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* Illinois Statehouse News has a really good story today on how the House’s proposed budget is taking shape. Three of five committees have completed their work…
State Rep. Kenneth Dunkin, D-Chicago, who heads the budget committee on higher education, said his group made it under the House’s higher education budget goal of $2.1 billion by targeting for-profit schools through the state’s monetary award program, or MAP. […]
MAP funds were reduced by $17 million, which represents the largest cut for the higher education budget, Dunkin said. The program’s grants offer financial aid to Illinois residents who attend approved state colleges and demonstrate financial need.
General services also stayed in the black, making the largest cuts to those agencies that had a record of mismanagement based on audit reports, said state Rep. Fred Crespo, D-Streamwood, who chaired the general services appropriations committee. The agencies with records of mismanagement are Department of Revenue, Department of Commerce and Economic Opportunity and the Department of Central Management Services.
About 15 percent was cut across the board from fiscal year 2011 from the three agencies, said Crespo, who pointed to smaller cuts for all agencies in telecommunications and contractual services.
After spending hours debating individual line items, “…we realized we (couldn’t) keep nickel-diming this thing. We need to look at fundamentally how to make big cuts to really bring down that number,” Crespo said.
The K-12 approp isn’t finished yet, however…
For elementary and high school education, state Rep. William Davis, D-East Hazel Crest, expects to keep most spending flat, with most of the cuts coming from general state aid. As a result, school districts should expect 96 percent of a fully funded budget.
School transportation was the only line item that saw increased funding, Davis said.“We left the table with something to give the Republicans to look at. I do not know if they will or will not agree with this idea. That wasn’t decided when we parted company,” said Davis, who emphasized that the budgeting process for $6.8 billion was still ongoing.
* ISN didn’t have numbers for the House Human Services Committee, but the Daily Northwestern did…
The Illinois House finalized a bill to cut state funding for the Department of Human Services by $500 million to $600 million Monday, six days after Service Employees International Union Healthcare Illinois & Indiana, a group that represents health care workers in Illinois, launched its advertising campaign to advocate full funding for its Child Care Assistance Program and Home Service Program, which operate under the DHS.
“It’s not that I don’t agree with the ads,” said Rep. Patricia Bellock (R-Westmont),, a member of the House Appropriations Human Services Committee. “The bottom line is, we cannot continue to provide services and not pay the provider.”
The new bill will slash state funding to the DHS, Illinois’ largest state agency, by more than 10 percent. The House committee agreed to an across-the-board cut in order to reduce the impact on individual programs, Bellock said. It also reinstated a few programs previously cut in Gov. Quinn’s budget, such as youth prevention programs and substance abuse programs.
“Rather than a few agencies take huge cuts, we try to make it that all agencies will take smaller cuts,” Bellock said.
* And Jim Nowlan checks his budgetary crystal ball…
Whatever comes out of the legislature budgeting process will involve real cuts in people programs. There will thus be intense pressure to increase revenue — painlessly.
So expect a strong push by gambling interests to expand gaming to include a casino in Chicago and others downstate, plus slots at the tracks. This could generate $1 billion plus in license fees this coming year and maybe $500 million a year later in annual tax revenue. Increasing the cigarette tax by a buck a pack could generate $300 million a year.
And “decoupling” Illinois from a federal “bonus depreciation schedule” for industry equipment purchases could raise another $600 million. Business, which already feels the state climate unfriendly, will fight this, as it would come on top of a new 9.5 percent corporate income tax rate.
I can see foresee the legislature sending the governor a budget less than he believes necessary, which could cause him to veto it and send the legislature back into special session.
* In other budget news…
Sen. Suzi Schmidt’s district office phone wasn’t working Monday, which she attributed to the state’s tardiness in paying the bill.
Schmidt’s Lake Villa office number greeted the caller with the following recorded message: “The party you are trying to reach is not currently accepting calls at this number.” […]
Gov. Pat Quinn has proposed borrowing billions of dollars to pay overdue bills and then paying off the loans with money from the recent income tax increase.
