Rauner team warns of more budget cuts

The political merry-go-round on Republican Gov. Bruce Rauner’s latest $26 million in budget cuts kept spinning at the Capitol on Tuesday, as Democrats once again sought to highlight the spending reductions and the administration warned more could be on the way.
House lawmakers spent hours Tuesday quizzing Rauner’s budget chief, seeking detailed information about who determined which grants should be suspended and what criteria was used in targeting specific areas.

Rauner budget director Tim Nuding said departments spent months combing through their budgets to determine what spending was essential or non-essential — descriptors he quickly said were inappropriate in a nod to the politically charged debate.

“We’ve suspended good programs because we don’t have the revenue to support them,” Nuding said.

Democrats have said they were taken aback by Rauner’s move to freeze $26 million in grants on Good Friday, arguing lawmakers had just approved fund sweeps and cuts they believed would solve a $1.6 billion shortfall in the current budget. Senate lawmakers held a similar hearing last week.

“I was surprised to discover that what we had done was not adequate to the task,” said House Majority Leader Barbara Flynn Currie, D-Chicago.

Nuding said he told lawmakers about the possibility of additional spending reductions last month, saying tough decisions have to be made in light of a budget put in place by Democrats last year that spends more money than the state has on hand. But Nuding again warned Tuesday that more cuts are likely, specifically mentioning the possibility of trimming Medicaid, the state’s health care program for the poor.

Rauner suggested last week that legislators could consider diverting more money from special earmarked funds to help ease the budget crunch, saying there’s about $300 million in unused funds that could be tapped.
In response, the Senate on Tuesday heard testimony on a proposal that would allow Rauner to shift $26 million in special funds to help restore grant cuts. But it’s unclear if the idea will ultimately make it to the governor’s desk amid concerns in the House about giving Rauner the authority to spend more money.

House Democrats, meanwhile, argued they were still awaiting a detailed description of how the administration plans to spend approximately $900 million of the $1.3 billion in fund sweeps lawmakers already approved.

“Share the information with us,” said Rep. Greg Harris, D-Chicago. “You keep saying money is fungible, well, tell us where it went.”

The back and forth demonstrates the tough road ahead as lawmakers begin to turn their attention to crafting a spending plan for the next year, which is scheduled to take effect July 1. Rauner is pushing deep cuts, but has indicated he could be open to new taxes if lawmakers make accompanying changes to things like workers compensation or curbing union powers.

“Balancing the budget is not hard. It’s not hard if you’re dedicated to doing it,” Rauner said Tuesday while addressing a bankers group in Springfield. “We have, I can’t find, truly, a balanced budget in Illinois. I’ve looked back a long way. We are, we are done kicking the can, though. We are not doing that anymore.”

mcgarcia@tribpub.com

jhellmann@tribpub.com