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*** UPDATED x1 *** Nuding warns on Dems’ MAP grant bill

Thursday, Jan 28, 2016

* The Democrats started moving a MAP grant bill yesterday. The governor’s office doesn’t like it and is proposing an alternative, as well as calling out legislators who voted against the original appropriation last year…

From: Director Tim Nuding, Governor’s Office of Management and Budget
To: Members of the General Assembly
Date: January 28, 2016
Re: GOMB Analysis of SB 2043 and HB 4539/SB 2349

House Amendment 2 to SB 2043 would make appropriations of $721 million for the Monetary Award Program (MAP) and community colleges programs. The funding levels for these programs are the same as those contained in last year’s General Assembly-passed unbalanced budget, which was opposed by Representatives Drury, Franks, Nekritz and Yingling along with all Republican legislators and which was vetoed by the Governor.

House Amendment 2 to SB 2043 provides no funding source to pay for the additional spending as it is not tied to spending reductions, revenue or cost-saving reforms. The Governor’s Office of Management and Budget concludes that House Amendment 2 to SB 2043 would add $721 million to the deficit, increase the state’s bill backlog by the same and delay state payments to providers, vendors and contractors. Therefore, GOMB would recommend the Governor veto this legislation if it came to his desk.

HB 4539/SB 2349, on the other hand, would appropriate $1.6 billion dollars for all programs included in SB 2043 and Illinois’ public universities. The legislation is tied to another bill, HB 4521/SB 2338, which would grant the Governor authority to respond to an unbalanced budget by reallocating funds and reducing spending in various ways.

HB 4539/SB 2349’s approach is far more fiscally responsible than SB 2043 as it would help MAP students, community colleges and universities without exploding the deficit, skyrocketing the bill backlog or exacerbating the state’s cash flow crisis. Therefore, GOMB would recommend the Governor sign this legislation if it came to his desk with HB 4521/SB 2338.​

* From HB 4521’s synopsis

Creates the Unbalanced Budget Response Act. Provides authority and procedures for the Governor to establish contingency reserves of previously appropriated funds, and to transfer balances between special funds in the State treasury and the General Revenue Fund. Describes the agencies and programs subject to this authority. Provides that designated agencies may adopt emergency rules to carry out the purposes of the Act. Defines terms. Provides that the Act is repealed on July 1, 2017. Amends the Illinois Administrative Procedure Act to make conforming changes. Amends the Illinois Public Aid Code. Adds actions taken under the Unbalanced Budget Response Act to a Section relating to applicability. Amends the State Mandates Act to require implementation without reimbursement by the State. Effective immediately.

The state’s Road Fund and some others would be exempt from the sweeps provision.

That bill gives the governor a whole lot of control, which the GA may not be inclined to do since the majority doesn’t actually trust him, but it would help him avoid a complete budgetary meltdown.

*** UPDATE *** Tribune

Rauner spokeswoman Catherine Kelly said the governor will veto the bill when it reached his desk. Ahead of the vote, Rauner’s budget chief sent a memo to lawmakers warning that if the measure became law, it would force the comptroller to put off payments for other services.

Democrats were not deterred, quickly passing the bill in both the House and Senate. Two Democrats voted against the bill, Rep. Scott Drury of Highwood and Rep. Jack Franks of Marengo. Eight Republicans voted “present,” a way to avoid looking like they voted against funding for schools without bucking Rauner. […]

While Democrats were able to pass the legislation, it’ll be a tougher battle to override a Rauner veto. On Wednesday, Madigan acknowledged he does not have a “working” supermajority, a reference to the difficulties he’s had in wrangling all 71 of his Democratic members to remain united to override vetoes.

- Posted by Rich Miller        

34 Comments
  1. - Oswego Willy - Thursday, Jan 28, 16 @ 8:52 am:

    So…

    Voting “No” for SB 2043 with the MAP amendment will be how Rauner will demand of the HGOP?

    Why do I feel hanging out the GOP GA again on an education centric funding bill, that Rauner might double-cross the GOP members might be replaying again?

