Doing the budget dance
Friday, Feb 6, 2015 - Posted by Rich Miller
* The state’s $300 million shortfall for child care programs took on a human face yesterday during a Senate hearing…
Chandra Ankoor is a 24-year-old single mother from Springfield. While she is working, she sends her three daughters to child care that is partially paid for with the help of the state.
If it weren’t for this assistance, she says it would cost her every dollar she makes, and then some, to afford the cost of child care.
“I will have to look at three little girls’ faces and tell them that there’s no where else for them to go. And I’m facing going from working three or four jobs to possibly being homeless,” Ankoor said.
* So, what to do? An outline from the AP...
Representatives from the governor’s office said Rauner wants lawmakers to grant him wider authority than he currently has to maintain underfunded portions of the budget by reallocating money from other areas that aren’t “critical priorities.” Rauner’s budget director Tim Nuding said the governor’s office wanted the flexibility to address all problems in the current year’s budget.
“We don’t have the … authority to spend another dime until the legislature gives us the authority to do it,” Nuding said. […]
The idea is proving unpopular with some members of the Democratic-run General Assembly, who are concerned about which areas Rauner might cut to reallocate funding elsewhere. They’re also accusing the Winnetka Republican of using some programs, such as subsidized day care, as pawns as he tries to pressure Democrats to give him the broader authority he wants. Rauner has pledged to manage the state’s budget crisis without raising taxes.
* More on the scope of Rauner’s original request…
“It is very broad, what has been put on the table and asked for, very unusual. We have done emergency budget acts before to give flexibility to previous governors (but) nothing in the terms of what has been requested,” said state Sen. Heather Steans, a Chicago Democrat and chairwoman of a Senate budget panel.
* Even so…
House Speaker Michael Madigan, D-Chicago, on Wednesday noted that it would not be unprecedented to give Rauner that authority.
“Prior governors received extraordinary authority from the legislature — (Govs. Jim) Thompson and (Jim) Edgar — in the short term to reduce spending and reduce the level of appropriation,” Madigan said. “I’d be open to those ideas.”
Likewise, Senate President John Cullerton, D-Chicago, said the legislature took similar action during the 1992, 2010 and 2011 budget years.
“Gov. Rauner has asked legislative leadership to work with him on legislation to address the projected $1.5 billion gap in the current fiscal year state budget,” Cullerton said.
He added that the administration is “refining” its request for additional powers.
* Meanwhile…
Republicans said the child care program is just one of many shortfalls they expect to see from the budget mess and Rauner wants the ability to address those programs, too.
State Sen. Chapin Rose, R-Mahomet, said rehabilitation service programs are underfunded and looking for help.
State Sen. Tim Bivins, a Republican from Dixon, said court reporters are also underfunded and could be out of cash by March, creating problems in the court system.
And then, of course, the coming payroll crisis at the state’s prisons.
* WUIS on the governor’s negotiating posture…
Rauner’s people told the committee that keeping the child care program afloat is his top priority, but they warned that it is not the only thing in trouble. “This will not be the last crisis that comes before this committee in FY 15,” Nuding said. He said that the Department of Corrections could be unable to make payroll at some prisons in March or April.
Goldberg and Nuding would not commit to supporting standalone funding for the day care program if a deal cannot be struck on getting their boss control over the budget. And why would they? If they agree to fund programs near and dear to Democrats even if Rauner doesn’t get what he wants, then what leverage will he have in negotiations? That may seem callous, but it is how budgeting often works.
Rauner stands the chance to gain control over the current budget before he even presents his ideas for next fiscal year. From a purely operational perspective, he would be able to move money around and possibly tap special funds to patch the current deeply flawed budget and keep state government going. He would also be able to begin shaping the budget, albeit in limited ways, to his agenda almost immediately. On this issue and the budgeting process at large, one has to wonder if Rauner may be thinking of a quote from his friend Chicago Mayor Rahm Emanuel (which is a riff on a quote from Winston Churchill): “You never let a serious crisis go to waste. And what I mean by that — it’s an opportunity to do things you think you could not do before.”
