By Benjamin Yount | Illinois Statehouse News

SPRINGFIELD — Gov. Pat Quinn on Thursday delivered, what he called, phase two of his plan to “manage the state budget.”

Quinn’s plan would close seven state facilities and lay off more than 1,900 workers. The governor laid the blame for the closures and jobs cuts at the feet of the General Assembly and the Legislature’s $33.2 billion budget for fiscal 2012.

The governor made numerous claims, most notably, that the budget limits his ability to spend state money.

Illinois Statehouse News consulted lawmakers, former government officials and advocates to check the truth behind Quinn’s claims.

—

Quinn claim: “We clearly do not have enough money in the budget that was appropriated, by the Legislature, to pay the personnel and facility costs of a number of our facilities and people who work for the state of Illinois.”

Truth: “The short answer is yes, that’s true,” said state Rep. Frank Mautino, D-Spring Valley. Mautino helped write the $33.2 billion budget in the House this year. He said the budget approved by lawmakers assumed state services would be cut. Mautino said lawmakers tried to “mitigate” the severity of those cuts by delaying Medicaid payments to providers of mental health services and services for those with developmental disabilities. A longer payment cycle was supposed to shield Illinois’ vulnerable population from drastic cuts.

Mautino is quick to say, however, that as austere as the House budget is, Quinn’s budget proposal was lacking as well.

“The governor’s budget was based on a borrowing plan of $8.75 billion. That borrowing plan never occurred; you don’t have that money available,” said Mautino. “The House budget was based on what monies that we reasonably expected to have in.”

Quinn’s proposed budget was $34.6 billion.

—

Quinn claim: “Managing the budget is something you have to do on a daily basis. And you cannot spend money that is not appropriated by the General Assembly.”

Truth: Quinn is correct on both accounts. Money comes into the Capitol in spurts, as taxes are collected or as federal funds are released, for example. That requires management.

But Mike Lawrence, a former statehouse journalist and press secretary for former Republican Gov. Jim Edgar, said management also means being involved in the crafting of the budget.

Quinn “waited until the General Assembly sent him the budget to start indicating that the budget sent to him would have draconian consequences,” said Lawrence. “He entered the process too late, in my opinion.”

State Rep. Patti Bellock, R-Hinsdale, said Quinn got this budget, in part, because of the limitations he placed on lawmakers.

“We could not change what the governor promised before the election, in that he was not going to close any institutions or lay anyone off,” Bellock said. “We just had to deal with the balance budget and making sure that we do not spend more than the revenues we take in.”

The governor also is correct that he cannot spend money that has not been approved, or appropriated by the General Assembly. Quinn lost his ability to move money within the state budget this year. Previous governors could move 2 percent of an agency’s budget only within that agency.

This leads to the next claim.

—

Quinn claim: “In previous years, the past two, the General Assembly (approved) lump sum budgets. They basically did not want to make any cuts. They told me several times: ‘You the governor make the cuts.’ This year the General Assembly wanted to do it a different way. They wanted a line-item budget.”

Truth: Quinn is not the only governor to be handed a lump sum budget. Mautino said former governors George Ryan, a Republican, and Rod Blagojevich, a Democrat, also were given most of the responsibility to spend the state’s money. Mautino said Illinois’ disastrous financial situation forced a change.

“In this budget, since a lot of very hard choices were made, that extraordinary power of transfer was not given,” said Mautino.

Lawrence points out that past governors used transfer power to delay Medicaid and pension payments, and that helped create Illinois’ multi-billion dollar deficit.

“The problems are so large that that kind of maneuvering is not going to work,” Lawrence said.

The state House produced a line-item budget after weeks of legislative hearings and closed-door meetings. Mautino said the $33.2 billion budget price tag came as a result of that long process and hard work.

Quinn is blasting the legislative line-item budget now. But in April, the governor said he wanted lawmakers to take the lead.

“I actually like the fact that legislators are, line item by line item, going through the budget. My first two years, I was told they didn’t want to do that; they didn’t want to make cuts. They wanted the governor to make all the cuts,” said Quinn.

—

Quinn said he is “willing to work” with lawmakers during the fall veto session to avoid the closings and layoffs.

The General Assembly is due here Oct 25.

Originally reported by Illinois Statehouse News. Read the original article here.

