* From the House Democratic budget proposal analysis…
Items mandated for payment under a court order are not appropriated in these bills. As a result, in some instances, entire agencies are absent from this legislation.
That means things like Medicaid expenses aren’t being appropriated, which is what I’ve been warning subscribers about for a while now. Also, no personal service lines are appropriated because employees are being paid via court order. What they intend to do if the courts rule that the employees can’t be paid without an appropriation is another story.
* And speaking of which, the bill also appropriates over $63 million for back pay for state workers as a result of a recent Supreme Court ruling that employees can’t be paid without an appropriation.
* And then there’s this under the heading “capital projects”…
Yep. $3 billion in new capital spending.
* Watch for updates on this story on our live session coverage post.
*** UPDATE 1 *** Greg Hinz…
But the latest word is, after a top Rauner aide called [Madigan’s budget] plan “the phoniest phony budget in recent Illinois history,” the speaker decided to put it all together in one big bill and dare the GOP governor to veto it, potentially keeping schools from opening this fall.
The original version of the plan, circulated to House members last night, called for a hike in state school aid of $575 million, with $500 million targeted toward high poverty districts.
But in the latest version, I’m told, Madigan raised the ante, boosting the $500 million for high poverty districts to $700 million. And while $700 million is the “number under discussion now,” it could go up further, Madigan spokesman Steve Brown tells me.
While every school district in the state would get more money, CPS would be a particular winner. Sources say it would get 41 percent of the $700 million—about $300 million. Beyond that, it no longer would get the $75 million cut because of lower enrollment that Rauner had proposed. It also may get some additional money for teachers pensions now, up to $50 million.
So, maybe a $400+ million benefit for CPS when compared to Rauner’s proposal.
*** UPDATE 2 *** ILGOP…
House Speaker Mike Madigan is pushing a budget proposal today that creates a $7 billion deficit and requires revenues of nearly $39 billion. Balancing the phoniest of all phony budgets would require the highest tax rate in Illinois history.
“Now we know why Mike Madigan said in December that taking the income tax back to 5% was a ‘good place to begin.’ Apparently, Madigan has long been planning to pass the highest tax rate in Illinois history,” said Illinois Republican Party spokesman Steven Yaffe. “Every single Democrat who votes for this proposal is voting for an unprecedented tax hike on Illinois families, workers and small businesses. The Madigan tax hike would crush Illinois families and lead to more people and businesses leaving the state.”
*** UPDATE 3 *** From a senior administration official…
According to GOMB, this level of spending would force an income tax rate of 5.5% to balance the budget. In essence, a vote for this budget is a vote to force a $1,000 tax hike on the average Illinois family.
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*** UPDATED x2 *** Madigan: No
Wednesday, May 25, 2016 - Posted by Rich Miller
* Here we go…
…Adding… From Amanda in comments…
To be clear: Productive was my word/summation; Speaker used “persuasive.”
*** UPDATE 1 *** The statement is getting out there on Twitter, so here’s the full governor’s office response to the Speaker’s proposed budget which I told subscribers about earlier…
According to GOMB, the House Democrats are proposing a budget that is as much as $7 billion out of balance, proposing to spend as much as $39 billion with only $32 billion available. It is by far the phoniest phony budget in recent Illinois history - and that’s saying something.
…Adding… Actually, some of the working groups are making progress. So this statement by MJM is a bit, um, off. But the governor told Madigan today that he wants the groups to continue meeting.
…Adding More… From Voices for Illinois Children…
Without new revenue the analysis from Voices’ Fiscal Policy Center shows, as does GOMB’s analysis, that a spending plan with previous spending levels comes up least $7 billion short.
It’s important to remember the reason the numbers don’t add up. It’s because there is no new revenue to make up for the huge tax cut that occurred when lawmakers failed to make the temporary 5% income tax rate permanent.
It’s not enough to decry an unbalanced budget. To balance the budget, lawmakers and the governor either need to make $7.1 billion in cuts (something Voices does not suggest, and something no policy maker has suggested) or generate $7.1 billion in new revenue.
