Capitol Fax.com - Your Illinois News Radar » Budget roundup
SUBSCRIBE to Capitol Fax      Advertise Here      About     Exclusive Subscriber Content     Updated Posts    Contact Rich Miller
CapitolFax.com
To subscribe to Capitol Fax, click here.
Budget roundup

Tuesday, May 26, 2020 - Posted by Rich Miller

* Tribune

The Illinois General Assembly passed a maintenance-level $40 billion state budget Saturday night and early Sunday that would rely heavily on federal funding to close a gaping pandemic-driven deficit. […]

State agencies that have been most affected by the pandemic, such as those dealing with public health and welfare, would see funding increases under the spending plan. […]

The budget would not provide school districts with the $350 million increase in state aid that was set out in a 2018 rewrite of the education funding formula. Districts would instead receive the same amount they received this year. Universities also would be funded at their current levels.

* WBEZ

The spending plan that the legislature’s Democratic-led majorities settled on relies on borrowing up to $5 billion from the Federal Reserve next year. The governor has also called on Congress to enact another economic relief package to buttress state budgets, though it remains unclear when – or even if – that federal money will arrive.

“There’s a storm – a giant storm – blowing across our land and blowing across the state of Illinois,” House Majority Leader Greg Harris, D-Chicago, said as he argued against making drastic cuts in government funding to schools, first responders and other government programs.

“We as a legislature and as a state, do we stand up as a bulwark?” Harris said, speaking at a Springfield convention center where the House convened in order to give representatives more space for social distancing. “Do we stand up as a shield to try to shelter people in our communities from the storm? Or do we say, ‘No, we need to retreat, we need to fold in and we need to do less?’”

The budget plan includes $3.8 billion from the federal CARES Act to deal with the coronavirus crisis in the next year, including funding for testing, contact tracing and additional health measures at the state’s prisons, some of which have been subject to coronavirus-related outbreaks.

All told, the Illinois Department of Public Health’s budget would be increased by 144% compared to last year. School funding to the state Board of Education is slightly increased from last year, accounting for $13.2 billion of the state budget. And lawmakers will make the full required payments to the state’s pension funds – more than $10 billion that’s owed to the vastly underfunded systems that give retirement benefits to teachers, university and state employees.

* Capitol News Illinois

The $42.8 billion budget keeps spending roughly flat from a year ago despite revenue for next year decreasing by an unknown number of billions and the potential of even further economic devastation should COVID-19 see a resurgence in the fall that coincides with a virulent flu season. […]

“The ability for an administration to engage in emergency rulemaking and have control of more than $7 billion of state funds, with only broad strokes, broad umbrellas of programs and allocations for those dollars, I think should give members of this body pause,” Demmer said.

Rep. Gregory Harris, D-Chicago, said during debate the fact that the Legislature passed a full budget instead of a lump sum appropriation showed that it was exercising more oversight than other states were doing for their governors.

* Mike Miletich at WSIL TV

“If we’re going to balance this budget, I would rather not do it on the backs of people who would lose their jobs if we were to cut money to our schools, cut money to our first responders,” said House Majority Leader Greg Harris (D-Chicago). “I don’t want thousands of people more out of work.”

Harris notes there is a “huge” revenue shortfall, and it’s still unknown when the federal government will discuss sending the additional funding to states.

“The ability for an administration to engage in emergency rule-making and have control of more than $7 billion of state funds with only broad strokes, broad umbrellas of programs and allocations for those dollars, I think should give members of this body pause,” said House Deputy Republican Leader Tom Demmer.

He adds the budget is only balanced “on a wing and a prayer.” The Dixon native emphasized it relies on $5 billion in borrowing or “magical revenue” coming from the federal government “with no strings attached.”

* News-Gazette

Democratic State Sen. Andy Manar spoke for many when he said that “we made a choice not to present a budget to this chamber that slashes the state budget at a time when we’re dealing with a global pandemic.”

“That was our choice. That was a simple choice for me because the last thing we need to be doing is cutting public health programs, cutting health care programs, cutting school funding, cutting programs for small businesses, or cutting pensions or laying off state employees,” he said. […]

Despite the obvious risks, Pritzker said he is putting his faith in the federal government “to do the right thing.”

“This isn’t something special for Illinois, it really is a problem that every state is experiencing,” he said of his desire to “get dollars from the federal government to support our state.”

* WBBM

Other priorities include increased unemployment eligibility and expanding workers compensation protections as well as $500 million to rental and mortgage assistance, help with utilities and homelessness prevention. […]

The new budget includes over $600 million in grants for small businesses and more than $900 million to the Illinois Department of Public Health for COVID-19 testing programs and contact tracing over the next year

That was all from federal funds.

* Hannah

The troubled Department of Children and Family Services will see a $126 million increase in funding over last year, which represents a 10 percent boost. Small areas of state government like the Illinois Arts Council, State Police Merit Board, and Prisoner Review Board will see decreases in the tens of thousands of dollars, while the community mental health services will see a $10 million decrease from $134 million in funding last year. […]

While the budget modestly trims some line items, the state is authorized to spend $970 million more than it did last year, which State Sen. Dan McConchie (R-Hawthorne Woods) blasted as irresponsible given the economic downturn Illinois is experiencing along with the rest of the country.