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By Benjamin Yount    Illinois Statehouse News

SPRINGFIELD — Any local school with a new building, new teachers, new bus drivers or even new students may be in danger of missing the first day of school because of the ongoing political fight over paychecks for regional superintendents in Illinois.

However, local taxpayers have not taken any action, and regional superintendents have been working without pay since July 1.

But Madison County Regional Superintendent Bob Daiber said no one can work for free forever.

Without regional superintendents, Daiber said, no one can legally sign off on new school building occupancy permits, new teacher certification, new bus driver training, GED testing and truancy enforcement, among several other things.

The repercussions are evident for students at the new DeKalb High School. DeKalb County Regional Superintendent Gill Morrison said he has not given his approval for everyone to move into the new building.

“We have four buildings on line right now that are waiting for an occupancy permit from my office,” said Morrison. “If, God forbid, there was no regional superintendent, those permits would not be able to be signed off on. And those schools wouldn’t be able to be functioning.”

DeKalb’s new, nearly $80 million high school is scheduled to open for the first day of school in early September. However, Morrison said that situation may depend on whether Quinn and lawmakers can agree on how to pay regional superintendents.

“I don’t know how long I’ll be able to hold out,” Morrison said. “It’s just a situation that is unacceptable; it’s irresponsible. It’s a political move that didn’t take into account the impact on the people who do these jobs.”

Morrison stresses that keeping the new DeKalb High School closed is a “worst case scenario.”

Matt Donkin, regional superintendent for Franklin and Williamson counties in southern Illinois, said working without a paycheck is a “day-to-day” decision. Donkin insists that most regional superintendents are dedicated to local schools and local students, but they are also realists, and many have families and financial needs.

“As we get into the end of July, first of August, any jobs that might be available, regional superintendents are going to take,” said Donkin.

Donkin said closing a regional office leaves local schools with only one option — going to the state for help.

And Fox River Grove Consolidated Schools Superintendent Tim Mahaffy said the state hasn’t been much help to local schools recently.

Mary Fergus, a spokeswoman for the Illinois State Board of Education, said the state can answer some questions but little more than that.

Since the state budget was approved in June, lawmakers have been discussing how to find a new funding source. But the Legislature is not scheduled to return to Springfield until late October for the fall veto session.

Daiber said schools could operate until late October without a regional superintendent, but a lot of work may not be done or done properly.

“You can drive a car without a drivers’ license,” said Daiber. “But you’re not driving legally.”

Originally reported by Illinois Statehouse News. Read the original article here.

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A report released by the Civic Federation says that Quinn’s budget fails to account for around $1 billion that the state must pay out. This shortage takes the form of refunds from income taxes and other previously owed business refunds.

Laurence Msall, president of the Civic Federation, says that Illinois’ budget is unbalanced by about $2.5 billion, with the state overestimating much of its income streams. With the governor planning to halt some financial aid to municipalities and borrow additional funds to fill the hole, Msall warns that residents will be stuck paying millions of dollars in interest.

“We have to stop pushing our obligations out into the future and make, unfortunately, the tough choices of reducing spending,” she advises.

Earlier this year, lawmakers raised personal income tax rates to relieve a $13 billion budget hole. Quinn’s budget proposal indicates that this increase brought in $7 billion.

At the end of last month, Illinois comptroller Judy Baar Topinka said that the state still had an $8 billion shortfall.

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Patricia Watson, the principal at Shoesmith Grade School, understands how serious the budget crunch is. The funds that are normally dedicated to art, music, technology, and sports may need to be used to keep teachers from being laid off by the school board instead.

“Our children cannot learn with 40 students in the classroom,” she said.

Shoesmith has been regularly renting out its gym for community use. Locals borrow the space each Saturday morning for basketball games at $120 per week. Last week, the gym was also prepped for an evening event.

Watson also hopes to save some of the arts and sports programs by selling vegetables from the school’s soon-to-be-completed greenhouse.

The Disney Magnet School on Chicago’s lakefront has been seeing respectable success from its fundraising efforts. The school rents out its gym, community center, and classrooms regularly. It also runs an after-school program that pulls in $600,000 annually.

Kathy Hagstrom, the principal at Disney, says that charging sports clubs to use a field could generate tens of thousands of dollars each year. She is willing to rent out any of the school’s spaces to stop her faculty from being laid off.

