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“The Governor’s Axe”

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Illinois

* From a mostly glowing profile of Donna Arduin, Gov. Rauner’s new CFO, we can discern some of the budget cuts that are coming…

Arduin received plenty of criticism from both sides of the aisle over cuts she made to Florida’s budget, but after making a splash in the Sunshine State, she faced a ready corps of critics in California. More visibility brought more acute criticism of her controversial policies, scrutiny was unrelenting, and Arduin was routinely blasted. Her $900 million cuts in Medi-Cal, the state’s Medicaid program, and $800 million in programs intended to bring welfare recipients into the workforce stirred up a veritable infantry of opponents, to whom she responds succinctly: “The state was spending $15 billion more than it was taking in.”

Physicians spoke out about cuts to California health programs that Arduin oversaw, including a limit on the number of children allowed into the Healthy Families Program, and slashes in the state’s contribution to Medi-Cal. “It’s unconscionable to take the economic savings that we know the state has got to do and put that burden literally on the life of a young child,” Alan Lewis, a physician at Children’s Hospital Los Angeles, told the Los Angeles Times. “This is looking a child in the eye and saying, ‘No, you’re going to have to wait to be treated.’ “

But Arduin says she merely “proposed eliminating the entitlement nature of a lot of those programs. When Arnold went into the budget, it was all about spending programs on autopilot.” Spending levels on many of those programs had been statutorily mandated, she says, but funding hadn’t, so “if you just sat back and let the programs run, there would never be enough revenue. The legislature was almost not even needed in California.” […]

“When I cut $400 million in pay raises for California correctional officers, we considered getting me a bodyguard,” she recalls. And although she doesn’t seem concerned with how many friends she has, even senators who’ve lost their pet projects to Arduin’s unwavering fiscal conservatism eventually come to respect her. Arduin says she’s known ever since she took the meat cleaver to her first state budget that, in this job, you have to dig in for the long haul. Back in 1991, after Arduin and Patti Woodworth carved $5 billion in programs out of the Michigan state budget, Governor John Engler’s approval rating fell to 13 percent. Arduin didn’t blink. They cut taxes, businesses crept back into Michigan, and, come election time, Engler breezed right into his second term.

Discuss.

posted by Rich Miller
Friday, Jan 23, 15 @ 1:54 pm

Comments

Seems like Jerry Brown figured out how to fix it without being an ideological zealot after she and the governator left Sacramento.

Comment by Wordslinger Friday, Jan 23, 15 @ 2:06 pm
Bad news for the working class and poor of Illinois.

Comment by Rockford's Finest Friday, Jan 23, 15 @ 2:10 pm
She sounds charming.

Comment by VanillaMan Friday, Jan 23, 15 @ 2:10 pm
No one can say they haven’t been warned.

Will the $20 million be enough to get all Rauner wants/needs if legislative approval is needed?

I wish them well. If they do well, hopefully that means Illinois will be doing well.

Method to get “there”, effects on the state, the politics to get things accomplished, and the ILGOP…how will the ILGOP fare?

Great theatre too(?)

Comment by Oswego Willy Friday, Jan 23, 15 @ 2:11 pm
Great profile. “businesses crept back into MI”? So I guess you CAN work to fight entrenched self-aggrandizing projects from politicians out for themselves, at least in other states! What a novelty - we can’t spend more than we take in. Now if everyone can just accept the fact that economics in this state are gonna get a lot worse before they get better, because there is no other way to do it with politicians who care more about the next election than their constituents, we could actually be on our way to some change. Chicago Tonight had a great piece on Chgo school closing last night that highlights how all the “sky is falling” rhetoric means nothing versus doing the tough things needed to fight selfish politicians to stay within your means. Same principle. It ain’t about being liked

Comment by Anon Friday, Jan 23, 15 @ 2:11 pm
Early last September Bruce Rauner stopped my Misercordia Heart of Mercy in Chicago, at their annual Family Fest. They provide real quality of life and care to children and adults with developmental disabilities.

When Mr. Rauner got on stage to speak to the large crowd, I couldn’t help but think, these are the very people who will be hurt the most by his policies. I am so afraid that may be the case.