“In that environment, you would think that we would be cutting spending on non-essentials as so many families have been forced to do across the state,” McConchie said. “But no, we don’t reduce the spending given the low drop in revenue that we are expecting.”

McConchie said the General Assembly would’ve been better off approving a short-term budget to keep the state operating until the full economic impact of the virus and accompanying shutdown is known.

A short-term budget would also be a punt, and likely encourage a ratings downgrade. They can come back in the fall and readjust as necessary.

* Finke

The $42.8 billion is larger on paper than last year’s budget, but Sen. Heather Steans, D-Chicago, a lead budget negotiator said much of the increase is to repay short term borrowing that was needed to keep the state afloat.

“It’s very much of a status quo budget. To keep it where it is now,” said Sen. Heather Steans, D-Chicago, a principal architect of the budget. “There’s a few places that there’s some increases for critical areas that couldn’t keep up, like DCFS. But it is pretty much keep everything as is.” […]

“We have done nothing to try to cut anything,” said Rep. C.D. Davidsmeyer. “I feel we are using COVID as a reason to continue to be irresponsible. Anyone who votes for this is voting for irresponsibility.”

As Harris noted in debate, the budgeted amounts are maximum spending levels. Pritzker is “free” to cut as much as he wants within the law (including court rulings). So, yeah, Davidsmeyer was right. The GA basically punted it all to the governor.

* Senate President Don Harmon was asked about whether it was responsible to pass a budget that is so heavily dependent on borrowing

There is so much we don’t know today that we hope to know in a few months. We don’t know the depths of the economic hit we’ve taken from this virus. We don’t know how much more we’re going to have to spend in order to respond to it. We don’t know whether the voters are going to approve a constitutional amendment in November. We don’t know how the federal government is going to respond, although I believe that they will. And we don’t know who is going to be in charge in Washington for the next four years. In the next several months, we’re going to know all of that, and that will give us much better information about how to put together a durable state budget

* Sun-Times

House Majority Leader Greg Harris, D-Chicago, in turn acknowledged the plan “may not be the world’s best budget.” And he pointed out that Republicans largely fought alongside former Republican Gov. Bruce Rauner during a historic budget impasse.

“But at least we have a budget,” Harris said. “And to be lectured by some people who for two years let another governor run this thing with zero budget and running up a $17 billion backlog of bills, is an interesting experience,” Harris said, before the House approved the bill 62-47.

* Gov. Pritzker was asked if he’d be “comfortable” if Bruce Rauner was wielding the same authority as the GA gave him

Well no, that’s why I ran against him and beat him.

The problem with giving governors (or presidents, for that matter) so much authority is that every now and then (more often in Illinois) the voters elect somebody who can’t be trusted with it.

Much more here.

       

7 Comments
  1. - Steve - Tuesday, May 26, 20 @ 11:13 am:

    Illinois might get a federal bailout with the right combination of Democrats in House, Senate , and White House but… they might not because the votes might not be there. A 6% increase in the budget might not be the best way to ask for bailout from Washington D.C.


  2. - Chatham Resident - Tuesday, May 26, 20 @ 11:15 am:

    On the day that the Governor acts upon the budget, will he do it during his daily 2:30 press conferences? And if he decides to cancel the State Fairs for this year due to COVID-19, will cut those line items accordingly and announce the fair’s status (likely cancellation) while acting upon the budget? Same with any historical sites where social distancing is impossible (especially in historic homes)–could DNR’s funding for those sites be significantly reduced or zeroed out entirely?


  3. - We'll See - Tuesday, May 26, 20 @ 11:23 am:

    Davidsmeyer calling for cuts with a district that includes 2 state schools and a prison is pretty rich. Sounds like Watson prior to Quinn closing JDC


  4. - City Zen - Tuesday, May 26, 20 @ 11:29 am:

    Surprised they didn’t consider a temporary one year income tax increase in which the final six months would be overturned if the Fair Tax passed.


  5. - Oswego Willy - Tuesday, May 26, 20 @ 11:50 am:

    The embarrassing and pathetic way Mr. Demmer pretends to care about budget/fiscal responsibility is Mr. Demmer, again, forgetting how *he* cheered as Bruce Rauner held Illinois hostage for an agenda…

    … and how Mr. Demmer, personally with his voting switch… aided in the destruction of these same agencies and programs he now wonders aloud about.

    I’d say Mr. Demmer is the biggest phony in the General Assembly, but Mr. Barickman probably has that, even as his own silence is welcomed about this during a once in a century global pandemic.

    When the Raunerites sold out to Diana and Bruce… thinking they honestly care about the fiscal health now during a pandemic is embarrassingly comical.

    To the post, however…

    It’s concerning to the fiscal wants here, that a budget strung together with leaps towards “givens” that should rightly be credited as “wishes”.

