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*** UPDATED x1 - Bills filed *** Rauner unveils his stopgap plan

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* This proposal will be filed on two bills. Note extra funding for MAP grants, higher ed and human services. Subscribers already knew about most of this stuff. But it isn’t smooth sailing yet, campers…

The Governor’s stopgap funding plan will serve as a bridge to a comprehensive balanced budget for fiscal year 2017. This plan does not count on enactment of a tax hike or reforms. This plan provides a full year of funding for elementary and secondary education, road construction, federal programs and other non-GRF programs. It also provides funding to support 6 months of critical operations for higher education, state-operated facilities including prisons and veterans’ homes, fuel for the State Police to patrol our roads, and other core operations and programs for public safety, health and welfare. Funds are available under current law for all components of this bridge plan. The plan is contained in two bills: one bill which has K-12 education funding, and a second bill which has all other funding.

For fiscal year 2017 operations, the total package is $50.3 billion. This includes $8.2 billion in general funds, $33.7 billion in other state funds and $8.4 billion federal funds. The FY17 appropriations include:

o K-12 education. The Governor has proposed an increase of over $240 million over this year’s enacted education budget, for a total of $7 billion in general funds. This plan would fully fund the foundation level for the first time in many years, and ensure that all school districts get at least as much as they received in this past school year (a “hold harmless”). This plan does not include a bailout for Chicago Public Schools.

o Higher education funding of $1.0 billion. This is on top of $600 million already approved in FY16. The new funding is from the Education Assistance Fund, at $680 million (which is the amount of money expected to be available in that fund in the first six months of FY17), $200 million from the Fund for the Advancement of Education, $20 million from GRF, and approximately $100 million from the Personal Property Tax Replacement Fund for community colleges.

o Funding for critical State government operations with GRF totaling $454 million. This GRF comes from $454 million freed up by removing the requirement to repay interfund borrowing. Also relies on full use of the rainy day fund ($275 million). These resources will be used to cover critical needs at agencies, including:

This stopgap funding means that approximately 20% of all State government operations are funded, counting health insurance (or 50% without health insurance.)

o Human services funding of $650 million from the Commitment to Human Services Fund. This is the amount of resources projected to be available in this fund through December 2016. This plan will help cover critical services not being paid under consent decrees or court orders. Includes $35 million in additional human services grants. This funding level means that human services will get over 90% of the amount they typically would get over 18 months when you include spending authorized by court orders.

o Full-year appropriations of federal funds of $8.4 billion. Includes federal funding that goes directly to providers, and takes full advantage of all available federal funds.

o Full-year appropriations of non-GRF/other state funds of $33.2 billion, and capital appropriations of $17.0 billion. This non-GRF funding includes:

 

*** UPDATE ***  The bills have now been filed…

Illinois Republican leaders Christine Radogno (R-Lemont) and Jim Durkin (R-Western Springs) filed legislation on Tuesday that would provide a full year of funding for elementary and secondary education, road construction projects and federal programs. It would also provide six months of funding for critical operations for higher education, state-operated facilities (such as prisons and veterans’ homes), public safety, health and welfare.

In total, the funding package introduced totals $50.3 billion for FY17 and another $25 billion to close out FY16. The plan is contained in two identical bills in each chamber, one which contains K-12 education funding (SB 3439, HB 6590) and the other which contains funding for other agencies (SB 3438, HB 6591).

Senate Bill 3439/HB6590 would ensure Illinois schools have funding to open this fall, with an increase of more than $240 million over this year’s enacted education budget, for a total of $7.2 billion in general funds.

“The measure we filed today would fully fund the foundation level for the first time in years, as well as include a ‘hold harmless’ to ensure that all school districts get at least as much as they received in this past school year,” said Radogno. “What this plan does not contain is a bailout for Chicago Public Schools, as Democrat legislators have proposed. Their plan is not acceptable or affordable to the taxpayers of Illinois – particularly in our downstate and suburban communities.”

The Republican leaders’ state agency funding proposal reflects budget items negotiated in the bipartisan, bicameral legislator working groups, in cooperation with the Governor’s Office of Management and Budget.

Higher education funding totals $1 billion, which is on top of the $600 million already approved in Fiscal Year 2016. This measure, if approved, would: ensure that universities are able to open on time and complete a full fall semester; allocate $151 million in funding for MAP grants for the spring semester of 2016; and provide community colleges with $114 million, plus funding for adult career tech and other grants.