    I guess Gov. Rauner and the GOP GA thinks students don’t need MAP funding?

    Ok. That works.


  2. - Dee Lay - Thursday, Jan 28, 16 @ 9:01 am:

    The Dems should run SB2043 and let the Raunerites vote against education spending and then have the Gov veto it. They might have enough to override it.

    HB4251 is a power grab, plain and simple.


  3. - Cassandra - Thursday, Jan 28, 16 @ 9:02 am:

    Fund sweeps. I knew it.

    Now for the borrowing. How much?


  4. - Anonymous - Thursday, Jan 28, 16 @ 9:03 am:

    Spending money without paying for it?

    Have we learned nothing? Unbelievable.


  5. - Red eft - Thursday, Jan 28, 16 @ 9:03 am:

    I have had an ongoing question about budgetary sweeps, and as it is tax season, I will see if anyone here can help. I do sometimes designate part of my tax refund to special funds such as the non-game wildlife fund. I do not want to do this if those funds are subject to being swept. I’ll just give to the Nature Conservancy or something. Does anyone know if those funds that we can donate to on the tax form are subject to being swept and whether they have been swept in the past?


  6. - Anon221 - Thursday, Jan 28, 16 @ 9:05 am:

    As has been stated over and over and over again, it is the GOVERNOR’S responsibility to submit to the GA a balanced (and timely submitted) budget. There is an AMENDATORY VETO power the Governor also holds if he doesn’t like what the GA returns to him after them review/debate his submitted budget. The last thing he needs is another “power” to be able to submit an unbalanced budget and then work around the GA (yes he has to tell them within 10 days what funds he’s “reallocated”) to force them into a need for a legislative fix to his “fixes”. Just do your constitution duty, and submit a balanced budget already! It’s like the teen who comes up with every excuse under the sun why not to clean his room!


  7. - Anon221 - Thursday, Jan 28, 16 @ 9:11 am:

    Red eft- might be better to make a direct donation. At least then you know the group received the support.

    http://illinoistimes.com/article-8753-state-taps-charity-funds-to-pay-its-bills.html
    http://www.rebootillinois.com/2015/04/27/editors-picks/madeleinedoubek/sweeping-800-state-funds-out-from-under-the-illinois-fiscal-crisis-rug/36918/


  8. - A Jack - Thursday, Jan 28, 16 @ 9:11 am:

    No way should the GA give the Governor the authority in HB 4521. Let the Governor deal with the crisis of his own making. He vetoed his appropriations so let him run Illinois on what he approved. He will get to meltdown with the rest of the state.


  9. - Oswego Willy - Thursday, Jan 28, 16 @ 9:15 am:

    ‘Nember when Pat Quinn got a Lump Sum budgetary “budget” abd the howling after?

    I do.

    Sometimes the processes need to be followed.

    Learning a lesson by giving Quinn such “sweeping” authority with that Lump Sum would be nice… I’m sure Rauner can understand this, right? Exactly right.

    “Pat Quinn failed…”

    Hmm.


  10. - Red eft - Thursday, Jan 28, 16 @ 9:16 am:

    Thanks, Anon 221


  11. - wordslinger - Thursday, Jan 28, 16 @ 9:36 am:

    –House Amendment 2 to SB 2043 provides no funding source to pay for the additional spending as it is not tied to spending reductions, revenue or cost-saving reforms.–

    That’s a problem? Since last July 1, that’s all the state has been doing.

    The governor can’t honestly claim that there’s a “funding source” for the K-12 approp. that he says is his greatest accomplishment. State spending and revenues are out of whack by billions, even though billions more for social services and universities aren’t even in the ballgame.


  12. - Anonymous - Thursday, Jan 28, 16 @ 10:12 am:

    == “which would grant the Governor authority to respond to an unbalanced budget by reallocating funds and reducing spending in various ways.” ==

    A power-snatch for the purse.


