So the Governor's FY 2013 Budget is now delivered. The GOP was largely okay with the Gov's address, noting the proposed reforms to the state pensions and Medicaid are critical to getting the state's finances back on track.
Where the GOP's criticism does focus is on the lack of details. The Gov's address, and Budget briefing for the press, left a lot of details still to be determined.
Sen Radogno was also critical of the increase in state spending. And that could have been cut -- but we should note the increase in spending is driven largely by two factors that increase automatically - Pensions, and Medicaid.
Thus, the Governor called for reforms that will alter the automatic spending increases in these two programs. But again... how that should be done, the Gov doesn't say, but proposes a committee of lawmakers should make a proposal on April 17th.
Illinois would have been much better off had this address been delivered 10 years ago. But at least the critical need to address these programs that continue to eat away at the state budget, has FINALLY been proposed.
But the GOP lawmakers add, if the Gov is serious about repairing the Medicaid system that bleeds money -- he might start by signing the request for waivers from the US Govt. The GOP notes the bipartisan agreement on reforming Medicaid, that was reached last year, has yet to accomplish anything, because Gov Quinn -- after an entire year -- has yet to request these Federal waivers.
Showing posts with label fy 2013. Show all posts
Showing posts with label fy 2013. Show all posts
Wednesday, February 22, 2012
Senator Johnson (R) Says Gov Quinn Again Increasing Spending, When Cuts Are Needed
SPRINGFIELD, ILL-- After months of dismal news for Illinois, including a downgraded credit rating and report naming Illinois the most corrupt state in the nation, during his budget address on February 22, Governor Pat Quinn announced he will be increasing spending and expanding programs in FY13.
“I was hoping the Governor would take off the rose-colored glasses and accept that Illinois’ economy is dying and offer us specific actions and spending cuts he is pursuing to revive it,” said Sen. Christine Johnson (R-Shabbona).
“Instead, we got a proposed budget that increases spending and expands programs with, par for this administration’s course, little explanation on where the money will come from.”
Although the Governor’s Office had been telling reporters and legislators he was going to reduce spending back to the 2008 level, the budget outlined Feb. 22 actually spends $3.4 billion more than 2008.
The Governor’s numbers show the administration will increase total spending not just from 2008, but from last year as well. The budget presented would spend $550 more than in FY2012 - creating a path that Sen. Johnson says will make it nearly impossible to phase out of the 2011 67 percent income tax and 45 percent corporate tax hikes in three years as promised.
The budget presented will spend 99.5% of available revenues, leaving only $160 million in cash left over to pay the $8.5 billion the state owes in bills. Though the tax increase was supposed to take care of the bill backlog, no plan to reduce this debt was presented in the budget address.
The Governor’s budget expands Early Childhood Education by $20 million and MAP grants by $50 million. It also expands the Neighborhood Recovery Initiative, a program focused on a handful of Chicago neighborhoods, increasing its funding to $36 million, 200% more than it received in FY12.
“As the former President of the Illinois County Treasurer Association, I am shocked that the Governor would increase GRF spending for new programs and only leave enough money to pay off 2% of the $8.5 billion we owe in bills,” Sen. Johnson said.
In five years, estimates put the state backlog at $35 billion, or about $2 billion more than the state's entire annual general fund.
“I am even more offended as a taxpayer that the Governor would implement the greatest tax hike in our state’s history, supposedly to pay off the backlog and then turn around and increase spending a year later. It’s like the state is taking more of our citizen’s money to pay off its credit card and using the cash to go shopping instead,” Johnson said.
Sen. Jonson said she was also concerned that the Governor’s budget offers no specific proposals on pension or Medicaid reform, two of the state’s biggest problems.
“While I was glad to hear the Governor key in on skyrocketing public pension payments, he offered little in the way of reforms and continued to promote the idea of pushing more costs onto local property taxpayers,” Johnson said.
The Governor’s human services agency has admitted the state will face a $21 billion Medicaid backlog in five years. The FY13 appropriation was held flat at the same level as FY12 with no built-in cost for inflation, anticipating $2.7 billion in cuts. Without cuts, specifics of which were absent from the Governor’s plan, this $2.7 billion will be added to the state’s bill backlog, Johnson explained.
“One out of every two infants in this state is born on Medicaid. We are enrolling about 150,000 people to the program every year. That is like adding the entire population of Joliet to our Medicaid responsibilities every 12 months. We need a detailed, practical plan to reduce this unsustainable growth,” Johnson said.
Sen. Johnson also disagreed with the Governor’s plan to close 14 state facilities throughout Illinois, including Singer Mental Health Facility in Rockford which she says will cost many of her constituents their jobs.
“This is Governor Quinn's fourth budget. He cannot blame the problems Illinois faces today on previous administrations or national trends. Unemployment in that nation has going down, yet unemployment in Illinois is up,” Sen. Johnson said.
“We are facing these problems because the Governor has continued to take the state down a path of his choosing. Today, he has chosen to use our tax increase money to expand the government instead of making our focus paying off our bill backlog. I can only hope he will bring the GOP into this discussion, and reconsider the road of debt he is taking us down before it is too late,” Sen. Johnson said.
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“I was hoping the Governor would take off the rose-colored glasses and accept that Illinois’ economy is dying and offer us specific actions and spending cuts he is pursuing to revive it,” said Sen. Christine Johnson (R-Shabbona).
