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* What a freaking mess…
The budget [which passed yesterday] relies on $3.5 billion in borrowing to help pay state worker pensions. At the same time, the budget acknowledges that more than $3 billion in payments owed to various providers of state services will be carried over into the new budget year.
More…
Still leaves a spending hole of as much as $5 billion for the full year, which lawmakers and Quinn will have to address later in the year.
The alleged bright side…
“It does avoid meltdown … (and) it avoids a tax increase,” Radogno said.
I suppose that depends on your definition of “meltdown.” There are steep cuts in spending included in this thing…
Quinn’s office said that under the new budget, the General Revenue Fund - that is, the money controlled by Illinois officials and not simply a transfer of federal funds - would total $26 billion. That’s down from $30 billion in the previous budget.
More…
What the budget deal will not do is address the state’s multibillion-dollar backlog of unpaid bills. In fact, the spending plan might even create longer payment delays for providers that don’t receive extra federal stimulus funds for Medicaid reimbursements.
The state will maintain payment cycles for providers such as hospitals that capture extra federal stimulus funds. That does not include pharmacists or some grant-funded human services, however.
Sen. Jeff Schoenberg, an Evanston Democrat, said the longer-term structural deficit will continue to plague state-funded services. “One thing that we’ll know with absolute certainty is that all of the hospitals, nursing homes and community-based health and human service providers will continue to experience severe cash flow problems,” particularly as the economic downturn makes it harder for them to access lines of credit, said Schoenberg, who said he’s working on two backup proposals if the borrowing schemes don’t pan out as hoped.
And it all adds up to this…
That means unless lawmakers revisit the budget in the coming months or there’s an economic turnaround of gigantic proportions, there’ll be yet another massive hole in next year’s spending plan.
And maybe this…
Cullerton predicted lawmakers will have to reconsider raising taxes by early next calendar year.
“We will come to the end of the line,” he said.
Mark Brown isn’t convinced…
But with an election looming, it’s hard to foresee any profiles in courage emerging by then either.
* Brown adds this…
Civic Federation President Laurence Msall warned me Wednesday that Illinois is already in worse financial shape than California, which so far has been the poster child for a state government run off the tracks.
At least Calfornia has started to make some of the tough decisions, Msall said.
In Illinois, we’re making matters worse by postponing them.
California, by the way, was hit with another major downgrade yesterday…
Moody’s Investors Service downgraded California’s general-obligation bond rating to Baa1 from A2, citing the state’s ongoing political impasse and its reliance on IOUs to pay bills. It was the second two-notch downgrade this month after Fitch Ratings issued an identical drop last week. […]
Moody’s said in a statement that its downgrade “reflects the increased risk to the legally or constitutionally required payments (’priority payments’) as the state deadlock continues and the controller has begun to make certain payments that are not legally or constitutionally required to be paid on time (’non-priority payments’) with IOUs.”
Great.
* Our budget-related quote of the day…
“Yes, I think I’m doing a fine job,” Quinn said.
Even supporters held their noses as the revamped spending plan was introduced in the House, where Democrats failed to get a budget during the regular session.
“That’s seven years of running this state. Those of you on that side of the aisle ought really to be proud of what you’ve done in past seven years,” State Representative Bill Black (R-Danville) said.
After his fiery speech, though, even Black and many other Republicans voted for the budget.
Instead of dictating spending line by line, lawmakers largely decided to let Quinn decide which programs should be funded.
“We have essentially made him king of Illinois,” [Sen. Donne Trotter, D-Chicago] said.
* The governor, however, was mostly unresponsive last night…
After saying he’d have to lay off as many as 2,600 workers if an income tax hike had passed, Quinn refused to be pinned down on how many government employees would be pink-slipped as a result of the budget the House and Senate presented him. He also was cagey when asked about possible state facility closures.
…Adding… Third runner-up…
“This is the most responsible thing to do,” added state Rep. Roger Eddy, R-Hutsonville.
* Related…
* Budget features
* Budget deal reached; workers to be paid
* Workers who missed payday will get checks today
* Illinois lawmakers approve a budget
posted by Rich Miller
Thursday, Jul 16, 09 @ 10:10 am
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“King of Illinois” that has to be the quote of the year.
Comment by Third Generation Chicago Native Thursday, Jul 16, 09 @ 10:15 am
Just one word can encompass how I feel right now-disgusted. If I hear one more legislator on either side of the aisle in the Senate or the House, or the Governor say, “It’s not my fault, I tried ________ (insert line of bull there)” I will lose it. I told one woman legislator yesterday that it WAS her fault, along with all the rest, because she and the others are way more concerned about re-election and campaign coffers than anything else. She wasn’t happy, and neither was I, as I sat there unpaid thinking about finding a new job.
