Capitol Fax.com - Your Illinois News Radar


Latest Post | Last 10 Posts | Archives


Previous Post: Decatur community college reduces staff by 25 percent
Next Post: Group health insurance program is in very big trouble

Just because we have checks doesn’t mean there’s money in the account

Posted in:

* Tony Arnold at WBEZ

A downstate transit agency is suing the state for unpaid funds in a case that could have big implications for public transit agencies throughout Illinois.

The River Valley Metro Mass Transit District manages a fleet of buses around Kankakee, including a route from Bourbonnais to Midway Airport in Chicago. Rob Hoffman, managing director of River Valley Metro, said bus service around Kankakee has been suspended on Sundays and holidays to save money during the budget impasse.

River Valley Metro’s is now the latest in a string of lawsuits filed against the state asking the judicial branch to mandate payments even though no full budget has been approved by the legislature and governor. […]

When River Valley Metro filed its lawsuit in late February, the state owed it $1.27 million. Records from the comptroller’s office show River Valley Metro was paid that money on March 23.

But another payment request was filed on March 16, and River Valley Metro is still waiting on $829,278 from the state, according to the comptroller’s office.

The comptroller’s office has been treating the transit district as a hardship case, so they’re pretty much current on their vouchers. As with everything else, this is a triage operation. You hand out enough cash to keep as many vendors alive as you can.

* A set amount of money is supposed to be transferred from the General Revenue Fund (the state’s “checkbook”) to the Downstate Transportation Fund every month. But because the state’s revenues are dwarfed by its expenditures, that hasn’t always happened going back maybe a year. As of today, the comptroller has $79.1 million in pending vouchers for that fund, but the fund only actually contains $264,038.16.

The lawsuit is here. The plaintiffs essentially want the judge to force the state to pay into that transportation fund as required.

But the only way to truly resolve this is with a real budget. And that increasingly looks unlikely.

* For instance, this is from CBS 2

A top Senate Democrat says the unthinkable is possible: Illinois may go two more years without an agreement on a Budget.

Illinois state Sen. Don Harmon is President Pro Tem of the Senate.

The Democrat from Oak Park notes that the state’s backlog of unpaid bills grows by the day, and state universities and many local service agencies are suffering. But he’s not seeing any real progress to resolving the two-year budget stalemate.

“It is absolutely devastating, but I am trying brace myself and others for that possibility.”

Naturally, he blames Republican Gov. Bruce Rauner, questioning whether really wants a “grand bargain” compromise.

This is the second time in a couple of weeks that Harmon has said this. I checked in with him about it today and he said “I also emphasized that the Senate is ready to negotiate a balanced budget, including spending cuts and revenue, but we need a willing negotiating partner.” Harmon also said they’re working every day to get a budget because going without one would be “unthinkable.”

But the unthinkable could become reality. And that means the day may very well be coming when the comptroller will have to choose which judicial order or consent decree to violate in order to abide by another one.

What. A. Mess.

posted by Rich Miller
Tuesday, Apr 4, 17 @ 10:59 am

Comments

  1. It’s the judge (any judge) as the decider approach to state government budgeting.

    If the judge says you get your money, you get it via court order. If the judge says get in line, you get in line.

    Maybe we are all monarchists at heart. In which case why bother with the legislature and the governor. Just make sure you have enough judges.

    Comment by Cassandra Tuesday, Apr 4, 17 @ 11:06 am

  2. “As of today, the comptroller has $79.1 million in pending vouchers for that fund, but the fund only actually contains $264,038.16.”

    This. I have gotten numb to the litany of devastating numbers we see on a daily basis related to the budget crisis. This number rocked me. I realize these numbers fluctuate a lot and that tomorrow the amount in GRF could quadruple for any number of reasons, but the state having barely over a quarter million in the bank against $79 million in expenses? We are never going to get out of this mess.

    Comment by Montrose Tuesday, Apr 4, 17 @ 11:08 am

  3. What happens if the comptroller does have to pick “winning” consent decrees? Obviously the State gets sued for the violation, but could there be extra penalties/contempt charges? What could or would the judiciary do?

    Comment by Perrid Tuesday, Apr 4, 17 @ 11:10 am

  4. Montrose - the quarter million is in the Downstate Transportation Fund, not GRF.

    Comment by Anonymous Tuesday, Apr 4, 17 @ 11:12 am

  5. Well, for what it’s worth, there’s nothing keeping the Comptroller from delaying payments to the pension funds or general state aid. So those could go before violating consent decrees.

    Comment by Juice Tuesday, Apr 4, 17 @ 11:17 am

  6. Today’s CF headlines cover Mass Transit, Community Colleges, AFSCME, Medicaid, Infrastructure, No balanced budget and Domestic Violence shelters. All these areas where Rauner is failing and we are worse off. Besides the IPI and Lucky who thinks Rauner can possible survive this? (50 million reasons, I know)

    Comment by don the legend Tuesday, Apr 4, 17 @ 11:19 am

  7. Senator Harmon said “including spending cuts”?
    That sounds like a breakthrough.

    Comment by Oh Boy Tuesday, Apr 4, 17 @ 11:20 am

  8. I agree that the Governor is in no hurry for a budget. He still believes that as the crisis continues and things worsen the Democrats will gradually give him more and more of what he wants. Rauner will need a balanced budget before November 2018 if he wants to get reelected so he still has time. He said just last week that “we are winning” so that tells me that he’s in no hurry.