Leader Durkin notes that under SB 3438 and HB 6591, funding for critical state government operations would total $729 million, and would help cover critical needs at state agencies, including: utilities, food and medical services at state prisons, mental health centers and veteran’s homes.

“Time is running out with less than three days until the start of a new fiscal year. The citizens of Illinois deserve a balanced negotiated budget that cares for students, the most vulnerable and all Illinoisans. The language in these bills can be amended to active bills in both chambers to meet our Thursday deadline. Those who claim this cannot be completed by then are just plain wrong,” Durkin said.

Under Senate Bill 3438 and HB 6591, $650 million will help cover critical human services not being paid under consent decrees or court orders. This includes $35 million in additional human services grants. This funding level means that human services will get over 90% of the amount they typically would get over 18 months when including spending authorized by court orders.

Full-year appropriations of non-GRF/other state funds of $33.2 billion, and capital appropriations of $17.0 billion, will ensure that: road and bridge improvements can continue; payment of school construction grants and local water and sewer improvements are met; local government distributions are made and funding is allocated for low-income heating assistance and other services.

“We are at a critical point in this budget impasse,” said Radogno. “The time for political posturing has passed — the time to act is now.”

Both the Illinois Senate and House are scheduled to be in session on Wednesday, June 29.

posted by Rich Miller
Tuesday, Jun 28, 16 @ 6:58 am

Comments

  1. I’m sure that “cracker-jack” Legislative Staff Rauner counted 71 and 36 for this…

    Right? Exactly right.

    Comment by Oswego Willy Tuesday, Jun 28, 16 @ 7:15 am

  2. On an annualized basis how does this spending compare with Quinn’s last budget and the budget the Governor vetoed last year because it was so far out of balance?

    Comment by Rational Dem Tuesday, Jun 28, 16 @ 7:15 am

  3. “Those negative ads that Rauner keep pounding on me will make me vote for Rauner’s bills”…

    … said no one ever.

    Comment by Oswego Willy Tuesday, Jun 28, 16 @ 7:20 am

  4. I am glad to see someone is thinking about FY16.
    Vendors deserve to be paid..

    Comment by Just Because Tuesday, Jun 28, 16 @ 7:31 am

  5. Wonderin’ if this scheme he wants folks to believe the Ds support?

    Comment by Annonin' Tuesday, Jun 28, 16 @ 7:35 am

  6. ==No GRF is appropriated for health insurance providers for State and university employees, which has a bill backlog of over $3 billion.==
    No money for health insurance providers - people are already not going to the doctor because the bills aren’t getting paid. Insurance ‘premiums’ are being withheld - can’t they at least use the employees’ money and pay some of these bills?

    == This GRF comes from $454 million freed up by removing the requirement to repay interfund borrowing. Also relies on full use of the rainy day fund ($275 million)==
    The pension payments need to be so high now because of borrowing like this from them for so long to cover expenses and keep taxes down. Now everyone is making the employees the ‘bad guy’ because they expect the pension they were promised. What happens next year when there is no ‘rainy day’ fund. Whose fault will that be and who will complain then?

    Comment by ANONIME Tuesday, Jun 28, 16 @ 7:39 am

  7. This actually is the first detailed “budget” he’s shown. Would have been a nice starting point … a year ago.

    Comment by BBG Watch Tuesday, Jun 28, 16 @ 7:48 am

  8. So, Rauner wanted to cut higher ed by 31.5% for FY2016.

    The actual cut is about double that. Well done, Dems.

    Comment by CrossTabs Tuesday, Jun 28, 16 @ 7:51 am

  9. ===The actual cut is about double that. Well done, Dem===

    Huh? Your drive-by is confusing, given this is Rauner’s alleged “plan”

    Comment by Oswego Willy Tuesday, Jun 28, 16 @ 7:53 am

  10. I believe it should be all or nothing… Stopgap funding ensures the fight will continue. It’s time to force the issue. Governor, when are you to realize that precondition demands before agreeing to a full budget is DOA? Stay strong Mr. Speaker. Stay strong.

