The Capitol Fax Blog » *** UPDATED FROM BUDGET BRIEFING *** Early budget stuff

*** UPDATED FROM BUDGET BRIEFING *** Early budget stuff

Tuesday, Mar 9, 2010

*** UPDATE *** I’m at the budget briefing. The materials include broad outlines of some of the cuts. Human services will take a $276 million hit, including adult home care, child care and community mental health.

Health takes a $325 mil reduction with cuts to prescription drug assistance [benefits cut in half] and retiree group health.

Education, including universities, is in for a $1.3 billlion cut.

464 reduced head count at state police and 30 at Corrections.

Increased head count at Ag (6.5) DCFS (208) DCEO (33) DHFS (23) Rev (75) IDOT (262) Vets (87).

• They built into the budget the 62% Medicaid match even though that extra cash expires Dec. 31. They claim strong signals that the increased match will be extended.

• There will be no briefing on any tax hike. Gov Quinn will save that for himself.

• after proposed cuts they “still have an eleven billion dollar problem.”

• The “Voucher payment notes” are various borrowing plans, the budget director says. That could include another pension note plan. Since increased pension payments appear to be $4.16 billion and the voucher payment notes are listed at $4.67 billion, that looks likely to my eyes, but we’ll have to wait and see.

• Much confusion now over what this briefing is. This is the budget, Jerry Stermer says, but this doesn’t include a tax hike, and the guv will lay out new state revenues tomorrow. So, go figure.

• It’s taken a bi to get this out of them, but it looks like they’ll borrow about 4.7 cut a couple bil and roll over about 5.7 bil to fiscal year 12. In other words they have a 4.7 bil operating deficit built in to next FY plus 6 billlion from this fiscal year.

[End of live-blogging portion.]

* I was able to obtain a little bit of the governor’s proposed budget. His total operating expenditures will rise from $29.145 billion this fiscal year to $32.117 billion next FY - mainly, it appears, because of an increase in pension payments.

Quinn’s also using $4.672 billion of something called “Voucher payment notes” to balance the budget. The explanation at the bottom of the page is “A series of notes to pay specific vouchers during the fiscal year.” Not sure yet what that means. We’ll hopefully have more after the budget briefing later this afternoon.

…Adding… The top sheet referenced above can be viewed by clicking here.

* Here are some of the state agency numbers from the governor’s soon to be proposed FY 2011 budget. The first number is the current fiscal year’s estimated expenditure and the second is the proposed funding level for next fiscal year. All numbers are in thousands…

AGENCY ($ thousands) … FY10 EST. EXPEND. … FY11 REC. APPROP
General Assembly … 50,099 … 43,155
Legislative Agencies … 103,601 … 83,348
Judicial Agencies … 400,764 … 376,608
Office of the Governor … 93,896 … 4,705 [GOMB Typo. Waiting on actual number.]
Office of the Lieutenant Governor … 94 … 0
Office of the Attorney General … 76,852 … 69,556
Office of the Secretary of State … 394,391 … 355,967
Office of the State Comptroller … 108,968 … 87,325
Office of the State Treasurer … 1,743,160 … 1,732,926
Elected Officials and Elections … 2,435,411 … 2,286,215
Department of Aging … 732,919 … 703,147
Department of Agriculture … 101,262 … 97,560
Department of Central Management Services … 846,129 … 1,064,405
Department of Children and Family Services … 1,394,312 … 1,439,450
Department of Commerce and Economic Opportunity … 1,053,678 … 2,389,531
Department of Natural Resources … 214,092 … 278,731
Department of Corrections … 1,202,307 … 1,305,163
Department of Employment Security … 306,510 … 350,649
Department of Financial and Professional Regulation … 78,014 … 84,185
Department of Human Services … 6,199,214 … 6,346,019
Department of Healthcare and Family Services … 14,630,665 … 15,920,104
Department of State Police … 357,519 … 359,019
Illinois Arts Council … 9,215 … 9,577
Governor’s Office of Management and Budget … 321,930 … 338,319
Office of Executive Inspector General … 6,859 … 6,931
Illinois Gaming Board … 117,127 … 137,359
GOVERNOR’S AGENCIES TOTAL … 36,013,295 … 39,719,582
STATE BOARD OF EDUCATION … 10,314,159 … 9,861,256
TEACHERS’ RETIREMENT SYSTEM … 951,540 … 157,594
HIGHER EDUCATION TOTAL … 2,796,227 … 2,591,954

- posted by Rich Miller

58 Comments

- Are you sure? - Tuesday, Mar 9, 10 @ 4:16 pm:
Rich,

Are you sure about the numbers listed for the Governor’s office? Going from 93,896 to 4,705? I think we missed the 9,8, or 7 preceeding this. Can’t believe the Governor’s office would be cut this much.

- Rich Miller - Tuesday, Mar 9, 10 @ 4:22 pm:
That’s the number on the sheet.

- Montrose - Tuesday, Mar 9, 10 @ 4:23 pm:
It is pretty common for staff in the Gov’s office to be “detailed” from other agencies. So, they are on the payroll of another agency, but doing work in the Gov’s office. This could explain part of the Gov’s office budget reduction, but not all of it.

- ExExten - Tuesday, Mar 9, 10 @ 4:24 pm:
$0 for the Lite Gov means Quinn is not looking to fill the post in the next 12 months.