But lawmakers — Schmidt’s fellow Republicans in particular — have resisted Quinn’s plan, saying the state shouldn’t be borrowing more money.
* The State Journal-Register has editorialized in favor of cutting pension benefits for current employees, and now grieves when one top employee - Illinois State Historian Tom Schwartz - decides to leave…
While we believe Schwartz is the perfect choice to advance Hoover’s legacy [at the Herbert Hoover Presidential Library and Museum], we noted with disappointment that the dismal state of financial affairs in Illinois played at least a minor role in Schwartz’s decision to leave.
“In the last two years, to take 36 furlough days is not fun,” Schwartz said. “It could be worse. The poor state workers in California are taking 48. But it doesn’t give one a lot of confidence about the future and discussions about changing pension systems and health-care plans are changing all the time to meet the state’s requirements. This is more stability, I think, in planning for the future.”
Schwartz was emphatic that the opportunity presented by the Hoover library job far outweighed any other factors in his decision.
But his mere mention of the less appealing terms of his employment in the last two years made us wonder: How many other professionals of Schwartz’s caliber does the state risk losing in similar fashion because of its precarious budget situation?
* Related…
* Tribune editorial: Oh, the temptation - Will a temporary Illinois tax hike become permanent?
* Adam Andrzejewski: Local tax share “welfare payment to local governments”
* SIU facing another year of financial woe
* Heartland Community College leaders urge lawmakers to fight for more funding
* Area lawmaker favors eliminating state gas sales tax
* “Illinois Is Broke” Peddles Broken Rhetoric: The class envy angle is particularly cynical, because the main reason private employees don’t enjoy the same benefits as public employees is that groups such as the Commercial Club have been so successful in destroying the labor movement. Now, they’re trying to turn the impoverished lower-middle class they helped create against one of the last remnants of the middle class, all so the upper class can pay less taxes.
posted by Rich Miller
Tuesday, May 10, 11 @ 6:39 am
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Agency mismanaged. How about cutting the Managers?
Comment by Bucko Tuesday, May 10, 11 @ 6:45 am
“Rather than a few agencies take huge cuts, we try to make it that all agencies will take smaller cuts,”
Wow…someone implements an across the board cut.
Hopefully the sun rises tomorrow.
Comment by Leroy Tuesday, May 10, 11 @ 7:18 am
So, they make the agencies and and advocates talk about outcomes - get them numbers, prove why their programs produce results - so they can make the tough choices what are the right things to fund, and they take a pass and just do an across the board cut of 10% for human services? Are you serious? I get that they didn’t want to make hard decisions, but that is a huge cop-out.
Comment by Montrose Tuesday, May 10, 11 @ 7:24 am
Take 10% from DHS and watch mental health services go down the tubes. How will it look for state government when group homes for people with developmental disabilities start closing? Are homeless Downs Syndrome people somewhere on that To Do list? Or is the plan to start moving people in group homes back into the state facilities so Quinn can make the unions very happy?
State facilities just happen to cost at least twice and usually three times as much as a community placement. But hey, then there are more union employees who make a whole lot more than the ones in the community agencies. More people for our pension system. And more people for Quinn to make deals with so he can get their support.
I’m so proud of Illinois. We are ranked #50 in the United States for services to people with disabilities. Mississippi finally has bragging rights that someone else is in last place. Any other personal bests you guys in Springfield want to go for?
I am so disgusted with state government, the words I want to use would get me banned for life.
Comment by Aldyth Tuesday, May 10, 11 @ 7:33 am
RE: Illinois Is Broke peddles broken rhetoric- “The class envy angle is particularly cynical, because the main reason private employees don’t enjoy the same benefits as public employees is that groups such as the Commercial Club have been so successful in destroying the labor movement. Now, they’re trying to turn the impoverished lower-middle class they helped create against one of the last remnants of the middle class, all so the upper class can pay less taxes.”
Nary a truer word has been spoken
Comment by PublicServant Tuesday, May 10, 11 @ 8:13 am
Wasn’t part of Bill Brady’s platform across the board cuts? People here said it was a bad idea then, do they say the same thing now?
