Gov. Pat Quinn signs state budget

Gov. Pat Quinn signs state budget
by Ray Long and Rick Pearson
Copyright © 2009, Chicago Tribune
July 15, 2009
http://newsblogs.chicagotribune.com/clout_st/2009/07/legislative-leaders-say-they-have-tentative-agreement-with-quinn-on-state-budget.html?track=email-alert-breakingnews


Update: Gov. Pat Quinn quickly signed state budget into law tonight, less than two hours after lawmakers sent it to him. He has scheduled a 1:30 p.m. Thursday news conference in Chicago to discuss the spending plan.

SPRINGFIELD---Two weeks into the state’s budget year, Illinois lawmakers tonight approved a stop-gap $26 billion spending plan for government operations that relies on $3.5 billion in borrowing and millions of dollars more in cuts to restore most funding for social services while putting off a possible income-tax hike vote.

"We're doing this because we have to do it, but it's wrong that we have to do it," said Senate President John Cullerton of the budget package, vowing an income-tax hike vote in January. "I say we come here in January and take up that issue."

The delay in enacting a state budget was a result of a test of wills between rookie Democratic Gov. Pat Quinn and the two veteran Chicago Democratic leaders of the legislature, House Speaker Michael Madigan and Senate President John Cullerton. Quinn fought unsuccessfully for a tax increase and tried to hold up approving a massive job-creating public works program. He later caved on both.

The budget maneuvering would allow lawmakers to leave Springfield and state government to continue. A tax-hike vote, assuming one still takes place, would be put off until late fall. That's when legislators will know if they face strong opposition. A tax hike vote also could be delayed until early next year when fewer votes would be required to approve an income-tax increase.

The budget plan relies on borrowing $3.5 billion to help pay state employee pensions---a move that would cost as much as $800 million a year for the next five years to pay off.

At the same time, $2.23 billion would be freed up this year to supplement the budgets of social service providers to the poor, disabled and elderly. Another $1.2 billion would be available for Quinn to use at his discretion to boost funding for state agencies.

State lawmakers also would have to take a dozen unpaid days off.

Under an earlier budget plan passed by lawmakers in May and mostly vetoed by Quinn, social service agencies faced cuts of 50 percent or more in state grants. The borrowing would allow many of those grants to be funded at more than 80 percent, budget negotiators said.

At the same time, Quinn would be faced with making more than $1 billion in budget cuts. He also has vowed to hold back more money from state agencies in a sort of contingency fund.

"Essentially by doing this, we have made him the king of Illinois," Sen. Donne Trotter (D-Chicago) said of giving Quinn emergency power to trim state spending.

“There will be cuts," said Rep. Barbara Flynn Currie (D-Chicago), Madigan's top deputy. "There is no way the governor can manage this budget without significant cuts.”

Rep. David Leitch (R-Peoria) argued in favor of the borrowing proposal so community-based social service agencies facing "dire straits" can be put on better footing but that it is "by no means sufficient." Leitch also said he had secured a commitment from the Quinn administration to work toward paying down backlogged payments to social service agencies.

But Rep. Jack Franks (D-Marengo) said the move meant lawmakers are playing politics and the action meant state officials are "going to borrow ourselves into oblivion."

"We're on the brink of a man-made disaster," Franks said, adding: "This is nothing more than smoke and mirrors....It's irresponsible and it's reckless."