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* The Tribune has a pretty good roundup story today, but I do want to point out this one thing…
The budget package calls for spending $36.1 billion in the coming year, which is less than the $39 billion that’s currently going out the door due to a patchwork of court orders and laws that’s left state government to spend billions more than it takes in each year.
The state can’t actually spend more than it takes in. Instead, it promises spending or is ordered to spend and then makes everybody wait for months on end to get paid. The state essentially “borrows” from providers and vendors. And the governor greatly contributed to that hole by signing billions of dollars in contracts over the past couple of years without any legally authorizing appropriations to pay for them.
Government cannot operate without suppliers of goods and services. Illinois relies heavily on not-for-profit groups to provide direct social services. It also relies on thousands of businesses large and small for everything from Medicaid insurance, to paper, to food for prisoners. Local governments are also put on the hook for state facility sewer and water services and, in the case of Springfield, electricity…
Citing the damage the two-year state budget stalemate has caused, Springfield Mayor Jim Langfelder welcomed news of a $36 billion spending plan that was put in place Thursday.
Even with the income tax hike that’s part of the deal, a budget is preferable to a continued stalemate, he said.
“It has really stymied the growth of our economic engine with regards to the medical area,” Langfelder said, noting that the state owes local medical providers millions of dollars.
The state also owes $4.3 million to Springfield’s utility, City Water, Light and Power, according to a CWLP spokeswoman. And in the last week, the impasse has halted several major road projects in the city.
Anyway, what this budget does is pay for those goods and services going forward and partially pay off the debt owed to everyone who has sold the state something or provided a service on its behalf.
posted by Rich Miller
Friday, Jul 7, 17 @ 10:02 am
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“the governor greatly contributed to that hole by signing billions of dollars in contracts over the past couple of years without any legally authorizing appropriations to pay for them.”
This is why it frustrates me to no end that people think Rauner is a fiscal conservative. While there were certain amounts that needed to be paid based on court orders, the amounts spent was well above that. For example, at no point did he institute a hiring freeze or close facilities. He needlessly increased our debt to keep the truth of our lack of resources hidden from the average person for political purposes. Once he is done as Governor, he will likely move to another state, and leave us with the debt.
Comment by Pelonski Friday, Jul 7, 17 @ 10:17 am
At some point, Rauner will demand that the bills be paid, and that it was Madigan’s fault in the first place.
Comment by Jibba Friday, Jul 7, 17 @ 10:34 am
I agree Pelonski. Rauner is definitely not a fiscal conservative. He just uses that as a convenient excuse to advance his radical ALEC/Koch Brothers agenda. And that’s the real reason no Illinois budget will ever have his signiture on it.
Comment by PublicServant Friday, Jul 7, 17 @ 11:10 am
== And the governor greatly contributed to that hole by signing billions of dollars in contracts over the past couple of years without any legally authorizing appropriations to pay for them. ==
I’m actually surprised some good government group didn’t take him to court over those legally questionable contracts … especially if you know how to connect the dots of crony capitalism.
Comment by RNUG Friday, Jul 7, 17 @ 11:49 am
In an alternate universe, the messaging is that the Illinois Legislative Branch took away our credit card from the Executive Branch and is forcing it to live within a budget rather than continuing to wildly run up our bills.
Comment by Earnest Friday, Jul 7, 17 @ 12:27 pm
Mr Miller,
Please explain the comment: “the governor greatly contributed to that hole by signing billions of dollars in contracts over the past couple of years without any legally authorizing appropriations to pay for them.” What types of spending are examples ? have not heard this before and as a regular Chicago Trib reader, am puzzled. Seems like a bizarre loophole Rauner has taken advantage of…
Comment by Whiskey Friday, Jul 7, 17 @ 2:59 pm
What types of spending are examples ?
The Governor’s pet ERP project is one. Lots and lots of money went down that sinkhole. Now more money is going to a different consulting firm to try to clean up the mess from the first firm. And not much of that money is staying in Illinois.
Comment by RNUG Friday, Jul 7, 17 @ 3:10 pm