    Comment by Triple fat Tuesday, Jun 28, 16 @ 7:56 am

  11. ==Huh? Your drive-by is confusing, given this is Rauner’s alleged “plan”==

    It’s my understanding that Rauner’s original stopgap had even less money for higher ed and the Dems and Reps in districts with colleges pushed back. And this is the number they negotiated to, or is that a faulty understanding?

    Comment by CrossTabs Tuesday, Jun 28, 16 @ 8:01 am

  12. ===And this is the number they negotiated to, or is that a faulty understanding?===

    Are you asking, or do you know?

    See why your drive-by is so confusing? Ugh.

    Comment by Oswego Willy Tuesday, Jun 28, 16 @ 8:02 am

  13. Beware. Rauner’s May 31st stopgap was said to include human services. Surprise. Untrue. Words without action. It just included minimal state operations funds. Not funding for real services in the community.

    “This funding level means that human services will get over 90% of the amount they typically would get over 18 months when you include spending authorized by court orders.”

    90% of what?!? What Rauner “thinks” should be paid? That’s a scary thought. 90% of what is actually being obligated to spend despite having no appropriation?

    When this bill comes out, read carefully. Don’t count of Rauner’s talking points to be accurate. Verify.

    Comment by Unbelievable Tuesday, Jun 28, 16 @ 8:04 am

  14. Where was this plan a month ago? 1.4% drops this on the GA 2 days before the end of the fiscal year and expects them to roll over and pass these bills?

    Comment by Huh? Tuesday, Jun 28, 16 @ 8:05 am

  15. ==Are you asking, or do you know?==

    I *thought* I knew. But your comment made me question that.

    Here’s what I do know for certain, if this stopgap gets approved as it’s written above:

    Take EIU, for example.

    They were expecting about $40 mil in appropriations (which was 6.5% cut) and then MAP money of ~$7-8 million.

    The will have received for FY16:
    $12.5 million in the April stopgap.
    Almost all of their MAP money, around $6 mil.

    Generously, that’s $20 million of $48 million expected.

    Comment by CrossTabs Tuesday, Jun 28, 16 @ 8:08 am

  16. How much longer before the health care providers shut off state and university employees if the continue to go unpaid? The employees are paying their premiums but they are not going to the insurance carriers. I guess one more lawsuit is no big deal to the Governor.

    Comment by Tough Guy Tuesday, Jun 28, 16 @ 8:10 am

  17. ===

    - Huh? - Tuesday, Jun 28, 16 @ 8:05 am:

    Where was this plan a month ago? 1.4% drops this on the GA 2 days before the end of the fiscal year and expects them to roll over and pass these bills?===

    Sort of like that time he did an about-face on a stop gap in the last week of the session. Seems almost… deliberate.

    Comment by Boooooooo Tuesday, Jun 28, 16 @ 8:22 am

  18. A budget with zero for employee/retiree healthcare and which effectively ignores over $10b in pension funding, debt service, and who knows what in “consent degrees and court orders” is not ready for prime time in my humble opinion.

    Comment by Arthur Andersen Tuesday, Jun 28, 16 @ 8:24 am

  19. Health Insurance Providers NEED to be paid. This is a major crisis in the making.

    Comment by Just So Tied of the Games Tuesday, Jun 28, 16 @ 8:24 am

  20. ===…zero for employee/retiree healthcare and which effectively ignores over $10b in pension funding, debt service, and who knows what in “consent degrees and court orders” is not ready for prime time…===

    Good work there, - AA -.

    It is a Stopgap but the bleeding is continuing in other places that effect State Workers…

    Comment by Oswego Willy Tuesday, Jun 28, 16 @ 8:26 am

  21. I’m trying to keep up here, but how did they find 33 billion in “other state funds”? I get the 8 billion is about 20% of a typical annual budget for the state, but this $50+ billion “stop gap” package is confusing as hell!

    Comment by Anon Tuesday, Jun 28, 16 @ 8:31 am

  22. No Governor in Illinois will be successful with Madigan around. He disparages even Quinn. It’s not Rauner’s fault. It’s not party politics. Its personal

    Comment by LibertyvilleNick Tuesday, Jun 28, 16 @ 8:33 am

  23. “No Governor in Illinois will be successful with Madigan around. He disparages even Quinn. It’s not Rauner’s fault. It’s not party politics. Its personal”

    I’m hearing an awful lot of “blame others” out of the Party of Personal Responsibility.

