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*** UPDATE *** We’re finally getting some hard numbers from DC. The US Senate cut $2.4 billion out of the House-passed stimulus plan that was earmarked for Illinois…

For Illinois, the Senate bill provides $1.3 billion for education instead of $1.7 billion in the House version, said Marcia Howard, executive editor at Federal Funds Information for States, a state-funded budget think tank in Washington.

In addition, the Senate eliminated House-passed spending programs that would have generated another $1.8 billion for Illinois, including $657 million for K-12 school construction, $150 million for higher education construction and $1.1 billion in general aid to state and local governments.

The Senate bill also dropped $4.2 billion in the House version for neighborhood stabilization and $1 billion for community development block grants, which would have provided a total of about $233 million for Illinois, according to the Center for American Progress.

[ *** End of Update *** ]

* A one percent cut to agency operating budgets ain’t a whole lot, but it’s a symbolic start…

In his first major attempt to grapple with a deteriorating budget, Illinois Gov. Pat Quinn Tuesday announced a series of cost-saving measures aimed at easing the state’s financial woes.

Key among them is a spending cut of one percent, which comes after his predecessor, former Gov. Rod Blagojevich, had already slashed spending by three percent. Spending on schools and universities is exempt from the cuts.

“When you have a big deficit we all have to tighten our belt and that’s the purpose of today’s directive to all the agencies,” Quinn said. “Nobody likes to have to cut back but sometimes that’s what’s necessary.”

* Quinn said the cuts would save “hundreds of millions of dollars” but that’s not even close, according to the Associated Press…

He exempted education spending from the cuts, which come on top of 3 percent cuts that former Gov. Rod Blagojevich ordered earlier in the year. […]

But setting aside education and federal funds over which the state has little control, a 1 percent cut would amount to roughly $165 million.

* Still, cuts have consequences…

But lean state agencies could challenge the state’s ability to compete for federal transportation funds, according to the Associated Press. It reported [yesterday] afternoon that the Federal Highway Administration sent a letter to Quinn to warn that the Illinois Department of Transportation may be too understaffed to carry out major road construction projects.

* This is heartening…

an administration source confirmed one option under consideration is borrowing from various state funds to help secure federal aid to hospitals.

The money would be returned to the special funds, and the plan would bring in about a billion dollars in federal money.

* Economic recessions have a trickle-down effect on governments. If the feds don’t step in to help states, then municipal governments, schools and the rest feel the pinch…

Granite City Mayor Ed Hagnauer said the city was starting to feel the pinch of falling car sales revenue. Cahokia Mayor Frank Bergman said he worries his village won’t be able to fund pensions if revenue drops.

Madison County Board Chairman Alan Dunstan said he expects to lay off county employees this year to cope. Mark Kern, chairman of the St. Clair County Board, said state appropriations for court probation services are dipping dangerously low.

All of them feared the state would cut or withhold payments, to redistribute money to other needs.

That’s happened before, and it may happen again.

* Related…

* 2 top Blagojevich aides out

* At Clinton hospital, late state payments now the norm

* State delays may pinch vision, dental programs

* Feds worried Illinois lacks staffing

* Feds Worried About IDOT

* Quinn: Ill. prepared to take on stimulus work

* Editorial — Ready projects

* Poshard urges Durbin to back higher education: SIU president says state needs money from stimulus bill

* Stimulus help needed for education, research

* Daley Vies For A Piece Of Stimulus In Washington

* Daley hoping to land funds for O’Hare

* New Lenox urges stimulus money for lake-water system

* Stimulus Plan: What’s In It For You?

posted by Rich Miller
Wednesday, Feb 11, 09 @ 10:41 am

Comments

I suspect we’ll continue to see a series of small cuts (the 1%, travel and equipment, etc.) as we build up to the Big Deal. I bet boards and commission will be cut somewhere.

Symbolic, true, but it helps build public support for the real pain to come.

Comment by wordslinger Wednesday, Feb 11, 09 @ 11:00 am
How can anyone miss the irony of state agencies needing to cut, when the feds are threatening to withhold funds if those cuts affect the state’s ability to deliver the federally-funded programs? Seems like the state is in a trick box here.

Comment by Six Degrees of Separation Wednesday, Feb 11, 09 @ 11:08 am
Balance will only come with drastic cuts in the budget and tax increases, obviously. Much more attention to waste, fraud, abuse will minimize the degree of the drastic measures, but drastic they will be nonetheless. Its been said that a definition of genius is clarity of mind and energy of will - Do we have such a leader?

