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Watch the governor’s budget press conference

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*** 10:36 am *** Click here for an advance look at $91 million in cuts to the community services program. An impact summary…

DMH projects over 70,000 consumers including over 4,200 children will lose access to basic mental health care including medications, psychiatry visits and case management. In addition, over 4,000 consumers will be displaced from their residential settings in the community. Most may be placed into nursing homes.

*** 10:38 am *** The governor has started talking.

*** 10:47 am *** If you’re having trouble with the video, switch to audio. Also, you can try this mirror link. Also, WMAY is live-streaming, so click here for that.

*** 10:52 am *** Quinn just said he was signing a reduction veto of the budget.

*** 10:55 am *** From a press release…

After a thorough review of the state’s operating budget for the coming fiscal year, Governor Pat Quinn today announced major reductions to state spending while prioritizing the tools needed to keep the Illinois economy moving forward. Governor Quinn also issued an Executive Order to place additional restrictions on government spending.

Governor Quinn reduced the fiscal year 2011 budget by $1.4 billion, while preserving core services of education, health care and public safety. […]

Governor Quinn today acted on the following bills:

* House Bill 859: Appropriations: Reduction vetoed
* Senate Bill 1215: Technical Appropriation Changes: Signed into law
* Senate Bill 3660: Emergency Budget Act: Signed into law
* Senate Bill 3662: Budget Implementation Act: Signed into law […]

The Governor also allocated funds for several high-priority programs, including:

* $206 million to maintain early childhood education programs throughout the state
* $26.7 million to fund adult education programs at community colleges, which in turn qualifies for an additional $48 million in federal matching dollars
* $55 million to fund community mental health programs to maintain funding for community mental health residential programs
* $325 million to maintain funding that allows eligible seniors to remain in their homes, rather than moving into nursing home, through the Department on Aging’s Community Care Program

The Executive Order Governor Quinn signed today requires spending reductions such as: travel expenses, vehicle use, printing, telecommunications, overtime pay, leasing of office space, contractual spending, energy efficiency, managed care for Medicaid and sale of surplus equipment and property.

*** 10:57 am *** Additional budget documents…

Allocation Summary

Historical Approp Master 1

Historical Approp Master 2

Budget

Emergency Budget Act

Executive Order 10 - 2010 - Spending Reductions SCANNED

Executive Order 10 - 2010 - Spending Reductions

Reduction Veto Message

Tribune…

This year’s budget will be $24.9 billion, down from last year’s $26.3 billion, officials said. That represents the amount spent out of the state’s main checking accounts.

*** 11:48 am *** End. Thoughts?

[ *** End of Updates *** ]

* Gov. Pat Quinn will outline what he intends to do with state budget cuts in Chicago today at 10:30. The governor was given a “lump sum” budget by the General Assembly and granted extraordinary emergency powers as well.

Illinois Information Service will be streaming the presser live…

* Click here for audio

* Click here for video

If you do watch or listen, help everyone else out by live-blogging in comments. I’ll also update this post.

* Your budget roundup…

* Painful cuts loom in OK of state budget today: The thinking is Quinn today will sign a state budget that is billions of dollars in the red, announce painful budget cuts for the 2011 fiscal year that begins today and push off paying billions of dollars in past-due bills.

* Quinn to unveil fix for budget gap: The Chicago Democrat also may use the occasion to pressure lawmakers to return to Springfield and approve borrowing about $4 billion to make the state’s annual contributions to government pension systems. Without permission to borrow the money, Quinn will have to find it elsewhere, meaning deeper cuts throughout the budget.

* Quinn to unveil his state budget plans today: The only area he identified was “bureaucracy,” implying reductions in direct government expenses, such as employee costs. However, Quinn is limited on that front because of an agreement the administration reached earlier this year with the American Federation of State, County and Municipal Employees, the largest of state government’s employee unions.

* Medicaid funds may not come through: All the governors involved said they have made historic cuts to their budgets, and ending the higher rate would force them to cut into basic essential services such as education… California Gov. Arnold Schwarzenegger, whose state would get about $1.8 billion from the proposed extension, agreed. He said it is wrong for Congress to mandate coverage levels but refuse to give states more funding when a recession makes demand go up. “The federal government cannot have it both ways. … It’s simply unfair and will have devastating consequences.”