“If I have to buy a teacher because of a cut, I want to have that opportunity,” said Hagstrom.

The CPS plans to release the exact numbers from its final budget in the coming weeks.

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Quinn’s initial proposal of borrowing the $4 billion was slammed by lawmakers because of the upcoming increases to corporate and state taxes. Now, Quinn may shelve a billion dollars of the state’s financial aid to municipalities, expecting the heads of the local government to condemn the decision. This would thus compel the local leaders to lobby their legislators to approve his original borrowing proposal.

Local government leaders are not impressed. Ernie Slottag, spokesman for the city of Springfield, said his city receives $2.7 million each year. Springfield’s public works, police, and fire departments would suffer 35 layoffs, he added.

The Illinois Municipal League disagrees with Quinn’s strategy. Roger Huebner, the deputy executive director of the organization, said that attempting to repair the state deficit by instigating a “financial crisis” in 1,300 cities is completely the wrong approach.

House Speaker Michael Madigan said that he doesn’t consider Quinn to be holding the lawmakers hostage, though he admits that the governor is trying to gain “leverage” with his plan.

Last year, comparable cuts to local government funds were proposed as part of the state budget, but were not passed.

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By Benjamin Yount   Illinois Statehouse News

SPRINGFIELD — The differences between Illinois’ 2011 budget and the still-to-be crafted 2012 budget are becoming more apparent each day.

Lawmakers in the House and Senate are working on their own versions of a spending plan, complete with revenue projections and line-by-line appropriations. It’s not clear which chamber will set the final total for a state budget, and that may not become clear for a while.

This week, Senate Republicans said they are hoping to work with the Democrats who control the upper chamber in Springfield to figure out how to spend a little more than $34 billion. The House budget figure is just above $33 billion. Gov. Pat Quinn wants to spend $35 billion next year.

Senate GOP budget point man State Sen. Matt Murphy, R-Palatine, said just having a conversation about spending and different numbers is a break from the past.

“This process feels a little different,” he said. “We’ve got some new players involved from years past, so I don’t know that the past is predictive of how this year is going to go.”

Lawmakers have sent Quinn lump sum budgets in each of the past two years. The governor has then decided where to spend the money, and more to the point, where not to spend the money.

The 2012 budget — whatever the final price tag is — likely will be much smaller than what the governor wants. Murphy said the governor is going to have to deal with it.

“The governor can line-item reduce spending, he can’t increase it. … He can veto the whole budget and have us down here all summer,” Murphy said. “But then he’s going to need a super-majority to pass the budget. I would frankly relish the idea of having a bigger impact on the budget in June or July than we would have in May.”

A super-majority vote would require GOP support in both the House and Senate. 

Murphy said there have been talks between Republicans and Democrats in the Senate, but not between the Senate and the House.

State Rep. John Bradley, D-Marion, is leading the revenue process in the House. He said lawmakers and the governor need to know how this year’s budget process is different.

“I want people to understand that I am serious about revenue projections and the appropriation process,” he said.

Bradley said he has not yet spoken to his counterparts in the Senate. Both chambers are working toward the May 31 adjournment deadline.

Quinn’s budget office says they too are waiting for the process to move forward.  Kelly Kraft, Quinn’s budget spokeswoman, said the governor’s office hopes to use the next month or so to try and convince lawmakers not to close the door on borrowing.

“We continue to work with legislators and are hopeful they will do the right thing, which is to pay people for work provided and not leave hundreds of millions of dollars in federal matching dollars on the table,” said Kraft.

Lawmakers have scheduled a spring break for later this month.  The House and Senate are due to return to the Capitol, at least five days a week, through May as legislators push toward a budget agreement.

Originally reported by Illinois Statehouse News. Read the original article here.

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By Andrew Thomason   Illinois Statehouse News

SPRINGFIELD — A budgetary battle could be brewing in the state Capitol, but not necessarily between Republicans and Democrats. 

Madigan and Cross’ relationship has been cold in the past. It appeared Wednesday, however, that the two have teamed up to start pushing pieces of legislation that could end up being parts of the state’s budget.

The united front in the Illinois House could mean that this year’s budget could pit senators against state representatives, instead of the traditional Democrat vs. Republican.

Reconciling those, and therefore the different chamber’s budget bills, could be troublesome.

While Madigan is known around Springfield for getting what he wants, it might not be as easy as he explained.