Comment by You Go Boy Wednesday, Feb 11, 09 @ 11:28 am
The AP is reporting that the House and Senate conferees have reached a deal on a final economic recovery package. It total $790B. The Committee is meeting at 2PM our time to discuss the deal in open session. The meeting will be broadcast on C-Span.

Comment by GA Watcher Wednesday, Feb 11, 09 @ 11:50 am
It will be interesting to see who replaces Louanner Peters, who oversaw human services programs like DCFS and DHS, I believe, in addition to others. Stermer has spent his career working on social service issues, so presumably he has definite opinions about what type of changes he wants to see and who should lead them.

Changes are badly needed but I’m not sure removing
Ms. Peters alone is going to have much of an impact. These agencies need more than superficial changes.

Maybe Quinn and Stermer surprise us, as Quinn did with the VA, and appoint a young person with some energy and some new ideaas.

If not, I fear the changes will be cosmetic.

Comment by Cassandra Wednesday, Feb 11, 09 @ 12:03 pm
== Quinn said the cuts would save “hundreds of millions of dollars” but that’s not even close, according to the Associated Press… ==

So the Governor is fabricating already? or is the AP? Whom do we believe these days?

Comment by Captain Flume Wednesday, Feb 11, 09 @ 12:20 pm
When new aides or agency directors are replaced, please print their salaries. You always print what the people made who are being removed but not replacements. Will Quinn pay them the same or will they take a reduction. So far, we have not been told what the salaries are for the four he has already appointed. Same/less - what? Will he cut them back to save on his budget because some of blago’s office and agency directors really increased while some state employees have seen very little raises.?

Comment by Just the Facts Wednesday, Feb 11, 09 @ 2:29 pm
===You always print what the people made who are being removed but not replacements.===

If I do it’s because other people write about them and I paste that info into a post. I’m not all that concerned with salaries unless someone is clearly out of line.

Comment by Rich Miller Wednesday, Feb 11, 09 @ 2:31 pm
Rich, how do we know if the salaries are out of line if we don’t know what they are. State employees rely on you to help us know what is going on, it is our tax dollars too. I think I saw an article stating Governor Quinn would leave his salary at the Lt. Governor pay.

Comment by State Employees Wonder? Wednesday, Feb 11, 09 @ 3:35 pm
Read Bernie. He always lists salaries. I don’t care that much.

Comment by Rich Miller Wednesday, Feb 11, 09 @ 3:45 pm
By the way, that’s SJ-R tradition I believe.

Comment by Rich Miller Wednesday, Feb 11, 09 @ 3:59 pm
I am puzzled by the cuts to ed and higher ed construction. Of all the stimulus expenditures, these seem like no-brainers. Stimulus now from construction, and future stimulus from a better educated work force. The “jobs of tomorrow” are going to require more people get higher levels of education, not beefing up colleges and universities virtually ensures we will continue to fall behind. The other positive aspect of this type of expenditure is that it directly and immediately benefits the future generations from which we are borrowing.

I just don’t get these cuts.

Comment by Pot calling kettle Wednesday, Feb 11, 09 @ 4:22 pm
How about going over to the IDOT with your hatchet. When the ‘hiring freeze’ was implemented, IDOT (D-8) continued to hire political people in created positions or as assistants. There have been at least a dozen ‘liaisons’ who were moved into other positions (once they moved a permanent employee out) and numerous ‘created’ positions that were not necessary.

In short, there were no real technical employees hired who were capable of doing the work. IDOT needs Gov Quinn to clean up.

Comment by this voter will remember Wednesday, Feb 11, 09 @ 4:59 pm
–I am puzzled by the cuts to ed and higher ed construction. Of all the stimulus expenditures, these seem like no-brainers.==

Amen, brother (sister?). It makes you want to cry.

At a time where there is a bipartisan agreement that government has to pump money into the economy, Obama and Congress went small. We may not get another opportunity like this in our lifetimes. And think how much we could have done. Bridges, roads, schools, the ghettos.

Consider this: Tomorrow we celebrate the Great Emancipator’s birthday. In the midst of the Civil War, brother killing brother, armies freeing slaves in their wake, Robert E. Lee threatening Washington, Lincoln and Congress managed to:

==Establish the land-grant college system, an extraordinary government sponsored expansion of access to education and advancement of knowledge unsurpassed in history.

–Pass and fund the Pacific Railway Act, committing the nation to linking the Atlantic and Pacific by rail and telegraph.

– Pass the Homestead Act, eventually opening the continent by the establishment of 1.6 million new homesteads.

What will be our legacy? Vouchers for digital TV?

Comment by wordslinger Wednesday, Feb 11, 09 @ 7:46 pm