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State Will Spend $3 Billion Less Than Last Year

Legislature passes budget; pension reform will wait.

 

An Illinois state budget that will reduce spending by approximately $3 billion from the last fiscal year passed the state Senate Monday night and will go to Gov. Patrick Quinn for his signature. The spending plan is $1 billion less than Quinn originally proposed. 

The total budget package for the 2012 fiscal year, which begins July 1, is $59.1 billion, according to information provided by state Senate President John J. Cullerton’s (D-Chicago) office. 

Despite the cuts, local legislators felt the process was painful but more open and bipartisan than in the past. Debate was difficult but it produced the best possible results in a difficult economy, state Sen. Susan Garrett (D-Lake Forest) said. 

“You may not agree with the outcome, but there was much more input and transparency than in the past,” Garrett said. “The process was very transparent.” 

State Rep. Elaine Nekritz (D-Northbrook) also cited difficulty of the process but recognizes its necessity. 

“The hard work is done--it has been very difficult," Nekritz said. "We had to make significant cuts. While I may not have liked the outcome we have to stop spending beyond our means.” 

Deep cuts

A year ago, the state spent $62.1 billion. Only expenditures on human services were spared, getting an increase of about $300 million, according to Cullerton’s office. Education, public safety, business development and other categories were all reduced. 

The effort of the Democratic majority in the General Assembly to work with Republicans also helped make the budget effort a success, according to state Rep. Robyn Gable (D-Evanston).

“This was a new process this year with a bipartisan approach.” Gable said. “We were fiscally responsible. We were able to make deep cuts and still help our most vulnerable.” 

Like Gable, Garrett expressed concern for the citizens with the greatest needs. Garrett told Patch that she voted against the human services budget because she feels more should be spent on the state’s most vulnerable citizens during the hardest economic times since the Great Depression of the 1930s. 

“This needed to be more fully funded,” Garrett said explaining that the unemployed, mentally ill and disabled need the state’s help. “We should have taken a harder look at taking care of people who cannot take care of themselves.” 

Using a scalpel

In the state House of Representatives, the effort to work through the human services was exceptionally hard, according to state Rep. Karen May (D-Highland Park). She credits state Rep. Sara Feigenholtz (D-Chicago) for an effort that was as humane as possible. 

“I’m thankful [Feigenholtz] used a scalpel rather than making wholesale cuts,” May said. 

The spending cuts along with the state income tax increase passed in January result in a balanced budget without borrowing, despite reductions from the general revenue fund.

Last year, the state had one-time economic stimulus funds of $1.4 billion from the federal government. This year the state is using approximately $4.3 billion from its general revenue collections to fund money due for state pensions from years past. 

The tax hike is projected to provide approximately $7 billion of the money needed. 

The General Assembly took its job seriously after passing a tax hike in January as members knew cuts were necessary. Most were not happy with the cuts made but were resigned to the need. 

“The deal is distasteful," said state Rep. Daniel Biss (D-Evanston). "We did the best we could with the dollars available. We did a good job at that.” 

With billions of dollars in unpaid bills, the legislators were careful to make sure funds were available for this year's obligations, which cannot be paid in the current fiscal period ending June 30.  

“The budget is very austere because we have billions of dollars in unpaid bills,” May said. “Our goal is to attain financial stability.” 

Pension reform will wait 

In other business Monday, the General Assembly did not vote on a pension reform bill proposed by House minority leader Rep. Tom Cross (R-Oswego), choosing to wait until the fall session. The proposal would have changed benefits for existing employees. 

Current workers for the five pension funds administered by the state would have to pay more for their current pension benefits, pay the same amount for reduced benefits or have their retirement funds put in a 401(k) type fund. 

“It’s great,” Biss said of the delay. “This is a very important issue. It needs extensive input.” He explained a significant part of the state’s budget currently goes toward pension contributions and it will continue to grow in the future. 

Editor's note: Patch contacted State Sen. Jeff Schoenberg (D-Evanston) for comment on this story but he was unable to return phone calls before deadline.

Related Topics: Daniel Biss, Elaine Nekritz, Illinois General Assembly, Illinois State Budget, Jeff Schoenberg, Robyn Gable, and Susan Garrett
Now that the state has cut spending in addition to raising taxes, do you feel the tax increase was justified? Tell us in the comments.

Todd Grayson

3:48 pm on Tuesday, May 31, 2011

Disappointed that Pension reform was pushed down the road. The problem is only growing.
Happy that social services were spared. We need to keep our humanity.

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Clark Kent

7:07 pm on Tuesday, May 31, 2011

We can keep our humanity by fully funding public pensions as commanded by the Illinois State Constitution- it is a LAW, not a "gift" of contemporary political hacks. In years when the legislature has NOT FUNDED such pensions, liars refer to that event as a "Pension Holiday!" Neat. Don't obey the law and it's a HOLIDAY!!

