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From the Associated Press:

Gov. Rod Blagojevich is proposing an unusually small $140 million increase in education spending for the next budget year that depends on a tricky plan to siphon money from special state funds.

The Democratic governor also wants to borrow $500 million to help pay for school construction, a proposal similar to one lawmakers shot down last summer.

If the Legislature approves his proposed $140 million increase for pre-kindergarten through 12th-grade schools, it would be 69 percent less than what Blagojevich has gotten, on average, for schools the past two years and the lowest since Gov. George Ryan’s last budget in the fiscal year that ended in mid-2003, when school spending actually decreased. […]

[Budget Director John Filan] refused to identify any of the funds that could be targeted for the sweeps, but he said five accounts would be exempt from subsidizing education: debt-service accounts, payments to local governments, federal funds, road funds and the “rainy day” fund.

And then there’s this summary:

BOTTOM LINE: $43.56 billion in operating expenses, plus $9.43 billion in construction and maintenance costs.

WHERE IT GOES: 28.3 percent to public aid; 26.4 percent education; 24 percent human services; 7.6 percent economic development; 6 percent government services; 5.9 percent public safety; 1.8 percent business and environmental regulation.

NEW MONEY: $800 million natural revenue growth, $155 million from higher tobacco taxes, $65 million from software tax on businesses, $43 million from change in fees on some fuel.[…]

CIGARETTE TAX: Increase the tax 75 cents a pack, to a total of $1.73, to fund construction programs.

ENVIRONMENT: Fund conservation and rehire 50 park employees by eliminating tax credit for landfill-generated electricity; support vehicle emissions testing and storage tank inspections by charging fee on fuel stored in Illinois and later moved out of state.

SAVINGS: $800 million by restructuring pension obligations, $150 million in changes to healthcare for the poor, $35 million in changes to the state insurance program.

And this:

FY2004: $52.4 billion budget proposed, $5 billion deficit.

FY2005: $53.6 billion budget proposed, $2.3 billion deficit.

FY2006: $53 billion budget proposed, $1.1 billion deficit.

posted by Rich Miller
Wednesday, Feb 16, 05 @ 10:52 am

Comments

Not a bad showing from Blago today. Came off quite statesmanlike, while presenting the scenario with viable solutions.

He gave lawmakers and himself more-than-adequate cover for fee increases for each area he’d like to increase spending, including the education and “pork” projects listed in each district.

Madigan seemed incredibly receptive in his comments following the speach. And Watson only came off blubbering as if the recent budget problems were Blago’s, opposed to what he and his fellow Repubs passed on from so many years ago…

Comment by Anonymous Wednesday, Feb 16, 05 @ 5:16 pm
I didn’t see the address nor do I wish to. What can you believe that he says? Anyway, I’m glad he came off “quite statesmanlike”. About time.

I read in the Trib today Blago wants to increase the cigarette tax 75 cents a pack in order to help the state get another $3.5 billion in bonds issued.

Doesn’t he understand that bonds are debt and eventually need to be paid back? I don’t think so. Another example of him taking the easy way out and further bankrupting the future of Illinois.

Comment by Anonymous Wednesday, Feb 16, 05 @ 6:44 pm
Let’s face it, the pension fix is mostly a non-starter. And that’s where the Gov is seeking $800 million of his budget patch. Did anyone see the press release from IFT today?

http://www.ift-aft.org/news/2005/pr_021605.htm

These folks are the ones who helped the Gov get elected, and are Sen. Emil Jones’ constituents (you know, the main Dem who is still in the Gov’s corner). AFSCME will no doubt have a similar attitude, as they have already blasted the previous recommendations of Roland Burris’ pension review committee, many of which the Gov adopted for his speech today.

I think the whole thing is setting up an expansion of gaming (when the pension thing fails to fly).

Comment by Anonymous Wednesday, Feb 16, 05 @ 6:58 pm
He might have come off statesmanlike, but if you listened he didn’t impress many people.

As I sat, listened and watched the address today, I couldn’t help but be just a little offended. See I’m a state employee, and something it seems the gov forgets, I’m also a taxpayer. He acts like we are two separate groups. Yes, the pension system needs to be fixed but not on the backs of our children - it was screwed up a long time ago and isn’t a quick fix. Robbing it now to plug a hole isn’t going to make things better in the long run, just like bonds won’t make the state budget better years down the road.

I don’t know if they are suddenly going to jump on the gambling bandwagon again. It didn’t go anywhere last year and I don’t see legislators wanting a repeat of that. The ones I’ve talked to are open to a state income tax increase to help education, help the state budget and decrease property taxes for those taxpayers the governor likes to talk about.

I’m not sure any one group, certainly no one person, has the answer to our budget woes in this state. But we can’t continue to hit businesses and tax cigarettes and bond our state out of debt.

But I’m just a state employee, and I probably don’t know much, even though I “pay as I go” too. At least this year I’m not lazy.

Comment by Anonymous Wednesday, Feb 16, 05 @ 8:28 pm
Budget priorities for 2005:

1. Hairspray for GRod’s hair
2. State Trooper bodyguards
3. More inspectors to close down Mell’s dumps with tires
4. Money allocated to make Dominic Longo a rich man
5. More money for attorneys
6. Don’t increase taxes just fees
7. More roofing contracts for Chris Kelly
8. More jobs for Lipinksi
9. Panda Express
10. More sports clients for Lon Monk

Comment by Anonymous Sunday, Feb 20, 05 @ 4:58 pm
What happened to Rod Blagojevich’s bodyguard “Ralphie”??

Did Brian Daly get him fired because he thought he was the leak to Chuck Goudie?

What is the relationship between Chuck Goudie and Frank Avila?

Comment by Anonymous Tuesday, Feb 22, 05 @ 3:52 pm