* Finke…
Paychecks for nearly 600 state employees are caught up in a dispute between Republican Gov. Bruce Rauner and Democratic Comptroller Susana Mendoza over which state account to use to pay them.
None of the workers has missed a paycheck yet, but Mendoza’s office told Rauner’s office that it needed to resubmit paperwork to pay the workers “to avoid any disruption in payroll.”
Mendoza’s office says the workers should be paid out of two revolving funds that are used to cover expenses for state vehicle maintenance and building leases. The Rauner administration, though, wants the employees paid out of the state’s general fund.
In a letter to Mendoza’s office Thursday, Ryan Green, general counsel for the Department of Central Management Services, said payroll vouchers were submitted to Mendoza to pay the workers out of the state’s general fund, which is used for most expenses but no longer has enough money in it to cover all of the state’s bills.
However, Green said there also isn’t enough money in the Facilities Management Revolving Fund and the State Garage Revolving Fund to cover all of the expenses they are supposed to pay.
* More from the CMS letter to Mendoza…
The State Garage Revolving Fund also is the source of critical fuel-related payments that keep state vehicles on the road, as well as fund the maintenance of Department of Human Services’ vehicles that transport our most vulnerable citizens for medical treatment. By forcing CMS to drain the Revolving Funds, your office is putting those critical health and safety functions of the State at risk. And make no mistake, shifting payroll to these funds ensures they will be depleted long before the fiscal year is over. We have determined that, ifpayroll is included, the cash projected to be in Revolving Funds through the end of this fiscal year is not sufficient to cover all of the above critical services. Because these funds get the bulk of their revenues from GRF payments required to be made by the agencies that CMS serves, in the current budget impasse, those agencies do not have sufficient GRF or other available appropriations to make complete and timely payments into these CMS Revolving Funds. […]
As you know, CMS is authorized under the State Finance Act (30 ILCS 105) to pay employees under all available funds, including GRF. And CMS’s payroll plans line up with a longstanding practice of prior Comptrollers in recognizing each agency’s discretion with respect to the source offunds used to make payroll. In other words, after drawing the Revolving Funds down to zero, you will be forced to switch back to GRF to comply with Judge LeChien’s court order. Why, then, do we need to deplete other critical funds in the process?
Good point. The other side is that the GRF bank account is essentially overdrawn right now to the tune of $12 billion. Paying those workers from GRF will only make the backlog worse.
* From the comptroller’s letter to CMS…
Our Office is in receipt of Central Management Services’ payroll voucher submission to the Office of Comptroller for which there is no authorization beyond the $771,747 remaining from existing amounts available from General Revenue Funds.
As a result of the Governor’s failure to present a balanced budget for the General Assembly’s action, the Office of the Comptroller is left to triage the state’s obligations to ensure provision of critical services for the state’s residents, particularly the most vulnerable. All efforts must be made to utilize existing resources from other available state funds, especially when there are enacted appropriations specifically for such purposes. Your agency’s original request for an additional $24 million, or 73%, increase over previous levels is simply not appropriate given the dire circumstances the state is facing.
Maybe a truce is in order here? “Prior comptrollers” often had decent working relationships with the governor’s office. Team Rauner has not been kind to Mendoza since their own candidate lost the election and that unkindness has been returned in, um, kind.
* Also from the comptroller’s letter to CMS…
The fact remains that your agency has yet to expend from lawfully enacted appropriations of $32 million despite the fact that the current balances of these funds exceed $93 million. These are the same funds that you utilized in previous years for payroll without expressing concerns about disruption.
We’re already nine months into the fiscal year and CMS hasn’t yet tapped into those funds? Looks like they could be squirreling money away in case the grand bargain fails. And it also looks like Mendoza isn’t going to let them do this and might end up causing some sort of crisis as a result.
* More from the comptroller…
In regard to potential disruption of critical services, if you feel that you have over extended your obligations as to put critical health and safety functions of the State at risk, we encourage you to seek the proper appropriation authority from the General Assembly and the Governor immediately.
A budget deal would, indeed, solve this problem pretty quick.
* Back to the CMS letter to the comptroller…
Furthermore, when the General Assembly passed and the Governor signed Public Act 99-0524 in June 2016, the legislative intent on the treatment of payroll during the budget impasse was clear. The amounts appropriated in various funds, including the Revolving Funds at issue in your direction to CMS, are not intended to be used for payroll.
Those appropriations expired on December 31st.
