* I told subscribers about this letter earlier today…
A bipartisan group of 30 Illinois House members on Tuesday threw their support behind efforts in the Senate to craft a bill package aimed at ending the state’s historic budget impasse.
“We ask the senators from both parties to pass the best negotiated package they can, and then we will take up their work in the House,” the group said in a statement.
The package, which includes tax hikes, pension changes and a local property tax freeze, stalled in the Democratic-led Senate in March, when most Republicans withdrew their support.
John Patterson, a spokesman for Senate President John Cullerton, said on Tuesday both sides are “trading ideas in trying to find agreement.”
That’s a positive. House members have been mostly silent on the Senate’s work until now. But 17 Democrats and 13 Republicans signed on to this letter. An excerpt…
We believe a solution that can pass the House and Senate and be signed by the Governor needs to include a package of bills that fundamentally addresses the needs of the state, and most importantly provides a normal, full-year budget for our state agencies, schools, and social service providers.
Let’s be clear; we aren’t looking at a simple all or nothing vote on a package sent from the Senate. We understand that a package sent from the Senate will not be complete or perfect, and it will change. Our legislative process allows hearings and amendments from both chambers, and we think that’s the best way to negotiate a deal that serves our constituents and the state as a whole.
Keep in mind that the letter came out hours after Speaker Madigan appointed four of his top members to negotiate with Rauner. The rank-and-file signers don’t appear to want that, however. Instead, they want to take up the Senate’s package and go from there.
* Meanwhile, some rank-and-file House Republicans prefer to focus on process arguments…
According to State Representative David S. Olsen (R-Downers Grove), nothing is more important in Springfield right now than the adoption of a full and balanced budget. To that end, this week the freshman lawmaker signed on as a co-sponsor of three pieces of legislation that provide revenue estimates that can be used as the starting point for the creation of a full budget.
“The implementation of a budget is a multi-step process, and step one involves lawmakers coming to agreement on a revenue estimate,” said Olsen. “The Illinois Constitution is clear; the responsibility for crafting and adopting a budget rests solely with the General Assembly. That process begins with the approval of a revenue estimate that tells us how much money we have to spend.”
I happen to like Olsen, but it’s silly to say that this is the GA’s sole responsibility. Also, we won’t know what revenue levels to estimate until they agree on the taxes they’re going to raise.
State Rep. Avery Bourne today released the following statement on school funding reform upon the House’s return to Springfield for the final month of the spring legislative session:
“For years, multiple legislative commissions and committees have studied the obvious inequities of Illinois’ school funding system. As it stands now, Illinois has the most inequitable school funding system in the nation. That means students are essentially forced to play a zip code lottery that will determine whether they learn in classrooms equipped with an iPad per student or one where students share decades old textbooks. This is a challenge we need to tackle as the legislature, and there is bipartisan agreement that it must happen soon. […]
“There have been countless hours spent in the last year around this bipartisan solution to our school funding problem. We cannot, however, take our eyes off of the goal. Our goal is a system that works for every student in this state. Getting this crucial reform passed is within sight. However, as often happens - this is when special deals are added or fairness is tossed out the window in exchange for what is politically expedient.
“When talking about state policies, I hear often from constituents that the money flows straight to Chicago while the rest of Illinois is forgotten about. We cannot let this happen again. The children of Illinois are too important. Understand though, I agree - the children of Chicago deserve a high quality education. Many of them are not afforded that opportunity under the current system. However, the children outside of Chicago, in central and southern Illinois deserve the opportunity to get a great education too.
The House Democrats have been working on a school funding reform bill, but haven’t yet convinced any Republicans to sign on. Gov. Rauner won’t go along with giving more money to Chicago’s schools without his pension reform deal, so this seems like a preemptive strike on Rauner’s behalf by Rep. Bourne.
*** UPDATE *** Remember that these are Sen. Bill Brady’s proposals. The Senate Democrats have yet to sign off on them. Greg Hinz…
Brady calls the plan “five for five”: The core is $5 billion in tax increases for what Brady says are $5 billion in spending cuts. […]
On the other side of the ledger, total spending would be capped at roughly $36 billion for each of the next five years.
To get to that figure, Brady would trim $435 million a year from employee group health insurance, save $700 million a year via accounting changes in the state’s pension systems and save another $500 million a year on pensions by moving new workers to 401(k)-style defined contribution plans.
Higher education would get a 15 percent across-the-board reduction, and most other programs outside of grade and high school support a 5 percent cut. Local units of government also would see a reduction in the the cut of state income taxes they now receive.
* The Civic Federation carefully analyzes state budget proposals every year. So, while you may think this is a bit late to the game, it’s actually about right on time, considering the ongoing budget talks in the Senate…
The Civic Federation on Tuesday blasted Gov. Bruce Rauner’s recommended budget in a report that say it relies on “uncertain savings, one-time revenues” and the passage of the always in flux Illinois Senate “grand bargain” plan — while also blaming lawmakers for a “spectacular failure” for not enacting a budget.