“After spending hours debating individual line items, “…we realized we (couldn’t) keep nickel-diming this thing. We need to look at fundamentally how to make big cuts to really bring down that number,” Crespo said.”
Apparently there was plenty of time to nickel and dime the taxpayer when these programs were created, but not when the budget is in arrears and we need to control spending.
“As a result, school districts should expect 96 percent of a fully funded budget.”
Last year, the budget was more than 4% deficit, correct? Way more.
So, we see the GA using an inflated out of balance baseline which will still result in REAL deficits (again) in this year’s budget, even with the largest income tax increase in state history. Luckily, the governor proposes more borrowing to fill the gap, which it still doesn’t balance the budget.
Pointy headed government elites say that inflation is the justification to spend more money than last year (Those prices on the things we couldn’t afford last year keep going up!), while also saying that the status quo in programs must be maintained (can’t cut anything because some special interest, especially children and union workers may possibly suffer some imaginary damage).
Crespo is right in one way, you can’t nickel and dime this problem away. Small cuts (and in some cases increases) cannot bring the budget into balance. Any program has an amount of overhead that doesn’t change whether you are working eight or eighty hours. These overhead costs are virtually immune to change as long as the program exists. The best way to save money is to eliminate programs. This is when real money gets saved. No more recurring costs. No more non-recurring costs. No more overhead.
What programs? How about AllKids? This new DREAM act proposal? Don’t do it.
Obama always says that he wants to go at the budget with a scalpel, not an ax. His approach does a lot to explain the enormous increase we see in spending at the Federal level. When logging, you can clear cut a stand of woods, or more selectively clear the trees. When done correctly, both methods improve the strength of the woods. But both methods eliminate trees. And both methods use an ax.
Comment by Cincinnatus Tuesday, May 10, 11 @ 8:19 am
===Wasn’t part of Bill Brady’s platform across the board cuts? People here said it was a bad idea then===
It was a bad idea because Brady said it would balance the budget and most of us knew it wouldn’t.
Comment by Rich Miller Tuesday, May 10, 11 @ 8:24 am
===Pointy headed government elites===
Cinci, can you make an argument that doesn’t use the word elite as an attack on someone whose opinion you disagree with? You sound like Sarah Palin half the time. By your definition, you are one of the elitists you pretend to hate. Give it a rest.
Comment by 47th Ward Tuesday, May 10, 11 @ 8:28 am
47th,
If the dunce cap fits…
Comment by Cincinnatus Tuesday, May 10, 11 @ 8:31 am
Painful cuts were the implicit promise in the tax increase. Now let’s finish the job, grow up, bite the bullet, and refinance the debt that we owe folks.
Comment by wordslinger Tuesday, May 10, 11 @ 8:46 am
Word,
Given the mistrust in Springfield and among the Illinois electorate, which comes first, big spending cuts or borrowing? I believe the GA has to cut first to build the consensus they will need to support borrowing. What’s your take?
Comment by Cincinnatus Tuesday, May 10, 11 @ 8:56 am
Cincy, we’re a republic; the “electorate” put them there to do a job. I’ll leave the “mistrust” and the moaning and groaning and whining and victimization complex to A.M. radio and Fox News.
I think most responsible adults can do the simple math. You owe people money, and you can borrow at a lower rate than you’re paying now, you refinance and get square.
I don’t like it, but, then again, as a grownup, I’ve already done about ten thins this morning that I didn’t want to do. But I did them anyway, and somehow I’ll muddle through another day above ground.
Comment by wordslinger Tuesday, May 10, 11 @ 9:09 am
- When logging, you can clear cut a stand of woods, or more selectively clear the trees. -
So this is what you had in mind for selling off the state parks.
- I believe the GA has to cut first to build the consensus they will need to support borrowing. -
I know! If only we could get those darn Republicans on board with the cuts we could have that consensus.
Comment by Small Town Liberal Tuesday, May 10, 11 @ 9:09 am
If I recall correctly, wasnt the State Opperated facilities getting an increase in funding this year, and cut’s proposed to the service providers. Is this a cut across both/and all of DHS.