* More CMS…
Putting it all together, it is our position that the Comptroller has the legal authority to continue processing payroll vouchers for this group of approximately 400 CMS employees using GRF. There is no legal reason to shift to the Revolving Funds. Nor is there any sensible policy rationale for forcing CMS to exhaust critical funds and put the health and safety ofour citizens at risk. We will continue to draw our payroll vouchers against GRF and will expect your office to comply with the St. Clair County court order by processing them as you and your predecessor have done up to this point.
She doesn’t need a “legal reason.” She pays the bills. You gotta do it her way if you want those bills paid unless you want to take her to court.
Again, call a truce and work it out. Wouldn’t that be better than engaging in this back and forth every time there’s a disagreement?
*** UPDATE *** The Rauner administration is admitting in a new press release attacking Mendoza that they’re purposely squirreling away this money. Emphasis added…
“This decision will begin to deplete these government shutdown prevention funds, which could compromise IDPH services,” said IDPH Director Nirav D. Shah, M.D., J.D. “Communicable disease investigations and nursing home inspections would be impacted if the state were unable to pay rent because of this directive.”
“The Department of Human Services provides critical services to families in need,” DHS Secretary Jim Dimas said. “This could impair our ability to provide children and families with access to food assistance, child care and health care needs.” […]
“Comptroller Mendoza recently paid state legislators, and herself, the same way CMS is requesting to pay these 578 employees,” Acting Director Hoffman said. “There is no reason CMS should be forced to drain our government shutdown prevention funds to make payroll when she has money available to pay these employees.”
Um, she hasn’t yet paid herself. Legislators have been paid once in six months.
* The response…
Governor Rauner’s administration is trying to concoct a phony crisis to create a headline to deflect once again from his failure to fulfill his constitutional duty to propose a balanced budget.
The Rauner administration has $93 million dollars in two funds that they have always used to pay the employees of Central Management Services. Now they suddenly want to horde those funds and instead raid the state’s General Revenue Fund – taking money from patients in hospice and nursing homes; meals on wheels for the elderly; and support services for disabled children.
Instead of using the funds with a balance of $93 million; Gov. Rauner wants to raid the fund he put $12.5 billion in the hole by failing to propose a balanced budget for the last three years.
Rauner’s administration has more than enough money to pay employees from the department’s self-protected funds. The only reason to draw attention to this issue now is to manufacture a phony headline about state employees in “danger” of missing a paycheck. This is just one of many phony stories Rauner’s administration has shopped in recent weeks. Expect more: All just as phony.
No employees will miss any paychecks if the administration uses the money that the General Assembly authorized them to use and the Governor signed. These funds were used in an identical fashion under the previous Comptroller. The Facilities Management Revolving Fund and the State Garage Revolving Fund have no role in caring for seniors, the disabled or newborns as the administration cynically suggests. The administration can continue using those funds for payroll as they always have. Or they can choose to create a phony crisis for P.R. value and continue playing politics with people’s lives.
It is entirely on The Governor.
- @MisterJayEm - Friday, Mar 3, 17 @ 11:27 am:
“A budget deal would, indeed, solve this problem pretty quick.”
Makes one wonder if all parties are genuinely interested in solving such problems.
– MrJM
- Not Rich - Friday, Mar 3, 17 @ 11:27 am:
wait for it……next response from team Rauner…….because MADIGAN
- A guy - Friday, Mar 3, 17 @ 11:27 am:
==Again, call a truce and work it out===
Yep, this. All day long. Things are stupid enough. There are no principles to stand on here. Figure it out and pay them. Ugh.
- working stiff - Friday, Mar 3, 17 @ 11:29 am:
was just reading this on sjr
==Madigan’s handpicked comptroller is using state employees as pawns==
handpicked? she was elected.
who is using employees as pawns?
- Joe M - Friday, Mar 3, 17 @ 11:34 am:
==the GRF bank account is essentially overdrawn right now to the tune of $12 billion.==
That seems to back what Mendoza is doing. If my checking account is overdrawn, I can’t keep writing checks from it - I have to see if I have money in other accounts I can use.
- Henry Francis - Friday, Mar 3, 17 @ 11:34 am:
Rauner sure is missin his wingman.
Do you think he would trade the 6 seats he gained to get Munger back as Comptroller?
- Precinct Captain - Friday, Mar 3, 17 @ 11:36 am:
It’s amazing isn’t? Rauner’s superstars relying on one hand on expired legal authority from an appropriation while on the other relying on a court order all while stockpiling a slush fund.