Agreed.
- Just Me - Friday, Feb 6, 15 @ 12:31 pm:
If a Democrat complains about giving the Governor too much budget power and that it would mean the General Assembly isn’t doing its Constitutional job as a separate but equal branch of government, I would first ask that Democrat if they voted for Quinn’s lump-sum budget.
- Wordslinger - Friday, Feb 6, 15 @ 12:33 pm:
I don’t know what Steans is talking about. During the recession when revenues tanked, the GA gave Quinn loads of discretion in spending authority.
Well, thanks to the GA, revenues have tanked again.
The GA chose not to exercise its authority last May when it punted on the budget. Try not to embarrass yourselves now in the midst of this planned crisis by worrying about your “authority.”
- PublicServant - Friday, Feb 6, 15 @ 12:34 pm:
Looks like the legislature and governor are cooperating and attempting to come to an agreement. Rauner’s not going to be given the authority to move money from anywhere he wants to anywhere he wants, and that is why Cullerton says the Rauner administration is “refining” its request for additional powers.
Refine is right. Cullerton and Madigan won’t allow Rauner to continue to be vague. That dog won’t hunt anymore…
- steve schnorf - Friday, Feb 6, 15 @ 12:39 pm:
Back in the day, during budget negotiation, staff would sometimes joke around about passing a one line item appropriation “for the ordinary and contingent operating expenses of the State of Illinois”. It was always easier to reach agreement on the big numbers (revenue and spending) than on the allocation. Maybe the time has come to try that approach.
- Mason born - Friday, Feb 6, 15 @ 12:39 pm:
There is a military saying “Once you pull the pin Mr. Grenade is no longer your friend.” the Dems thought this disaster of a budget would be used to buy cover to raise taxes back to 5%. Unfortunately for them Quinn lost and the new guy doesn’t agree. they made this bed and are going to have to sleep in it. It was irresponsible to the citizens of IL to pass that budget without securing the funding for it. Doesn’t matter if they expected to get it done post election. They are going to have to let Rauner deal with it.
That said any special powers Rauner gets needs to sunset as soon as this fiscal year is over. this current crisis can’t be a way to circumvent the GA in the years to come.
- Cassandra - Friday, Feb 6, 15 @ 12:42 pm:
With power comes responsibility and so forth. Why not give Rauner the authority. The Dems want the budget fixed and any unpleasant repercussions to fall on the Rauner and the Republicans, right? Especially since they expect to regain the governor’s seat in four years, Rauner’s election being a bit of a fluke. Sure, they have to caterwaul a bit. But really, what’s not to like about this strategy.
- Rich Miller - Friday, Feb 6, 15 @ 12:43 pm:
===The Dems want the budget fixed and any unpleasant repercussions to fall on the Rauner and the Republicans, right?===
Yeah, but they also have constituents to protect. Remember them?
- Langhorne - Friday, Feb 6, 15 @ 12:55 pm:
Tick tock. Let’s come to an agreement and pass it next week.
Get together w nuding, go down the list of fund balances. If some are sacrosanct, protect them in whole or part and move on. It’s triage. Tick tock
- Cassandra - Friday, Feb 6, 15 @ 12:56 pm:
If they wanted to protect those constituents, why didn’t they vote for maintaining the tax increase, at least for another couple of years.
That was eminently sellable to folks who were already paying.
I predict-day care will not suffer much of a cut, if any, and of course Rauner wants to increase school funding and staff prisons better. And take the heat for cutting other stuff and raising some taxes. Again, what’s not to like if you are a Democrat. All this and taking back a state in fiscal recovery in four years.
- Captain Jack - Friday, Feb 6, 15 @ 12:58 pm:
Why is the State paying for child care? Quit having kids if you can’t afford them!