The Civic Federation’s Institute for Illinois’ Fiscal Sustainability on Tuesday said it can’t support Rauner’s budget because it has an operating deficit of $4.6 billion and doesn’t address the state’s backlog of bills. The group also cites concern over the reduction of pension contributions by $1.25 billion and the reduction of group insurance payments and nursing home placements caused by a new at-home care program for seniors not eligible for Medicaid.
The group also warns that “one-time resources” from the sale of the James R. Thompson Center may do nothing for next year’s budget and shouldn’t be used to help balance the budget. The governor last week said he hoped the sale would provide “long-term” help for the state — saying he supports Republican-sponsored measured to send property tax revenue from the site to Chicago Public Schools.
Rauner in February presented his proposal that presses for revenue, reforms and cuts to fill a gaping hole. But it was deemed “balanced” by the state’s budget director because it was reliant on the Senate plan passing. Within the budget proposal is a mixture of spending cuts, revenue and projected economic growth to try to reach a magic number of nearly $4.6 billion. The administration said in February it was seeking to fill the remaining $2.7 billion plus by getting legislative authority to make cuts. In terms of the state’s massive debt, state budget director Scott Harry said “the governor would be open to financing” to get the backlog down.
Declaring that budget to be balanced when it obviously was not was one of the biggest tactical mistakes the governor’s office made this year.
* With emphasis added, here is the Civic Federation’s press release…
For nearly two years, Illinois has operated without a comprehensive budget, during which time the State’s credit rating has fallen to near-junk status and unpaid bills have continued to climb. Judicial mandates, full-year appropriations for elementary and secondary education and the questionable payment of State employees without appropriations have removed pressure on lawmakers to compromise on a full spending plan.
“Operating Illinois on autopilot is not a solution, nor is it sustainable. Rather, it represents an abdication of the most basic constitutional responsibilities of proposing and passing a balanced budget,” said Civic Federation President Laurence Msall. “The Governor and General Assembly need to end this unacceptable stalemate by passing and enacting a comprehensive plan. Cherry-picking certain areas of government to fund while pledging to work toward a complete budget sometime in the abstract future has not and will not end the crisis and in fact is making it worse.”
Unfortunately, Governor Bruce Rauner’s recommended budget for FY2018 does not offer a sufficiently detailed plan to address the State’s immense financial problems. To close the deficit of $4.6 billion, it relies on uncertain savings, one-time revenues and a bipartisan agreement in the Illinois Senate, the provisions of which are in flux and likelihood of passage is unclear.
Further, the Federation cannot support a budget proposal that would allow the backlog of unpaid bills to increase to $19.7 billion if the gap is not closed. Because of the backlog, the State begins each fiscal year in a hole, using revenues from the current year to pay off the previous year’s obligations. A $19.7 billion backlog at the end of FY2018 would represent more than half (58.1%) of estimated FY2019 General Funds revenues.
The Civic Federation continues to recommend a comprehensive plan including spending restraints and increased revenues. Spending controls are at the center of the Federation’s plan, but significantly more revenue is needed to help reduce the deficit in FY2017 and close the gap in FY2018 without drastically changing the scope of State government.
In fact, [Msall] continued, the situation has gotten so bad that the state now has to spend the first six months’ worth of revenues paying off bills that accumulated in the prior year.
Let that sink in a bit.
*** UPDATE *** From the Pritzker campaign…
“Illinois needs a leader who can bring people together to put an end to this budget crisis,” said JB Pritzker. “While Bruce Rauner has decided to hold the state hostage for his teardown agenda, millions are suffering the consequences and future generations will inherit the mess he’s created. As governor, I will propose a balanced budget to protect middle class families and get Illinois back on track.”
“This announcement strikes a very familiar tone, one that should bring great caution to the public especially as we enter the final weeks of the legislative session. Two years ago, these same Democrats ‘engaged’ in working group discussions on these very issues only to walk away from the table to pass a budget that was more than $4 billion out of balance. Last year they once again ‘engaged’ with Republicans on these issues only to walk away and pass a budget that was $7 billion out of balance. The fact is, Democrats have a history of creating these working groups in an attempt to waste time and obfuscate from their record of more than 20 years of reckless spending and failed policies. As I’ve said repeatedly, we are willing to negotiate with Democrats to bring an end to this impasse, but that only works when both sides respect the priorities of the other side. We remain willing and ready to negotiate and compromise, but time is running out.”
From what I’ve been told, I don’t think the governor’s office will directly respond to Madigan’s offer, but one never knows for sure about such things.
*** UPDATE *** From Senate GOP Leader Christine Radogno…
“I see Speaker Madigan’s comments today as a ploy, typical of his pattern of behavior. It is clearly a political reaction to the progress being made in the Senate and our good faith efforts to reach a comprehensive solution. We continue to work on significant reforms coupled with a balanced budget. I’m still hopeful we can be successful with legislation in the Senate that can be sent to the House for consideration. The problem is solvable if there is the political will to do it.”
Two state lawmakers said Friday that Illinois’ budget crisis and Gov. Bruce Rauner share in the blame for the death of 1-year-old Semaj Crosby.
