Capitol - Your Illinois News Radar » *** UPDATED x1 - Mendoza responds *** Rauner admin: “There can be no assurance that a budget will be enacted in future fiscal years”
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*** UPDATED x1 - Mendoza responds *** Rauner admin: “There can be no assurance that a budget will be enacted in future fiscal years”

Tuesday, Nov 21, 2017

* All emphasis added. From the Rauner administration’s presentation to potential buyers of its $750 million bond offering


Budget Passage

The State operated without fully enacted General Funds Budgets for Fiscal Years 2016 and 2017. The Fiscal Year 2018 General Funds Budget was vetoed by the Governor, and was enacted by the General Assembly after overriding the Governor’s vetoes of the Fiscal Year 2018 budget package. There can be no assurance that a budget will be enacted in future fiscal years.

Great. But, hey, they’re just being honest.

* More

Budget Deficit

The Fiscal Year 2018 General Funds Budget was balanced after the inclusion of several items including the budgetary impact of the issuance of the Section 7.6 Bonds and authorized fund reallocations and interfund borrowing. The Fiscal Year 2018 General Funds budget has an estimated underlying structural deficit of $1.5 billion… To avoid future structural deficits, the Governor and the General Assembly would, among other potential solutions, need to reduce expenditures, adjust revenue collections or approve a combination of revenue adjustments and reductions in expenditures. The State can provide no assurances as to how, when or in what form this might be addressed.


* Remember the governor’s 2013 campaign vow: “They won’t stop me if I want to dramatically spend less. You need the legislature if you want to spend more. If you want to spend less, they can’t stop me”? Well

The State estimates that the General Funds financial commitment in Fiscal Year 2017, beyond the amounts sent to the Comptroller in Fiscal Year 2017 described under “Fiscal Year 2017 Spending in the Absence of a Budget,” totaled $1.6 billion for State employee health insurance providers and $1.2 billion for other State operational costs and grants. […]

Total General Funds expenditures with the revised definition of funds for Fiscal Year 2018 are estimated to be $37.4 billion, an increase of $1.7 billion or 4.8 percent from estimated Fiscal Year 2017 results for the revised definition of General Funds. This reflects approximately $150 million in deficit reduction actions directed by the Governor.

So, instead of “dramatically” spending less, the governor spent $1.2 billion without an appropriation last fiscal year and has identified just $150 million in cuts this fiscal year.

*** UPDATE *** Comptroller Mendoza…

The Governor has now signaled that he plans to head into yet another budget cycle without talking, negotiating or compromising with legislators – leaving the state once again without a budget. That demonstrates the height of irresponsibility and the failed leadership that has come to define Governor Rauner. The good news is that legislators of both parties proved this year they are up to the task of working around an obstructionist, out-of-touch, and frankly, irrelevant governor to pass a budget for the good of Illinois.

The message that I continue to send investors, because it is true, is that Illinois is a sound investment and will continue to meet its debt service obligations under my watch. I implore the Governor to learn from his past mistakes and to follow through on his Constitutional responsibility to submit a balanced and responsible budget. He should do his job and begin good-faith negotiations with legislators.

- Posted by Rich Miller        

  1. - Dome Gnome - Tuesday, Nov 21, 17 @ 11:43 am:

    I really wish you allowed us to swear in this comment section.

  2. - Anon - Tuesday, Nov 21, 17 @ 11:47 am:

    Has anyone looked at the Tax Certificate for the backlog bonds? It probably assures deficits while the bonds are outstanding. There are pretty narrow rules for issuing tax-exempt bonds for operational purposes like paying down a bill backlog. Someone should FOIA the Tax Certificate and make it public.

  3. - Oswego Willy - Tuesday, Nov 21, 17 @ 11:47 am:

    ===There can be no assurance that a budget will be enacted in future fiscal years.===

    Only a governor that admits they are grossly inept would put that in writing…

    Unless that’s purposeful for other reasons too(?)

  4. - thunderspirit - Tuesday, Nov 21, 17 @ 11:49 am:

    == But, hey, they’re just being honest. ==

    Frankly, they picked a heckuva time to start.

  5. - pskila - Tuesday, Nov 21, 17 @ 11:51 am:

    he needs to go..

  6. - Anon221 - Tuesday, Nov 21, 17 @ 12:04 pm:

    “The Fiscal Year 2018 General Funds Budget was vetoed by the Governor, and was enacted by the General Assembly after overriding the Governor’s vetoes of the Fiscal Year 2018 budget package.”

