Administration Initiates Additional Management Steps to Prepare for Madigan-Cullerton Budget
Steps to Save Additional $420 Million
Cancel Funding for Legislative Earmarks
Freeze Non-Transportation Capital Projects
House Speaker Mike Madigan, Senate President John Cullerton and their caucuses two weeks ago finished passing a budget with a $4 billion hole.
Since that time, Speaker Madigan and President Cullerton have refused to pass real, compromise reforms that will grow the economy, pay down the debt and end the era of wasteful spending and broken budgets while implementing parliamentary maneuvers to keep the governor from acting on the budget bills.
In preparation for the possibility of having no budget on July 1, or a budget with a $4 billion hole, the Administration is initiating its second round of steps to responsibly manage the state’s finances. However, the options available to the Administration remain limited because the Madigan-Cullerton budget includes no reforms.
“Governor Rauner has compromised repeatedly, but Speaker Madigan and the politicians he controls continue to block any real reform,” Rauner spokesman Lance Trover said. “It’s deeply troubling to see that Speaker Madigan remains committed to sacrificing the middle class in order to protect the political class.”
More steps will be announced as they are finalized.
Statewide
Action Initiated
· Notify all State of Illinois vendors to prepare for the potential of a longer delay in receiving payments for goods and services provided to the State.
Effective July 1, 2015
· Suspend capital projects, including construction at state facilities, schools and colleges.
· Suspend all capital grants for legislators’ earmarks and non-bonded or “pay as you go” capital projects.
· This freeze does not include road and other Department of Transportation projects.
· Significantly reduce use of outside legal counsel by eliminating and/or reducing legal contracts.
Department of Healthcare and Family Services
Action Initiated
· Reinstate timely re-determinations of Medicaid eligibility.
· Roll back rates for ambulance services and renal care services to SMART-Act levels.
· Reduce managed care capitation rates.
· Discontinue special Medicaid payments to some hospitals.
· Increase eligibility threshold (Determination of Need Score) to a level more consistent with national eligibility levels.
· Achieve cost savings using new procurement strategy for purchasing durable medical equipment.
Department of Natural Resources
Effective September 1, 2015
· Suspend operations at the World Shooting Recreational Complex (WSRC) near Sparta. The site will become closed to the public and not available for events.
o All events scheduled through August 2015, including the Grand American, will not be impacted by this action.
Department of Agriculture
Effective July 1, 2015
· Suspend funding to county fairs for premiums and fairground rehabilitation projects.
· Suspend funding for agricultural extension and 4-H clubs for premiums at agricultural shows.
· Suspend funding for premiums for Agricultural Education Fairs.
· Suspend funding for the University of Illinois Cooperative Extension Service.
· Suspend funding to the Soil and Water Conservation Districts.
Metropolitan Pier and Exposition Authority
Effective July 1, 2015
· Suspend funding to Choose Chicago for tourism promotion.
Department of State Police
Effective July 1, 2015
· Suspend FY16 initiative to purchase new forensic equipment.
Office of State Fire Marshal
Effective July 1, 2015
· Suspend funding for the Chicago Fire Department training program.
· Suspend reimbursements for fire department training to other local governments.
· Suspend funding for small fire-fighting and ambulance equipment grants.
Criminal Justice Information Authority
Effective July 1, 2015
· Suspend the following legislative earmarks:
o YouthBuild grants;
o Bullying Prevention grants;
o Franklin County Methamphetamine Pilot Program; and
o South Suburban Major Crimes Taskforce.
· Suspend statewide funding for Operation CeaseFire.
· Suspend funding for Motor Vehicle Theft Prevention grants.
Department of Human Services
Effective July 1, 2015
Suspend funding for Community Services for juvenile delinquency program serving youth and young adults administered by the Chicago Area Project.
Suspend funding for Immigrant Integration Services. Access to the Department’s programs will continue through local offices.
Suspend funding for Welcoming Centers. Access to the Department’s programs will continue through local offices.
Suspend funding for the Youth Employment legislative earmark.
Department of Public Health
Effective July 1, 2015
Suspend funding for Brothers and Sisters United Against HIV.
Suspend funding to the Tobacco Quitline.
Department of Commerce and Economic Opportunity
Effective July 1, 2015
Reduce funding for state-funded job training programs and suspend funding to legislative earmarks for job training. This does not impact the Department’s federal job training funds.
Suspend funding for all coal programs at the Department of Commerce and Economic Opportunity, including discontinuing subsidies to coal companies.
Suspend funding for the Renewable Energy Program. This does not impact the Energy Efficiency Portfolio Standards program.
Suspend funding for the Energy Efficiency Program.
Department of Transportation
Effective July 1, 2015
· Reduce funding for Amtrak.
· Suspend state add-on payment to PACE.
· Suspend state subsidy for Regional Transportation Authority Reduced Fares grant.
Department of Revenue
Effective July 1, 2015
· Reduce funding for the following housing programs administered by the Illinois Housing Development Authority:
o Multifamily Finance Program;
o Reduce Homebuyer Acquisition Rehabilitation Program; and
o Reduce Homeowner Emergency Repair Program.
Department of Veteran’s Affairs
Effective July 1, 2015
· Delay opening of Chicago Veterans’ Home.
June 12, 2015
Please be advised that for the new state fiscal year beginning July 1, 2015, payment of bills by the State of Illinois may be delayed beyond current timeframes as a result of the budget bills passed by the General Assembly, which are $4 billion out of balance, in violation of the State’s Constitutional requirement for a balanced budget. Furthermore, these budget bills have not been sent by the General Assembly to the Governor for him to act upon.
Due to the General Assembly’s irresponsible actions, it is also possible state government will start the new fiscal year on July 1, 2015 without a budget in place, which would also lead to increased payment delays. As a result of these current scenarios and without the enactment of a balanced budget, vendors providing goods and services to Illinois should expect longer payment delays.