  13. - Juvenal - Thursday, Jan 28, 16 @ 10:18 am:

    According to this report, nearly 1000 kids in Rep. Sandack’s district received MAP grants until Governor Rauner took charge.

    If I were a lawmaker, I’d take a hard look at the numbers for my district before voting Red.


  14. - Langhorne - Thursday, Jan 28, 16 @ 10:25 am:

    The governor cant be trusted. Look at the damage he has done. It would be foolhardy in the extreme to approve language like this:

    == “which would grant the Governor authority to respond to an unbalanced budget by reallocating funds and reducing spending in various ways.” ==


  15. - Century Club - Thursday, Jan 28, 16 @ 10:30 am:

    Juvenal, nice report. Over 25 R’s with more than 1,000 MAP students in their district.

    I’m sensing a lot of ‘present’ votes coming on this one.


  16. - Joe M - Thursday, Jan 28, 16 @ 11:01 am:

    == “which would grant the Governor authority to respond to an unbalanced budget by reallocating funds and reducing spending in various ways.” ==

    Does anyone else think that the Governor would add this to his arsenal against AFSCME and reaching a new contract with them? Besides where are the Republicans and Rauner going to come up with $1.6 billion from an already over-extended budget?


  17. - Anon221 - Thursday, Jan 28, 16 @ 11:05 am:

    So, if the “yellow card” is chosen (based on the spreadsheet Juvenal provided (THANKS!)), here’s what the R’s would leave behind in Total numbers in their Districts: ELIGIBLE & APPLIED BEFORE FUNDING EXHAUSTED 1. Number Eligible- 32,381; 2. Amount Eligible- $52,082,173; 3. Number Paid- 10,573; 4. Amount Paid- $34,209,877. ELIGIBLE BUT APPLIED LATER (NOT OFFERED A GRANT): 1. Number Eligible 12,473; 2. Amount Eligible- $32,099,279.


  18. - 47th Ward - Thursday, Jan 28, 16 @ 11:07 am:

    I think it’s telling that the HGOPs finally put forward a bill to fund higher ed. Good for them, glad to have them in the game.

    This could be a sign that some HGOPs were ready to jump ship over higher ed. That Rauner is OK with their bill and the fund sweep to pay for it indicates to me he knows he’s reached the end of the line with this particular hostage.

    In a normal state, you could see where the Democratic bill and the Republican bill present a chance at a compromise that ends the stalemate for higher ed. Unfortunately, Illinois isn’t normal, so while I wish they’d reach an agreement, I’m pretty sure HB4539 will be buried in Rules, never to be called for a vote.

    And if SB2043 gets to the Governor as expected, I hope nobody thinks Nuding is bluffing. Rauner will veto it and we’ll back where we started.

    I’d very much like to be wrong about this though. Maybe they’ll surprise me this time.


  19. - Anon221 - Thursday, Jan 28, 16 @ 11:18 am:

    47th- you forgot about the built in poison pill-

    From Nuding, “HB 4539/SB 2349, on the other hand, would appropriate $1.6 billion dollars for all programs included in SB 2043 and Illinois’ public universities. The legislation is tied to another bill, HB 4521/SB 2338, which would grant the Governor authority to respond to an unbalanced budget by reallocating funds and reducing spending in various ways.”


  20. - 47th Ward - Thursday, Jan 28, 16 @ 11:21 am:

    I know Anon221. That’s why I said the two bills needed to be reconciled following some compromises. The Democrats’ bill doesn’t fund public universities. Why isn’t that considered, if not a poison pill, at least a total non-starter?


  21. - Anon221 - Thursday, Jan 28, 16 @ 11:28 am:

    47th- I just have the feeling that unless the GA only passes exactly what the Governor wants in regards to wording, there will be a veto anyway. Some of the Republicans are going to have to decide, as McCann has done in the past (at least once this past year), to press something other than yellow or red. So, yes, the R’s and D’s should work on a mutual compromise and not let threats from Nuding or Rauner cloud their work.