    Can Team Rauner not see that they are only signaling that the GA is more of a “governor” to this state than Rauner is??? All Rauner is telling us, and the potential bond buyers, is that, “If you re-elect me, I’ll be doing a repeat of my first term, right down to the budget impasses, because… you know…Madigan,”. That’s a great “campaign” strategy.

  7. - wordslinger - Tuesday, Nov 21, 17 @ 12:07 pm:

    So after getting a big tax increase, Rauner is fixing to spend all of it. He doesn’t have to do that, as Rauner himself has pointed out.

    Now do you understand why he didn’t use any of his Constitutional and political powers to beat the tax increase override? He wanted that money to spend in the runup to his re-election bid.

    Gov. Waste, Fraud and Abuse can only identify $150M in cuts in a $36B budget. That represents .4 of 1% of GRF spending. That’s not even pocket lint.

    Going to get awfully cold, emperor, with no clothes on.

    This POS reads like a Rauner nervous breakdown, a cry for help. His delusions and constant lies have caught up with him and he’s being swamped by reality.

  8. - G'Kar - Tuesday, Nov 21, 17 @ 12:07 pm:

    THIS is why I tell my college not to get money happy now that they have a budget for this year.

  9. - JS Mill - Tuesday, Nov 21, 17 @ 12:08 pm:

    Bruce Rauner really, really loves Illinois. Seriously, can’t you tell? /s

  10. - Norseman - Tuesday, Nov 21, 17 @ 12:16 pm:

    Vote accordingly.

  11. - Ducky LaMoore - Tuesday, Nov 21, 17 @ 12:31 pm:

    ===There can be no assurance that a budget will be enacted in future fiscal years.===

    I think that is the reelection campaign slogan.

  12. - Loop Lady - Tuesday, Nov 21, 17 @ 12:40 pm:

    The closest we can get to swearing on the blog is to parrot Rich…Bruce, please bite me…what a self serving wealthy plutocrat he is…he fired me, can’t wait to return the favor next year…Happy Thanksgiving to all…count your blessings…

  13. - PublicServant - Tuesday, Nov 21, 17 @ 12:42 pm:

    Well at least he’s consistent. When Rich asked Rauner to identify his cuts a couple of years ago, they were paltry, and they still are.

    He knows he has the ability to cut where he wants, but he lacks the fortitude to take the arrows that come with doing so. He said he’d take the arrows, but, well, hasn’t to date. That’s why I think he lost IPI and Proft (at least superficially). You want the tax rate lowered to 3%. Put your money where your mouth is Gov, and present a proposed budget that does that. We all know that’ll never happen, and he’s lost much of his support from the right, because he won’t propose a budget with the huge level of cuts that would be necessary for it to balance at that level of revenue.

    Poor guy. Caught between a rock and his hard head.

  14. - Honeybear - Tuesday, Nov 21, 17 @ 12:52 pm:

    Fellow posters
    This post chills me to the bone
    This signals total commitment to the
    Great Crisis/Corruption Perfidy
    No leverage has worked
    That’s why I’m going back to my old theory
    The Great Labor War
    When: Dec 7th or shortly after (a new judge gets appointed to the 4th district appellate court)
    The 4th district will vacate the Stay holding back implementation of the contract. Rauner will immediately impose the insurance 120% increase. Forcing AFSCME to
    Strike or eat it.
    Either choice will cause the collapse
    Of the State workforce

    There is insurmountable leverage
    Rauner becomes the hero of the public sector haters.

    I know it’s a theory. But it’s the only option I see for Rauners
    Crisis/Corruption Perfidy to work.
    This bond investment statement
    Showed me they are all in.
    Primary to Durkins reasonableness
    Showed me they are all in
    Rauner must destroy AFSCME
    Well before Spring
    Rauner is betting everything
    Including the State of Illinois
    It’s all or nothing
    With the
    Crisis/Corruption Perfidy

    I’m also now thinking Ives is not a cupcake.
    She’s a false flag

  15. - don the legend - Tuesday, Nov 21, 17 @ 12:56 pm:

    Yet Rauner’s never been happier.

    You won’t see LP or his ilk on this particular thread. Unless Cullerton’s unconstitutional pension bill is the answer.

  16. - Huh? - Tuesday, Nov 21, 17 @ 1:03 pm:

    “The State can provide no assurances as to how, when or in what form this might be addressed.”

    This is a declaration of intent.

  17. - CrispyCritter - Tuesday, Nov 21, 17 @ 1:08 pm:

    Wanting and doing a two different things. I want to buy a Lear Jet too!