- steve schnorf - Friday, Feb 6, 15 @ 1:00 pm:
hey, that’s cool, Captain. But it also means quit working and go on welfare-not so cool
- Aldyth - Friday, Feb 6, 15 @ 1:04 pm:
Captain Jack, that’s an opinion voice by many for decades. How’s that worked so far?
- Because I said so.... - Friday, Feb 6, 15 @ 1:05 pm:
=Why is the State paying for child care? Quit having kids if you can’t afford them!=
Tell that to the men who get women pregnant and all the dead beat dads out there.
As Rich would say, bite me!
- How Ironic - Friday, Feb 6, 15 @ 1:06 pm:
@ Captain Jack
“Why is the State paying for child care? Quit having kids if you can’t afford them!”
1. Yeah, because everyone that has kids is a deadbeat that can’t afford them. Or idiot, what about the people that had kids, then lost their jobs in the downturn and had to take a lower paying job just to feed the kids and keep the lights on?
2. Paying for daycare (even partially) allows these working poor families to have a job that helps reduce their need for welfare, food stamps, and section 8 housing vouchers.
3. Let me guess…you’re one of those ‘compassionate conservatives’? I’m sure you’re doing Jesus proud by judging your fellow man. Well done.
- Steven D. - Friday, Feb 6, 15 @ 1:11 pm:
Is there any reason we cannot use the $52.5 million we are receiving from the S&P settlement to help with this?
That might do more to help people in an emergency and have a greater immediate impact than making a miniscule dent in our $111 billion pension debt.
Missouri and Indiana, for example, are putting their proceeds into their general revenue funds. It’s not a perfect solution, but it helps get us closer to one in an emergency situation.
- Wordslinger - Friday, Feb 6, 15 @ 1:16 pm:
CJ, see you in church.
- Last Bull Moose - Friday, Feb 6, 15 @ 1:21 pm:
Rauner and his team are doing a good job of using this crisis to gain power. Will be interesting to see where they shrink government.
Daycare was central to the welfare to work reform put in by Gingrich and Clinton. Surprised it was left at such risk.
- Enviro - Friday, Feb 6, 15 @ 1:35 pm:
== Rauner has pledged to manage the state’s budget crisis without raising taxes.==
Giving additional powers to a governor who does not understand the need to increase taxes would be the wrong thing to do. I would rather trust the senate and house leaders to work on solutions to the state budget. It would be scary to hand more budget powers over to a governor who can’t understand the need for more money to pay unpaid bills and pension obligations.
- scott aster - Friday, Feb 6, 15 @ 1:44 pm:
So is it important that Rauner is a WINNETKA Republican vs Heather STern a Lake Forest DEMOCRAT who family has a zillion $$$$$
- AC - Friday, Feb 6, 15 @ 1:48 pm:
Extend the tax increase and then phase it out over 10 years. Moving money around is just rearranging deck chairs on the titanic until we plug the budget hole in this ship of state.
- Anon - Friday, Feb 6, 15 @ 1:48 pm:
My friend refused a $1.00 raise. She begged her boss to not give it to her because she would lose her state benefits, which include child care assistance, and would barely survive. I can’t blame her. I don’t know how to fix this issue but it is sad that you have to refuse making more money because it worsens your situation.
- Cassandra - Friday, Feb 6, 15 @ 1:51 pm:
I don’t think he has ruled out raising taxes. It’s the income tax he supposedly doesn’t want to raise back to 5 percent. He’s open to taxing some services, I believe.
- Norseman - Friday, Feb 6, 15 @ 1:54 pm:
=== I don’t know what Steans is talking about. During the recession when revenues tanked, the GA gave Quinn loads of discretion in spending authority. ===
Word, the devil is in the details. I’ve heard that Rauner is asking for broader authority than what has been granted before. Yesterday’s passage of a shell bill shows some willingness for the Dems to give him some extra power.