Comment by Throwing Stones Tuesday, May 10, 11 @ 9:17 am
how does the Daily Northwestern have the more detailed numbers?
Comment by Robert Tuesday, May 10, 11 @ 9:30 am
Painful cuts were the implicit promise in the tax increase. Now let’s finish the job, grow up, bite the bullet, and refinance the debt that we owe folks.
Couldn’t agree more. Make the cuts, borrow the money short term to pay back bills, and stick to a no growth budget for the next four year and have a prayer of reducing the tax increase then. Consider gaming expansion especially for horse tracks (create some jobs)and go home and create NO new programs. It’s time to face reality.
Comment by downstate hack Tuesday, May 10, 11 @ 10:19 am
I agree with Bucko - does it make sense that Directors Hamer and Ribley should be re-appointed if the Legislators cut their Agency’s budget because an audit pointed to “mismanagement”? Hopefully the Senate will consider this when it comes to the confirmation hearings.
However, it doesn’t mean all the managers are bad. Some things are simply out of their hands because those at the top don’t allow those in the middle to do what it is they are supposed to do!
Comment by Both Sides Now Tuesday, May 10, 11 @ 10:21 am
Wordslinger
Painful cuts were part of the implicit promise in the tax increase. Well I completely agree. I know I will not like all the cuts but it still has to be done. I also believe after we make these cuts we will need to refinance the debt so we can pay those who are waiting to be paid and also save millions by lowering the amount of interest we are paying.
Comment by Fed up Tuesday, May 10, 11 @ 11:21 am
I agree with Hack,,,,, painful cuts are a reality at every level of government, Federal, State, and Local. I can’t fathom where we would be without the $6-$7B tax increase.
Both sides know this is going to hurt but if many of the State’s vendors go under, services won’t be provided, replacement services (if they can be found) will be more expensive, vendor unemployment will skyrocket and the State will be hung with higher unemployment benefits. Vendors and non vendors will be faced with higher unemployment taxes making the effect of the cuts even worse as unemployed people don’t spend discretionary money, they have none.
This is tough folks but the vendors need help to survive. The only way out is targeted budget cuts along with revenue enhancement measures.
If it comes from gaming revenues (a tax on gamblers), cigarette smokers, so be it. If gamblers and smokers with to exercise their rights and participate in these activities, it will cost it is their decision.
Pass a budget, borrow to pay vendors, particularly Medicaid vendors where we are leaving hundreds of millions in federal matching funds on the table, and the economy will grow organically.
Comment by Bob S Tuesday, May 10, 11 @ 11:38 am
Someone in the media called out the civic federation holy smokes,this has got to kill the trib/suntimes editorial board.
Comment by foster brooks Tuesday, May 10, 11 @ 12:30 pm
Is Dunkin CRAZY? You don’t attack the for-profit schools by cutting MAP. That’s cutting $5,000 out of a low-income student’s tuition payment and forcing them to drop out or take out a student loan they’ll be paying off until retirement.
Dunkin should check out how many of those MAP grants go to public universities in Illinois.
Comment by Dirty Red Tuesday, May 10, 11 @ 1:09 pm
I think the argument against MAP grants going to for-profit colleges is that the tax money used for MAP grants goes to the bottom lines of private sector institutions. If the for-profits are concerned about low-income students attending their institutions, then their investors should consider using money from their profits and not from taxpayers.
Comment by Anonymous Tuesday, May 10, 11 @ 1:35 pm
“Dunkin should check out how many of those MAP grants go to public universities in Illinois.”
Oh please, proprietary institutions low graduation rates and high default rates. All they care about is getting students so the can load them up with grants and loans to fill their coffers.
Comment by Anonymous Tuesday, May 10, 11 @ 2:29 pm
The Human Service appropriations amendment is now available - http://www.ilga.gov/legislation/97/HB/PDF/09700HB3717ham001.pdf
Comment by Montrose Tuesday, May 10, 11 @ 2:34 pm
with enough weeping and wailing at the end of session, perhaps the General Assembly will proceed with the second step in modernizing our revenue system — broadly expanding the sales tax onto services. We are fourth lowest in the country in applying this user fee tax — I call it that because it is not a general tax on everyone, just those using that particular service that day such as oil changes, plumbing or air conditioning repair, computer repairs, or non-materials costs involved with replacing a roof on a house or business.