Chapter 13, Section 5 of the Illinois Constitution: PENSION AND RETIREMENT RIGHTS Membership in any pension or retirement system of the State, any unit of local government or school district, or any agency or instrumentality thereof, shall be an enforceable contractual relationship, the benefits of which shall not be diminished or impaired.

Clark Kent

6:50 pm on Tuesday, May 31, 2011

At the end of EVERY legislative session it's the same tripe, a dish of oral slop shoved into the faces of taxpayers ..."Oh, we worked so hard," "We tried to save people...," "If only we had more resources...," "Gosh, if only Bush hadn't messed things up...yada, yada, yada..."

Our Springfield solons sit on their collective derrieres patiently waiting for orders from Madigan on what to vote for and for what they will be allowed to introduce and vote on. Even a dictatorship has to occasionally throw a bone to the attack dogs and slaves.

I continuously ponder why there are so many of these glorified precinct captains sitting in an air-conditioned chamber jabbering about nothing, when it is only a handful who make the real decisions. Who needs these "extras" to be paid and be given THEIR SAFE PENSIONS while the docile and obedient peons wait with hat-in-hand hoping to get a few crumbs from the table of these papier-mache demagogues?

THEY have had decades to straighten out state finances but have only cowered before political bosses. Now a new generation of "leaders" fall all over each other in a veritable love-in, filling the air with ornate compliments about each other...here is what they should sing when parading out of the Temple of Injustice returning in triumph to their districts like Caesars-

http://www.youtube.com/watch?v=o67ZE8uBCAs&feature=channel_video_title

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J. Ditkowsky

10:42 pm on Tuesday, May 31, 2011

Yes, unfortunately a tax increase was necessary. Those who contribute to social security already have a reduction in social security deductions that cancels out the tax hike!!!! But those who by law have jobs that are NOT covered by social security are already hit by the tax hike, and they are JUST THOSE people who are covered only by state pensions. I have seen no news coverage of this disparity! I second the article above by Clark Kent about the so-called pension holidays, which allowed school systems and the state legislature to avoid making their contractual donations into the pension funds.

J. Ditkowsky

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Joseph Hedrick

9:34 am on Wednesday, June 1, 2011

There is no attempt to really cut spending. The 'reduction' is really only not an increase. This legislature will never cut any fat or reduce pensions or reduce salaries. The tax increase only gives them more time to continue spending the same as the past and avoid any reform.
Joe Hedrick

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norbert johnson

10:33 am on Wednesday, June 1, 2011

Norbert Johnson
The problem is not the income coming in to the state. The problem is that the expenses exceeds the income.

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Todd Grayson

12:46 pm on Wednesday, June 1, 2011

Pensions as a concept are fine. The math for the taxpayer and recipient just has to make sense. Retirement funds should be based on contributions (which the employee/employer share can be negotiated.).

The math just does not work when they are based on final year salaries, instead of the entire history of one's contributions.

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Deadcatbounce

1:19 pm on Wednesday, June 1, 2011

These pensions are not sustainable and we have Edgar to thank for this, while he himself is collecting a $131K pension. Edgar signed 1998 bill allowing teachers/administrators outside of Chicago to retire after 33 years’ worth of service at 75% of final pay – thus creating a good part of the financial/pension mess the state currently finds itself in

Clark Kent

9:38 pm on Wednesday, June 1, 2011

There were about 542 teacher pension bills during the 90th General Assembly. Remind me which bill is the one done for the state teachers.

See what some "legislators" earn in retirement PER MONTH. And remember, the job only requires legally a few months out of the year. Many also get city pensions, county pensions and so forth. http://mchenrycountyblog.com/category/jim-edgar/ Boy, oh boy! Art Berman must have been working overtime, even with highly lucrative law practice. Maybe we should have a tag day for him. He is sooooo deserving!

Anyway, for the year you cite EDGAR signed the bill, you have apparently forgotten (or conveniently ignored) that the House was DEMOCRATIC under Dictator Madigan and the Senate was DEMOCRATIC under unctuous Phil Rock and sidekick Emil Jones. Gosh almighty, Deadcatbounce, Edgar must have really twisted the sinewy arms of these legislative giants to get pension increases for the very teachers who repeatedly fought him. Now here's a secret assignment just for you: check the roll call votes and see how these dynamic protectors of the poor voted, and Berman too, as well as the unknown state senator Barack Obama. Then come back and we'll be able to have an intelligent debate (using FACTS, not innuendo).

Edgar cannot be blamed for Democratic Evanston's dilemmas http://www.dailynorthwestern.com/city/pension-fund-reform-on-illinois-legislature-s-docket-1.2267289 ....maybe it was Bush's fault!!! Yeah! That's it! Bush's!

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Deadcatbounce

11:24 am on Thursday, June 2, 2011

I'm not sure what facts you want me to look up, but between FY1995 and FY2003, Governors Edgar and Ryan, with encouragement from the house and senate added $5.8 billion in new pension benefit enhancements. No one forced Edgar and Ryan to sign off on these pension enhancements. Full report is here ... http://civicfed.org/sites/default/files/civicfed_279.pdf
Let me know if I am missing something.

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