- Rich Miller - Friday, Feb 6, 15 @ 1:55 pm:
===the GA gave Quinn loads of discretion ===
Yep, but he was a liberal Democrat. They knew he’d protect certain things.
- Juice - Friday, Feb 6, 15 @ 1:58 pm:
Enviro, I would argue that it is this Democratic legislature that has not recognized the need to raise revenues. So they should either come to that realization and put 60 and 30 on a bill, or give the Governor some flexibility to manage this mess. But they can’t stay with their current path of assuming all current obligations can be met without finding a way to pay for them.
- WhoKnew - Friday, Feb 6, 15 @ 2:10 pm:
===the GA gave Quinn loads of discretion ===
Sounds like its time to revert back to Blago’s Memorandum of Understanding!
SCARY!!
- Enviro - Friday, Feb 6, 15 @ 2:10 pm:
In Wisconsin the state income tax rates
on income over $21,820 is 6.27% and
on income over $240,190 is 7.65%.
Illinois should raise state income taxes as other states have done to pay for state services.
- Chicago cynic - Friday, Feb 6, 15 @ 2:10 pm:
Instead of going back to 5% go to 4.5% or something close the revenue is needed. I want to see the ideas for increasing revenue
- Enviro - Friday, Feb 6, 15 @ 2:14 pm:
== Rauner has pledged to manage the state’s budget crisis without raising taxes.==
In Iowa the state income tax rates
on income over $30,300 is 6.80% and
on income over $68,175 is 8.98%.
With tax rates like this Illinois would be able to solve all of our budget problems.
- Enviro - Friday, Feb 6, 15 @ 2:19 pm:
In Missouri the state income tax rates
on income over $9001 is 6% and
In Kentucky the state income tax rates
on income over $5000 is 5% and
on income over $75,000 is 6%
The government in Illinois would be able to pay the overdue bills and solve our budget problems with the tax rates of our neighbor states.
- Pot calling kettle - Friday, Feb 6, 15 @ 2:21 pm:
Enviro: Great idea, unconstitutional in Illinois.
- Arizona Bob - Friday, Feb 6, 15 @ 2:24 pm:
Gee, the link didn’t give anything more than this statement. Didn’t anyone ask the logical questions to solve this problem? “Ms Ankoor, is there any source of help other than the state than can address your problem? Are your parents in the area? What do they do for a living? Are either of them available to help you out with watching the kids? Family is usually better for the kids than strangers. How about the childrens’ father? Can he afford to pay a bit more to help out? Do you have any brothers, sisters or cousins who can watch the kids while you’re at work? Have you asked them to help? What about your church or Temple? Do THEY have a program to help with child care?”
Those are the questions people looking for solutions for this challenged woman would ask to help solve her problem. Each is likely to have a better chance of solving her problem than waiting for the state. I suspect that this is so much about solving problems as much as gold digging.
- Pot calling kettle - Friday, Feb 6, 15 @ 2:28 pm:
The GA can give Rauner limited authority in either a percent of what can be reallocated (to protect sacred programs) or with a June 30 sunset or both. He wants to own this, let him. While it is true that the Dems want to rotect their constituents, many of these folks either stayed home on election day or crossed over and voted for Rauner. Either way, this is an opportunity to see what Rauner’s real priorities are.
An alternative is for the Republicans to run a bill that lays out Rauner’s proposal and then let the GA vote it up or down. If the governor knows what he wants to do, he should put it in writing. From a political standpoint, this would benefit the governor because he’ll have a bunch of R & D votes on the resulting solution. He won’t have to wear the jacket by himself.
As a Dem in the GA, I’d go with what Rauner says he wants. No matter what the ultimate solution is, there will be lots of pain. Why not let Rauner take the heat?
- VanillaMan - Friday, Feb 6, 15 @ 2:34 pm:
“Why is the State paying for child care? Quit having kids if you can’t afford them!”
