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Munger warns of fiscal consequences, claims GA has “failed”

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* From a press release…

Comptroller Leslie Geissler Munger on Wednesday announced that the Illinois General Assembly’s failure to reach a budget agreement with Governor Rauner by July 1 will reap severe consequences for residents and organizations throughout the state.

“I am here as the state’s Chief Fiscal Officer to urge the General Assembly to avoid causing this unnecessary hardship and work with the Governor to pass a balanced budget,” Munger said at a Chicago news conference. “I am here to remind all involved that this isn’t a game to be won or lost - their rhetoric, posturing and decisions have grave implications on people and communities across the state.”

Regardless of budget negotiations, the Comptroller will be able to continue making payments authorized under the current fiscal year, FY15, budget - including the state’s existing $5 billion backlog.

However, when the FY15 bills are paid, she will not have appropriation authority to make new payments that fall under the new fiscal year, FY16, which begins July 1. Ramifications include:

New Medicaid provider payments will stop
Nonprofits and small employers will be unable to receive expedited payments
State employees will start missing paychecks July 15
General State Aid payments to schools will not be delivered as scheduled on August 10
New payments to state vendors will stop

Munger noted that continuing appropriations and other legal provisions will allow her to meet some FY16 obligations, including the following payments: debt, pension, retiree benefits, Temporary Assistance for Needy Families, Assistance for the Aged, Blind and Disabled, and most local government payments.

On the budget impasse, the Comptroller urged the General Assembly to reach an agreement with the Governor that includes reforms to make Illinois more competitive and grow its tax base. She noted that the budget passed by legislators last month has a $4 billion shortfall, which is “what put us in this mess in the first place.”

“I come from the private sector, and I have been extremely disappointed by the inactivity and needless theater in Springfield,” Munger said. “So far, lawmakers have failed to do their jobs. And their failure prevents me from doing mine. It’s time for all parties to find common ground before the situation grows dire.”

* Raw audio of her press conference…

Click to listen

* Comptroller Munger was asked in the presser what would happen if the unions took her to court to force her to issue paychecks. This happened during a Rod Blagojevich shutdown. Comptroller Dan Hynes worked with the unions and, if I remember correctly, Blagojevich did not contest the motion. Employees were paid.

Munger said she’d deal with that if it happens. A Munger aide told me no decision has yet been made about what she would do either way.

posted by Rich Miller
Wednesday, Jun 10, 15 @ 11:51 am

Comments

so she admonishes the GA to accommodate the governor. how about the same advice to the governor to accommodate the GA?

Comment by Langhorne Wednesday, Jun 10, 15 @ 11:55 am
Instead of pontificating from Chicago, maybe she should be down in Springfield trying to get both sides to agree to a deal … and try to make sure her boss is there also.

Comment by RNUG Wednesday, Jun 10, 15 @ 11:58 am
Lookin’ like LGM sidin’ with TeamBungle
““I am here as the state’s Chief Fiscal Officer to urge the General Assembly to avoid causing this unnecessary hardship and work with the Governor to pass a balanced budget…… their rhetoric, posturing and decisions have grave implications on people and communities across the state.”
Guessin’ LGM not countin’ the “non budget issues”, attempted lynchin’ of S. IL Ds, or yesterday’s flame out as rhetoric or posturin’
Truly gifted leadership (giggle)

Comment by Anonin' Wednesday, Jun 10, 15 @ 11:58 am
Too bad rauner/munger are all talk and no real action to benefit anyone but themselves.

Comment by William j Kelly Wednesday, Jun 10, 15 @ 11:59 am
Good warning on the importance of reaching agreement. Good for her.

Would have been stronger if it were aimed at both sides. When complaining about the GA $4B gap, a mention of Rauner’s proposed $3B gap would have been fair, and shown a clearer picture.

Comment by walker Wednesday, Jun 10, 15 @ 12:00 pm
State Aid payments shouldn’t be a big deal for schools. Most receive their first 1/2 of property taxes, and Counties can simply accelerate their payment schedules to pay more often in August to assist. Even districts that are significantly dependent on State aid should not see too much of an impact of being late on the first payment. it’s also the reason schools need fund balances. They can also do a short borrowing if all of those aren’t enough. Rates aren’t too bad right now. So school not opening is a red hearing.