* Cadillac or Chevy, pensions too costly: The Sun-Times editorial objects to the Civic Committee’s use of the word “Cadillac” to describe Illinois’ pension plan for its employees, but the facts are more important than the adjectives. State employees with enough years of service can retire with full pensions at age 55. (Chicago employees can retire with full pensions at 50.) State retirees get automatic 3 percent cost adjustments whether there is inflation or not.

* Critics say 401(k)-style state plan unworkable, expensive: Critics of creating a 401(k)-style retirement benefit for public employees Wednesday pounced on gubernatorial candidate Bill Brady’s suggestion that the state move away from its current pension programs and into a system widely used in private industry. The idea might actually increase the cost of retirement programs and would provide a less secure retirement for workers, opponents said. “It is idiotic on every level,” said Ralph Martire, executive director of the Center for Tax and Budget Accountability, a leading critic of state budgeting.

* State’s unpaid bill tally stands at about $4.5B: Those still owed money from the state on Wednesday include schools, universities, caretakers of seniors and business owners like Decatur pharmacy owner Dale Colee.

* Illinois State Budget Cuts Might Flood Streets With Mentally Ill Homeless: An advisor to Quinn told Fox Chicago News the governor needs to cut more than $1 billion from the budget so that the state does not run out of cash for its own payroll and other vital operations before November.

* Make state leaders pay for unconstitutional budget at ballot box

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posted by Rich Miller
Thursday, Jul 1, 10 @ 9:58 am

Comments

Some of us are thinking that the actual cuts to contracts for human services will be minimal, but designed so that the money runs out in January.

Comment by Yellow Dog Democrat Thursday, Jul 1, 10 @ 10:07 am
Treat it as a 6~8 month budget… Interesting idea

Comment by OneMan Thursday, Jul 1, 10 @ 10:26 am
Some lovely Muzak while we wait.

Comment by ShadyBillBrady Thursday, Jul 1, 10 @ 10:26 am
Which is worse: Quinn signing this horrendous budget, or the easy-listening lite-reggae elevator music on the audio feed before he signs it?

Comment by A Naughty Moose Thursday, Jul 1, 10 @ 10:27 am
is anyone getting audio on the video feed yet?

Comment by near west Thursday, Jul 1, 10 @ 10:32 am
Yes, sounds like it will be another Doomsday effort. Quinn never gives up in his quest to protect all state civil service jobs, especially the ones represented by unions, and to force the middle class to pay for a Cadillac civil service with Cadillac pension and health benefits with increased income taxes. Unionized state employees all got a nice raise starting today, courtesy of the Democratic Blago administration which gave away the taxpayer store in union negotiations (the one the Democrats boasted about). Our Pat is likely to do so again should he win in November-negotiations coming up in 2011.

Things aren’t looking too great for that same middle class Quinn wants to hit up for more money.
Unemployment remains stubbornly high, the private sector is creating few jobs, and taxes are likely to go up. The stock market just took a 10 percent dive in response to this ongoing disaster. Even the most ardent supporters of the president’s health care bill (I am one of them)
acknowledge that health care costs for many middle class Americans will go up, especially those who must purchase individual plans. They are going up already. Local jurisdictions are looking to raise property taxes. And whether you believe the federal deficit is a pathway to disaster or not, it seems clear that federal taxes will soon increase for many in order to bring down that deficit.

All our Pat can seem to do about all this, however, to do another Doomsday Kabuki dance and to try and plan to shift a chunk of wealth out of the middle class when he is (probably) elected in November. But we’ll see.

Comment by cassandra Thursday, Jul 1, 10 @ 10:33 am
Even as we sit here waiting, the governor is negotiating a loan with China?

Comment by Aldyth Thursday, Jul 1, 10 @ 10:36 am
How many mini-skirted twenty-somethings does it take to set up a press conference? Talk about inefficiency in government.

Comment by Professor Quincy Adams Wagstaff Thursday, Jul 1, 10 @ 10:36 am
Wow cassandra, 3 minutes in and you’re posting essays? Can you spare us your Quinn hatred so that it doesn’t take so long to scroll through comments that we might want to read?