- Soccermom - Friday, Mar 3, 17 @ 11:38 am:
More phony crisis-mongering from Rauner.
Those CMS employees have ALWAYS been paid out of the Facilities Management Revolving Fund and the State Garage Revolving Fund.
Right now, those funds are $93 mil in the black. (To say that the situation in GRF is different is something of an understatement…)
As Governor, Rauner basically has One Job: Present a balanced budget (and presumably, get a balanced budget passed and implemented.)
But because he has decided that his own political shenanigans and his hatred for unions are more important than the welfare of the people in this state that he has taken an OATH to govern, he has shirked his primary responsibility for going on three years. THAT’s why there’s no money in GRF.
Now, however, Rauner is realizing that there’s a new sheriff in the Comptroller’s office, and she’s not going to let CMS hoard their little $93 million slush fund to keep the boss from looking bad when a truck breaks down on the highway and the towing company refuses to take a State of Illinois IOU. (Can’t blame them, btw.)
Susana isn’t going to let Rauner’s minions in CMS take MORE money away from disabled kids, low-wage working moms and seniors so they can keep their precious little pile of the people’s money sacrosanct. Nope, they can use the funds to pay for salaries, as lawfully appropriated.
Susana is right: the money is there to be used as provided under law. And if they don’t like it — hey CMS – head on up to 16 and take it up with the boss. This is on him, not on the duly elected comptroller who is doing her best the way the people want her to.
- downstate commissioner - Friday, Mar 3, 17 @ 11:42 am:
Okay, so don’t pay our employees from our funds, but pay them from everybody else’s funds
Maybe a better idea for Mendoza would be to pay every state employee in the state odd-even, odds get paid this time, evens get paid next time. /snark
- Happy Madison - Friday, Mar 3, 17 @ 11:49 am:
I am still waiting on travel reimbursement checks from November, when is that finally going to be processed?!
- Soccermom - Friday, Mar 3, 17 @ 11:52 am:
Typo caused by Rauner fury - make that “doing her best.”
- Anon - Friday, Mar 3, 17 @ 11:53 am:
For a second I got excited thinking we’d get the full blown shutdown we need. Then I realized this doesn’t amount to anything.
- wordslinger - Friday, Mar 3, 17 @ 11:53 am:
The CMS argument reminds me of a friend way back who ran up $50K in credit card debt for day-to-day expenses, but who had $2K in the bank for “emergencies.”
- Soccermom - Friday, Mar 3, 17 @ 11:57 am:
Exactly
- RNUG - Friday, Mar 3, 17 @ 12:00 pm:
== We’re already nine months into the fiscal year and CMS hasn’t yet tapped into those funds? Looks like they could be squirreling money away in case the grand bargain fails. ==
Yep, he’s piling up cash for a future crisis that is coming. Don’t want to exhaust any valid appropriation authority. Have to wonder if Rauner has already committed to some body shop contracts ?
- Anon - Friday, Mar 3, 17 @ 12:18 pm:
If Rauner gets the strike he wants, could there be a dispute about how to pay the scabs?
- Get a Job!! - Friday, Mar 3, 17 @ 12:20 pm:
I can see how both parties are “right” here. Mendoza is correct that these folks have always been paid from the Revolving Funds & that they have a large cash balance sufficient to cover payrolls 3 times over. The Governor is also correct in that these funds should be closely managed despite seemingly large cash balances because the revenues for these funds are minimal given that agencies can’t pay CMS what they owe them because they themselves don’t have the budget authority. Ultimately, I side with Mendoza here. That’s $32m in payments to struggling non-profits that she can make if the CMS pays the employees from the Revolving Funds that they’ve always been paid with. Add to this that this situations of the Governor’s own doing.
- Ducky LaMoore - Friday, Mar 3, 17 @ 12:27 pm:
Our governor just absolutely refuses to get along with anyone he doesn’t own.
- The Dude Abides - Friday, Mar 3, 17 @ 12:29 pm:
I agree with previous posts in that Rauner is refraining from using cash in some of these small accounts because he figures on more budget crisis’s coming. If he was figuring on a full and balanced budget coming soon maybe he wouldn’t feel this way. As I’ve stated previously, unless he gets most of what he wants he’s not in any hurry for a budget.
A group financed by Rauner felt the need for some political grandstanding over Mendoza’s purchasing of a used SUV for her business use. The concept that sometimes the carrot is better than the stick is foreign to these folks. It’s one of the reasons we’re stuck in this impasse.
