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This just in… Guv issues doomsday threat * Vendors hit with threat as well *

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Illinois

[Story bumped up and password protection removed because the AP now has a story online.]

* 11:40 am - I wrote about this in today’s Capitol Fax. Here’s a recent letter sent by the governor to a bunch of interest groups threatening doomsday cuts if the Legislature doesn’t pass his revenue generators and the capital plan. See the original by clicking here…

Dear State Leader,

On May 31st, the General Assembly passed a budget for Fiscal Year 2009 that, by their own admission, is more than $2 billion out of balance. As the Illinois Constitution explicitly requires a balanced budget, it is my expectation that in days ahead the leadership of the General Assembly will work with my administration to address this unprecedented and unconstitutional deficit.

I have convened the legislative leaders to address these issues and have provided alternatives, including the passage of the capital proposal provided by Speaker Dennis Hastert and President Glenn Poshard that would provide substantial revenues to support the General Assembly’s proposed appropriations.

Unless the General Assembly acts swiftly to pass revenues necessary to support their proposed budget, I will be compelled to use my constitutional authority to address the deficit. Given the magnitude of the challenge that we face, I write to ask you to take appropriate action now to limit the impact of any necessary reductions or eliminations.

Action necessary to face our budget challenges may include, but should not be limited to:

• Instituting a hiring freeze on all non-critical positions,
• Freezing all non-essential operating spending,
• Unilaterally reducing or imposing reserves to all operating programs that do not address issues of life, safety or health of Illinoisans, and
• Eliminating programs or functions that do not address key priorities of the State.

Instituting these policies will undoubtedly impose significant difficulties on you and the people of Illinois. These consequences can be avoided if the House passes the capital plan supported by three of the four legislative caucuses and that moved out of the Senate in bi-partisan fashion and if the House approves other pending revenue proposals.

Sincerely,

Rod Blagojevich

*** 2:59 pm *** Vendors are apparently being sent copies of the letter as well. Click here to see a memo to vendors from DoC Director Roger Walker.

* 4:26 pm - The AP finally has a story online…

Illinois Governor Rod Blagojevich is sending a vague warning to state leaders of spending cuts if lawmakers don’t help him fix a $2 billion hole in the state budget.

Blagojevich says he will freeze non-critical hiring and spending, tell agencies to hold budget reserves for an emergency, and eliminate programs that are not essential.

The governor’s letter went to agency heads, colleges and universities, social service agencies and constitutional officers. Spokeswoman Kelley Quinn says it’s intended to help them plan for the coming year.

This was about more than mere “planning.” It’s about freaking out the tax-eaters and the vendors to get them to back Blagojevich in his battle with Speaker Madigan over the revenue streams and the capital bill.

posted by Rich Miller
Friday, Jun 13, 08 @ 4:22 pm

Comments

Even if the additional revenue sources are passed, the budget will still be unbalanced by more than $1 billion. But if the GA passes the capital budget, then G-Rod doesn’t have a problem signing a budget with an unconstitutional deficit.

Comment by Don't Worry, Be Happy Friday, Jun 13, 08 @ 12:03 pm
I haven’t heard the Governor expressing his willingness to trim back the capital program to shift more dollars over to GRF this year. If State Govt has to trim back, why shouldn’t the Capital program be prioritized and trimmed back to lessen state government spending cuts in higher ed and human services???

Comment by Capitol View Friday, Jun 13, 08 @ 12:24 pm
Ha!

First, Madigan and Leader Curry ask him to just line-item veto the budget into balance.

Media demands the same.

Then, when he says tells state agencies to get ready for the crappy budget that will be the result of that, everybody freaks out!

I like how everyone recognizes that Madigan is playing this game with the out-of-balance budget in order to make the Governor look bad when he makes the cuts - but then they go and play along anyway.

Comment by G Friday, Jun 13, 08 @ 12:25 pm
I just received this letter from the HFS e-mail list so it has been sent to a large group of medical providers, advocates, etc.

Comment by Hoping for Rational Thought Friday, Jun 13, 08 @ 1:04 pm
“Dear State Leader”???

Comment by steve schnorf Friday, Jun 13, 08 @ 1:08 pm
the capital plan will generate additonal sales tax revenues and allow items to be moved from the operating budget to the capital budget–in combination this will generate 280.0 in new tax revenues and allow 320 million in projects to be moved off of GRF–that is how the capital bill helps balnce the operating budget

Comment by Balanced budget Friday, Jun 13, 08 @ 1:52 pm
Balanced Bud: is your $280 million in capital plan-induced sales tax revenue based upon the full $35 billion capital plan, or on some more realistic estimate of the level of capital spending in FY09? There’s no way all or even most of the $35 billion will reach the construction phase during FY09, especially since IDOT and other agencies have been decimated and don’t have the staff to design projects, administer projects, etc.

Comment by Sir Reel Friday, Jun 13, 08 @ 2:25 pm
OMG Hiring freeze, spending freeze…..those “draconian” steps as Capt. Fax sez ….almost..almost seem like Blagoof would be governing.
Quick get me a cool towel.

p.a. why will it take the agencies til the 24th? Oh, I remember they need to find the keys to open their offices.

Comment by DumberThanUThink Friday, Jun 13, 08 @ 2:33 pm
This makes it very obvious that the Gov’s office ‘leaked’ the ‘memo’. This is so predictable.

