* The news is bleak…
A week before Gov. Rod Blagojevich is scheduled to lay out his budget plans for the new year, the official who controls the state checkbook is warning of big financial problems.
State Comptroller Dan Hynes released a report Monday saying the state is carrying a large deficit and could face more trouble with an economic recession perhaps on its way.
* More…
State Comptroller Dan Hynes says a $750 million hole in this year’s budget needs to be filled even as Gov. Rod Blagojevich’s administration prepares a budget for next year that could have a significant deficit. Hynes said the state is entering an “extraordinarily challenging period” because it failed to prepare for an economic downturn as it struggles to pay a backlog of bills.
“We still have a serious budget deficit,” Hynes told the Chicago Tribune’s editorial board on Monday.
* More…
“I don’t think there’s any more latitude in terms of pushing [Medicaid] bills off,” Hynes told the Sun-Times’ editorial board. “Providers are starting to say ‘We’ve had enough.’ They’re starting to walk away.”
* The governor claims there’s a $750 million revenue shortfall. That would mean almost half of the projected $1.6 billion in “growth” has vanished since the state budget was written. And that doesn’t include the $200 million or so in lost revenue for next fiscal year from under-performing state investments, or the rapidly shrinking cash from casinos.
* The governor has a plan, sort of…
To fill the current hole, the governor’s aides said they hoped lawmakers would consider eliminating a series of tax breaks for corporations and sweep money from a variety of special funds with balances that have been tapped in prior years under Blagojevich.
* But, he provided no specifics and those ideas have been rejected in the past. Which bring us to the usual buck-passing…
[Blagojevich spokeswoman Abby Ottenhoff] said lawmakers approved a budget last year based on “inflated” predictions of how much money the state would take in. If the state’s coming up short, Ottenhoff says, lawmakers this year will have to act to find that money.
* Here are some additional budget stories to ponder…
* Fiscal policies need to change to make Illinois more attractive to businesses
* How Springfield can rebuild trust
* Hynes: Illinois budget hole needs filling
* Bad news for state government finances