His Republican colleagues in the Senate generally lean toward more conservative budget numbers and didn’t agree with the Senate’s adopted $34.3 billion projection, he said, with a caveat.

“We also felt like a number a little bit higher than what the House came up with is reasonable as well,” he said. “I think it’s a little premature for us to start to weigh in, and choose sides, in a conference committee that I don’t know is even going to happen.”

Cullerton spokesman John Patterson again raised this point in response to Madigan’s remarks.

“The Senate is engaged in the appropriations process and is using a revenue estimate based on the nonpartisan recommendations of the General Assembly’s economic agency,” Patterson said. “We look forward to working with all the caucuses, as we all share the same goal, a bipartisan, balanced budget.”

The Quinn administration said getting a budget everyone can agree on is a fluid process that takes an ongoing conversation. Kelly Kraft, spokeswoman for Quinn’s Office of Budget and Management, said the governor’s office “put forth its revenue estimate and looks forward to continued discussions with legislators on this important issue.”

Cross and Madigan do have a plan if their numbers are lower than what the state actually brings in during the next fiscal year.

The state has $9 billion to $10 billion in overdue bills.

Originally reported by Illinois Statehouse News. Read the original article here.

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Originally reported by Illinois Statehouse News. Read the original article here.

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By Mary J. Cristobal  Illinois Statehouse News

SPRINGFIELD – The state’s unemployment rate may be dropping, but federal funding for job training is dropping faster.

The U.S. House of Representatives last month cut funding for work force development and job training under the Workforce Investment Act with approval of an appropriations bill.  

“What we are seeing is proposed cuts and reductions in the federal budget that would severely impact job training and re-employment services at the critical time when we’re trying to put people back to work,” said Warren Ribley, director of Illinois’ Department of Commerce and Economic Opportunity, at a Thursday news conference.

But many of Illinois’ Republican congressmen, now in the majority in the House, said it’s essential to make the budget cuts.

“In these tough economic times, all areas of the budget should expect to share some of the sacrifice,” said Andrew Flach, communications director for Illinois U.S. Rep. Randy Hultgren, R-14th District. “The out-of-control spending in Washington has got to be checked.”

Congress needs to alter its course and get serious about fixing the nation’s budget crisis, according to Jon Schweppe, spokesman for U.S. Rep. Bobby Schilling, R-17th District. 

A spokesman for U.S. Rep. Don Manzullo, R-16th District, said his boss would prefer to cut every federal program by 5 percent across the board.

“But the work force programs were cut more heavily in the last spending bill that came up,” Rich Carter said. “(Manzullo) voted for those cuts because we significantly need to cut spending.”

U.S. Sen. Dick Durbin, D-Ill., has said in the past that he is against cutting “critical services” that help put people back to work.

But the financial landscape isn’t pretty. The federal debt stands at nearly $14 trillion. And President Barack Obama’s 2012 budget proposal projects a $1.6 trillion deficit. Although Democrats control the Senate and The White House, and Republicans control the House, Obama of late appears to be seeking a compromise on spending, political observers have noted.

DCEO’s Ribley said programs need to be individually looked at before funding gets cut.

“Look at those (programs) that provide a good return (on) investment,” Ribley said. “That’s why we are here to show, and we can demonstrate that this program, it really doesn’t cost in the long run

“It pays by putting people back to work in meaningful jobs where they’re earning salaries, they’re paying taxes,” he said. “That’s really the only long-term solution to economic recovery.”

For 2011, Illinois received $21 million from the federal program. If the funding is not restored, 26 work force development boards and 113 career training centers would close, and tens of thousands of Illinoisans would lose their opportunities at retraining, according to Ribley.

“I visited a One-Stop (Career) center Thursday and know the great work they do, but every government program cannot be the one to not get cut … as that’s how we got into the situation we’re in today,” said U.S. Rep. John Shimkus, R-19th District. “I understand that those cuts will be real and will be felt. But they must be made.”

Originally reported by Illinois Statehouse News. Read the original article here.

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By Melissa Leu   Illinois Statehouse News

SPRINGFIELD — As Illinois lawmakers come to the halfway point, many expect there to be plenty of work on the budget before the legislative year is up.

The 97th General Assembly has about two months before they depart for summer break, but any proposals that legislators want to take immediate effect must be passed before May 31 or else it will require a three-fifths vote from both houses.

