State Budget Update

Rep. Greg Harris • 13th District

Springfield Update • June 2, 2016

 

State Budget Update

 

As you know, Illinois is in an unprecedented situation never before seen in the history of the US. In his first year in office, Governor Rauner used his total veto power to veto the entire FY16 state budget other than Elementary and Secondary Education. As state government, hospitals and healthcare providers, childcare and senior service providers, colleges and universities, public safety and capital projects began to spiral downwards, we have had to make repeated attempts to slow or reverse the damage. Here is a brief synopsis of how we have gotten to this point.

 

Last March 2015, the General Assembly passed an FY15 fix that made 2.25% reductions across the board, provided $412 million to fund childcare services and $207 million to maintain operations at the Department of Corrections and other state agencies, as well as $97 million in emergency funding for the poorest school districts. The Governor signed this bill. You can see the language here: http://ilga.gov/legislation/publicacts/99/PDF/099-0001.pdf

 

In June 2015, we appropriated $1.85 billion for maintenance of roads, bridges, mass transit and other projects as well as $800 in funding to the EPA to upgrade drinking water systems across the State (which turns out to have been a very important decision in light of the tragedy in Flint, MI.) The Governor signed this bill. You can see the language here: http://ilga.gov/legislation/fulltext.asp?DocName=09900HB4166enr&GA=99&SessionId=88&DocTypeId=HB&LegID=90395&DocNum=4166&GAID=13&Session=

 

In August, the General Assembly once again sent the Governor a bill to fund the Low Income Energy Assistance (LIHEAP) Program before winter, as well as $1.69 billion in federal funds to DHS for childcare, food banks, juvenile recidivism prevention, mental health and substance abuse treatment, refugee services and developmental disabilities programs, as well as $439 million for emergency and disaster preparedness. The Governor had previously vetoed these items but this time signed the bill. You can see the language here: http://ilga.gov/legislation/publicacts/99/PDF/099-0409.pdf

 

Last December, we yet again sent the Governor legislation to appropriate $2.3 billion for local governments, $414.8 million for state operations and $439.4 million in other state funds. The Governor had previously vetoed these items but this time signed the bill. You can see the language here: http://ilga.gov/legislation/publicacts/99/PDF/099-0491.pdf

 

In early April 2016, we sent the Governor a bill which would fully fund all human service items in the State. He has taken no action on this bill. You can see the language here: http://ilga.gov/legislation/99/SB/PDF/09900SB2046enr.pdf

 

In late April, we sent the Governor an emergency higher education funding bill which appropriated a portion of funding for state colleges, universities, the MAP grants and the Illinois Math and Science Academy. The source of these funds was the non-GRF Educational Assistance Fund. The Governor signed this bill. You can see the language here: http://ilga.gov/legislation/publicacts/99/PDF/099-0502.pdf

 

In May, the General Assembly passed an emergency human service funding bill, based on the same framework as the emergency higher education funding bill. This bill provides 46% of the funding for human services across the state. The source of these funds was the non-GRF Commitment to Human Services Fund. As yet, the Governor has taken no action on this bill. You can see the language here: http://ilga.gov/legislation/99/SB/PDF/09900SB2038enr.pdf

 

Over Memorial Day weekend, the House sent an FY17 budget bill to the Senate that kept level funding for all state services and programs that are not being operated by emergency court orders or based on consent decrees, plus an additional $378 million for education. You can see the language here: http://ilga.gov/legislation/99/SB/PDF/09900SB2048ham002.pdf

 

The Senate failed to pass this appropriation bill.  The Senate sent to the House an appropriation bill for Elementary and Secondary Education and pension payments which failed to pass the House. You can see the language here:  http://www.ilga.gov/legislation/fulltext.asp?DocName=09900HB2990sam002&GA=99&SessionId=88&DocTypeId=HB&LegID=89118&DocNum=2990&GAID=13&Session=

 

Also, last Friday, Senate President Cullerton proposed passing a temporary stop-gap budget which would have kept all of state government, local schools, colleges, university and human service providers running while negotiations between the Governor and the 4 caucuses continued.  Governor Rauner came out in total opposition to stop gap funding.

 

Then Tuesday he suddenly switched gears yet again and demanded one.  The Governor’s plan was introduced by Republican Leaders Radogno and Durkin.  While it fully appropriates for the operations of state agencies and the bureaucracy, it contains no GRF for grant based community human service providers, as well as providing completely inadequate support for Chicago Public Schools and other districts with high levels of poverty.  As well, the bill appears to be written to allow FY17 funds to be diverted to unappropriated needs within the state bureaucracy but nothing for community based agencies. You can read the bill here: http://www.ilga.gov/legislation/BillStatus.asp?DocTypeID=HB&DocNum=6585&GAID=13&SessionID=88&LegID=97912

 

So, as of this writing, Governor Rauner has 2 budget bills on his desk: an emergency appropriation bill for our current fiscal year that would pay 46% of what is owed to human service providers (similar to the emergency appropriation bill he signed for partial higher education payments), and a complete human service/higher ed appropriation bill for FY16 that would pay the rest of the balance owed to human service providers and higher education. How the Governor will act on these is uncertain. He continues to say that he will not act on the budget until the legislature passes his so-called “Turnaround Agenda”. I do not believe that we should allow this hostage taking to force passage of a Koch Brothers/ALEC sponsored set of laws that has no relation to the budget but is just designed to cut wages and benefits for middle class and working families, take away rights of injured workers, allow the government to void its contracts and walk away from its legal obligations, or disenfranchise minority voters.

 

There have been working groups meeting regularly for months on budget cuts and sustainable revenue solutions to balance the budget, and reforms that we could implement that would bring down the cost of government in Illinois, reduce the regulatory burdens on business, as well as long-term systemic education funding and pension reform. I have been part of the “budgeteers” group that includes Republicans and Democrats, the House, Senate and Governor’s Office. These discussions are ongoing.  If the Governor is willing to agree to some workable compromises rather than insist on his Turnaround Agenda, hopefully a conclusion to this long crisis can be reached. As things progress I will keep you informed. I look forward to your comments at greg@gregharris.org.