Comment by Small Town Liberal Thursday, Jul 1, 10 @ 10:38 am
People are getting into position so we are awaiting the gov/ Here he is.

Comment by Nearly Normal Thursday, Jul 1, 10 @ 10:38 am
Time to stop lying Cassandra.

Facts:

*IL has the nation’s fewest state employees per capita,

*Their pensions are $20,000 a year (Sun-Times: “The phrase ‘Cadillac public pensions’ is an exaggeration and gross simplification”),

*State employees got no pay increase in 2008, deferred half their negotiated increases this year and next, and are taking unpaid furlough days, to help close the shortfall.

Comment by Reality Check Thursday, Jul 1, 10 @ 10:40 am
Any recommendations on making the link work?

Comment by Anon Thursday, Jul 1, 10 @ 10:41 am
Education and teacher jobs are a priority … Billy Brady is gonna be mad.

Comment by ShadyBillBrady Thursday, Jul 1, 10 @ 10:41 am
http://www.wmay.com/

If you can’t get the official stream to work, go to WMAY’s website. They’re streaming it live.

Comment by Samwise Thursday, Jul 1, 10 @ 10:42 am
HERE COMES THAT BUDGET DAY FEELING AGAIN – Cook, Greenaway, enhanced by VanillaMan

Here comes that budget day feeling again
And soon our tears will be falling like rain
It always seems to be Black Friday
For years we’ve been heading for this Doomsday
Always spending more than we will ever have
Spending like they’re freaking insane

Here comes that budget day feeling again
They’ll tell us how government is in pain
But that doesn’t stop them from their spending whirl
Never planning for winter, like a retarded squirrel
Then they come running to us
And tell us that they’re bust, unless they raise taxes again

Under their prying eyes, we’re trying to hide, the pay we earn
But we just can’t hide it
They just seem to know
Where we hide our dough
Trying to provide, trying to abide, get ready to hurl…whoaaa

Here comes that budget day feeling again
And soon our state will be making it plain
When voters show up to vote Election Day
They’ll vote out incumbents who Pay to Play
Replacing them with those of us who know how to count
And know how to save, coupon and discount

Here comes that budget day feeling again
Here comes that budget day feeling again
Here comes that budget day feeling again
Here comes that budget day feeling again

Comment by VanillaMan Thursday, Jul 1, 10 @ 10:42 am
Close your browser and then open it again and go to the link. That might help.

Otherwise, the site may be too busy to get another user on

Comment by Nearly Normal Thursday, Jul 1, 10 @ 10:43 am
Education pandering right out of the gate. I would like to know, Mr. Gov. Why has the public school’s staff doubled in the last 40 years while enrollment is up less than 10%?

Comment by Bobby Hill Thursday, Jul 1, 10 @ 10:43 am
Cass, I guess you would prefer Brady and his total lack of
ideas and empathy…

Comment by Loop Lady Thursday, Jul 1, 10 @ 10:45 am
I’m with YellowDog on this one; we’ve already received a portion of our contracts - and they’re at FY10 levels, with a little bump here and there.

Comment by Ding Thursday, Jul 1, 10 @ 10:46 am
Thanks for the tip on WMAY

Comment by Anon Thursday, Jul 1, 10 @ 10:49 am
Republicans have been bellowing for reduced state spending. Here Quinn slashes spending by $3 billion since FH ‘09. I predict these same GOP carpers will still complain.

Comment by Reformer Thursday, Jul 1, 10 @ 10:49 am
Education staffing has gone up for many reasons, not the least of which are increased needs, mandates and expectations.

By the way, can you provide a link to substantiate your numbers that might also give more detail?

Comment by ShadyBillBrady Thursday, Jul 1, 10 @ 10:52 am
Hamos looks pretty grim. I’ll bet she’s not happy about slashing social programs.

Comment by Reformer Thursday, Jul 1, 10 @ 10:55 am
Sure, a quick google pulled up this one.

http://www.cato-at-liberty.org/wp-content/uploads/Coulson-Cato-PS-Enroll-Employ-2010-s2.jpg

Proceed to undermine!