  18. - Roman - Tuesday, Nov 21, 17 @ 1:16 pm:

    == “They won’t stop me if I want to dramatically spend less.” ==

    This is where Ives should direct her fire — right at this broken promise. It helps her answer the “how-would-you-deal-with-Madigan-differently-than-Rauner-has” question.

    She should say something like: “the Illinois constitution gives the governor broad powers — powers that many governors throughout the country don’t have and they are powers Bruce Rauner is too timid to use. The governor can work around the speaker by using the line-item veto and budget reduction veto. The governor also has the legal power to refuse to spend money Madigan appropriates. Rauner has failed to use these powers because he’s afraid of the criticism that comes with cutting the budget. I am not. I’m not afraid to say ‘no more spending’ to Madigan and the special interest. Bruce Rauner is afraid…so afraid he spent $15 billion the state didn’t have.”

  19. - northsider(the original) - Tuesday, Nov 21, 17 @ 1:18 pm:

    Malfeasance and malpractice. That’s how to raise the yield rate.

  20. - Ferris Wheel - Tuesday, Nov 21, 17 @ 1:24 pm:

    So he’s already planning to fail at passing a budget next year? I’m confused at this level of stupidity and ineptitude. I really hope I am misunderstanding this.

  21. - Lucky Pierre - Tuesday, Nov 21, 17 @ 1:29 pm:

    Seeing as the budget has not been balanced since 2001 (even though it is a constitutional requirement) who would believe assurances it will be balanced in the future?

    “Consider the state and its five pensions over the last eight years, from 2009 through 2016. While that captured the post-recession bull stock market that helped pensions, unfunded liabilities grew from $77.8 billion to $129.8 billion. That’s $6.5 billion per year, none of which showed up in any budget, yet all those budgets supposedly were balanced. And that’s using official numbers that badly understate pension liabilities by using bogus assumptions, especially on expected rates of return.”

    Or look more comprehensively by back-testing the entire budgets against audited, historical financial statements. Those statements also have their own share of gimmicks biased toward optimism, but consider the deterioration they nevertheless show in the state’s net position. “Net position” is the government accounting equivalent of “net worth.” Over those eight years, Illinois’ net position went from negative $20 billion to negative $126.7 billion—a staggering loss of $12.5 billion per year—while the state’s budgets were “balanced.”

    “For a little perspective, that’s about 35 percent of the state’s entire new budget. Is there a corporation anywhere that sustained average losses of 35 percent of its top-line income for eight years? If there is and its officers routinely claimed to have balanced budgets, are they in jail?”

    And yet the Speaker and JB Pritzker see no reason to vote on Senator Cullerton’s pension bill and continue to whistle past the graveyard.

  22. - illdoc - Tuesday, Nov 21, 17 @ 1:31 pm:

    The pension bill does not give a choice of “keep what you have” so it would be a waste of time to pass. Wasted legal fees to watch it go down in flames in court

  23. - Oswego Willy - Tuesday, Nov 21, 17 @ 1:35 pm:

    So - Lucky Pierre -…

    Rauner can’t shake up or bring back as he promised… can’t pass a budget, can’t get reforms…

    Rauner has failed according to you because nothing can change.

    Good thing voters have a chance to vote Rauber out.

    Your case above for Rauner’s defeat is compelling.

  24. - Well then - Tuesday, Nov 21, 17 @ 1:41 pm:

    Neither are there assurances that the Governor will govern

  25. - Lucky Pierre - Tuesday, Nov 21, 17 @ 1:42 pm:

    What is the case for giving Democrats total control of Springfield back?

    Because they are for reforms?

    The record of Illinois finances from 2009 to 2016? How about 2002 to 2017 in terms of a balanced approach to budget making?

    Sorry I just see tax increases, no reforms. Good luck running on that and throw in some Donald Trump because you will need it.

    Doesn’t seem reasonable or moderate to me no matter how they try to package it.

  26. - Anonymous - Tuesday, Nov 21, 17 @ 1:43 pm:

    I still do not understand why Lucky Pierre is allowed to post on this site. L.P. did not complain when balanced budgets were passed, audited and codified in post-audited financial statements. Now l.p. want to fabricate a false narrative, an alternative truth that balanced budget don’t matter because we have not had them for years.
    You may like how the balanced budgets were passed and what they included or excluded, but they followed the rules.
    Rich please begin deleting and permenantly banning people who repeated try to brainwash us with readily proven untruthful statements intended to mislead.
    Just go to the Comptroller or Auditor General website and look at the CAFR and you can see the post audit financial statements with certificates for outstanding disclosure.