At the top of everyone’s agenda is figuring out how to deal with the state’s fiscal situation.

So far, the General Assembly has only passed one measure, but most say that isn’t unusual for this time of year.

Last week was the deadline for lawmakers to get their initiatives passed out of committee for consideration. Every year, hundreds of pieces of proposed legislation never make it to debate, and this year isn’t expected to be any different.

Any real progress, especially in regards to the budget, must come from top leadership, said Syverson.

Syverson said he anticipates more debate on legislation regarding gaming and the state’s capital plan.

Although the issue of closing the state’s budget gap remains unresolved, Bellock said she hopes to see more teamwork in the coming months.

ISN Reporter Mary Cristobal contributed to this report.

Originally reported by Illinois Statehouse News. Read the original article here.

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By Andrew Thomason   Illinois Statehouse News

Two different budget plans have emerged for elementary and secondary education in the state — one from the Illinois State Board of Education, the other from Quinn’s office. Both say they want more funding for education, but have different areas they focus on in their budget proposals.

Representatives from both camps came before a state Senate appropriations committee late Wednesday to present their ideas.

Koch said it would be nearly impossible.

Koch responded that while consolidation is needed, what isn’t needed is a cookie-cutter approach, where all schools get handled the same. Instead, consolidation needs to be handled on a case-by-case basis.

In both budgets, the amount of money schools receive per student annually would increase, though Quinn’s increase is less than what the Board of Education wants.

The State Board of Education wanted annual spending per student at $6,416, but the governor’s plan has that figure at $6,267. Koch said any increase is welcomed after two years without, but it wouldn’t do any good if students couldn’t get to school.

Originally reported by Illinois Statehouse News. Read the original article here.

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By Mary J. Cristobal   Illinois Statehouse News

SPRINGFIELD — The Illinois Senate released its budget numbers Wednesday, joining three other groups vying to set the state’s fiscal year 2012 budget.

The Senate based its $34.3 billion budget off the state’s Commission on Government Forecasting and Accountability’s own number, but the Senate price tag is $600 million less.

State Sen. Heather Steans (D-Chicago) sponsors Senate Joint Resolution 29.

“We believe COGFA has a much better record on how they estimate,” Steans said. “It’s a bipartisan group, so there’s more inherent buy-in in support of the COGFA numbers. They’ve been accurate in at least eight out of the 10 years historically over the governor’s estimates have been.”

The governor’s office is projecting a  $33.9 billion budget.

And the House — with the lowest projection of them all — has already decided how to spend its $33.2 billion budget. House Speaker Michael Madigan sponsors HR156.

The House’s version includes:

• $16.72 billion on human services
• $9.54 billion on elementary and secondary education
• $3.31 billion on public safety
• $2.91 billion on higher education
• $1.71 billion to general services

State Sen. Dave Syverson, R-Rockford, said it’s a good thing that there are different versions of the numbers and that lawmakers need to take into consideration all of the figures.

“We would be much better served and the taxpayers would be better served if we use a conservative number, so we can make sure that we can actually have a true balanced budget this year,” said Syverson, a COGFA member.

In a Wednesday committee hearing, GOP senators grilled COGFA members on how they came up with their numbers.

State Sen. Chris Lauzen, R-Aurora, brought up the recent personal and  corporate income tax hikes and how it could affect the budget projections.

“On the growth rate, that 67 percent increase in personal income tax and 46 percent on corporate income tax, how did that increase your growth rate – decrease it – or did you not have that as a multiplier?” Lauzen asked.

Jim Muschinske, COGFA’s revenue manager, said, “It was not explicitly factored into the growth rate projections to the extent that there is some impact.”

State Sen. Dan Duffy, R-Barrington, said the state may take a while to get out of recession and not being able to generate enough taxes for budget revenue.

“But it’s difficult to come in and hand us all these numbers and try to digest that, and then hear that you didn’t even take into account – you know how you put it – the perspective that a huge tax increase might affect future earnings in the state and job growth,” Duffy said. “So for us to come in and have to give an up or down vote on these numbers is difficult to do, obviously, because it’s an estimate and based on the way you calculated it.”

Since the Senate is basing its numbers off COGFA, there is an extra $1 billion compared to the House’s numbers. The Senate has not come out with a spending plan. But Steans said under the Senate’s budget, there would still be cuts.