    Drop the victimhood. Rauner is the Executive Branch. Act like it.

    Comment by illini97 Tuesday, Jun 28, 16 @ 8:38 am

  24. “Because Madigan!” is not a way to prop up any Stopgap plan by either side.

    No governor is a victim to any branch or any leader in Illinois Government.

    The governor of Illinois is arguably one of the strongest governmental Executive Branches in all the 50 state constitutions.

    Failure to recognize that is on those willing to be victims themselves.

    Comment by Oswego Willy Tuesday, Jun 28, 16 @ 8:38 am

  25. Did anyone ever think that a budget that fully funded the foundation level for education would be inadequate for education?

    Comment by Ahoy! Tuesday, Jun 28, 16 @ 8:38 am

  26. ===which effectively ignores over $10b in pension funding, debt service, and who knows what in “consent degrees and court orders” is not ready for prime time===

    The House Democrats’ budget proposal in May did just that.

    Comment by Rich Miller Tuesday, Jun 28, 16 @ 8:40 am

  27. -LibertyvilleNick-

    Actually, governors have been successful in pursuing many of their policy goals while Madigan has been Speaker. What’s different between now and the past when budgets were signed by GOP governors and passed by the Speaker’s chamber? Answer: Rauner’s inability to govern. The man swings back and forth on budget compromises faster than a hummingbird. I’m sure it’s personal for the governor as well, you know, considering he’s let rape crisis centers and autism lose funding for his union busting agenda. Profiles in courage for sure. Please.

    Comment by Stark Tuesday, Jun 28, 16 @ 8:41 am

  28. –20% of all State government operations are funded, counting health insurance (or 50% without health insurance.)–

    There it is. All Rauner needs to pursue his labor strike dreams. Just enough to hold out a few months and break the union.

    Comment by Honeybear Tuesday, Jun 28, 16 @ 8:47 am

  29. ===House Democrats’ budget proposal in May did just that.===

    I’m sure all the Owls will forget that if this reaches any voting stage(?)

    Comment by Oswego Willy Tuesday, Jun 28, 16 @ 8:54 am

  30. “What is so hard about submitting a BUDGET instead of two bills ?!?! He couldn’t have been this derelict in his educational assignments at Dartmouth or Harvard unless someone else did his work for him (tiny snark there). Finish FY16 with whatever piecemealing needs to be done. THAT is your sstopgap. DO an entire FY17, budgeteers. You cannot let Rauner play you again. Remember…Fooled twice??? ”

    Interesting since the Dems when they had the Governor’s Office and both chambers often passed their budgets in multiple bills.

    Comment by The Machine Tuesday, Jun 28, 16 @ 9:07 am

  31. ===Interesting since the Dems when they had the Governor’s Office and both chambers often passed their budgets in multiple bills.===

    Yep. And if you look at this post, you’ll see the Senate Democrats are gearing up to do the same: https://capitolfax.com/2016/06/28/house-not-yet-in-agreement-with-senate/

    Nobody’s hardly commented on that one yet. Wonder why.

    Sheesh.

    Some of y’all need to take a breath already. I’ve been busy writing the Fax for subscribers to try and explain this mess, so I have more time now to delete the goofiness.

    Comment by Rich Miller Tuesday, Jun 28, 16 @ 9:10 am

  32. thanks Rich please delete the goofiness because some people need to take a breath and relax.

    Comment by austinman Tuesday, Jun 28, 16 @ 9:26 am

  33. The fact that state employees are overpaid and have super duper platinum plus health insurance is well known. Why are state employees concerned that yet again there is no funding to pay medical claims? I know some people have been waiting about a year and a half for reimbursements for the medical care they had to pay upfront for, but since you are so overpaid I’m sure it isn’t a financial issue for you. What’s the big deal about waiting a couple of years to get reimbursed a thousand dollars? Also, if you would just accept the excellent health care proposal Rauner wants you to have then everything would be fixed and we wouldn’t have these problems. (obviously contains snark).

    Comment by ABC123 Tuesday, Jun 28, 16 @ 9:28 am

  34. ===Are you asking, or do you know?===

    If that person subscribes, that person knows.

    Move along.