Comment by frustrated GOP Wednesday, Jun 10, 15 @ 12:01 pm
I am disappointed. After her pretty quick stance on Rauner’s union dues debacle, I had hoped she might show more of the JBT spirit in challenging the governor. My bad for expecting that out of her.

Comment by Name Withheld Wednesday, Jun 10, 15 @ 12:02 pm
She is finished in 16.

Comment by wrangler Wednesday, Jun 10, 15 @ 12:06 pm
===She noted that the budget passed by legislators last month has a $4 billion shortfall, which is “what put us in this mess in the first place.”===

With respect, I’d argue that allowing the income tax rate to fall from 5% to 3.75% on January 1st is what put us all in this mess in the first place.

The fact that neither the Governor nor the General Assembly has offered a budget that matches the new, greatly reduced revenue, doesn’t help matters, but let’s try to agree on where the problem originated.

We have a revenue problem.

Comment by 47th Ward Wednesday, Jun 10, 15 @ 12:09 pm
@frustrated GOP - Slow your role a bit. It is not a red herring. Unless you have looked at the books of all districts I know three that will struggle beyond the first payroll. They are broke and have met their short term debt limits and working cash limits.

Counties are unlikely to change the payment schedule due to worry over their cash position as well.

Comment by JS Mill Wednesday, Jun 10, 15 @ 12:19 pm
The Gov’s starting to collect on that IOU.

Comment by Norseman Wednesday, Jun 10, 15 @ 12:20 pm
Would have been much stronger if the Rauner brain trust PR team — the team that so-threatens the D’s that they’ve “never seen anything like this before” — had not written the press release and given her talking points.

Disappointed.

Comment by Frenchie Mendoza Wednesday, Jun 10, 15 @ 12:23 pm
=== Amanda Vinicky retweeted
Mary Ann Ahern ‏@MaryAnnAhernNBC 1h1 hour ago
Rauner’s staffers monitor CompMunger news conference #Twill ===

Monitor or produced?

Comment by Norseman Wednesday, Jun 10, 15 @ 12:25 pm
I wish the spirit of Judy Baar Topinka would pay visits to a few folks and have a heart-to-heart with them. Or at least throw some things around to get their attention.

Comment by Aldyth Wednesday, Jun 10, 15 @ 12:27 pm
So a Rauner appointee says that the GA should do what Rauner wants? Did they even a need a press conference to get that news out there?

Comment by tominchicago Wednesday, Jun 10, 15 @ 12:27 pm
I could not have said it better. “The Gov’s starting to collect on that IOU.” “She is finished in 16.” Indeed.

Comment by Anon Wednesday, Jun 10, 15 @ 12:37 pm
Both the GA and Gov have failed so far.

Comment by Formerly Known As... Wednesday, Jun 10, 15 @ 12:43 pm
Er, reading the comments one would think the Comptroller is a complete partisan hack. I’m sure the commenters here would just prefer all blame be placed on Rauner with none on Madigan or Cullerton. What am I missing? Munger sounds perfectly reasonable, accurate and encouraging compromise by both parties. Some quotes:

” Illinois General Assembly’s failure to reach a budget agreement with Governor Rauner”
“remind all involved”
“the Comptroller urged the General Assembly to reach an agreement with the Governor”

Is she calling the legislature to account? Sure - and that’s fair game. But she’s not excusing Rauner, and it’s the legislature that did pass the unbalanced budget.

Comment by phocion Wednesday, Jun 10, 15 @ 12:48 pm
===and it’s the legislature that did pass the unbalanced budget.===

Yes, after the Governor proposed an unbalanced budget.

Comment by 47th Ward Wednesday, Jun 10, 15 @ 12:52 pm
Governor Bruce Rauner and the politicians he controls.

Comment by siriusly Wednesday, Jun 10, 15 @ 12:57 pm
If munger survives her primary I hear she will also have a very strong female libertarian opponent.

Comment by William j Kelly Wednesday, Jun 10, 15 @ 1:05 pm
I’m not getting everyone’s angst. The first line seems to clearly implicate both sides - not just the GA. Perhaps everyone’s upset because she put the GA before the Governor? Whatever.