  27. - Anonymous - Tuesday, Nov 21, 17 @ 1:45 pm:

    Illinois may see what a mean spirited, vindictive billionaire way over his head can do when he really wants to put some hurt on.

  28. - Oswego Willy - Tuesday, Nov 21, 17 @ 1:46 pm:

    ===What is the case for giving Democrats total control of Springfield back?===

    “Bruce Rauner failed”, “the Rauner-Trump Republicans are ruining Illinois”

    ===Good luck running on that and throw in some Donald Trump because you will need it.===

    Virginia statewide results seem to indicate Trump helps Dems… lots.

    ===Doesn’t seem reasonable or moderate to me no matter how they try to package it.===

    You must be in that whopping 30% Rauner approval and 37% Trump approval group.

  29. - Lucky Pierre - Tuesday, Nov 21, 17 @ 1:48 pm:

    I can see why you posted that as Anonymous.

    Apparently directly quoting Crain”s and giving the link should be banned too.

    Censorship and jailing your political opponents did not work out too well in Venezuela but apparently should be tried in Illinois because you can’t win an argument with just your ideas.

  30. - Anonymous - Tuesday, Nov 21, 17 @ 1:54 pm:

    People will believe the Comptroller and Auditor General CPAs before they’d believe a troll like you l.p..

  31. - IllinoisBoi - Tuesday, Nov 21, 17 @ 1:58 pm:

    “There can be no assurance that a budget will be enacted in future fiscal years.” That’s the same as saying: There is no assurance Governor Rauner will perform his constitutional duty to prepare balanced budgets. There is full assurance that Rauner will continue to work to destroy Illinois, its government, its institutions, and citizens’ well-being.

  32. - Grandson of Man - Tuesday, Nov 21, 17 @ 2:13 pm:

    Understatement of history. The governor is not interested in passing budgets, as has been proven. If he was he wouldn’t have tried to jam nonbudget items into budget negotiations. When Democrats tried to give what they could on nonbudget reforms, Rauner threw ice water on their ideas and called the reforms phony.

    Rauner himself said that anti-union fair share fee cases in the courts have more significance than what state government does, so that reinforces his past behavior.

  33. - Ducky LaMoore - Tuesday, Nov 21, 17 @ 2:16 pm:

    “The governor also has the legal power to refuse to spend money Madigan appropriates.”

    Roman, right there is the argument. The governor has the power and refused to exercise it. But even worse, spent money that wasn’t even appropriated. Ives, Pritzker, Kennedy et al should be using this… nonstop.

  34. - Lucky Pierre - Tuesday, Nov 21, 17 @ 2:26 pm:

    “The governor also has the legal power to refuse to spend money Madigan appropriates.”

    Not if the spending is required by statute or consent decree. Then only the legislature or courts can modify. That is over 90% of state spending.

    The Governor cannot line item veto the budget to balance Ducky.

    Hammer that one all you want

  35. - Oswego Willy - Tuesday, Nov 21, 17 @ 2:31 pm:

    ===Not if the spending is required by statute or consent decree. Then only the legislature or courts can modify. That is over 90% of state spending.

    The Governor cannot line item veto the budget to balance…===

    Rauner can choose, as Rauner said himself, he can choose not to spend the money.

    Are you saying Rauner is wrong in this?

    If yes, why would Rauner make up such a fib?

    Why were the courts involved in budgets anyway? Was it in part that Rauber wanted, as he said, a crisis to create leverage, forcing hardship and court orders?

    That Rauner, what a failure.

  36. - Anon221 - Tuesday, Nov 21, 17 @ 2:36 pm:

    “There can be no assurance that a budget will be enacted in future fiscal years.”

    No budget, no matching funds, no “ATV trails”, no campaign presser. Rauner likes to campaign using projects funded by a budget he crows about vetoing. So threatening now to place Republicans in the same “me Rauner or them Constituents” better come with some serious Rauner Bucks to keep his purchase of the ILGOP up-to-date. Otherwise, what leverage does he have over them???

  37. - Lucky Pierre - Tuesday, Nov 21, 17 @ 2:42 pm:

    Consent decrees and spending mandated by statute started did not exist before Rauner was elected?

    Wow you have the distortion machine working overtime today.

    Please detail how the budget can be line item vetoed to balance and that the Governor is free to impose his last, best and final offer on AFSCME’s pay and benefits with no check by the courts.

