*** UPDATED x2 - GOMB, COGFA stand by projections *** Rauner issues his own stopgap deficit projection
Wednesday, Sep 28, 2016
* COGFA projected that the stopgap budget would create a $7.8 billion deficit. The governor’s budget office disagrees and has issued its own projection…
Quinn tried to do similar borrowing to pay off bills (part of the tax hike was actually dedicated to that purpose), but he failed when Republicans wouldn’t cooperate and they couldn’t get all Democrats on board.
*** UPDATE 1 *** COGFA’s director says he stands by the original projection. He also said he does not know how GOMB came up with its projection. I’ve asked the budget office for a brief written explanation.
*** UPDATE 2 *** I just got a quick briefing from GOMB and they made a pretty good case. Several hundred million in special funds spending wasn’t properly accounted for by COGFA, lapse spending wasn’t included, savings from refinancing bonds wasn’t included, and there are big problems with the way COGFA calculated Medicaid spending, including not factoring in projected savings and not fully counting federal reimbursements. They should’ve done this months ago, but they have a bond deal coming up, so better late than never, I suppose.