Comment by Team Sleep Wednesday, Jun 10, 15 @ 1:11 pm
===The first line seems to clearly implicate both sides===

The first line says it was “…the General Assembly’s failure…”

There is plenty of failure and plenty of blame to be shared. Too bad neither you nor Munger can see it.

Comment by 47th Ward Wednesday, Jun 10, 15 @ 1:21 pm
This is when JBT is needed the most. She actually put the responsibilities of the office ahead of her desire to personally hold the office.

Comment by Snucka Wednesday, Jun 10, 15 @ 1:27 pm
phocion, if she wanted to pin blame on both, it would read “the Illinois General Assembly and Governor’s failure to reach an agreement” or “urged the General Assembly and the Governor to reach an agreement” but that’s not what Lance wrote. She is clearly calling on the GA to move to the Governor’s position, and basically leaving the Governor’s faults out of the equation.

Comment by Juice Wednesday, Jun 10, 15 @ 1:28 pm
47th - then I must be blind.

In all seriousness, I have posted on several other topics the last week of session and the two weeks since that Governor Rauner has made many missteps. I just noted on the topic about the property tax brouhaha (HB 690) that I wish Governor Rauner had worked the bill and tried to get it passed (instead of stomping his feet). There is plenty of blame to go around.

And yes. There is some partisanship to this. Governor Rauner and Comptroller Munger are both Republicans. He got her that post. I am not going to denigrate her for that.

Comment by Team Sleep Wednesday, Jun 10, 15 @ 1:33 pm
Just because the governor proposes an unbalanced budget doesn’t meas the GA should adopt one. If Madigan & Cullerton were not just playing for political advantage they would produce and pass a balanced budget.

Comment by anon Wednesday, Jun 10, 15 @ 1:36 pm
In the midst of the budget “war” going on, it is refreshing that Munger is at least talking about the real world repercussions of what happens if no agreement is reached by July 1.

And while we’re at it, the hard-boiled political pros on this blog can save their phony shock and dismay that she didn’t go after her party’s top dog, let alone the top dog that appointed her.

I’m not seeing a long line of Democrats lining up to go after Madigan and Cullerton for their role in this mess.

Comment by Roamin' Numeral Wednesday, Jun 10, 15 @ 1:38 pm
==What am I missing?==

The litmus test of some.

Comment by Formerly Known As... Wednesday, Jun 10, 15 @ 1:54 pm
I can’t stand Rauner. But the GA made a big mistake in not passing a balanced budget. And if that included a tax hike so be it. Face up to it or do the cuts.

Many do not seem to believe me but this unbalanced budget will give Rauner tremendous leverage.

Other GA’s and the Governor have signed off on phony balanced budgets and the state went on. Rauner will not do that and legally he does not have to. And as such he will slice and dice the budget the way he wants to and I do not see the ISC overruling him unless it is something very specific that he cut that he can not legally do so.

Comment by Federalist Wednesday, Jun 10, 15 @ 1:58 pm
===And as such he will slice and dice the budget the way he wants to ===

And then he’ll wear the jacket.

Comment by Rich Miller Wednesday, Jun 10, 15 @ 2:07 pm
I loved JBT as much or more than the next guy here. I’m not positive what effect or how much she might have had on this. I suspect she’d lobby (even ride) the Gov hard privately on this, but publicly she’d be with him. And she’d sound pretty similar to Ms. Munger. She’s blaming the whole GA. There are people on both sides in that crowd.

Comment by A guy Wednesday, Jun 10, 15 @ 2:30 pm
No one asked Munger where she thought the General Assembly should cut $4 billion??

Comment by Juvenal Wednesday, Jun 10, 15 @ 2:45 pm
===I suspect she’d lobby (even ride) the Gov hard privately on this, but publicly she’d be with him. And she’d sound pretty similar to Ms. Munger.===

Please do not speculate on JBT and how she “would” and place that burden on yourself, because none of us would really know, and on the sitting Conptroller, no matter how you think it would reconcile.

Thank you.

Comment by Oswego Willy Wednesday, Jun 10, 15 @ 3:23 pm
Oswego thank you. I totally agree.