Comment by Because I said so.... Friday, Jan 23, 15 @ 2:12 pm
==$900 million cuts in Medi-Cal==

Human Services are 42% of the total operating budget, at $29.415 Billion. $900 million would be a roughly 3% cut to that budget in Illinois.

Now where is the other $5 billion or so in cuts that are needed going to come from? The other 58% of the budget? Not if you keep education funding stable, it won’t.

Careful how you swing that axe, Mrs Arduin. You could hit something important. Something like an artery or a limb. Something that cannot be easily patched up or undone following an axe attack.

Comment by Formerly Known As... Friday, Jan 23, 15 @ 2:18 pm
Desperate times require desperate measures.

Comment by Peoria Guy Friday, Jan 23, 15 @ 2:23 pm
==It’s an uncomfortable moment. The homeless man sees her, they make eye contact, he smiles, she looks away. Then, she turns back and, too softly for him to hear—but with conviction—says, “Get a job.”==

== “The revenue coming in,” she says, “comes from the people who work really hard and pay the money to the state. Most of those people aren’t getting back in services what they pay in. You don’t read stories about them. You don’t read stories about the person who’s working two jobs to take care of their family and pay taxes to the state so the folks you’re reading about in the papers can take all of these services.”==

She doesn’t seem fond at all of social programs. She even seems to have disdain for poor people. That disturbs me.

Comment by Demoralized Friday, Jan 23, 15 @ 2:24 pm
I second Wordslinger’s comment.

Comment by D.P.Gumby Friday, Jan 23, 15 @ 2:24 pm
People on every side need to grasp how serious it is. Taxpayers are gonna need to contribute some revenue, and some people are gonna have to learn the word “no” for the first time in recent memory. No magic fix out of this.

Comment by Very Fed Up Friday, Jan 23, 15 @ 2:28 pm
On the upside, at least Rauner didn’t name Al Dunlap his CFO

Comment by Angry Republican Friday, Jan 23, 15 @ 2:32 pm
Very Fed Up—-you are correct. There is no easy way out of this mess. People are going to have to pay more in and get less out. That is simply the math. For years the state has cheated the math. This is going to be painful, but pain is absolutely inevitable.

Very Fed Up - Friday, Jan 23, 15 @ 2:28 pm:

People on every side need to grasp how serious it is. Taxpayers are gonna need to contribute some revenue, and some people are gonna have to learn the word “no” for the first time in recent memory. No magic fix out of this.

Comment by Peoria Guy Friday, Jan 23, 15 @ 2:34 pm
A stark scary picture to say the least. After four years of this I wonder if those on government aid, public employees and union members who actually voted for this guy will regret it.
If Rauner actually ushers in this kind of thing he probably shouldn’t get too used to the titles “Governor” or “Excellency.” The Democrats will regain the Governor’s mansion in four years and have it for a long time afterwards.

Comment by Livin' the Life Friday, Jan 23, 15 @ 2:34 pm
She’s got one thing right. The legislature sets the spending budget, but the executive does not have to actually disburse all the budgeted funds. Though there are other legal and contractual constraints. If the spending is “too high” next year, it’s all on Rauner, not on the Democratically-controlled legislature.

It’s easy to “breeze into your second term” on the back of lower taxes, when those who are seriously harmed don’t make up the majority of your voters. “Lower taxes” is always the easiest thing for a politician to sell to anyone, in any circumstance, regardless of the consequences. That’s also the easiest way to avoid your governmental responsibilities.

Comment by walker Friday, Jan 23, 15 @ 2:36 pm
The following says it all for me.

http://m.youtube.com/watch?v=1zNdw4DaUM8

Comment by Norseman Friday, Jan 23, 15 @ 2:37 pm
It’s just laughable to think we’re going to cut our way of this mess. It’s not going to happen. Quinn made all kinds of cuts and it never moved the needle.

Comment by slow down Friday, Jan 23, 15 @ 2:37 pm
There HAS to be cuts. Big ones. There also has to be more revenue. I think there will be both. There is no other choice.