Comment by My Opinion Thursday, Jul 16, 09 @ 10:16 am
–What the budget deal will not do is address the state’s multibillion-dollar backlog of unpaid bills. In fact, the spending plan might even create longer payment delays for providers that don’t receive extra federal stimulus funds for Medicaid reimbursements.–
If I recall correctly, both Cullerton and Quinn made shortening the payments cycles top priorities in their first speeches in their new positions.
I guess they tried. But as a citizen and taxpayer, it’s very embarrassing that my state is a chronic deadbeat.
Comment by wordslinger Thursday, Jul 16, 09 @ 10:18 am
So…I guess all us social service orgs will be seeing everyone same place, next year? Yeah? Nice.
Comment by ding Thursday, Jul 16, 09 @ 10:23 am
Dude,define “Fine Job”.
Comment by Daily Fatwa Thursday, Jul 16, 09 @ 10:23 am
Quinn has shown to be as feckless and feeble as the GA, who at least have an excuse for their impotency.
We knew Blago was a sociopath, and could justify our representatives impeding his agenda. Not so with Quinn, who appears to lack the savvy and leadership capabilities needed for the position.
Any glimmer of hope for a more accountable and responsible state government that accompanied the promotions of Quinn, Cullerton, and Radogno has quickly evaporated. Shameful.
Comment by The Doc Thursday, Jul 16, 09 @ 10:24 am
Think again, Quinn. You are worse than Rod
Comment by Bill Thursday, Jul 16, 09 @ 10:33 am
How about that: Blago’s long gone and it’s about the same, probably worse, than before.
Vote ‘em all out and let’s start from scratch. We need political leaders who are concerned first and foremost about IL and its’ citizens and taxpayers.
Comment by sal-says Thursday, Jul 16, 09 @ 10:34 am
I’ve never seen a larger group of chickens in my life as the GA and this Governor. All they have done is put us in a deeper hole that will take up to our great-grandchildren to maybe see the light of day.
Comment by Interested Observer Thursday, Jul 16, 09 @ 10:35 am
As we have discussed this morning on Team America’s blog, senator bond, who will never be our congressman, had his fundraising numbers come out and in the words of a democrat blog they weren’t pretty.
“For the Dems, Michael Bond (IL-10), Charlie Justice (FL-10), Paula Flowers (TN-03), and Bill Hedrick (CA-44) in particular will need to step up their game.”
Half year only 84 k banked. Seals was killing it at this time in 07 and he didn’t have the 3rd worst state government in the country to answer for nor a blago trial ongoing in the media.
http://www.swingstateproject.com/diary/5281/house-2q-2009-fundraising-roundup
Also numbers on there for other races, and a well done to the liberal blogosphere.
Comment by Shore Thursday, Jul 16, 09 @ 10:37 am
Worse than California eh?
For all the wacky things that California does,the public often gets involved and votes people out of office. No such luck here. They all should be impeached..now
Comment by Hank Thursday, Jul 16, 09 @ 10:37 am
In my mind this:
“Madigan, who also is state Democratic chairman, has perceived that during a recession, an anti-incumbent, anti-tax mood may prevail in next year’s elections.”
is the biggest conflict of interest in the state of Illinois.
Rich has said many times that Madigan’s biggest concern is keeping his majority.
Comment by 618er Thursday, Jul 16, 09 @ 10:40 am
It is quite funny to me that the bill they amended to insert the budget language is: SB1216
$DEAF AND HARD OF HEARING COMM.
Anyone else catch the irony in that? A very proper description for many legislators there.
Comment by this old hack Thursday, Jul 16, 09 @ 10:40 am
Shore, please knock it off. Not sure why you feel the need to insert your propaganda on a completely unrelated post.