Comment by State Worker Wednesday, Jun 10, 15 @ 3:32 pm
“And then he’ll wear the jacket”, for trying to undo God knows how many years of bipartisan fiscal mismanagement.

Comment by Wondering Wednesday, Jun 10, 15 @ 3:43 pm
=Just because the governor proposes an unbalanced budget doesn’t meas the GA should adopt one. If Madigan & Cullerton were not just playing for political advantage they would produce and pass a balanced budget.=

How do you propose they pass a balanced budget? Rauner says no to revenue increases at this point in time.

Comment by Anonymous Wednesday, Jun 10, 15 @ 3:46 pm
Sorry Willy, it’s not like she didn’t operate in and around state government for a long time and establish an amazing record of accomplishment. There has been speculation on here for days invoking her name. Until today, I refrained.

Anyone who had any relationship with her considered it special, because she had an amazing gift to make you feel that way. That would include me. Had plenty of opportunity to interact with her over the years and listen to her discuss all manners of politics and social policy. Handled an event for the Czech President visit in Chicago where she shared with me what a buffoon the Governor was for not being there for a Head of State (Blago) She had a pretty clear way of thinking and acting on a lot of things.

I get to speculate if I care to. I did so, based on my own experience with her. You may do the same or not. Don’t care.

Comment by A guy Wednesday, Jun 10, 15 @ 3:46 pm
I agree with the sentiment about the Democrats passing a budget nearly $4 billion out of whack. Madigan is way smarter than I am, but I think that was a terrible mistake. It also was a mistake only to cut from the budgets of the GOP Governor and Comptroller. They have given Rauner huge ammunition.

Comment by Blago's Luxurious Grey Mane Wednesday, Jun 10, 15 @ 4:01 pm
===I get to speculate if I care to. I did so, based on my own experience with her. You may do the same or not. Don’t care.===

You can personally speculate, you don’t know. Lot of hubris to think you could speak for her. That’s what you did.

Comment by Oswego Willy Wednesday, Jun 10, 15 @ 4:11 pm
Guy, I try to stay outta the whizzing matches around here (except my own lol) but I think OW has a point here. Might be best to just let this one go.

Sincerely, AA

Comment by Arthur Andersen Wednesday, Jun 10, 15 @ 4:42 pm
MUNGER should have a presser in SPF not chicago

Comment by scott aster Wednesday, Jun 10, 15 @ 4:48 pm
Another day, another ridiculously transparent publicity stunt designed to sway public opinion and orchestrated by gov’s PR geniuses.

Comment by Politix Wednesday, Jun 10, 15 @ 4:58 pm
Comptroller Munger is to be commended for walking a very fine line. She is urging both sides to find middle ground while not trying to distance herself from the governor who ultimately was responsible for putting her in her position. She’s in a tough spot, but hopefully will take her lead from the former Hines administration and continue to be a voice of reason in this far too political debate.

Comment by Courser Wednesday, Jun 10, 15 @ 6:33 pm
Ms. Munger, until this press conference you had this Democrat’s vote next year.
Had.
Tell me, what’s it like for someone else to have the bill of sale on you?

Comment by efudd Wednesday, Jun 10, 15 @ 6:48 pm
- Rich Miller - Wednesday, Jun 10, 15 @ 2:07 pm:

===And as such he will slice and dice the budget the way he wants to ===

“And then he’ll wear the jacket”

Exactly and I hope it is a poor fit but it does not change my analysis of the situation.

Comment by Federalist Wednesday, Jun 10, 15 @ 8:01 pm
++ Counties can simply accelerate their payment schedules to pay more often in August to assist++
The counties do not make the payment schedules for the school districts. The State is in charge of that. Some schools are so broke, they can not afford any missed payments.

Comment by Mama Wednesday, Jun 10, 15 @ 8:01 pm
Comptroller Munger is doing her job the best she can. It’s not her fault the governor proposed an unbalanced budget- she is pretty much telling everyone that the state still has to pay it’s bills. Everyone knows this is going to end up in court, which it should because life still has to go on. When you propose a budget that is 2 billion dollars in the whole to begin with, you need to tell the public it was contingent based upon how the Illinois Supreme Court ruled.

Comment by Anonymous Wednesday, Jun 10, 15 @ 9:33 pm