Comment by Bobby Hill Thursday, Jul 1, 10 @ 10:56 am
Press release from the governor’s office is on the website –
http://www2.illinois.gov/currentfocus/Pages/gov.aspx

Comment by Nearly Normal Thursday, Jul 1, 10 @ 10:57 am
When are we going to hear something about filling the pension funding gap? This is rambling presentation. Unfocused.

Comment by Louis Howe Thursday, Jul 1, 10 @ 11:01 am
bobby- have anything to back it up besides the Cato Institute? you might say they are a litttllllleee, i don’t know, right wing(ish).

Comment by bdogg Thursday, Jul 1, 10 @ 11:01 am
when did they launch a new website? I hadn’t heard anything about that.

Comment by anon Thursday, Jul 1, 10 @ 11:02 am
I swear, every year a governor gives us a doomsday budget scenario, the Dept of Ag sends out a press release about the fairs which makes you think everything is hunky-dory. They must not have gotten the memo about todays press conference.

===The Associated Press
Posted Jul 01, 2010 @ 06:15 AM
Country music star Lee Ann Womack and hard-rock band Seether are among a variety of performers who will take the stage at the Du Quoin State Fair late this summer.
Fair manager John Rednour Jr. says the grandstand will offer rock, country, gospel, and other music between an opening night of harness racing and a closing night of auto racing.=====

Comment by Just Wondering Thursday, Jul 1, 10 @ 11:03 am
Pay the pension obiligation on 15th July a portion of the $4B due

Pension borrowing would help accelerate the payment of bills.

Comment by Nearly Normal Thursday, Jul 1, 10 @ 11:09 am
Proceed to undermine!

Well… lets start with the fact that this is a chart that appear to show nationwide numbers, not Illinois, so it, frankly, isn’t relevant.

Second, as already mentioned, the requirements/mandates have changed, and in turn the staffing needs will have changed.

Comment by dave Thursday, Jul 1, 10 @ 11:10 am
They are VERY right wing…How about you come up one then i’ll come up with another.

The point of this presser is we are out of money. It was $13b and now $14b without the federal medicad payment.

Comment by Bobby Hill Thursday, Jul 1, 10 @ 11:10 am
Remember when the GA would pass a budget and then wait for Blago to stab them in the back by cutting things he said he wouldn’t cut? This is sort of the opposite. It’s Quinn cutting stuff that he said shouldn’t be but they gave him no revenue. They knew the deal when they passed it.

The best things you can say about Quinn are on display today. He’s honest and he doesn’t pretend that the budget matches the revenues.

Comment by siriusly Thursday, Jul 1, 10 @ 11:18 am
Dave? can you provide a link to substantiate your numbers that might also give more detail? Maybe I am wrong?

Comment by Bobby Hill Thursday, Jul 1, 10 @ 11:20 am
How much will the outstanding debt owed to vendors increase by December 31, 2010?

Comment by Louis Howe Thursday, Jul 1, 10 @ 11:23 am
Dave? can you provide a link to substantiate your numbers that might also give more detail? Maybe I am wrong?

Huh? What are you asking me to substantiate?

Comment by dave Thursday, Jul 1, 10 @ 11:25 am
It looks like the Board of Ed admin budget and the U of I took the biggest hits in the reduction veto. Along with states attorneys and public defenders.

Comment by Been There Thursday, Jul 1, 10 @ 11:25 am
bobby- you are right, we are out of money. we are way past “out of money.” many states are. it is going to be a tough rest of the summer, fall, winter and maybe even spring and probably even longer. hunker down my friends. the older generation has many great lessons to offer on frugality.

Comment by bdogg Thursday, Jul 1, 10 @ 11:27 am
ShadyBillBrady: Education staffing has gone up for many reasons, not the least of which are increased needs, mandates and expectations.

“Increased needs”… what is that??
“Increased expectations”… what are those??

How about if we get back to some basics? Provide a decent public education at a reasonable price. Right now what is offered in too many public elementry, middle and high schools goes well beyond the basic “needs” and requirements and too many have inflated “expectations” about what a public education shold provide.

Get real.