    I have no idea how federal monies will be arriving, or the amount, or how the pension payment, as one “small” example will be handled. Then there’s the real hot spots, IDES, IDOC, DPH…

    We have a budget, we have a map, but burned holes in the map leave gaps to where X marks the spot too.


  6. - LakeCo - Tuesday, May 26, 20 @ 12:25 pm:

    =Same with any historical sites where social distancing is impossible (especially in historic homes)–could DNR’s funding for those sites be significantly reduced or zeroed out entirely?=

    First of all, the budget for historic sites has already been slashed to the bone, and many of them are crumbling before our eyes. Second, even if no one is visiting sites in the short term, they still need to be funded. There are utility bills, maintenance, and the care of all the historic artifacts contained within.


  7. - Jibba - Tuesday, May 26, 20 @ 12:59 pm:

    ===that should rightly be credited as “wishes”.===

    Ain’t that the truth, especially when the Republicans in our own Congressional delegation are actively arguing against any further funding (unless their non-federal demands are met).


Sorry, comments for this post are now closed.


* Reader comments closed for the holidays
* And the winners are…
* SUBSCRIBERS ONLY - Update to previous editions
* Isabel’s afternoon roundup
* Report: Far-right Illinois billionaires may have skirted immigration rules
* Question of the day: Golden Horseshoe Awards (Updated)
* Energy Storage Brings Cheaper Electricity, Greater Reliability
* Open thread
* Isabel’s morning briefing
* SUBSCRIBERS ONLY - Today's edition of Capitol Fax (use all CAPS in password)
* Live coverage
* Selected press releases (Live updates)
* Yesterday's stories

Support CapitolFax.com
Visit our advertisers...

...............

...............

...............

...............

...............

...............

...............


Loading


Main Menu
Home
Illinois
YouTube
Pundit rankings
Obama
Subscriber Content
Durbin
Burris
Blagojevich Trial
Advertising
Updated Posts
Polls

Archives
December 2024
November 2024
October 2024
September 2024
August 2024
July 2024
June 2024
May 2024
April 2024
March 2024
February 2024
January 2024
December 2023
November 2023
October 2023
September 2023
August 2023
July 2023
June 2023
May 2023
April 2023
March 2023
February 2023
January 2023
December 2022
November 2022
October 2022
September 2022
August 2022
July 2022
June 2022
May 2022
April 2022
March 2022
February 2022
January 2022
December 2021
November 2021
October 2021
September 2021
August 2021
July 2021
June 2021
May 2021
April 2021
March 2021
February 2021
January 2021
December 2020
November 2020
October 2020
September 2020
August 2020
July 2020
June 2020
May 2020
April 2020
March 2020
February 2020
January 2020
December 2019
November 2019
October 2019
September 2019
August 2019
July 2019
June 2019
May 2019
April 2019
March 2019
February 2019
January 2019
December 2018
November 2018
October 2018
September 2018
August 2018
July 2018
June 2018
May 2018
April 2018
March 2018
February 2018
January 2018
December 2017
November 2017
October 2017
September 2017
August 2017
July 2017
June 2017
May 2017
April 2017
March 2017
February 2017
January 2017
December 2016
November 2016
October 2016
September 2016
August 2016
July 2016
June 2016
May 2016
April 2016
March 2016
February 2016
January 2016
December 2015
November 2015
October 2015
September 2015
August 2015
July 2015
June 2015
May 2015
April 2015
March 2015
February 2015
January 2015
December 2014
November 2014
October 2014
September 2014
August 2014
July 2014
June 2014
May 2014
April 2014
March 2014
February 2014
January 2014
December 2013
November 2013
October 2013
September 2013
August 2013
July 2013
June 2013
May 2013
April 2013
March 2013
February 2013
January 2013
December 2012
November 2012
October 2012
September 2012
August 2012
July 2012
June 2012
May 2012
April 2012
March 2012
February 2012
January 2012
December 2011
November 2011
October 2011
September 2011
August 2011
July 2011
June 2011
May 2011
April 2011
March 2011
February 2011
January 2011
December 2010
November 2010
October 2010
September 2010
August 2010
July 2010
June 2010
May 2010
April 2010
March 2010
February 2010
January 2010
December 2009
November 2009
October 2009
September 2009
August 2009
July 2009
June 2009
May 2009
April 2009
March 2009
February 2009
January 2009
December 2008
November 2008
October 2008
September 2008
August 2008
July 2008
June 2008
May 2008
April 2008
March 2008
February 2008
January 2008
December 2007
November 2007
October 2007
September 2007
August 2007
July 2007
June 2007
May 2007
April 2007
March 2007
February 2007
January 2007
December 2006
November 2006
October 2006
September 2006
August 2006
July 2006
June 2006
May 2006
April 2006
March 2006
February 2006
January 2006
December 2005
April 2005
March 2005
February 2005
January 2005
December 2004
November 2004
October 2004

Blog*Spot Archives
November 2005
October 2005
September 2005
August 2005
July 2005
June 2005
May 2005

Syndication

RSS Feed 2.0
Comments RSS 2.0




Hosted by MCS SUBSCRIBE to Capitol Fax Advertise Here Mobile Version Contact Rich Miller