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The budget mess, via The Doors

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Illinois

* This is the end, beautiful friend…

State lawmakers have gone home for the summer – well, at least for a little bit of summer.

Legislators wrapped up their spring legislative session early this morning. But they’ll be back before too long because they sent Gov. Pat Quinn a budget for next year that only spends about 50 percent of the money needed and he’s planning meetings with legislative leaders to work out the differences.

* This is the end, My only friend, the end…

We have to stay after school,” Quinn said late Sunday. “Right now, the budget is not in balance. People will suffer.”

Under the legislature’s spending plan, hundreds of human service programs would get only 50 percent of the funding that Quinn requested for them. In a news release, Quinn’s office said that means 20,000 seniors will lose home care services, 80,000 low-income mothers will lose childcare services, and foster parents of 9,000 children will lose stipends.

Some lawmakers suggested state agencies could spend money under the budget as through they are fully funded, although acknowledging the money will run out after six months. By that time, they suggested, the General Assembly will come up with additional funding.

* Of our elaborate plans, the end…

Currie cautioned that state agencies under this plan should treat it as funding at lower levels for the entire year, rather than assuming lawmakers could fix the shortage in a few months.

“This is it. This is all we have to spend. When we spend these monies, our pockets are bare,” Currie said.

* Of everything that stands, the end…

Quinn is calling a summit with legisaltive leaders today at the Capitol in the hopes of breaking a logjam over raising taxes. Quinn says the state needs an income tax hike to help dig out of a huge deficit. Quinn says he has no plans to act on what’s been termed a “lights on” budget designed to keep government operating if no compromise is reached by the start of the new fiscal year July first.

Lawmakers left Springfield early this morning, but could be called back to town in the future. Quinn downplays specualtion of a long, drawn out budget battle.

* No safety or surprise, the end…

One more uncertainty from the lack of an agreed budget is when construction will begin for roads, bridges, schools and other infrastructure projects. Although the General Assembly approved a $26 billion construction program 10 days ago, with a second installment approved early Monday morning, Quinn said he wouldn’t sign it until lawmakers sent him a balanced budget.

He said bond-rating agencies and bond buyers wouldn’t buy bonds from a seller (the state) “as long as that seller has a gaping hole in its operating budget of billions of dollars. It’s just common sense.”

* I’ll never look into your eyes… again…

What was less clear was how Quinn intends to win support for the plan now that he needs even more votes than he did before.

The state’s new fiscal year starts July 1. Under the Illinois Constitution, any bill passed after midnight on May 31 — Sunday — cannot take effect until the following calendar year unless it is passed by a three-fifths vote. As of today, Quinn needs a “supermajority” in both chambers to win passage of a new budget.

That means he will now need votes from Republicans, who are likely to be even harder to sway than Democrats have been. Republicans have been clamoring for deeper spending cuts and government reforms before agreeing to any new taxes, and Sunday’s development will give them the muscle to press those demands.

* Can you picture what will be so limitless and free…

But Republicans say they’ve been left out of talks to this point and aren’t quick to help the Democratic majority pass tax hikes.

“You can’t come over to us on the last night and say, “let’s be bipartisan,” Cross said during the tax debate.

But Quinn said Republicans wanted to be able to say they voted against taxes and predicted they’ll flip in the coming weeks and put votes on a tax increase.

* Desperately in need of some stranger’s hand in a desperate land…

After Quinn’s evening press conference to wave the white flag on a pre-adjournment tax hike vote, Meeks slammed the governor for not pushing the plan until the legislative stopwatch expired.

“I’m not satisfied Gov. Quinn worked as hard as he could have,” Meeks said. “The governor should be meeting with 25 people who are ‘nos,’ trying to turn them into “yeses.” He should be meeting with them, rather than having a press conference.

* Lost in a Roman wilderness of pain…

The political punt on the budget deficit is similar to what Democratic leaders did last year. Unable to find an agreement on how to plug the budget hole, lawmakers sent an unbalanced budget to then-Gov. Rod Blagojevich and told him to use his executive authority to fix it.

* And all the children are insane…

Instead, the more likely scenario is that legislators will return to the Capitol in November, after they know how stiff their competition will be on the ballot next year, and try to reach agreement on a major tax increase to balance the budget.

Rep. Julie Hamos (D-Evanston) summed up what she thought many of her colleagues were thinking.

“We’re going to come back for veto session, and we’ll take care of the next six months,” she said during House debate on the makeshift budget.

* Related…

* Companies that stand to profit waiting for green light

* FAQ on video poker proposal

* Local debates needed on video poker

* Controversial Metro East bond sent to Quinn

* $2.7 million wasted in grants

* Quinn and lawmakers dole out projects

posted by Rich Miller
Monday, Jun 1, 09 @ 9:21 am

Comments

Just to make a point. Numerous newspapers are reporting that SB1197 is a “6 Month Budget”. It is NOT. It is a FULL year budget funded at 50% of introduced level. If an agency spends for 6 mos at last years level, they will be out of money in January.