It is simple, not only are the revenues streams questionable, but the Gov is simply not trusted with the money. Game over. Start cutting, Gov.

Comment by Crystal Clear Friday, Jun 13, 08 @ 2:35 pm
full estimate of income and sales tax revenues from capital bill is 3b in sales and income over 6 years. So $280m probably is on the low side if the fall letting season can still be saved.

Comment by Balanced budget Friday, Jun 13, 08 @ 2:46 pm
Empty threats. He likes to spend. These cuts hurt Rod as much as anyone. As with so many things, he won’t follow through on this.

Comment by Truth Friday, Jun 13, 08 @ 4:03 pm
Everyone has been saying for months that no new revenue equals cuts because of the lack of natural revenue growth forecasted.
Yet Speaker MikeyMouse and Leader PanangCurry missed the boat on that.

Comment by DumberThanULook Friday, Jun 13, 08 @ 4:36 pm
Time to pay the piper Rod! This has got to be it ; it can keep going on like this. They couldn’t pay this years bills…robbing the special funds leaving about 300 mil un-paid. Cuts are invevidable & spending must stop. Vendors may beat them to it & shut them off…they’re tired of carryingthe stastes debt on their books. The GA isn’t going to give him anything…he can’t be trusted with money or anything for that matter.

Comment by annon in central illinois Friday, Jun 13, 08 @ 4:41 pm
wait — I thought the state was already doing all these things?

Seriously. I thought there had been a hiring freeze since Blagojevich took office. And I thought agencies were already trimming 2% as a reserve.

Is this a hiring freeze on top of the frozen freeze?

Comment by Macbeth Friday, Jun 13, 08 @ 4:42 pm
So you come up with multi-billion dollar spending plan to balance a budget? Isn’t that like saying that you can’t get out of a hole with the shovel you have, so instead you’re going to dig a really big hole?

Comment by What planet is he from again? Friday, Jun 13, 08 @ 4:48 pm
I thought there was a hiring freeze in place already.

These steps that Blago is proposing sort of seem like how you would begin to balance a budget, any budget. Imagine that.

Comment by Dirt Guy Friday, Jun 13, 08 @ 4:49 pm
Come on guv, step up to the plate! This is your opportunity to show us all that you are indeed a Manager. Rather than being a hack vindictive politician though, let’s see a well thought out effort. No punishing senators and representatives, killing life saving programs etc. In other words quit the cheap political sideshow and show some modicum of aptitude to do the job as a statesman would. Otherwise please just resign and get the heck off the stage and out of our way. Last warning !

Comment by A Citizen Friday, Jun 13, 08 @ 4:58 pm
there’s been a hiring freeze ever since this bozo was elected. That is except for his friends and contributers. Is he saying he’s including them in the freeze too?????

Comment by milkman Friday, Jun 13, 08 @ 5:03 pm
===Eliminating programs or functions that do not address key priorities of the State.===

That’s the one to watch. Forget the rest of the stuff.

Comment by Rich Miller Friday, Jun 13, 08 @ 5:05 pm
I suspect he will make a plethora of spiteful cuts….thus driving still another nail into his impeachment coffin.

Comment by Justice Friday, Jun 13, 08 @ 5:09 pm
I read that to mean DNR, among others, but DNR gets cut first.

Comment by Pot calling kettle Friday, Jun 13, 08 @ 5:10 pm
This over-budget budget is such a clever response to last year’s ploy by the Gov. to cut “extras” and move the money over to pay for his new “necessary” programs. With all the overage, moving money around is a non-starter. Gov. B must be pulling his hair out!

Comment by Pot calling kettle Friday, Jun 13, 08 @ 5:13 pm
I got an e-mail like this today. It was from Nigeria.

Comment by Shelbyville Friday, Jun 13, 08 @ 5:14 pm
If I read this correctly, he is not:

–Calling the GA back unless a deal is in place.

– Threatening a total veto and a possible government shutdown due to a lack of budget.

Comment by wordslinger Friday, Jun 13, 08 @ 5:19 pm
Start the impeachment next week!

Comment by Anonymous Friday, Jun 13, 08 @ 5:30 pm
When it comes to political entertainment, Rod Blagojevich is the gift that keeps on giving. You gotta love the guy’s chutzpah.

Unfortunately the whole thing about actually governing never caught his imagination. Maybe if he showed up at the office once in a while that would have helped.

He’s not 18 months into his second term and it has the smell of the end days about it. So sad that the first Democrat in 26 years had to be him.

Comment by DuPage Dave Friday, Jun 13, 08 @ 5:58 pm
More spiteful cuts to further drive the nail in the impeachment coffin… like the ones last year to the Attorney General’s budget. Yep, I see them a comin’.

Comment by Downers Delight Friday, Jun 13, 08 @ 6:21 pm
There’s $7M in the IDOT appropriation SB 2975 for Shared Services that I thought was not supposed to happen. These are the line items that should be deleted.

Comment by old timer Friday, Jun 13, 08 @ 7:45 pm
Yeah, there is supposed to be a hiring freeze for several years now. So how come the New Employee Orientations are filled to capacity every month, huh???????

Comment by Disgusted Friday, Jun 13, 08 @ 11:19 pm
Glad to know cutting spending is now a priority for the Gov.

Comment by justmytake Saturday, Jun 14, 08 @ 9:19 am
Yikes

Comment by Vote Quimby! Sunday, Jun 15, 08 @ 12:02 am