- Back Tracker - Friday, Mar 3, 17 @ 12:32 pm:
You can bet that 5-10 million of that money Rauner deposited into his campaign is targeted at Mendoza. This time they won’t wait till September to go after her. This just got Munger another 5 mil.
- Tasty Grouper - Friday, Mar 3, 17 @ 12:41 pm:
If the Revolving Fund approp expired 12/31, how does CMS spend out of it? The fund is not marked for personal service spending, and without a specific approp, IOC shouldn’t be spending money from that fund on personal services. CMS is right on this one. IOC better be careful and make sure this new staff knows what they’re doing.
- Get a Job!! - Friday, Mar 3, 17 @ 12:47 pm:
Grouper,
It’s pretty simple, Mendoza has a court order to pay these folks…..So if the CMS actually submitted a payroll voucher from the RFs, then Mendoza has the authority to create an approp. The fact that no authority exists today is actually irrelevant because she can snap her fingers & create, per court order.
Also, if its true that the appropr expired 12/31, this undermines CMS’s entire point because they can’t spend gas or parts so there’s no reason not to spend the money on payrolls.
- Demoralized - Friday, Mar 3, 17 @ 1:01 pm:
I don’t think it’s good precedent to allow a Comptroller to instruct agencies what appropriations and funds they must pay things from. She is overstepping her authority. So long as an agency has an appropriation (or in this case a court order) and so long as what they are trying to pay is a proper expense to be paid from that appropriation then the Comptroller should pay it.
I get the fiscal situation and the reasons she is doing it. That’s not a good enough reason, though, in my opinion for her to overstep her authority.
- Honeybear - Friday, Mar 3, 17 @ 1:11 pm:
Come guys we all can figure out why Rauner is having a hissy. These funds are to pay strike breakers. Rauner only fights something when it relates to his labor war. Prove me wrong
- Pelonski - Friday, Mar 3, 17 @ 1:51 pm:
It makes no sense for the comptroller to do Rauner any favors. He’s a bully. The best way to deal with a bully is to stand up to them, not try to appease them.
- Get a Job!! - Friday, Mar 3, 17 @ 1:56 pm:
@Demoralized, with normal approps, in normal years I would agree with you. But we’re talking about court order approps created by the Comptroller (Munger) to comply with court orders. Comptroller Mendoza absolutely has the authority to create new approps for payroll. She also has the authority to increase/decrease these appropriations, per the court order. So in reality she does have the authority, as authorized by the courts to decrease the GRF approp for CMS & create approps from the Revolving Funds. And if the Governor doesn’t like that authority, he shouldn’t have lobbied the courts to give that authority to then Comptroller Munger.
- Oswego Willy - Friday, Mar 3, 17 @ 1:59 pm:
First,
Great to read - Soccermom -…
This…
===*** UPDATE *** The Rauner administration is admitting in a new press release attacking Mendoza that they’re purposely squirreling away this money.===
So, they’re squirreling away monies, and it’s Comptroller Mendoza’s “fault” that she’s gumming up the works… of squirreling monies away?
Yikes.
- Markus - Friday, Mar 3, 17 @ 2:04 pm:
Lisa,
Please shut it down! /not /s But wait until Monday because Bruce and Chance are figuring it all out over the weekend. /s
- Honeybear - Friday, Mar 3, 17 @ 2:05 pm:
Well well well “shutdown prevention funds”
It’s nice being correct every now and then.
Well Bruce, you can always go back to the negotiating table. Lol
- wordslinger - Friday, Mar 3, 17 @ 2:08 pm:
– Government Shutdown Prevention Funds–
I wonder if there is any Constitutionally mandated way to prevent a government shutdown that the governor could advance.
Blago was a lousy crook, but he wasn’t reckless and irresponsible like Rauner. Your money, your state government, he treats it like a bored rich man’s toy.
- Ducky LaMoore - Friday, Mar 3, 17 @ 2:11 pm:
Wow. It’s highly unusual for this administration to slip up and be honest. Hope they learn a lesson….
- JS Mill - Friday, Mar 3, 17 @ 2:15 pm:
Mendoza has been shaky so far, but in this she is 100% on the money.
Shut Down Prevention Funds? Is that an actual state line item or just something they made up? Like double secret probation?