  22. - Dance Band on the Titanic - Thursday, Jan 28, 16 @ 11:33 am:

    How did the Illinois GOP go from being the party of fiscal responsibility to the party of robbin’ Peter to pay Paul?


  23. - 47th Ward - Thursday, Jan 28, 16 @ 11:36 am:

    Anon221, I think we both agree that piece-meal budgeting is horrible and this stalemate won’t end until they agree on a comprehensive budget deal, including new taxes and some cuts. As long as Rauner insists on the non-budgetary stuff like term limits, fair maps, and restricting collective bargaining, we’ll never get to that point and the damage will continue.

    Let’s face it, that’s the problem. Neither of these bills does anything about that. Higher ed will remain a hostage until one side or the other prevails. It seems like we’re months away from that day. Meanwhile, higher ed is suffering permanent damage.

    That’s depressing, sad and pathetic. But also true.


  24. - Anon221 - Thursday, Jan 28, 16 @ 12:00 pm:

    47th- I agree, but this year, at this time, MAP and higher ed needs to get funded, as do the rest of the 10% that were left without a “meal ticket” when the budget process went piecemeal. How? Well, my first question is, what funds are still being held up by the Executive Order from this summer to freeze spending? What funds may we have to REPAY to the feds because we failed to do a match? And, if the match is doable, DO IT (and not the DoIT of earlier this week)!


  25. - Anon221 - Thursday, Jan 28, 16 @ 12:19 pm:

    SB 2043 has passed-

    House voting record http://www.ilga.gov/legislation/votehistory/99/house/09900SB2043_01282016_002000T.pdf

    Senate voting record
    http://www.ilga.gov/legislation/votehistory/99/senate/09900SB2043_01282016_001000C.pdf


  26. - 47th Ward - Thursday, Jan 28, 16 @ 12:29 pm:

    The 6 HGOPs who voted present are worth watching as this drags on. There are a lot of HGOPs that wanted to vote for this. Some are closer to jumping ship than others, but there are cracks in the HGOP caucus and they’re growing.


  27. - Just a guy - Thursday, Jan 28, 16 @ 12:30 pm:

    How many times can Senator Anderson vote present on a bill? Can he be any further in Rauner’s pocket?


  28. - 47th Ward - Thursday, Jan 28, 16 @ 1:24 pm:

    The Senate passed SB2043. Veto coming in 3-2-1…


  29. - Anon221 - Thursday, Jan 28, 16 @ 1:26 pm:

    47th- Yep, and then the GOP will have to show their true colors, and we’ll see if Ken decides to go with the color of his sleeping bag on the override. He did vote Green today!


  30. - Cheswick - Thursday, Jan 28, 16 @ 1:29 pm:

    - Juvenal - @ 10:18 am:

    Thank you for the spreadsheet. It will come in very handy.


  31. - NSideLady - Thursday, Jan 28, 16 @ 2:35 pm:

    It will be interesting to see if Hays or Kay would be willing to vote in favor of the measure if a vote to override Rauner’s veto was needed.


  32. - Anon221 - Thursday, Jan 28, 16 @ 2:55 pm:

    Senate Dem highlights- http://www.illinoissenatedemocrats.com/index.php/caucus-news/feature-story-archive/4663-map-grants-community-colleges-funding-head-to-governor?platform=hootsuite


  33. - Joe M - Thursday, Jan 28, 16 @ 4:29 pm:

    ==Ahead of the vote, Rauner’s budget chief sent a memo to lawmakers warning that if the measure became law, it would force the comptroller to put off payments for other services.==

    Instead Rauner and Nuding want to be given the authority (with the GOP bills) to do sweeps to eliminate those other services.


  34. - RNUG - Thursday, Jan 28, 16 @ 5:28 pm:

    The first thing a bust-out artist does is grab all the cash. Rauner’s bid to control the cash is just second nature to him. The GA should avoid giving him that power.

    While passing SB-2043 HA-2 is a good move, I would have been tempted the include the public universities while leaving out the poison pills to drive home the point the GA will go partway to what the Governor wants.


Sorry, comments for this post are now closed.


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