“I think in any scenario we need to be making significant cuts, and that’s not a fun position to be in,” Steans said. “So we’re not trying to avoid that. We know we need to be doing that.”

Originally reported by Illinois Statehouse News. Read the original article here.

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SPRINGFIELD  —  Democrats in the Illinois Senate may be on their own as they try again to raise the state’s cigarette tax.

Senate President John Cullerton, D-Chicago, on Tuesday said he hopes to pass a $1 per-pack tax increase by the end of the week. Cullerton is framing the tax hike as a way to both offset money Illinois has not yet received for statewide construction projects and a path to help people quit smoking.

The original plan to pay for billions in new roads, schools, and bridges is tied-up in a legal challenge now before the Illinois Supreme Court. New taxes on beer and liquor, as well as newly legalized video poker were supposed to pay for all of the work. But video poker has been slow to roll-out, and one of Chicago’s largest liquor distributors is challenging the liquor tax.

Cullerton said his cigarette tax would provide $300 million of dollars that the state needs now.

“This is not for the budget of the state of Illinois, it’s for the capital bill,” Cullerton said. “This money (will) make sure that we can continue to keep people working on the infrastructure projects that have been on-going this year.”

Drawing that line, between construction and the state budget may help Cullerton shepherd the tax through the statehouse. The Senate president expects a vote in the upper chamber, perhaps as soon as Wednesday afternoon. He’s hoping for cooperation from Republicans, and eventually from the Illinois House.

“We’ve been working on the capital bill together,” said Cullerton. “I don’t have an agreement, but I have hope that we have enough votes in the House.”

Cullerton’s hopes may be dashed. Senate Republican budget expert  Matt Murphy, R-Palatine, said he’d be surprised if any GOP lawmakers sign on to another Democratic plan to raise taxes again this year.

The Senate president “wants to raise (the cigarette tax) by a dollar a pack, which is going to kill our border towns in particular,” Murphy said.

The plan headed for a vote would phase-in the $1 per-pack tax, in two 50-cent increments. The earliest smokers could see the new tax would be July  Illinois’ current tax is 98-cents per pack, which is in line with other states.

Lawmakers in border communities say it’s one of the few taxes that is not higher than all of our neighbors.

State Rep. Jil Tracy, R-Quincy, said Missouri has lower taxes on cigarettes, and lot of other things that consumers buy each week.

“They already have less expensive gas over there because of our sales tax on gasoline,” she said. “Alcohol likewise is taxed cheaper over there.”

Tracy said another tax increase in Illinois would be a competitive advantage for Missouri.

Democrats along the border may also have a tough time voting for Cullerton’s plan.

State Rep Pat Verschoore, D-Milan, said the Iowa side of the Quad-Cities draws a lot of folks across the river.

“We already have people going over to Davenport to buy cheaper gas,” Verschoore said. “And if they put the cigarette tax, that’ll make our cigarettes more expensive than they are at Iowa. So they’ll pick up their cigarettes also. So I think it’ll harm our businesses, and I would probably vote ‘no’ on that.”

To the north, Wisconsin has been trying to poach Illinois businesses. State Rep Dave Winters, R-Rockford, said no doubt they’ll go after Illinois smokers next.

“If you raise cigarette taxes substantially in Illinois, you’ll see quite a change in consumer behavior.  The hardcore cigarette smokers will not only go to pick -up smokes in Beloit, Wis., but they’d also typically get their groceries, and they may fill-up their gas tank when they’re there.”

Culleton has pushed for a cigarette tax increase in the past. He’s suggested the same $1 per pack increase a number of times.  The Illinois House has been reluctant to follow suit. Cullerton said Gov. Pat Quinn is on board with the plan, but isn’t saying if the governor’s support will bring any votes to the table.

Originally reported by Illinois Statehouse News. Read the original article here.

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 By Mary J. Cristobal  Illinois Statehouse News

SPRINGFIELD – With about three months left in the fiscal year’s budget, Gov. Pat Quinn’s administration this week finally settled on a $57-million budget cut to the Illinois Department of Human Services.

The budget reduction was initially $208 million, then it was reduced to about $100 million “due to finding further efficiencies,” according to Governor’s Office of Management and Budget spokeswoman Kelly Kraft.