- Honeybear - Friday, Mar 3, 17 @ 2:21 pm:
Hmmmmm it’s almost as if Rauner has wanted to strike all along? Nah couldn’t be. Who would purposely destroy and critically destabilize the state workforce? Why? S/
Admit it some of you. Admit that you were wrong in your diehard conviction that “if only” the union would have done xyz. Rauner was planning this from day one. The strike is the reason for all the pain. It’s his “precious”
- Honeybear - Friday, Mar 3, 17 @ 2:30 pm:
Think back will you. What’s the moment Rauner got most activated?
HB 580 and SB1229
It’s about the “precious” his strike
“Nasty unionses,
- Get a Job!! - Friday, Mar 3, 17 @ 2:32 pm:
What a surprising (and alarming) amount of honestly.
Bruce Rauner: Stiffin’ Vendors; Payin’ scabs
- sonny chiss - Friday, Mar 3, 17 @ 2:45 pm:
Honeybear is on it. His most animated moment is very telling.
- Demoralized - Friday, Mar 3, 17 @ 2:47 pm:
==she does have the authority==
We’ll have to agree to disagree
- anonymous retiree - Friday, Mar 3, 17 @ 2:50 pm:
Perhaps she should pay her employees out of the Comptroller’s Administrative fund which has 1.2 mill in it right now. Or maybe she has more cars to buy. No business telling CMS what to do if you haven’t done it yourself
- Silent Budgeteer - Friday, Mar 3, 17 @ 3:01 pm:
anonymous retiree and demoralized @ 1:01 PM:
There actually is something close to precedent for this; back when the General Assembly used to appropriate the various University Income Funds as part of the budget, the Governor’s Office (through the Bureau of the Budget) would direct the universities to process payrolls and other costs from the income fund appropriations, especially when General Funds balances were getting low and some major payment was coming in the near future. It was a way to manage cash flow. So, the concept is nothing new. I’m sure this is still happening today, especially for agencies that split payrolls between different funds.
- Anonymous - Friday, Mar 3, 17 @ 3:13 pm:
Honeybear nailed it…..would be nice if say, AFSCME would be smart enough to pick up on it and get this out in front of the media and inform the public!!
- Henry Francis - Friday, Mar 3, 17 @ 3:22 pm:
So this administration has made sure it has enough funding for a government shutdown/strike.
But it hasn’t had enough funding for education, social services, vendors, and anything else the state typically provides.
Kinda makes clear this administration’s priorities.
- Mama - Friday, Mar 3, 17 @ 3:31 pm:
==We’re already nine months into the fiscal year and CMS hasn’t yet tapped into those funds? =
I’m sure the vendors & all the other people whom have not been paid for months or years will be happy to hear that Rauner I sitting on a pot of gold. Interesting.
- sharkette - Friday, Mar 3, 17 @ 3:40 pm:
Mendoza was elected on the promise of paying people.
Fact is she is holding payables, that are vouched, with appropriations & CASH in the funds to pay us…hmmmmm
800 funds is also part of the issue no state has 800 funds,,except the State of Illness
- Demoralized - Friday, Mar 3, 17 @ 4:23 pm:
Silent Budgeteer:
I am aware of that, but would argue that it is different from what is occurring now. That is fund management being done by those responsible for implementing the budget (i.e. the Governor). The Universities complied, though I’m not sure they would have had to.
- Arthur Andersen - Friday, Mar 3, 17 @ 4:26 pm:
Someone with the ability to do so should check and see where the CMS employees paid from the other revolving funds, Telecom and Statistical Services, are getting paid.
It was the dark ages of the 80s, but AA owersaw the state garages. Every year receivabables went up in the third quarter as agencies started to see where they were short and would slow pay CMS until the end of the FY. If there was a bad winter, we waited a long time because IDOT and ISP responded first and figured out how to settle the bill later. Then and now, GRF was not an issue because all the receivables were payable to the SGRF from the Road Fund, not GRF.
All the dough must be in the Facilities RF, a Filan-era creation that mandates Agencies pay rent plus a little juice to CMS, which then pays the rent. There is no reason for this fund to have a huge balance, unless the rumor all over Springfield about rent not being paid is true. That would just frost the cake-agencies getting booted out of their offices in the middle of a work stoppage. This screams for an Auditor General and/or an ISP investigation as to where the money came from, where it’s supposed to be, and why it ain’t there. Heck, the accumulated skim should be enough to make that payroll. Possibly “emergency repairs” like remodeling a house at the Fairgrounds are swallowing up that cash.