  38. - Oswego Willy - Tuesday, Nov 21, 17 @ 2:46 pm:

    ===Please detail how the budget can be line item vetoed to balance and that the Governor is free to impose his last, best and final offer on AFSCME’s pay and benefits with no check by the courts.===

    Considering Rauner spent over $40 million to be the governor, asking me to do something a man who wanted to actually BE seems to be you saying Rauner is so inept, he needs ideas from the likes of “me”

    I guess another Rauner failure you’ve pointed out. Thanks.

  39. - Rich Miller - Tuesday, Nov 21, 17 @ 2:47 pm:

    ===Consent decrees===

    I recall the governor saying a couple of years ago that he wanted to renegotiate those decrees. Never happened.

  40. - wordslinger - Tuesday, Nov 21, 17 @ 2:52 pm:

    – censorship and jailing your political opponents did not work out too well in Venezuela–

    LOL, LP, can you see your house from up there? I think a Roman soldier swiped your robe.

    Given the handle you chose for yourself out of the infinite possibilities, would time in a Venezuelan prison be a bad thing, or like an all-inclusive in Aruba?

  41. - pawn - Tuesday, Nov 21, 17 @ 2:58 pm:

    This is so disgusting and cynical. It is the very opposite of public servant. The arrogance, cruelty, and total disregard for the impact on this state and irreparable harm he has done to its communities and people — It is breathtaking to me.

    Honestly, another budget impasse will break me.

    How could anyone sign on to this approach?

  42. - 33rd Ward - Tuesday, Nov 21, 17 @ 3:08 pm:

    And even with lack of budget, and too many expenses, we still cant legalize marijuana?

  43. - RNUG - Tuesday, Nov 21, 17 @ 3:24 pm:

    == What is the case for giving Democrats total control of Springfield back? ==

    Well, under Blago, Madigan had to step in and run the State … so you have a bit of a point there.

    But under Quinn, things were mostly under control. Quinn DID use the office’s power to cut / sequester about 10% of the budget each year for 3 years. And, once the temporary tax increase was passed, they did start paying down the backlog. Not as fast as planned, but the fault mostly lies with the Legislature that failed to pass the follow-on bill to bond out the bill backlog. Even without that bonding, the bill backlog was cut in half under Quinn. And let us not forget that constitutional pension reform, Tier 2, was passed during Quinn’s term.

    So, when I compare Quinn’s gradually getting the bills paid with Rauner’s large increase in unpaid bills, I have to say that, yes, we were better under the last Democrat Governor than we have been under this nominally Republican one.

  44. - Anon - Tuesday, Nov 21, 17 @ 3:37 pm:

    More proof that Rauner is horrific for buisiness in IL. This guy thrives in an unstable environment while most buisiness suffer.

  45. - Oswego Willy - Tuesday, Nov 21, 17 @ 3:40 pm:

    To Mendoza,

    That update is the leadership needed to stop Raunerism from hurting this state once again come June 2018

    A solid statement, a needed statement, to put minds at ease where Rauner wants chaos.

  46. - Ducky LaMoore - Tuesday, Nov 21, 17 @ 3:43 pm:

    ===The Governor cannot line item veto the budget to balance Ducky.===

    It sure be nice to find out if that were true. Unfortunately, we have a gov who won’t do his job.

  47. - Cubs in '16 - Tuesday, Nov 21, 17 @ 3:45 pm:

    Mendoza has been hitting homeruns of late. Today she was in Cairo helping those in need. She’s running a better gubernatorial campaign than most if not all of the actual candidates.

  48. - Anonymous - Tuesday, Nov 21, 17 @ 4:02 pm:

    Well lucky Pierre, fahner and Wirtz and griff got their monies worth out of you today.

  49. - Chicagonk - Tuesday, Nov 21, 17 @ 4:21 pm:

    People should direct their outrage elsewhere. The bond market has already priced in the possibility of future years without budgets.

Sorry, comments for this post are now closed.

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* Samsung cuts prices on its laptops for summer sale
* How choosing official Apple Certified Refurbished Products can save you money?
* Unfriended: Dark Web is clever, dour, and punishing
* Smartphone world cup: Samsung Galaxy S9+ is our champion

* White Sox Minor League Update: July 21, 2018
* Six Pack of Stats: White Sox 5, Mariners 0
* Jimenez, Rutherford in Saturday's top prospects
* Covey tosses gem, Leury robs HR in shutout
* Covey overthrows King Felix, 5-0
* Covey rebounds with scoreless gem vs. M's
* Moncada sets goal to reduce strikeouts

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