But Quinn allocated more money to DHS on Thursday, using the authority given to him by the Legislature this budget year to make lump-sump budget appropriations or reductions.

“Due to the governor’s lump sum (appropriation), that (budget) reduction stands at $57 (million),” Kraft said.

DHS Secretary Michelle Saddler  said in the past that tough economic times are putting more demand on services.

Frank Anselmo, chief executive officer of Community Behavioral Healthcare Association, can testify to that. He said providers will have to juggle managing a combination of cuts and delayed payments.

CBHA is an association of some 95 providers of mental health, substance abuse and youth services.  

“It’ll be another impact on consumers importantly,” Anselmo said. “… Between 10,000 to 30,000 people may lose care additionally, on top of the 70,000 who have already lost care.”

Anselmo said he appreciates the state’s budget cut reconsideration, but his clients would still face additional cuts.

“There’s still continuation of disproportionate cuts to funding that comes from the Department of Substance Abuse to the community of $7 million for the rest of this fiscal year, which only has less than four months to go, and an additional $5 million in cost reductions to community providers supported by the Department of Mental Health,” Anselmo said.

He said DHS cuts should concern everyone at a community level. He said he’s spoken with law enforcement about people who will be displaced because of the loss of treatment options.

“Where do these people go,” he asked. ”in the middle of treatment when the people who need this help, the working poor, are thrown out of the treatment care programs?”

Another DHS division on substance abuse dodged the deeper cuts, according to Illinois Alcoholism and Drug Dependence Association Chief Operating Officer Eric Foster.

IADDA represents more than 50 prevention, treatment and recovery organizations.  

“There is that $57 million that DHS is being cut. Addiction treatment services are not a part of those cuts,” Foster said. “We received word from Department of Alcoholism and Substance abuse, as well as (DHS) Secretary Saddler, that the governor’s office has not cut addiction treatment services for the rest of FY 2011.”

Foster said his division is now anxious about the upcoming 2012 fiscal year DHS budget.

“If an agency is to lose their state funding, which often times is the most significant portion of their budget, it threatens their ability to provide comprehensive adequate services to the people in their community,” Foster said.

Originally reported by Illinois Statehouse News. Read the original article here.

Quinn finally sets DHS cut at $57 million | Chicago Press Release Services - Chicago's leading press release newswire service; professional press release services, press release distribution and newswire services.

Originally reported by Illinois Statehouse News. Read the original article here.

Video: Radogno on GOP Budget | Chicago Press Release Services - Chicago's leading press release newswire service; professional press release services, press release distribution and newswire services.

Originally reported by Illinois Statehouse News. Read the original article here.

Video: Kelly Kraft Responds to GOP Budget | Chicago Press Release Services - Chicago's leading press release newswire service; professional press release services, press release distribution and newswire services.

Originally reported by Illinois Statehouse News. Read the original article here.

Video: U of I Prez on Budget | Chicago Press Release Services - Chicago's leading press release newswire service; professional press release services, press release distribution and newswire services.

By Benjamin Yount   Illinois Statehouse News

SPRINGFIELD  —  Illinois may have just over a billion dollars that’s not included in Gov. Pat Quinn’s new budget.  But lawmakers in Springfield say just because they may have the extra cash, it doesn’t mean they will spend it.

On Tuesday, legislators began the process of crafting a new state budget by trying to agree on just how much Illinois has to spend. It’s the first time in years lawmakers will use actual numbers —  a new law requires it along with spending caps. But finding a price tag for the new spending plan is proving difficult.

Quinn’s budget is based on $30.9 billion in revenue. The governor said last month he wants to spend closer to $35.4 billion in 2012. Quinn is expecting some federal money to come to Illinois that is not included in the revenue estimates. 

But the legislative Commission on Government Forecasting and Accountability issued its own report that is more than a billion dollars more optimistic than the governor’s estimate. COGFA puts the return from taxes, fees, and the lottery at $32.1 billion. 

The Commission’s Dan Long said COGFA expects a better return on the newly passed personal  and corporate income tax increases than Quinn’s budget office. Long said his commission is looking at a “lag” this summer that could boost the amount of money Illinois collects in the next fiscal year that begins in July. 

The differences may be a matter of when Illinois counts the cash, but those differences could become a major point of contention as lawmakers look to trim state spending this spring. In other words, lawmakers may see an extra billion dollars as the best way to avoid unpopular cuts to schools or social services.