Comment by The Doc Thursday, Jul 16, 09 @ 10:44 am
Famous Disasters:
1.) Titanic
2.) Chicago Cubs
3.) Rod Blagojevich
4.) Illinois Democrats Control Entire State
5.) Michael Jackson’s “This Is It!” concert tour
6.) Pontiac Aztek
7.) USSR
8.) Cap and Trade Legislation
9.) US Metric Conversion
10) 1975-1982
11) The Starr Report
12) Enron
13) Illinois State Fair Concert Lineup
14) Alan Keyes US Senate campaign
15) Senator Roland Burris
16) Cousin Oliver - “The Brady Bunch”
17) Cadillac Cimarron
18) The Macarena
19) Mayor Jane Byrne
20) Betamax
Comment by VanillaMan Thursday, Jul 16, 09 @ 10:45 am
This is only the opening pitch kids. This budget mess ain’t going away and will be tougher the longer they put it off. The GA is only concerned with getting re-elected. No way do I think they’ll pass an income tax hike the closer they get to election, especially if economy still in the basement. What an absolute disgrace!
Comment by Merit Comp Slave Thursday, Jul 16, 09 @ 10:48 am
Daily Fatwa-
“Yes, I think I’m doing a fine job”
As in Larry Fine.
Comment by Six Degrees of Separation Thursday, Jul 16, 09 @ 10:51 am
They worst thing is that the mass media is publicizing this new budget as a great thing for IL. Now any support we had gained from people outside of the Human Service field has been lost becuase they thing all the problems have been solved.
Comment by Central IL Thursday, Jul 16, 09 @ 10:53 am
It used to be that the during their two year term that they would legislate during the first year and do nothing their second year so as not to hurt their re-election chances. Now, especially with the earlier primary, they are scared to do anything of substance either year. So what happens next year? They still can’t short the pensions. There will be all this new debt service. Will they expand their bill payment cycle to three years? No stimulus. They (or should I say we?) are really screwed next year. It will get worse every month. A 5%personal income tax rate will not be enough to solve the deficit in a year or two. 7%??8%??9%?
Comment by Bill Thursday, Jul 16, 09 @ 10:56 am
The plan is written. Blame Quinn for any cuts he has to make now (not much of a king) and then raise taxes after they know the possible opposition.
Comment by Niles Township Thursday, Jul 16, 09 @ 10:59 am
“It does avoid meltdown … (and) it avoids a tax increase,” Radogno said. After reading that in today’s SJ-R, I wish that I was able to vote against the Senator in her next election. All this budget means is that instead of getting a big tax increase, we’ll probably get a HUGE tax increase whenever the GA finds their backbones & decide to vote it in.
Comment by Cheesehead Girl Thursday, Jul 16, 09 @ 11:01 am
So, let’s just say it, Illinois is worst in the country. Very depressing. Worse than Calif and worse than AL and Mississippi.
Comment by state employee dreaming of Vermont Thursday, Jul 16, 09 @ 11:01 am
“It’s the most responsible thing to do,” — Rep. Eddy. How is it “responsible” to borrow up the wazoo to pay operating expenses? Is that what a fiscal conservative does?
Instead of raising revneues and cutting expenditures to balance the budget, we’re doing $3.5 billion in short-term borrowing, which we start paying back with interest next year. Five years from now we’ll still be paying — with interest — for services provided this year. And this is being responsible, according to the party that touts itself as fiscally conservative?
Comment by reformer Thursday, Jul 16, 09 @ 11:03 am
I agree with all above comments and I wish they could all be re-called and/or impeached NOW.
Except for Meeks and Steans who have shown some leadership and integrity.
Comment by state employee dreaming of Vermont Thursday, Jul 16, 09 @ 11:03 am
–How is it “responsible” to borrow up the wazoo to pay operating expenses? Is that what a fiscal conservative does?–
I’m with you. The Main Street fiscal conservatives I grew up with would be appalled. Stiffing vendors for months was not considered conservative either — it was considered shameful.
Comment by wordslinger Thursday, Jul 16, 09 @ 11:06 am
Radogno spins: “It does avoid meltdown … (and) it avoids a tax increase”
Miller responds: “I suppose that depends on your definition of ‘meltdown.’”
It also depends on your definition of “avoids” since these two things are now much more likely to develop within the next year or so.
Comment by Rob_N Thursday, Jul 16, 09 @ 11:09 am
This blog is very QUIET from the defenders of this bill passing. Where are you? I’d like to hear you defend your NO TAX INCREASE positions??
Comment by state employee dreaming of Vermont Thursday, Jul 16, 09 @ 11:09 am
I think Senator Radogno meant “delays” a melt down and tax increase.
It’s all about HB174 and pension reform. Quinn needs to get behind both as the two pillars of his campaign because whether he likes it or not, the 2010 election is going to be a referendum on the income tax. Quinn needs to chuck the polls and focus only on doing the right thing.
