May 16, 2011

Dear Neighbor,

Last week the Senate passed a budget that would reduce total spending from $65.8 billion in FY11 to $59.9 billion in FY12, and cut $1.7 billion from the Governor's introduced General Revenue Fund (GRF) budget.  This budget brings our spending into line with available revenues, and is gimmick free.  There is no borrowing.  We account for all mandated costs in this budget and reduce spending to ensure vendors will be paid.  We do not push bills into future years.

While reducing costs, the Senate's budget ensures we protect core services like education and moves dollars into community services that safeguard our most vulnerable residents.  For example, the budget:

·         Keeps education general state aid at the same level as FY11;

·         Decreases dollars to institutions and increases funds available for community

          programs that serve individuals with developmental disabilities and mental

          illnesses; 

·         Reduces the Governor's proposed cuts to Medicaid from 6% to 3%;

·         Restores many human services programs that were drastically cut in the  

          Governor's proposed budget including Illinois Cares Rx, Teen Reach and   

          programs for the homeless. 

The House passed a budget that cuts over $1 billion more from state appropriations than the Senate's budget.  While the budget the House passed has more reduced spending than the Senate version, over $500 million of the cuts in House budget merely puts off spending to next year rather than actually reducing expenses.  The House budget also cuts General State Aid for schools and has much deeper human service cuts.  You can see a detailed comparison of the Senate and House budgets at http://capitolfax.com/HouseDemSenDemComparions512b.pdf.  I welcome your thoughts on preferences between these two approaches.

Over the next two weeks we will work to reconcile the two budgets to pass a single budget through both chambers.  We are also likely to address workers compensation reform, further pension reform, and the redistricting map.   I believe we are taking overdue steps to return the State to fiscal health, but it is painful and not yet assured.  Your input as we make challenging decisions is appreciated.

Best,

Heather Steans