*** UPDATE 2 *** Tribune…
Democratic House Speaker Michael Madigan is planning to present a budget that would pour $500 million more into school funding for districts with low-income students under a spending plan that Republican Gov. Bruce Rauner’s administration suggests is $7 billion short.
The broad points of the proposal surfaced Wednesday as the governor and legislative leaders met again behind closed doors with a spring session deadline looming Tuesday. The House Democratic budget blueprint largely envisions state government running on autopilot — an indication that despite Rauner’s vague suggestion of optimism, there is unlikely to be a resolution to the historic budget stalemate.
According to an analysis of the legislation distributed to lawmakers and the administration, the plan calls for spending just $13.7 billion out of the state’s general revenue fund, the primary checkbook of state government. Much of state government instead would be funded under a patchwork of court orders and decent decrees that kept more than 90 percent of funding flowing as Illinois operates without a complete budget. […]
Madigan spokesman Steve Brown said the proposal may morph over the next few days, but is “based on what we believe Illinois law requires to be spent.”
It’s actually more than $500 million. Click here to see the analysis. Weird stuff in there, man, as subscribers have known for many days.
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* From an e-mail…
Hello Rich,
On behalf of by Pay Now Illinois, the coalition of 82 – newly increased from 64 – human and social service agencies suing Gov. Rauner and seven state agency heads, I want to make sure you are aware of two new important court filings today, following the initial lawsuit filed May 4. The two filings and release are attached and additional information can be found at: paynowillinois.org.
Highlights:
· Today the plaintiffs filed a motion seeking emergency relief that would require the state to begin immediate payment on contracts that are more than 60 days in arrears, an amount estimated to be $100 million. The total owed to the plaintiffs for 11 months of unpaid work exceeds $130 million. The motion argues that the case represents a “public emergency,” human and social service agencies are facing a cascade of damages – laying off staff, reducing or eliminating essential programs, or shutting down entirely.
· Also today, Pay Now Illinois filed an amended complaint adding 18 new human and social service agencies plaintiffs to the original suit, and two new defendants: Illinois Comptroller Leslie Munger and Audra Hamernick, Director of the Illinois Housing Development Authority.
We are happy to set up interviews with two members of the Pay Now Coalition, who are plaintiffs in the suit: Andrea Durbin, CEO of Illinois Collaboration on Youth, and Nancy Ronquillo, President & CEO of Children’s Home + Aid.
Many thanks,
Rick
The new motion is here. The full press release is here.
…Adding… Ounce of Protection, run by Mrs. Rauner, is one of the groups that jumped aboard the lawsuit. Ounce is owed millions. Interesting.
* Related…
* Voice of The Southern: Gov. Rauner, sign SB2038: A $700 million human services “stopgap” appropriations bill – Senate Bill 2038 – passed both houses of the legislature last week with broad bi-partisan support. Our Republican senator, Dave Luechtefeld, and our Democratic senator, Gary Forby, were sponsors of the bill. It passed in the House by a 111-0 vote and passed the Senate by a 56-0 vote. It was sent to the governor’s desk on Wednesday, where it continues to sit. We urge the governor to sign SB2038 bright and early tomorrow morning.
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Facing the abyss
Wednesday, May 25, 2016 - Posted by Rich Miller
* Subscribers know much more about the latest plan and the reaction from the governor. I’m expecting to see it pop sometime today. In the meantime, here’s the Tribune…
Madigan and Senate President John Cullerton didn’t flinch when they passed a budget far out of balance in 2014 — heavy on the spending and without the revenue to pay for it. They didn’t flinch when they passed an out-of-balance budget in 2015. And now, all signs point to a repeat performance for 2016.
If Democrats again send Rauner an unbalanced budget, it will be time for the governor to end the standoff himself. Time to use his veto pen to strip spending line by line, something he avoided last year, instead vetoing the entire spending plan, except for education. If Rauner doesn’t act, Illinoisans could go another year with no budget — another year of spending at unsustainable levels, another year of debt piling up, another year of the state’s most vulnerable citizens harmed.
A truly balanced budget in this debt-ridden, spend-happy state will be ugly and far worse than what social service providers have experienced so far. But if Democrats insist on riding the Tilt-A-Whirl at fantasy land instead of actually governing, Rauner will have to do what he promised as a candidate: make the tough, painful decisions himself.