    Comment by Rich Miller Tuesday, Jun 28, 16 @ 9:40 am

  35. Rich, I took several deep breaths before posting so that I wouldn’t slip up and use a banned word. I didn’t like this approach to budgeting when the HDems proposed it and I don’t like it any better now.

    It’s somewhat akin to leaving your mortgage payment out of the monthly household budget, since that’s a “capital expense.” Then let’s leave the doctor and dentist bills out because we haven’t paid them in awhile anyway. Wow, the family “operating budget” is looking good all of a sudden. Time to buy a new Silverado.

    Comment by Arthur Andersen Tuesday, Jun 28, 16 @ 9:46 am

  36. Raunner is ‘visiting’ IBHE this afternoon. What will that be about?

    Comment by Staffer Tuesday, Jun 28, 16 @ 9:55 am

  37. I love the phrasing of the higher ed and human services points- as though this funding is an act of generosity.

    Comment by In 630 Tuesday, Jun 28, 16 @ 9:55 am

  38. === on K-12 education. The Governor has proposed an increase of over $240 million over this year’s enacted education budget ===

    If CPS would get a share of the $240 M increase, how is this not a bailout for Chicago Public Schools? Unless “bailout” only applies when Democrats propose it.

    Comment by anon Tuesday, Jun 28, 16 @ 11:40 am

  39. Read really fast so I could have missed something, but it looks like a bunch of FY16 GRF based spending is going to be ignored … and possibly never paid.

    Comment by RNUG Tuesday, Jun 28, 16 @ 1:07 pm

  40. RNUG- Those GRF’s are called “Rauner Bucks”.

    Comment by Anon221 Tuesday, Jun 28, 16 @ 2:26 pm

  41. You know, this Governor is supposed to be a friend of community colleges, because they provide more training for jobs. And he seems to like that they operate more cost-effectively than the 4-year institutions. Well, aside from College of DuPage…

    But to give them $114M out of $1B in higher education expenditures is a sick joke. Split that amount between 48 community college campuses, and you will see how ridiculous that is. For most of those institutions, I suspect that is probably a payroll or two at most.

    The original proposal was to cut 4 year institutions by 31 percent, with lesser cuts for community colleges. My local community college got about 27% of its funding. I was not a math major, but I think that a 73% cut is just a bit more than the 31% that the universities were slated for.

    Thanks for all the love, Mssrs. Rauner, Madigan, and Cullerton With friends like that…

    Comment by Mr. Smith Tuesday, Jun 28, 16 @ 3:06 pm

  42. “The time for political posturing has passed - the time to act is now”

    Just now coming to this conclusion? That boat sailed many months ago.

    Comment by Huh? Tuesday, Jun 28, 16 @ 3:19 pm

  43. RUNG, I thought the same thing. The outline says it appropriates 25 billion for all “remaining non-grf items form 2016 and lets the gov use 2017 to pay 2016 where “necessary.” The update says it closes out 2016. Wonder which it is.

    Comment by Unsolicited advice Tuesday, Jun 28, 16 @ 3:39 pm

  44. The key part of that statement is “non GRF” for the $25B. That’s what makes me wonder about the stuff that is normally paid from GRF.

    Comment by RNUG Tuesday, Jun 28, 16 @ 5:03 pm

  45. Tim Butler was on WMAY this afternoon and assured Jim that money to pay for state employee insurance was included in his Master’s plan.

    Comment by CharlieKratos Tuesday, Jun 28, 16 @ 5:18 pm

  46. If Chicago Teachers Pension is going to again be receiving State Funding on an annual basis, AA would hope that the approp language is crystal clear that the dough can’t be spent on non-pension expenses. As part of “pension parity,” CTPF should also be subject to annual external audits by a firm chosen by or acceptable to the Auditor General.

    Comment by Arthur Andersen Tuesday, Jun 28, 16 @ 7:16 pm

  47. No Governor in Illinois will be successful with Madigan around. He disparages even Quinn. It’s not Rauner’s fault. It’s not party politics. Its personal
    =================================================
    Quinn is not Governor by the way.He got replaced by that innocent bystander of a victim of a Governor that we have now.
    Sure,none of it is his fault.Just ask him.
    Always civil,never says a bad word about anyone…excpet Chicago…..and Democrats…and unions…
    But go right ahead and

    Comment by btowntruth from forgottonia Tuesday, Jun 28, 16 @ 7:51 pm

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