SPECIAL NOTICE: At 7PM tonight (Thursday, July 16th),
I will be on Chicago Tonight on WTTW Channel 11 to discuss the state budget.
Dear Neighbor,
The 2010 budget for the State of Illinois was passed yesterday by the Illinois General Assembly and signed by the Governor.
The budget has numerous unresolved challenges including:
-
Borrowing $3.5 billion in pension obligation notes (PON) to cover the State's contribution to the pension systems.
- Appropriating $26 billion to fund state operations and grant programs in FY10.
This is about $2.2 billion less than the FY09 appropriation
level and includes the dollars freed up from the pension obligation
notes.
About $9 billion of the $26 billion is appropriated for grant programs (compared to about $10.5 billion in FY09).
- Appropriating
funds for service providers and state operations in lump sums so that
the Governor alone decides how to cut spending.
I voted no on this budget.
This budget is highly irresponsible. We are essentially borrowing to fund state operating costs, thus delaying, and increasing the size of our problem later.
The budget cuts authorized by this inadequate budget also are
undetermined because we did not provide the Governor with specific line
items for individual programs.
Finally, we further delay payments for critical social services
programs and in effect, both reduce their budget with smaller
appropriations and require these same under-funded agencies to incur
borrowing costs for their own operating expenses.
I
could not support such an abdication of our responsibility to Illinois
residents for needed services and basic financial responsibility to
balance our budget.
Illinois has a structural budget deficit that has been growing over the last 10 years.
Rather than continuing with "financial gimmicks" such as fund
sweeps, debt restructuring, sale of assets, or more borrowing, I
believe we need a comprehensive solution that includes:
-
Spending reforms (e.g. medicaid and pension system improvements) to restore long-term financial stability;
-
Prudent reductions (these will need to be implemented within this budget given it is $2.2 billion less than last year);
-
Improvements
in the manner in which we make budgeting decisions (e.g. more
transparent budgeting process with public access to information and a
performance measurement system to prioritize dollars spent); and
-
Additional revenues.
I
believe citizens throughout Illinois crave a responsible budget and
desire elected officials to make the difficult decisions that are
needed.
I look forward to working toward a more comprehensive solution in partnership with many interested parties.
Once we know more clearly how cuts will be made I will send out an additional update on the budget.
Please call my office at 773-769-1717 or email me with any questions or thoughts.
Sincerely,
Heather A. Steans
State Senator
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