If he puts the state’s interest ahead of his own political interest, I think he’ll be rewarded. If not at the ballot box, then certainly in the history books.
Do the right thing Governor. The campaign starts today.
Comment by 47th Ward Thursday, Jul 16, 09 @ 11:13 am
Radogno could’ve more accurately said that this budget “postpones” either a meltdown or a tax hike while making one or the other more likely.
Comment by reformer Thursday, Jul 16, 09 @ 11:14 am
===
Where are you? I’d like to hear you defend your NO TAX INCREASE positions??
===
LOL. Absolutely. Folks should be *celebrating* now. Instead, people want levels to stay the same or increase but are not willing to pay for it. In fact, we’re about to see a significant amount of layoffs — plus service providers are closing down right and left.
Is this the public sector “correction” that everybody is yearning for? If so, let’s talk a bit more why this correction is a great thing for the state of Illinois.
Comment by Macbeth Thursday, Jul 16, 09 @ 11:14 am
Quinn is doing a fine job considering the job is to clean the mess left to him by Blago and Madigan.
Comment by phil Thursday, Jul 16, 09 @ 11:20 am
We were just told that direct deposits of paychecks were not going to be made. They are sending paper checks instead. So no pay today for many of us. Doesn’t seem like a “fine job” by anyone to me.
Comment by State Employee Thursday, Jul 16, 09 @ 11:34 am
If they wait until january to talk tax increase, unless they make it retroactive, you may lose a lot more needed revenue before an increase is passed and becomes effective. if the effective date is delayed, this will require an even larger increase to make up the shortfall.
also this does not boad well for a governemnt operated health care system
=== “One thing that we’ll know with absolute certainty is that all of the hospitals, nursing homes and community-based health and human service providers will continue to experience severe cash flow problems,” ====
Comment by Ghost Thursday, Jul 16, 09 @ 11:52 am
“It does avoid meltdown … (and) it avoids a tax increase,” Radogno said.
So the community service providers (who are just now getting money for February 2009 services) can look forward to moving from a 4-5 month payment delay to a 6-7+ month delay with fewer dollars. But of course that is no problem. The closure cycle will simply speed up. That Progress Illinois is going to get pretty crowded. Any legislator have their expense accounts whacked yet?
Comment by zatoichi Thursday, Jul 16, 09 @ 11:54 am
“Yes, I think I’m doing a fine job,” Quinn said.
Yep - you’re doing a heck of a job Brownie…er..Quinn.
More incompetent than California and more corrupt than Louisiana. We’re number one! We’re number one!
Comment by NimROD Thursday, Jul 16, 09 @ 12:02 pm
One thing that will be interesting to watch for over the next few months is the spending philosophy.
Finally, total approved expenditures is known and it is less than last year.
One perspective would be to cut back a bit in all areas, make that last, and get ready to fight the battles for next year.
The other would be to spend as much as possible as soon as possible at last year’s levels or more to put more pressure on the necessity to address revenue at mid-year.
Comment by Balance Thursday, Jul 16, 09 @ 12:11 pm
Rich: A week or two ago you said Quinn should get a Nobel prize if he is able to bring everyone together to pass a balanced budget without a tax increase. It is quite a shame you are now unwilling to bestow this on him.
Comment by Sam Spade Thursday, Jul 16, 09 @ 12:21 pm
how about they raise taxes but also demand no new programs and no member initiatives. pay down this ridiculous situation before any new spending. just a thought.
Comment by always anonymous Thursday, Jul 16, 09 @ 12:22 pm
Is there a nobel prize for failing to decrease the unnatural size of Illinois government?
Comment by David Jenkins Thursday, Jul 16, 09 @ 12:24 pm
sam spade, I said they’d deserve a Nobel Prize if they could wrap the budget up this week. It’s obviously not finished yet.
Comment by Rich Miller Thursday, Jul 16, 09 @ 12:24 pm
The entire process is being driven by the far right of the Republican Party who will wage jihad against any income tax increase. Therefore no one has testicular fortitude to address serious budget issues which require income tax restructure as part of solution. How ironic that by never winning elections the Hard Right is controlling fiscal policy.
Comment by Abe's Ghost Thursday, Jul 16, 09 @ 12:26 pm
Rich: What, in your opinion is outstanding vis a vis the budget?
Comment by Sam Spade Thursday, Jul 16, 09 @ 12:48 pm
On 7/14, I was notified by a Blago appointee (on the remaining fumo list and boss’ boss) that I was laid off. Current boss was appointed a year ago, same title and she was on the first fumo list and has another income from a different government pension. I have no political ties (hard to believe?) and have been there over 35 years so was told ,of course, I had the option to retire. this is not Quinn’s fault, he did not pick the layoff people, but it supports the comments in question of the day. Cruel I should say?
