* From the House Democratic budget proposal analysis…
Items mandated for payment under a court order are not appropriated in these bills. As a result, in some instances, entire agencies are absent from this legislation.
That means things like Medicaid expenses aren’t being appropriated, which is what I’ve been warning subscribers about for a while now. Also, no personal service lines are appropriated because employees are being paid via court order. What they intend to do if the courts rule that the employees can’t be paid without an appropriation is another story.
* And speaking of which, the bill also appropriates over $63 million for back pay for state workers as a result of a recent Supreme Court ruling that employees can’t be paid without an appropriation.
* And then there’s this under the heading “capital projects”…
Yep. $3 billion in new capital spending.
* Watch for updates on this story on our live session coverage post.
*** UPDATE 1 *** Greg Hinz…
But the latest word is, after a top Rauner aide called [Madigan’s budget] plan “the phoniest phony budget in recent Illinois history,” the speaker decided to put it all together in one big bill and dare the GOP governor to veto it, potentially keeping schools from opening this fall.
The original version of the plan, circulated to House members last night, called for a hike in state school aid of $575 million, with $500 million targeted toward high poverty districts.
But in the latest version, I’m told, Madigan raised the ante, boosting the $500 million for high poverty districts to $700 million. And while $700 million is the “number under discussion now,” it could go up further, Madigan spokesman Steve Brown tells me.
While every school district in the state would get more money, CPS would be a particular winner. Sources say it would get 41 percent of the $700 million—about $300 million. Beyond that, it no longer would get the $75 million cut because of lower enrollment that Rauner had proposed. It also may get some additional money for teachers pensions now, up to $50 million.
So, maybe a $400+ million benefit for CPS when compared to Rauner’s proposal.
*** UPDATE 2 *** ILGOP…
House Speaker Mike Madigan is pushing a budget proposal today that creates a $7 billion deficit and requires revenues of nearly $39 billion. Balancing the phoniest of all phony budgets would require the highest tax rate in Illinois history.
“Now we know why Mike Madigan said in December that taking the income tax back to 5% was a ‘good place to begin.’ Apparently, Madigan has long been planning to pass the highest tax rate in Illinois history,” said Illinois Republican Party spokesman Steven Yaffe. “Every single Democrat who votes for this proposal is voting for an unprecedented tax hike on Illinois families, workers and small businesses. The Madigan tax hike would crush Illinois families and lead to more people and businesses leaving the state.”
*** UPDATE 3 *** From a senior administration official…
According to GOMB, this level of spending would force an income tax rate of 5.5% to balance the budget. In essence, a vote for this budget is a vote to force a $1,000 tax hike on the average Illinois family.