Children are easily affordable when you recognize their limitless value. Your question exposes you as someone who would turn down a gold mine because you think you can’t afford a shovel.
- Demoralized - Friday, Feb 6, 15 @ 2:38 pm:
==I suspect that this is so much about solving problems as much as gold digging.==
You think these people who get childcare assistance are gold digging?
- Enviro - Friday, Feb 6, 15 @ 2:39 pm:
==Pot @ 2:21 pm: Enviro: Great idea, unconstitutional in Illinois.==
A progressive state income tax is unconstitutional in Illinois at this time, but raising the state income tax rates to 5% or 6% as Wisconsin, Iowa, Kentucky, Missouri, and Minnesota have already done would really help solve Illinois’ financial problems.
- Precinct Captain - Friday, Feb 6, 15 @ 2:49 pm:
Captain Jack, I hope you don’t have a story of your grandparents or great grandparents coming here to the US and having to live a lean lifestyle because in your ideal world, they wouldn’t have had their children to have you, which wouldn’t be a bad thing.
- Jimmy CrackCorn - Friday, Feb 6, 15 @ 2:53 pm:
In addition to whatever he is paying his new CFO, they just announced a $30k/Month agreement with her consulting firm. Wow, I realize how minor these expenses are in the grand scheme of things, but they really do not care about optics when it comes the Arduin. This starting to look like a bust-out scheme more than a turnaround/shake-up/etc
http://www.purchase.state.il.us/IPB/IllinoisBID.nsf/frmBidDocFrameset?ReadForm&RefNum=22035329&DocID=7C23AB7B9F7237A686257DE4006DAFA1&view=viewNoticesOpenByDatehttp://www.purchase.state.il.us/IPB/IllinoisBID.nsf/frmBidDocFrameset?ReadForm&RefNum=22035329&DocID=7C23AB7B9F7237A686257DE4006DAFA1&view=viewNoticesOpenByDate
Also, love that they announced this contract on a Friday afternoon.
- Rich Miller - Friday, Feb 6, 15 @ 3:03 pm:
===just announced a $30k/Month agreement with her consulting firm===
Thanks for that. Now, let’s move this particular conversation to another post: https://capitolfax.com/2015/02/06/question-of-the-day-1979/
- A guy - Friday, Feb 6, 15 @ 3:14 pm:
Don’t think the people who desperately need help care a hoot about optics. There’s another word we could stand to “ban” around here.
The most positive thing going on here is that people recognize the crises at hand. They’re talking and there’s movement. All of you who praised Nuding as a good move are seeing your praise fulfilled.
The negotiation is now for a few inches of turf on a large field. This exercise in working together could bode well for the future.
- unbelievable - Friday, Feb 6, 15 @ 3:30 pm:
==Pot @ 2:21 pm: Enviro: Great idea, unconstitutional in Illinois.==
Rauner asked for no fewer than 6 Constitutional amendments. Not one of them on the patently regressive and structurally inefficient flat tax. Then he compared us to our surrounding states. Most of whom do not have flat tax rates. This is gonna be a long, long 4 years.
- Ghost - Friday, Feb 6, 15 @ 4:05 pm:
The ga failed to properly fund the programs. They had chance for input on how money would be spent and blew it. They need to give the gov full authority to direct the funds they failed to allocate. They waived their right to say how the funds should be moved around when they failed to do it right the first time. Want to protect your pet programs? Dont pass bad unfunded budgets.
- The Dude Abides - Friday, Feb 6, 15 @ 4:15 pm:
Rauner can’t balance the budget with a fixed 3.75% income tax. Moving funds around is just stalling the inevitable. If there is one additional constitutional amendment needed, it is one that creates a progressive income like most of our neighboring states have. I would guess that a lot of Illinois citizens think that our income taxes are higher than our neighboring states because the GOP is constantly going on about high taxes being job killers but they are just playing politics. It’s ridiculous that someone making 30k annually is paying the same rate as someone making 200k.