    Comment by The Dude Abides Tuesday, Apr 4, 17 @ 11:38 am

  9. Unspecified spending cuts is a useless phrase. Most specific spending cuts hurt someone. Most cuts of State funds also costs the State Federal dollars. This compounds the pain.

    Comment by Last Bull Moose Tuesday, Apr 4, 17 @ 11:46 am

  10. I’m guessing both sides would rather have a judge do the dirty work for them

    Comment by Foster brooks Tuesday, Apr 4, 17 @ 12:05 pm

  11. >“I also emphasized that the Senate is ready to negotiate a balanced budget, including spending cuts and revenue, but we need a willing negotiating partner.”

    Agreed. I think the main reason we don’t have a budget is the control Rauner/Executive Branch has over the Republicans in the Legislative Branch. Unfortunately, I don’t see that changing.

    Comment by Earnest Tuesday, Apr 4, 17 @ 12:08 pm

  12. There are plenty of state funds that are not called General Revenue but that rely on regular infusions from General Revenue. As GRF has dried up, so too have those other funds. This is just the tip of the ice berg.

    Comment by Anonymous Tuesday, Apr 4, 17 @ 12:09 pm

  13. Senator Harmon predicted there would be no budget for the next two years a few weeks back.

    He is not willing to negotiate permanent income tax increases in exchange for permanent property tax freeze.

    He told Rauner to take it or leave it blowing up the Grand Compromise

    Comment by Lucky Pierre Tuesday, Apr 4, 17 @ 12:13 pm

  14. @LP People in the know said that they were a little surprised that the Senate Democrats went as far as they did in compromising, indicating that they really wanted a deal. You are engaging in revisionist history. You should get a job as a spokesperson for this Administration, you’d fit right in.

    Comment by The Dude Abides Tuesday, Apr 4, 17 @ 12:34 pm

  15. Unfortunately people are going to have to die for this to come to some type of resolution. The unthinkable is that may not even be enough.

    Comment by J IL Tuesday, Apr 4, 17 @ 12:58 pm

  16. == He is not willing to negotiate permanent income tax increases in exchange for permanent property tax freeze. ==

    The State does not NEED a property tax freeze; Rauner just WANTS a property tax freeze.

    Undeniably, the State NEEDS more revenue and the easiest path is an increased income tax. Rauner NEEDS the revenue; it is NEED of the State, not a want.

    Comment by RNUG Tuesday, Apr 4, 17 @ 1:10 pm

  17. ===He is not willing to negotiate permanent income tax increases in exchange for permanent property tax freeze.

    He told Rauner to take it or leave it blowing up the Grand Compromise===

    That is 100% untrue.

    Rauner blew up the Grand Compromise and Leader Radogno, herself…

    … said there was no “take it it leave it” ultimatums.

    Leader Radogno?

    ===No Governor’s spokesman, even Goldberg speaks for the Senate caucus. Also, the Grand bargain is not and never has been “take it or leave it” from Cullerton. We are still working on final version with more give and take.===

    Comment by Oswego Willy Tuesday, Apr 4, 17 @ 1:15 pm

  18. “The Senate is ready to negotiate a balanced budget, including spending cuts and revenue, but we need a willing negotiating partner.”

    If the Dems had a capable communications org., this would be the message. Again and Again.

    Comment by Dee Lay Tuesday, Apr 4, 17 @ 1:26 pm

  19. Years ago, I remember hearing a second-hand anecdote about the GRF having only $19 in it at some point. I believe this was during the Blagojevich years.

    Comment by tobias846 Tuesday, Apr 4, 17 @ 3:04 pm

  20. It surprises me that the Dems don’t have any consistent coherent messaging. Steve Brown works at developing messaging as a PR consultant (aside from being M. Madigan’s spokesperson) and has had some success in that field from what I understand.

    Comment by My New Handle Tuesday, Apr 4, 17 @ 3:16 pm

  21. Anyone see this today? http://senatormcconchie.com/Media/News/p/116348/v/2000/gop-senators-unveil-taxpayer-bargain

    Comment by ste_with_a_v_en Tuesday, Apr 4, 17 @ 4:25 pm

  22. Just curious. Anybody know what this transit district charges for that round trip to the airport?

    Comment by blue dog dem Tuesday, Apr 4, 17 @ 4:54 pm

Add a comment

Sorry, comments are closed at this time.

Previous Post: Decatur community college reduces staff by 25 percent
Next Post: Group health insurance program is in very big trouble


Last 10 posts:

more Posts (Archives)

WordPress Mobile Edition available at alexking.org.

powered by WordPress.