Comment by forgottenb4gone Thursday, Jul 16, 09 @ 12:53 pm
To “ding” -
You will be at the same rallies next year and many other years if these legislatures don’t realize they cannot use vulnerable individuals to gain their points for re-election.
As for me, I will be in the unemployment line due to this fiasco.
Comment by One Of The Many Thursday, Jul 16, 09 @ 1:18 pm
quinn was quoted as saying that the budget he signed yesterday was “progress for illinois” amogst other postive things. really? so, why did he spend an entire two months after the may 31st budget deadline railing against the very type of budget that signed yesterday? for two months he had nothing but scorn and condemnation for the idea of a temporary budget and anything that funded at less than 100 percent.
mike madigan has made it clear that the reason why he left blago alone, in terms of not trying to run someone against him in 2006, was because he didn’t want a republican to possibly win the governor’s race. he has in effect stated that he doesn’t want to be bothered with any republican governors ever again, while he is speaker.
but, unless another democrat is offered as an alternative to quinn, whose 30 year reformer and honest/good government reputation and credibility has seriously eroded while he has been governor, a republican can and will likely win.
speaker madigan, why take the chance/risk? why not have hynes run? the republicans won’t be able to attack hynes as much as they can quinn. kirk dillard was right, assuming he is the republican nominee for governor he can beat quinn.
if the republicans are smart, they’d better get behind dillard because he is the only republican who can attract moderate democrats and independants which are key to winning.
yes, illinois is a blue state. but, what the media fails to realize in making such a broad general statement/observation is that it is soft blue, no hardcore blue. an appealing republican can still win in this state.
Comment by Will County Woman Thursday, Jul 16, 09 @ 1:39 pm
@ state employee dreaming of Vermont - Thursday, Jul 16, 09 @ 11:01 am:
miss, al, and california all have republican governors. maybe illinois needs a republican too?
Comment by Will County Woman Thursday, Jul 16, 09 @ 1:43 pm
does anyone know how long it will take to get all the proposed layoffs (2600) out and those on a bumping list…… everyone in my office is stilling worried about their jobs which is making the office environment just so much fun to work in…..
Comment by springpatch87 Thursday, Jul 16, 09 @ 2:03 pm
What’s really astounding is that this “smoke and mirrors” budget/fiscal crock of _ _ _ _ couldn’t get passed before May 31. Madigan and Quinn are the primary culprits, with the entire State House of Representatves earnng a collective nomination as the best supporting cast.
Although Quinn should not be blamed for the terrible fiscal legacy he inherited from Blago, I still can’t characterize the outcome as fine. Oh Lord,Oh Lord his intentions were good, so don’t let him be misunderstood.
Comment by Captain America Thursday, Jul 16, 09 @ 2:37 pm
@WCW
I’d like to aim higher than the other lowest to the bottom in the U.S with corruption and problems. No Republicans nor Democratic governors for me. Only third party or independent one.
Comment by state employee dreaming of Vermont Thursday, Jul 16, 09 @ 3:21 pm
We need new brokers at the capitol. Cullerton was a nice addition, Meeks is maturing, and I was eager to see Radogno pair up with Cross. But “It does avoid meltdown … (and) it avoids a tax increase,” Sen. Radogno…Really? Or the other R tagline, “you…ought really to be proud of what you’ve done in [the] past seven years,” Rep. Black. You can pray as hard as you want, but that won’t win you a majority or the Gov’s office.
I do think state R’s made strides this year, but please take it up a notch starting in veto session…i.e. have a sensible tax and cut plan ready (the Sen. D’s started a blueprint and yesterday was not the end of that issue); maybe steal some of Sen. Meeks’ education initiatives.
I am hardcore blue, but they (D’s) won’t get better until you (R’s) do.
Comment by COPN Thursday, Jul 16, 09 @ 3:29 pm
[…] The unemployment rate in Illinois for the month of June was 10.3%, and our great state had to borrow federal money to replenish its unemployment insurance fund. The “budget” that was passed on July 15, 2009 will draw on $3.5 billion in additional borrowing to pay state employee pensions and will carry over $3 billion in debt to vendors to next year’s budget. There is a $5 billion dollar deficit that “lawmakers” and the governor have decided to deal with at a later date. […]
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