Comment by Wondering... Thursday, Jul 1, 10 @ 11:28 am
It’s interesting that the Gov. keeps mentioning that it is better to have the State borrow the money at 4+% than force the vendors to borrow it. the way he puts it he makes it sound like he is being a good guy by not putting the burden on the vendors to borrow.

The real story is that vendors can charge the State 12% interest on their unpaid money, the money they are essentially loaning the state the money. So yes it is better that the state pay 4+% interest rather than 12%. But it does not have anything to do with the State being a good guy.

Comment by Irish Thursday, Jul 1, 10 @ 11:29 am
wondering- an educated populace is the key to any society. do you disagree? actually, we could cut education funding in half by only educating women. it is not a bad idea. if you look at the differences between moving from a developing to a developed nation one of the keys is to educate women, educated women and educate women.

Comment by bdogg Thursday, Jul 1, 10 @ 11:30 am
State retirees get automatic 3 percent cost adjustments whether there is inflation or not.

Including when inflation is 15% or more, right? Seems like a hedge the state put in to protect the taxpayer, never expecting a no-inflation environment. But don’t worry, the way central banks have been pumping money worldwide, we can look forward to high inflation in a few years.

Comment by Excessively Rabid Thursday, Jul 1, 10 @ 11:32 am
Your two points: 1. That illinois is enrollment/employment is irrelevant to nationwide comparison 2. The difference in mandates and how they change staffing? Again, I am open minded and willing to read.

Comment by Bobby Hill Thursday, Jul 1, 10 @ 11:32 am
bdogg… I agree about an educated populace… otherwise, huh?

Comment by Wondering... Thursday, Jul 1, 10 @ 11:35 am
- 1. That illinois is enrollment/employment is irrelevant to nationwide comparison -

You’re the one who used a national chart to try to make a point about an issue facing the state, you prove that there is a correlation.

Comment by Small Town Liberal Thursday, Jul 1, 10 @ 11:36 am
Well, I must say, broadly sketched, he makes everything sound pretty ok to the average citizen. Last fy’s bills will be paid by December 31. Maintain education and health spending. Pension payments will be made as required, with or without a loan. Cut travel and other administrative stuff (not sure what). Incremental digging-out, just as many middle class citizens are doing pursuant to the recession. We already knew nobody would be laid off. So, where’s the beef?

Reporters sounded disappointed.

And we middle class taxpayers should be wondering…why weren’t we doing some of these great things before (like Julie Hamos’ idea about not sending out Medicaid cards every month. Why on earth weren’t we doing that before, since we have the successful implementation of electronic food stamp cards as an example).

And why were the Dems so hot for an income tax increase. Need more earmarks?

Comment by cassandra Thursday, Jul 1, 10 @ 11:40 am
- And we middle class taxpayers should be wondering…why weren’t we doing some of these great things before -

Can you even help yourself? Whenever someone has a good idea around you do you start berating them for not having had it sooner?

Comment by Small Town Liberal Thursday, Jul 1, 10 @ 11:44 am
Well, the obvious ones. And this is pretty darn obvious. But I’m for govt employees earning their pay through innovation and creativity, not just showing up, so kudos to Ms. Hamos.

Comment by cassandra Thursday, Jul 1, 10 @ 11:50 am
Lots of interfund “borrowing”….disgusting.

Comment by heet101 Thursday, Jul 1, 10 @ 11:51 am
STL-

Cassandra’s point is that if Quinn could cut $1.4 billion with minimal distruption on services, why wait for now to do it, other than dramatic effect to generate political pressure to justify a tax increase.

If you cannot see that, you are being willfully obtuse. I am not her biggest fan either, but this is obvious stuff.

Comment by Confused Thursday, Jul 1, 10 @ 11:53 am
And now a few words from NoTaxRushmore….dah……

Comment by CircularFiringSquad Thursday, Jul 1, 10 @ 11:53 am
I’m pretty sure they haven’t waited till now to do it. Most stuff talked about has been implemented for some time (unpaid furloughs, etc.)