* The budget office has repeatedly explained that the governor can’t balance the budget with line-item vetoes alone because lots of spending is mandated in state law or by federal courts. Even so, Gov. Rauner could reduce at least some spending that way. I just don’t think he will because then he’d have to own all those individual cuts and he ain’t much of an owner. Maybe he’ll prove me wrong.
They don’t want to do reduction vetoes, either, by the way, because those can be overridden with simple majorities.
So, I’m not sure what the outcome is gonna be. We’re pretty well stuck if the leaders can’t come to a bipartisan agreement.
* Related…
* ADDED: State’s lost year about to become two as budget cliff nears
* Some charter schools won’t survive proposed CPS budget cuts
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* The four legislative leaders and the governor will meet today at 11 o’clock. It’s just the third time they will have met this calendar year, but the second time this month. Speaker Madigan’s spokesman confirmed that his boss will also attend.
Discussion topics?
…Adding… Legendary White Sox player Frank “The Big Hurt” Thomas will be at the Statehouse today around noon. Thomas supports the fantasy sports legalization bill.
So, that’s some good news outta Springfield for a change.
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*** UPDATE 1 *** The veto override failed by two votes. Rep. Ken Dunkin was recorded as voting “Yes” to override, but he was apparently in the Senate when the vote was taken, so expect possible fireworks.
*** UPDATE 2 *** From the governor’s office…
The Office of Governor Bruce Rauner issued the following statement after the House of Representatives failed to override the Governor’s veto of HB 580. This is attributable to Catherine Kelly, Press Secretary for the Governor:
“HB 580 was unprecedented and unaffordable, and simply another attempt by the Majority Party in the legislature to insert themselves into the contract process and put hard working families in Illinois on the hook for a $3 billion tax hike. The Governor thanks those members who took the pro-taxpayer position today, and believes it is now time to move forward and find compromise on a balanced budget with structural reforms that will put our state on the path to prosperity.”
*** UPDATE 3 *** AFSCME…
AFSCME Council 31 Executive Director Roberta Lynch issued this statement:
“We are deeply disappointed in the 48 legislators in the House today who failed to override Gov. Rauner’s veto of the fair arbitration bill, House Bill 580. They sided with the governor against the people of Illinois and against the public service workers who protect kids, care for veterans and the disabled, respond to emergencies and keep us safe.
“In January the Rauner Administration walked away from the bargaining table and has since refused to even meet with our union. Instead the governor is seeking the power to unilaterally impose his extreme demands, including forcing workers to pay double their current costs for health care, a four-year wage freeze, and doing away with protections against unfettered privatization.
“If he imposes those demands, public service workers will be forced to work under his terms or go out on strike. While as a candidate Rauner vowed to force a strike, the union supported the arbitration bill as a fair alternative path to keep Illinois working.
“Contrary to the governor’s wild exaggerations designed to defeat HB 580, the bill would have merely provided to all state employees the same fair arbitration procedures already available to public safety workers throughout Illinois. According to state records, those procedures in the past 10 years have resulted in 48 percent of all arbitration decisions favoring the employer, 43 percent favoring the union, and 9 percent split.
“The fair arbitration bill was meant to protect public services and ensure fairness for the men and women who work to provide them. That’s why large majorities of voters even in Republican districts consistently supported the bill and urged their legislators to enact it. It’s unfortunate that too many lawmakers sided today with Governor Rauner rather than representing their constituents.”
[ *** End Of Updates *** ]
* Vinicky…
Unionized state employees worried about stalled contract talks could learn Wednesday whether there’s hope for a work-around.
Last week, thousands of union members rallied in Springfield. They asked legislators to override Gov. Bruce Rauner’s veto of a bill that would change how the state negotiates with labor. Wednesday they may see if it worked.
Democratic Rep. Emanuel Chris Welch says he plans to call the measure for a vote.
“I think the rally in Springfield last week was very impressive,” he said Tuesday. “And people are hearing that. So we’re going to put it on the board and see if the votes are there.” […]
The governor has called it the “worst” bill he’s seen, but unions say Rauner is trying to force a strike or walk-out.
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