State Reps. LaShawn Ford and Mary Flowers, both Democrats representing Chicago, said that investigating DCFS for its role is not enough and predicted that without a budget compromise, more children will fall through the cracks.
The state’s budget crisis has forced cuts at social service agencies that once were available to families in crisis. As the two lawmakers see it, Rauner needs to find a budget solution, while a spokesman for the governor said the lawmakers are politicizing a horrible tragedy.
“It’s the governor’s responsibility,” said Ford. “It’s his department and if the governor really cared as much about the children as he cares about selling the Thompson Center—DCFS would get the help that it needs.” […]
The governor’s office refuted the accusations.
“This has nothing to do with the budget, and it’s sad that anyone would try to politicize this horrible tragedy. Like everyone across the state, the governor wants answers on how such a horrific tragedy could happen,” a spokesperson for Rauner said Friday. “The Will County Sheriff, DCFS and other agencies are actively investigating and we are anxiously awaiting their findings. Something like this should never happen – and we need to find out exactly why it did. As an administration, we will remain committed to do anything and everything possible to protect the children of Illinois and improve the Department of Children and Family Services.”
It most certainly does have something to do with the lack of a state budget, but I, myself, wouldn’t directly blame the governor for the death of that little girl.
…Adding… It should be noted that DCFS basically runs without a budget because it’s under a federal consent decree. However, a budget could increase funding for various tasks. Or, the administration could go back to the judge and ask for more money.
Republican governor candidate Bruce Rauner today said he blames Democratic Gov. Pat Quinn for the deaths of child-abuse victims whose families previously had contact with the state’s child-welfare agency.
“Yes,” Rauner said when asked by reporters if the deaths of 95 children with past contact with the Department of Children and Family Services from 2011-2013 were attributable to Quinn.
“Pat Quinn is, in the end, responsible for the failings at the Department of Children and Family Services. If it was a one-year problem or a temporary problem you could say, ‘OK, maybe, there was, it’s not really his responsibility.’ But he’s been governor for six years. He’s had a revolving door of failure at Department of Children and Family Services for years and years,” Rauner said.
Rauner’s remarks came as he stepped up his attacks over Quinn’s DCFS oversight with a new TV ad today with a similar message to a radio ad that began airing a day earlier.
Quinn spokeswoman Brooke Anderson has called the ad campaign a “false and malicious attempt to smear the governor.” She contended Rauner was cynically using for political purposes an agency that “intervenes in emergency life and death situations” involving at-risk children.
“To imply the governor is somehow responsible for the deaths of children in the horrific circumstances that this agency enters into while trying to save lives is despicable and a new low,” she said.
Illinois State Treasurer Michael Frerichs will urge Governor Bruce Rauner [today] to focus on budget negotiations to avoid junk bond status. During Rauner’s tenure, Illinois has incurred six credit downgrades due to two years without a state budget.
Frerichs will outline the financial consequences and address the negative impact Illinois faces if credit agencies move forward with public warnings to downgrade Illinois to junk bond status.
* Treasurer Frerichs has been mostly quiet about Gov. Rauner and the impasse. “I prefer to play my part and do my job rather than to complain about others,” he told reporters today, then explained why he was speaking out: “The future of our state is too important.”
Gov. Rauner “paid big money” to win his election, “but he refuses to do his job,” Frerichs said. “The buck always stops somewhere else.”
“It is embarrassing and downright shameful that Illinois is in this deep of a hole,” he said, pointing to the six state credit downgrades and the recent warning from Moody’s that Illinois “is on a path to junk bond status.”
“Gov. Rauner needs to stop campaigning and start governing,” he said. “You can’t negotiate a budget when you’re out on the campaign trail. You can’t negotiate a budget through press conferences and television commercials,” the treasurer said at his press conference. “You have to be present here, present in Springfield calling the leaders together to work out his deal.”
“I don’t listen when someone says something is a priority, I look at their budget, I look at their actions. And then you can see clearly what is not a priority with this administration,” Frerichs said of the lack of funding for higher education and social services. He later said he was in favor of the House’s “lifeline” budget for those two areas as budget negotiations proceeded in the Senate.
Frerichs also said the lack of a budget would impact upcoming bond sales. “The added interest we’re paying will be ripped out of the wallets of Illinois citizens,” he said, claiming that another credit downgrade could “terminate interest rate swap contracts,” which would trigger some big payouts.
“This is not the Illinois we want it to be,” Frerichs said. “We need a budget and I call upon the governor to do his job now.”
* Frerichs also criticized Rauner for focusing solely on K-12 funding, noting that Rauner constantly crows about increasing education funding while slashing higher education dollars. “Education in this state does not end in the 12th grade,” he said.
I’ll post the Rauner administration’s response if I get one. Frerichs’ press release is here.
*** UPDATE *** From Deputy Governor Leslie Munger…
The fact is that the Treasurer spent years in Springfield voting for the very tax hikes and borrowing that landed us in this place. Instead of playing politics, the Treasurer should encourage members of his party to work with the Governor on real change to get our state back on track to long-term economic growth and balanced budgets.