There will need to be some serious belt tighting/layoffs/program cuts to make sure they don’t spend out.

Comment by How Ironic Monday, Jun 1, 09 @ 9:31 am
This was political NIMBY - the “I know we need a dextox center in the community, but Not In My Backyard.” Everyone wanted the revenues addressed, but not with their vote.

The Democrats have lost their party values, and the Republicans preferred to blame the Democrats rather than help the small businesses in their districts that happen to be non-profits.

Thank heavens for Pate Philip, who had the constitution changed on the last day of the spring session so that he could go back to fishing in Canada in June. We now have the rest of June before the start of the fiscal year, to try and resolve this mess.

Non-profit board members have an affirmative responsibility under the state’s Not for Profit Act to run their organizations in a feduciarily sound manner. If state grants or contracts are a significant part of their annual budget, they may have no choice but to close their doors as of July 1st and inform the state that its lengthening waiting lists for services for vulnerable clients and families just got exponentially longer.

Most groups have a required period of time to notify employees of their termination. Is there any choice but to start doing that now, for all the day care centers, senior home workers, mental health clinic workers, employment and training workers, and the rest?

It is ludicrous to accept federal economic stimulus dollars when our state government is also substantially addiing to the unemployment ranks and denying current employees subsidized day care, which will force them to leave work and go back on welfare.

Illinois legislators: find your souls, and remember your mission to make Illinois government work.

Otherwise, a whole bunch of resignations from office is in order. You’re not the ones we need in legislative service.

Comment by Capitol View Monday, Jun 1, 09 @ 9:37 am
That is based on the assumption that Quinn will sign it…we will have to see…but he has said that he will not accept that level of cuts. So to Quinn it is a 6 month budget. I think the House feels that way as well and I know the Senate does.

Comment by Mike Murray Monday, Jun 1, 09 @ 9:38 am
Don’t forget: “Weird scenes inside the gold mine.”

Comment by Suzanne Monday, Jun 1, 09 @ 9:48 am
Ugh Rich, that song does not have a good ending.

Comment by Song Monday, Jun 1, 09 @ 10:04 am
cowardly. !

Comment by Lulu Monday, Jun 1, 09 @ 10:06 am
Ditto what Suzanne said…this is very weird!

Comment by Vote Quimby! Monday, Jun 1, 09 @ 10:07 am
–(Quinn) said bond-rating agencies and bond buyers wouldn’t buy bonds from a seller (the state) “as long as that seller has a gaping hole in its operating budget of billions of dollars. It’s just common sense.”–

Common sense will tell you this statement is historically unsupportable and demonstrably false.

Remember California, the state with the $42 billion deficit and all the failed referendums? Here’s a bit from a May 21 “San Francisco Chronicle” story.

–On Wednesday, the day after voters torpedoed five ballot measures designed to help close the state’s gaping budget deficit, prices of California municipal bonds went up, reflecting investor demand.–

This excellent article, which I’ll link at the bottom, explains the numerous “common sense” reasons why investors still want muni debt even with the nationwide state and local government financial crisis.

Basically it boils down to this: They have to pay, they have the ability to do so, and they always have.

I understand the political card Quinn is playing, but it’s just that.

http://www.sfgate.com/cgi-bin/article.cgi?f=/c/a/2009/05/21/BUN117O60Q.DTL

Comment by wordslinger Monday, Jun 1, 09 @ 10:14 am
Vote the bums out.

Comment by SIUPROF Monday, Jun 1, 09 @ 10:16 am
Quinn seems so overly concerned with drawing fire and being in conflict with the GA. It’s time to switch from lobbing grapefruits to hard ball.

Comment by Ghost Monday, Jun 1, 09 @ 10:20 am
Rich, you’re becoming Sneed-like with your tid-bit leads. Though I prefer your music to her “backshot, buckshot, upshot” stuff. What does that garbage even mean?

Comment by Anon Monday, Jun 1, 09 @ 10:26 am
Exactly what House or Senate bill number is that “half a loaf” budget? (I’m curious what all that entails as opposed to the original proposals–I didn’t have time at this moment to navigate the entire GA page to find the exact bill).

Comment by Leatherneck Monday, Jun 1, 09 @ 10:33 am
SB1197 See 1st post.

Comment by How Ironic Monday, Jun 1, 09 @ 10:38 am
word’s point on the bonds is counterintuitive, but correct.

One thing to keep in mind as a “six-month” budget is discussed is that (assuming there was no late-night fumigation of the Pension Code) the pension funds will get their full, whole milk, unskimmed amount of State cash for FY10. When the appropriated amounts run dry, the funds make use of the “continuing authority” and are paid the deficiency. In fact, it’s happening right now for FY09, albeit on a smaller amount.