“Instead, we got a proposed budget that increases spending and expands programs with, par for this administration’s course, little explanation on where the money will come from.”
Although the Governor’s Office had been telling reporters and legislators he was going to reduce spending back to the 2008 level, the budget outlined Feb. 22 actually spends $3.4 billion more than 2008.
The Governor’s numbers show the administration will increase total spending not just from 2008, but from last year as well. The budget presented would spend $550 more than in FY2012 - creating a path that Sen. Johnson says will make it nearly impossible to phase out of the 2011 67 percent income tax and 45 percent corporate tax hikes in three years as promised.
The budget presented will spend 99.5% of available revenues, leaving only $160 million in cash left over to pay the $8.5 billion the state owes in bills. Though the tax increase was supposed to take care of the bill backlog, no plan to reduce this debt was presented in the budget address.
The Governor’s budget expands Early Childhood Education by $20 million and MAP grants by $50 million. It also expands the Neighborhood Recovery Initiative, a program focused on a handful of Chicago neighborhoods, increasing its funding to $36 million, 200% more than it received in FY12.
“As the former President of the Illinois County Treasurer Association, I am shocked that the Governor would increase GRF spending for new programs and only leave enough money to pay off 2% of the $8.5 billion we owe in bills,” Sen. Johnson said.
In five years, estimates put the state backlog at $35 billion, or about $2 billion more than the state's entire annual general fund.
“I am even more offended as a taxpayer that the Governor would implement the greatest tax hike in our state’s history, supposedly to pay off the backlog and then turn around and increase spending a year later. It’s like the state is taking more of our citizen’s money to pay off its credit card and using the cash to go shopping instead,” Johnson said.
Sen. Jonson said she was also concerned that the Governor’s budget offers no specific proposals on pension or Medicaid reform, two of the state’s biggest problems.
“While I was glad to hear the Governor key in on skyrocketing public pension payments, he offered little in the way of reforms and continued to promote the idea of pushing more costs onto local property taxpayers,” Johnson said.
The Governor’s human services agency has admitted the state will face a $21 billion Medicaid backlog in five years. The FY13 appropriation was held flat at the same level as FY12 with no built-in cost for inflation, anticipating $2.7 billion in cuts. Without cuts, specifics of which were absent from the Governor’s plan, this $2.7 billion will be added to the state’s bill backlog, Johnson explained.
“One out of every two infants in this state is born on Medicaid. We are enrolling about 150,000 people to the program every year. That is like adding the entire population of Joliet to our Medicaid responsibilities every 12 months. We need a detailed, practical plan to reduce this unsustainable growth,” Johnson said.
Sen. Johnson also disagreed with the Governor’s plan to close 14 state facilities throughout Illinois, including Singer Mental Health Facility in Rockford which she says will cost many of her constituents their jobs.
“This is Governor Quinn's fourth budget. He cannot blame the problems Illinois faces today on previous administrations or national trends. Unemployment in that nation has going down, yet unemployment in Illinois is up,” Sen. Johnson said.
“We are facing these problems because the Governor has continued to take the state down a path of his choosing. Today, he has chosen to use our tax increase money to expand the government instead of making our focus paying off our bill backlog. I can only hope he will bring the GOP into this discussion, and reconsider the road of debt he is taking us down before it is too late,” Sen. Johnson said.
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Lt Gov Simon Backs Bill to Eliminate Legislative Scholarships
SPRINGFIELD – February 22, 2012. Lt. Governor Sheila Simon today put her support behind a House bill that would abolish a legislative scholarship program that more than half of the state’s legislators are voluntarily abstaining from this year.
Simon backed House Bill 3810, sponsored by Rep. Fred Crespo, which passed out of the state government administrative committee 14-3 today. Earlier this month, the Better Government Association delivered an online petition with more than 600 signatures in support of the program’s abolishment to the Lt. Governor and state leaders.
Simon said: “While legislative scholarships help a small number of students, the program’s abuse comes at an incredibly high cost in terms of trust in government and absorbed tuition at colleges and universities. We would do better by our schools and students if we strengthened the need-based Monetary Award Program (MAP) grants that help thousands of Illinois students across the state fulfill their dreams of higher education. By eliminating the legislative scholarship program, Illinois can take a meaningful step toward improving our ethical standards, while focusing our efforts on making college more affordable for all students.”
Nearly 100 of the 177 members of the General Assembly have now opted out of giving legislative scholarships this year. HB3810 would end the political scholarship program June 1, 2012.
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Simon backed House Bill 3810, sponsored by Rep. Fred Crespo, which passed out of the state government administrative committee 14-3 today. Earlier this month, the Better Government Association delivered an online petition with more than 600 signatures in support of the program’s abolishment to the Lt. Governor and state leaders.
Simon said: “While legislative scholarships help a small number of students, the program’s abuse comes at an incredibly high cost in terms of trust in government and absorbed tuition at colleges and universities. We would do better by our schools and students if we strengthened the need-based Monetary Award Program (MAP) grants that help thousands of Illinois students across the state fulfill their dreams of higher education. By eliminating the legislative scholarship program, Illinois can take a meaningful step toward improving our ethical standards, while focusing our efforts on making college more affordable for all students.”
Nearly 100 of the 177 members of the General Assembly have now opted out of giving legislative scholarships this year. HB3810 would end the political scholarship program June 1, 2012.
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