’ve seen here is not giving raises and increased benefit contributions until the budget can get under control.
State worker, no raises or lower benefit contributions when times are tough are what happen outside your public worker cocoon. Time for you to have to deal with economic reality like the rest of us.
- Mama - Friday, Jun 10, 16 @ 11:27 am:
- cdog @ 10:31 am: -
cdog, I thought Dept of Corrections had a continuous budget. Perhaps that is for the DOC staff only.
- Mama - Friday, Jun 10, 16 @ 11:30 am:
== “$5.4 billion in federal spending including the Low Income Energy Assistance Program, child nutrition programs, HIV prevention and home-delivered meals for seniors” ==
I thought these programs were funded by the feds not the state. Please correct me if I’m wrong.
- Allen D - Friday, Jun 10, 16 @ 11:32 am:
The time has come for the AG to make her case using the IL SUP case ref… and stop all non appropriated payments as they are violations of the IL Constitution. This is what is done Federally with no budget and should have been done last year… CLOSE THE STATE… That is the pressure needed to get things moving between the two heads at the top quickly.
- Anonymous - Friday, Jun 10, 16 @ 11:43 am:
Illinois manufacturer, those Federal dollars dry up June 30, without a new appropriation.
- State Employee - Friday, Jun 10, 16 @ 11:46 am:
@Illinois Bob
Absent a contract, what is proposed is minimum wage. The only thing stopping it is the states computer systems. As a Union member I would have said strike ” yesterday”.
- Scamp640 - Friday, Jun 10, 16 @ 11:54 am:
@ Illinois Bob.
I don’t think you know how a furlough works in real terms. Folks are told not to come to work because they won’t get paid. But guess what, the rest of the world does not wait for the furloughed worker to catch up with the backlog of work. The essential impact of a furlough is added work. I know this because I have experienced it.
- State Employee - Friday, Jun 10, 16 @ 11:55 am:
@ Illinois Bob
I’m in no cocoon. On the contrary enjoy servicing and help all in Illinois. When you do that Bob you can’t put a price on it.
- illinois manufacturer - Friday, Jun 10, 16 @ 12:03 pm:
Victim update. WIU cut several majors and came out with a 20 million dollar budget cut for fy 2017
- Qui Tam - Friday, Jun 10, 16 @ 12:14 pm:
= I’m still waiting for a cost/benefit analysis on the turnaround agenda from the “Governor”. He now needs to add another chart to show us when we recover from all the costs incurred by his impasse.=
SS + BB + 1
- justdoingtime - Friday, Jun 10, 16 @ 12:42 pm:
How much money has the state saved by not having a budget in place to spend money in the last year?
- illinois bob - Friday, Jun 10, 16 @ 12:46 pm:
@scamp640
EVERYBODY has to catch up when people are out for whatever reason or the office is closed Scamp. Whether you call it a “furlough” or “reduced hours” or “understaffing”, the impacts are the same. Welcome to living with the same issues we have in the private sector!
- Illinois bob - Friday, Jun 10, 16 @ 12:49 pm:
@State Employee
=Absent a contract, what is proposed is minimum wage.=
Who have you heard proposing that? I haven’t heard a thing about this. the only thing I’ve heard regarding minimum wage was how much in raises would be given to state workers once the minimum wage act is enacted.
- Illinois bob - Friday, Jun 10, 16 @ 12:56 pm:
@State Employee
=On the contrary enjoy servicing and help all in Illinois. When you do that Bob you can’t put a price on it.=
I agree, State. I took a $70K per year pay cut about two decades ago to teach science and math in private schools. I worked for CPS managing capital work to make the kids learning environments better for a heck of a lot less than I could’ve made in other industries.
The feeling for positively impacting people’s lives, especially those of kids, is worth far more than just dollars.
That’s one of the reasons I have little tolerance for teachers striking who are already being paid rates far above market value for their services.
- Bonsaso - Friday, Jun 10, 16 @ 1:01 pm:
@mama - even though some programs have federal funds, they are often required to use state funds to match.
Everyone in the Legislature, and leadership, and the Governor need to take the blame for the impasse and find a solution already. It is not by natural disaster, terrorism or an external cause that we find ourselves in this political made disaster.
And for all those who are negative toward state employees, we are not the villains in this story. There are tens of thousands of people, many who don’t earn very much, contrary to popular belief, who live paycheck to paycheck and without a paycheck come July 15 or 26 (July 11 is when many get paid for work up to June 30) would be seriously economically impacted.
- Honeybear - Friday, Jun 10, 16 @ 1:39 pm:
IB- What State Employee is talking about is the court order that is forcing us to be paid. It pays our full wages because they state could not figure out how to pay us all minimum wage as required by federal law if there is no appropriation for our wages. Otherwise it’s slavery to force us to work without wages. That’s what SE is referring too.
- State Employee - Friday, Jun 10, 16 @ 1:45 pm:
@ Illinois Bob
Taken from Tribune article and I understand your lack of knowledge because you aren’t a State Employee
“The decision contradicted an earlier order from a Cook County judge who said Munger should pay workers only the $7.25-per-hour federal minimum wage until Republican Gov. Bruce Rauner and the General Assembly can agree on a spending plan for state government.”