Comment by Peoria Guy Friday, Jan 23, 15 @ 2:39 pm
As someone said yesterday we have red state taxes and blue state services. We have to find an equitable point where revenue and expenditures balance. unfortunately the choices in the past are going to severely hurt that equation by adding in another implacable variable.

Comment by Mason born Friday, Jan 23, 15 @ 2:41 pm
The article on her was interesting to read. I don’t agree with her politics but she is committed to her convictions and for that I admire her. I actually think it will be a good thing to have somebody come in and identify potential cuts without regard to political consequences. I probably won’t agree with a lot of her proposals but the list will be interesting.

I also found it insightful that she worked with a company that was involved in the leasing of prisons. Don’t know if prison privatization (at least of the facilities) might show up in any of their plans but there is background there.

Comment by Demoralized Friday, Jan 23, 15 @ 2:43 pm
The profile looks like it was written for an alumni magazines, hence a bit puffy. Still, the concluding paragraph (”It’s an uncomfortable moment. The homeless man sees her, they make eye contact, he smiles, she looks away. Then, she turns back and, too softly for him to hear—but with conviction—says, ‘Get a job.’”) isn’t exactly sugar-coated. The ideological Addams Family profile of Rauner’s staffing doesn’t exactly point toward a “Thompson moment”

Comment by worried Friday, Jan 23, 15 @ 2:49 pm
“…so ‘if you just sat back and let the programs run, there would never be enough revenue. The legislature was almost not even needed in California’” said Rauner’s CFO of the effectiveness of a legislature under term limits.

Comment by Losing My Edge Friday, Jan 23, 15 @ 2:54 pm
“They cut taxes, businesses crept back into Michigan.”

They raised taxes, and fiscal stability and job gains crept into Minnesota and California.

***so the folks you’re reading about in the papers can take all of these services.”***

What stories in the paper? What folks are those?

Comment by Grandson of Man Friday, Jan 23, 15 @ 2:55 pm
In both Minnesota and California there is a progressive income tax which was stretched out to stabalize state finances.

For whatever reason despite supermajorities and an electorate that would vote for it in a heartbeat Quinn fiercly fought for his regressive flat tax hike which brings in a lot less revenue.

Comment by Very Fed Up Friday, Jan 23, 15 @ 3:05 pm
And the buzz phrase for 2015 will be — “Line item Veto”!

Comment by WhoKnew Friday, Jan 23, 15 @ 3:06 pm
To get real for a moment, whatever proposals are coming they’re coming from Rauner.

He might designate her as the axe, but whatever power she might have will be derivative. Rauner wears the jacket for whatever she might do. She will have no power of authority without his okay.

Comment by Wordslinger Friday, Jan 23, 15 @ 3:11 pm
“The Governor’s Axe, Broom, Hammer” is more like it.
There will be cuts, fund sweeps and consolidations like never before.

Comment by Poster Friday, Jan 23, 15 @ 3:13 pm
Everyone understands that cuts are coming as well as some kind of tax hike. The question is whose hide will the cuts and taxes come out of? Will it be regressive taxes and fees and cuts to health care and other programs for the poor? Or will those with the best ability to pay take a proportionate hit??

Comment by anon Friday, Jan 23, 15 @ 3:24 pm
I think everybody will feel the pain.

Comment by Peoria Guy Friday, Jan 23, 15 @ 3:29 pm
Rauner compassionate? Not a great start. Should we get ready for some Kansas style austerity? Look at how it’s worked for them.

Comment by k3 Friday, Jan 23, 15 @ 3:39 pm
Will it be regressive taxes and fees and cuts to health care and other programs for the poor? Or will those with the best ability to pay take a proportionate hit??

The answer to both questions must be yes.

Comment by Enviro Friday, Jan 23, 15 @ 3:42 pm
Rauner policy changes will eventually cause more jobs coming to Illinois which will result in more total tax revenue from corporations and individual tax payers. It will work out okay if given a year or two. The first priority for Rauner’s team is to eliminate the superfluous and the inefficiencies in state government that he has inherited. The creation of a healthier business climate will bring more corporations (and more taxable revenue) into Illinois. It will all fit like a glove. AFSCME will have to be dealt with by Rauner. The tail has been wagging the dog for way too many years.