Comment by Arthur Andersen Monday, Jun 1, 09 @ 10:44 am
Well, since Quinn is keeping practically all of the Blago-appointed 3000 (minus John Filan) to run state government, I guess we can be confident that any operational decisions made with respect to the next fy’s budget will be made using the best possible judgment.

Comment by Cassandra Monday, Jun 1, 09 @ 10:55 am
There are many things that bother me about where things are right now with the budget, but what I am fixating on is those legislators - primarily, but not exclusively, Republicans - that voted against both tax hikes and the the 50% budget. You neither support the new revenue needed to sustain needed services nor support cutting the services. It is hypocrisy at its height. I hate the 50% budget, but at least some of the folks that voted against the tax hike were willing to own up to what the failure of those bills passing meant. Have at least an ounce of political courage and stop thinking about avoiding campaign mailers that either say “x voted to raise your taxes” or “x voted ax x,y, and z services in your community.” The core of the problem is right there.

Comment by montrose Monday, Jun 1, 09 @ 10:59 am
Cassandra,

You are an idiot. Blago didn’t appoint 3000 people to “run” state govt. Furthermore, not all of those people that were targeted were ever “appointed” anyways. Lots of career people that began working before either Ryan or Blago had worked their way up the ladder.

Take your moronic ramblings and find another blog.

Comment by How Ironic Monday, Jun 1, 09 @ 10:59 am
The refrain playing over and over in my head this morning is:

Is that all there is?
If that’s all there is, my friends, then let’s keep dancing
Let’s break out the booze and have a ball
If that’s all there is

Comment by Don't Worry, Be Happy Monday, Jun 1, 09 @ 11:00 am
it should be “against x, y, and z…” in my last post. Sorry about that.

Comment by montrose Monday, Jun 1, 09 @ 11:01 am
Maybe the best reason for term limits…..the huge majority of legislators who act on the basis of how to get reelected rather than what is best for the people of this state.

Comment by Sick of it Monday, Jun 1, 09 @ 11:03 am
Now that I’ve got “The End” on a non-stop loop in my head, who should I assign to the roles of Capt. Willard, Bill Kilgore and Col. Kurtz in this drama? The horror, the horror!

Comment by Matt Dietrich Monday, Jun 1, 09 @ 11:38 am
Now, do the legislators lead by cutting their salaries in half and operating for THREE months a year?

Comment by vole Monday, Jun 1, 09 @ 11:55 am
Given the inability of our state government to function what would it take for the citizens to recall all elected officials and start again from scratch…If they will not do anything what would it take for the citizens to create their own constitutional amendments to fix this mess?

Comment by Double Monday, Jun 1, 09 @ 11:57 am
Montrose,

It is perfectly logical to vote against both the tax hikes and a 50% funding cut. It would only be illogical if there were no other choices. That simply isn’t the case as there is at least another month to put together a better plan. This “do it our way or we’ll have Armageddon” approach is never going to win Republican or moderate Democrat support. If you want their help, you are going to have to bring them into negotiations, and you are going to have to incorporate their ideas.

Comment by Pelon Monday, Jun 1, 09 @ 12:37 pm
Pelon-

If those that voted no on everything had presented a substantive, workable third option, then I would agree with you. I agree that engaging all parties in negotiation early on makes sense, but the response of “you didn’t invite me, so I am not playing” is just as bad if not worse. Take the high road. Try to get something positive done.

Comment by montrose Monday, Jun 1, 09 @ 12:47 pm
I just noticed on the SB1197 page that Cullerton did file a motion to reconsider the bill.

Comment by Leatherneck Monday, Jun 1, 09 @ 1:02 pm
The House GOP could ntroduce the perfect budget solution hch would then be sent to Rules. When they tried to bring it out to the whole House BFC would object & it would languish in Rules.

Comment by Sick of it Monday, Jun 1, 09 @ 1:24 pm
-The House GOP could ntroduce the perfect budget solution hch would then be sent to Rules. When they tried to bring it out to the whole House BFC would object & it would languish in Rules.-

Very true, but they would at least have a substantive plan out there they could point to. Now they have nothing.

Comment by montrose Monday, Jun 1, 09 @ 1:38 pm
AA, interesting point on the pension contribution. I’d never heard that. Under “continuing authority,” is money just automatically transferred as it comes in to the pension funds first?

Comment by wordslinger Monday, Jun 1, 09 @ 8:51 pm
Mr. Blogman, I liked your song related analysis to the end of session and I’ll add mine, “don’t you love them legislators as they’re walking out the door”
uh, not

Comment by doorsfan Monday, Jun 1, 09 @ 9:00 pm
“The future’s uncertain, the end is always near.”

Comment by wordslinger Monday, Jun 1, 09 @ 9:21 pm
“They got the guns, but we got the numbers
gonna win, yeah, we’re takin’ over.
Come on!”

Comment by Jim Morrison Tuesday, Jun 2, 09 @ 12:20 am