Applied liberally, this should raise more than the income tax increase.
Comment by Capitol View Tuesday, May 10, 11 @ 3:59 pm
10% across-the-board cuts simply reward the agencies that have padded the most fat into their budget over the years and penalizes those with the leanest operations.
Comment by Yellow Dog Democrat Tuesday, May 10, 11 @ 5:39 pm
=== You don’t attack the for-profit schools by cutting MAP. That’s cutting $5,000 out of a low-income student’s tuition payment and forcing them to drop out or take out a student loan they’ll be paying off until retirement. ===
Or transfer to U of I.
Comment by Yellow Dog Democrat Tuesday, May 10, 11 @ 5:40 pm
@Capitol View -
Unless it is revenue neutral and used to fund a partial rollback of the income tax increase and the sales tax rate, its not happening this year.
A Constitutional amendment for a graduated income tax on the 2012 ballot is more likely.
Comment by Yellow Dog Democrat Tuesday, May 10, 11 @ 5:51 pm
MAP grants are essential to making sure that there is access and choice in higher education for students of need. The private colleges and universities should be a part of that because there simply isn’t the capacity to educate our population at the public universities.
There are more students at Illinois private non-profit colleges and universities than there are at the public universities, it has been that way for 5 years now.
The private non-profit colleges and universities contribute more than $900 million of student aid from their own resources to students of need every year - that is more than 6 times the amount of state MAP aid that helps those same students.
MAP grants are an investment in a student’s education, in human potential, in the opportunity for a student to advance themselves. If we eliminate need-based student aid, we’re essentially saying that only those who can afford a college education should have one. That’s not how we feel as a state.
As a state we value education and we value opportunity, that’s what the MAP grants about. Relatively speaking the $400 million program is such a small investment it astounds me that the House would consider cutting it regardless of how they do it.
Comment by Paul Tuesday, May 10, 11 @ 5:55 pm
We are cutting benefits to the most vulnerable populations in Illinois while failed political candidates (and their children) keep getting hired to well paying state jobs. There’s some kind of serious disconnect happening when individuals making 6 figures at the taxpayers expense cut benefits for people living on nothing more than social security!
Comment by Mike Huntoon Tuesday, May 10, 11 @ 6:18 pm
@Anonymous 1:35: I wish that I thought the for-profits would step in and make up the difference for low-income students whose MAP grants are cut. Unfortunately, it seems more likely they’ll just take out private loans with lousy rates–esp. if they’re partway through their program at a school.
@Anon 2:29: May be true for the bigger pop. of for-profits, but the nine for-profits that are in MAP have grad rates and default rates comparable to any of the publics and non-profits that still have enrollment open for fall. Better, in many cases.
@YDD: U of I might be an option NEXT year for those lucky enough to get a seat, but enrollment at most IL universities is closed for fall. With the publics having cut the size of their entering classes and/or raised entrance requirements in recent years, a lot of average students are excluded. The students at for-profits are also more place-bound and poorer than students at the universities (especially students at UIUC), and the majority are older, working adults. U of I is not an option for many of these students. (A community college might be, but then we get back to the discussion about grad rates and default rates.)
The discussion about which schools’ students should get MAP is worth having–hopefully based on more-than-superficial understanding of the program. It sounds like an easy choice when you just say “cut for-profits from MAP.” It’s less attractive when you understand that it means, for this fall, the House would pull need-based grants from several thousand students with average incomes in the low $20s who may not have (m)any good alternatives for continuing their education and improving their lives and the lives of their families.
Comment by Plain Jane Tuesday, May 10, 11 @ 6:57 pm
@plain jane- eliminate the $50 million ayear tuition tax credit and we can put all that MAP money back and then some, or atleast means test it.
Again, “budgeting for results” without looking at tax expenditures is simply nuts.
Comment by Yellow dog democrat Tuesday, May 10, 11 @ 8:49 pm