The privatizing of the prisons in Illinois is something that should be considered. Too many other states in the country have gone that route for it not to at least be considered and looked into.

Comment by Rowdy Yates Friday, Jan 23, 15 @ 3:50 pm
This is best news after longtime from this state, when you cut funding, you need to get rid of freeloaders misusing the programs and pay only to the deserved. I was a social workers I saw freeloaders use this programs as their piggy bank. they need to be stopped

Comment by Nlthevar Friday, Jan 23, 15 @ 3:50 pm
Looks like we are joining the states we have long criticized for bugetary ignorance for continuing to help the rich and cuts focused on the poor. I wonder if part of the plan is to ditch the pension payment for a couple of years.

Comment by Jorge Friday, Jan 23, 15 @ 3:52 pm
Rowdy

Hate to break it ot you but prison privatization has been done but it never has worked out well. Usually problems with those hired for minimal pay to make a little extra by blurring the lines.

Comment by Mason born Friday, Jan 23, 15 @ 3:52 pm
Fiscal policy is social policy.

When I read the Transition Plan and look at the resumes of the people picked to lead the effort, I see a drive for change on many fronts with people who have done it before.

I hope the system can change without breaking. Hiring a lawyer to focus on consent decrees signals they are taking among view.

Now if we can just get through the next five months.

Comment by Last Bull Moose Friday, Jan 23, 15 @ 3:57 pm
Rowdy, you’re a laugh riot. I think you missed a couple of superficial talking points.

Tell me, does lack of substance come naturally or do you have to work at it?

Comment by Wordslinger Friday, Jan 23, 15 @ 3:58 pm
Rowdy Yates -

Please cite what programs need 1 or 2 years, since Rauner hasn’t rolled out any programs to speak of.

The Kool-Aid must be good, because you know what programs, and the length needed for the phantom programs to work.

Fun.

Comment by Oswego Willy Friday, Jan 23, 15 @ 3:59 pm
Privatized prisons are legislatively prohibited in illinois since the early 1990s, when other states started to do it a lot during the prison population boom.

Comment by Anonymous Friday, Jan 23, 15 @ 4:04 pm
=== The privatizing of the prisons in Illinois is something that should be considered. Too many other states in the country have gone that route for it not to at least be considered and looked into. ===

Yes, all those downstate folks will love having their decent salaried employees laid off in favoring of lower paid private guards. Sounds like a great formula for economic boom. Downstate GOP Solons would need to line-up for some of that $20 million if that happens.

Comment by Norseman Friday, Jan 23, 15 @ 4:10 pm
I’m not going to say that no cuts can be made, but the last few years have been nothing but austere budgets. Medicaid cut by $1.7B, child protection workers at DCFS under a federal consent decree because staffing was too low, DHS and DES caseworkers completely overloaded, DNR with 40% fewer staff, DOC has federal consent decrees because it wasn’t providing mental health services and we house 49,000 people in space for under 32,000 people, K-12 is already $700M+ underfunded, all cuts to higher education mean higher tuition, lower rates of attendance from poor communities and higher student loan debt - all of which stunt economic growth.

All the above areas have been hit hard already and that is most of the GRF budget.

State payroll is just under $4B. If the report that came out this week is correct and we have a $9B deficit; then we could layoff every state employee and still need to cut another $5B in spending.

The new administration can talk cuts all they like, but given all the cuts we already made over the last few years (including almost every discretionary item in the Medicaid budget), the administration is going to be stumped to come up with the cuts needed to balance this budget without significant new revenue.

Comment by John Friday, Jan 23, 15 @ 4:10 pm
@Nlthevar

“I was a social workers I saw freeloaders use this programs as their piggy bank.”

Tell me, as a social worker, it’s your duty to report fraud and abuse to the proper authorities. How many of these ‘cases’ did you report? Or did you just note them for future use on a blog?

And if you didn’t report them, shame on you. You were in a position of authority to stop the fraud, but did nothing about it. Fantastic.

Comment by How Ironic Friday, Jan 23, 15 @ 4:13 pm