State Rep. John Bradley, D-Marion, who is in charge of finding the “true price tag” for the next state budget ,is already trying to tamp-down that kind of thinking.

“We’re going to be very cautious of estimates of revenue that have a chance of actually not being met by the state,” said Bradley. “So it’s possible that (we) could take an even more conservative approach than (either Quinn’s budget office or COGFA).”

Bradley is not guessing what the Legislature’s bottom line number may be, though he said he hopes to agree with Republicans on that number in the next few days.

When lawmakers decide how much the state will have to spend next year, they also will have to decide what to do with anything that may be left over. State Rep. Ed Sullivan, R-Mundelein, said Illinois has some serious needs, and a billion dollars could be a big help.

“What happens if we have “X amount” of dollars plus some?” Sullivan asked. “If our revenues exceed what we declare to be the spending authority … where should we put that extra money?”

Sullivan is the first to worry about a surplus at the Illinois Capitol in years.  The state has struggled through underfunded budgets for the past several years. For two years in a row, lawmakers simply gave Quinn lump sum budgets and told him to manage the spending. The process to change that this year has lead to the discussions in Springfield. 

But even after lawmakers decide on a final budget price tag, there will not be firm answers, according to economist J. Fred Giertz with the University of Illinois.  He told lawmakers that no one has a crystal ball, and the guesses from Quinn and COGFA are just that, guesses.

“Both are very reasonable, and they’re dealing with a very, very difficult kind of situation,” Giertz said. “And it’s going to take some time to work that out. So this year there is going to be some degree of uncertainty.”

Originally reported by Illinois Statehouse News. Read the original article here.

Finding true budget number challenging | Chicago Press Release Services - Chicago's leading press release newswire service; professional press release services, press release distribution and newswire services.

Originally reported by Illinois Statehouse News. Read the original article here.

True Budget Price Tag? | Chicago Press Release Services - Chicago's leading press release newswire service; professional press release services, press release distribution and newswire services.

RIVERWOODS, Ill., Feb. 18, 2011 /CHICAGOPRESSRELEASE.COM/ — The budget debate is well underway on Capitol Hill with lawmakers trying to see eye-to-eye on where to spend and what to cut.  CCH has issued a new Tax Briefing that examines how budget provisions may impact individual and business taxes.

CCH, a Wolters Kluwer business, is the leading global provider of tax, accounting and audit information, software and services (CCHGroup.com). Overall, President Obama has proposed $3.73 trillion in federal spending and $1.1 trillion in deficit reductions. The fiscal year 2012 budget also calls for ending Bush-era tax cuts for higher income individuals, making the American Opportunity Tax Credit permanent and eliminating some energy tax incentives.

“Despite the heated debates, there are some tax issues where Democrats and Republicans are generally in agreement,” said CCH Principal Federal Tax Analyst Mark Luscombe, JD, LLM, CPA. “For example, the White House and GOP leaders have said they’re both in favor of reducing corporate tax rates.”

To access the CCH Tax Briefing, please click here or visit CCHGroup.com/Legislation to access the full range of CCH’s Special Briefings on significant tax law developments.

Members of the press interested in speaking to a CCH tax analyst about these or other federal or state tax issues should contact Leslie Bonacum, 847-267-7153, mediahelp@cch.com; or Eric Scott at 847-267-2179, eric.scott@wolterskluwer.com.

About CCH, a Wolters Kluwer business

CCH, a Wolters Kluwer business (CCHGroup.com) is the leading global provider of tax, accounting and audit information, software and services. It has served tax, accounting and business professionals since 1913. Among its market-leading solutions are The ProSystem fx® Suite, CorpSystem®, CCH® IntelliConnect®, Accounting Research Manager® and the U.S. Master Tax Guide®. CCH is based in Riverwoods, Ill. Wolters Kluwer (www.wolterskluwer.com) is a market-leading global information services company. Wolters Kluwer is headquartered in Alphen aan den Rijn, the Netherlands. Its shares are quoted on Euronext Amsterdam (WKL) and are included in the AEX and Euronext 100 indices.

SOURCE CCH, a Wolters Kluwer business

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New CCH Tax Briefing Examines 2012 Federal Budget Proposal | Chicago Press Release Services - Chicago's leading press release newswire service; professional press release services, press release distribution and newswire services.