Comment by anon Thursday, Jul 1, 10 @ 12:01 pm
== So yes it is better that the state pay 4+% interest rather than 12%. But it does not have anything to do with the State being a good guy. ==
State isn’t paying 4%, it’s higher, Like over 50% higher

http://www.businessweek.com/news/2010-06-15/illinois-downgrade-tax-decline-weigh-on-500-million-bond-sale.html

In the state’s most-recent issue of Build America securities in April, 25-year maturities priced to yield 6.7 percent, 60 basis points above the average yield of the securities, according to a Wells Fargo Index. In a trade yesterday, the bonds had an average yield of 6.48 percent, 68 basis points above the index on June 11.

or

Illinois, whose $13 billion deficit is about half its budget, had the cost of insuring its debt against default more than double since early April, to a record of 370 basis points, or $370,000 to protect $10 million of debt, according to CMA DataVision. A basis point is 0.01 percentage point.

If the raters decide this isn’t enough or it isn’t going to work another downgrade or two becomes a bigger problem.

Why, at some point the rating is too low for funds that invest in ’safe municipal bonds’ and may even force them to put the bonds they have out into the market.

Comment by OneMan Thursday, Jul 1, 10 @ 12:10 pm
- why wait for now to do it -

Do you think a report listing cuts that can be made with minimal disruption to services falls out of the sky every morning and today Quinn decided to look at it? We’re talking about a $25 billion dollar budget here. Trying to figure out a way to cut spending without disrupting essential services takes time. Even if I was being “willfully obtuse”, which I wasn’t, it would be better than just being obtuse like the two of you seem to be.

Comment by Small Town Liberal Thursday, Jul 1, 10 @ 12:13 pm
Okay, after all the complaints about state employees salaries and “Cadillac” pensions, here are some actual facts for some of those employed by the state, represented by the IFPE.

On April 20 and 22 Local 4408 Exec board met with CMS to discuss alternatives to layoffs that would equal a 10% reduction in FY11 budget. IFPE was informed that 10 Mandatory furlough days would equal the 10% or reducing/eliminating previously negotiated raises (Backloaded by Blago) and fewer furlough days.

What was agreed to was that all raises scheduled for FY11 would be honored, with some portions being deferred to June 1 2011. If HB174 or similar revenue bill is passed, previously negotiated raises would not be changed. And all bargaining unit members are required to take 8 furlough days. Between July 1 2010 and June 30 2011.

Agreement only holds off layoffs for IFPE until end of FY2011.

As for the “Cadillac” pensions. My state job pays me about $51,000 after just over 20 years. Say I was a person doing my job, ready to retire now, but with 30 years on the job, my pension would be calculated on an average of the best 4 of my last 10 years salaries. Let’s say that number comes out to $50,000. Now take that 30 years of service and multiply it by 1.67% = 50.1% So my “cadillac” pension would be about $25,000 a year from the state. Yes I would get Social Security too, but I also pay into it just like most everyone else does.

Comment by Concerned Voter Thursday, Jul 1, 10 @ 12:21 pm
Concerned Voters $25,000 pension may not sound like much, but it is better than what you find in the private sector. One of my wife’s former employers ended their pension program last month. She had worked there 2 years and was due $125 a month. They gave a Present Value payout of $20,000 to put into a 401k plan.

If you extrapolate those numbers a guaranteed $25,000 pension is worth a lot.

Comment by Jeff Thursday, Jul 1, 10 @ 12:52 pm
Another way to look at it is how much would you have to save in a low risk instrument to generate a certain $25,000 a year in retirement. That’s what the vast majority of US workers would be looking to get what state employees currently get at low cost plus, of course, free health insurance premiums and low out of pocket health costs. Whatever it is, most of them can’t afford it plus maintain a remotely middle class lifestyle, send their kids to college, and so on.

Comment by cassandra Thursday, Jul 1, 10 @ 12:58 pm
Your wife had worked there 2 years? If she worked for the state 2 years her pension would be ZERO — not vested. So apparently her private sector benefit is ‘better’ than the state’s in your example.

Comment by Reality Check Thursday, Jul 1, 10 @ 1:06 pm
RC is absolutely right.

Ignorance is not bliss, Jeff. Get a clue.

Comment by Rich Miller Thursday, Jul 1, 10 @ 1:10 pm