- George - Tuesday, Mar 9, 10 @ 4:34 pm:
Cut Cut Cut Cut Cut Cut Cut Cut Cut Cut Cut

- George - Tuesday, Mar 9, 10 @ 4:35 pm:
Rich - I think this top sheet is already mostly online at budget.illinois.gov.

- cassandra - Tuesday, Mar 9, 10 @ 4:37 pm:
Interesting, but more explanation is needed. Why is DCEO going up so much? I thought it was viewed as way too much of a pork farm aleady. Not to mention CMS, also a winner. And DCFS is getting a nice little raise–although I thought the foster care population was supposed to be going down.

Overall, with exceptions admittedly, this does not look much like a state government on a reducing diet.

Could some of these increases be the effect of union-negotiated raises kicking in next fy?

- wordslinger - Tuesday, Mar 9, 10 @ 4:39 pm:
That governor’s office number is perplexing.

I hope he’s not thinking of taking a page from the Dan Walker playbook: Making a big show of cutting your office, then hiding employees in other agencies.

Geez, you’d think Quinn would be the last one to do that, given all the grief he’s taken over the years about his tenure with Walker.

- Sideline Observer - Tuesday, Mar 9, 10 @ 4:40 pm:
Thank god he’s spending $20 million more on gambling in 2011…
Note the TRS contributions; Quinn doesn’t get it.

- How Ironic - Tuesday, Mar 9, 10 @ 4:42 pm:
@ George….please let Brady know. He’s apparently unaware that documents are now online. :)

- ModerateGOPer - Tuesday, Mar 9, 10 @ 4:43 pm:
The Gov number may account for unspent funds from his discretionary lump sums

- Secret Square - Tuesday, Mar 9, 10 @ 4:47 pm:
Did I do the math right — legislative agencies and the comptroller’s office are getting whacked by 20 percent? And SOS as well? That makes Brady’s mere 10 percent cut look pretty good in comparison for those agencies :-)

- JJS - Tuesday, Mar 9, 10 @ 4:47 pm:
What about Juvenile Justice? Rumor has it we going back to DOC.

- Angry Chicagoan - Tuesday, Mar 9, 10 @ 4:47 pm:
So my question is, what’s the tax increase proposal, and where’s the bond to cover the current year’s arrears?

- Will County Woman - Tuesday, Mar 9, 10 @ 4:49 pm:
I hope brady is on point tomorrow and cans any planned cute stuff. just offer a sober assessment backed-up with facts and make an effective case.

if brady has mitch “the blade” daniels’ number, he should give him a call before he says publicly say one word. if brady doesn’t have daniels’ number, he’d better buddy-up to him real quick and get some budgeting advice from.

- dupage dan - Tuesday, Mar 9, 10 @ 4:52 pm:
Everett Dirksen once said, “a million here, a million there, pretty soon you’re talking about real money”

PQ ain’t getting it. I am not expert at analyzing this stuff but it seems like alot of agencies are getting some hefty boosts, not cuts. Even without the homeric debt load, the reduced revenues from last year and the upcoming year doesn’t allow for these increases. Am I missing something here? Some gigantic piggy bank recently uncovered?

Dirksen was right, it adds up. PQ is only adding up more spending - cuts ain’t on his mind.

- ????? - Tuesday, Mar 9, 10 @ 4:56 pm:
Arts council gets an increase?????

- special assistant - Tuesday, Mar 9, 10 @ 4:57 pm:
The Governor’s numbers are skewed due to the fact a lot of staff is paid elsewhere from other agencies and his headcount is “hidden”. His appointees are getting hefty bonuses. On the accountability.illinois.gov website it use to list 2008 so you could compare the bonuses and raises to 2009, but strangely the 08 numbers are gone!

- gary klass - Tuesday, Mar 9, 10 @ 5:00 pm:
If he had guts he would announce that he would campaign against any and all incumbent legislators if the legislature passes another fake wait-till-after-the-election\primary\next election budget.

- cassandra - Tuesday, Mar 9, 10 @ 5:01 pm:
Well, one way of counteracting furlough days among the favored non-union folks is…hefty bonuses. So I’m sure there’ll be a lot of those among the favoured.

Again, it’s not a diet regimen…not at all.

- Chicago Cynic - Tuesday, Mar 9, 10 @ 5:03 pm:
Rich,

Any clue what the discretionary totals are? Some of these numbers still seem to include a lot of federal pass-throughs.

- Louis Howe - Tuesday, Mar 9, 10 @ 5:03 pm:
A Governor’s introduced budget represents his priorities. It’s very disappointing that Gov. Quinn is cutting education while increasing HFS and other human service providers.

- special assistant - Tuesday, Mar 9, 10 @ 5:06 pm:
The article in today’s SJR stated as much. I did notice the numerous responses from John Q. Public and they are outraged. Aging management believes it is layed off employees that are posting all the negative comments, just goes to show you the lack of leadership and common sense that these folks have. It is the TAXPAYERS…wake up!!

- George - Tuesday, Mar 9, 10 @ 5:08 pm:
I just realized something…

Rich - stop the presses….

These are not GRF-only dollars. These have to include other funds or federal monies.

For example - Healthcare and Family Services isn’t $16 billion GRF. It is most like $8.5-9 billion GRF. That has to include Federal money.

So, these numbers don’t match up with the $13 billion deficit number / the $32.117 billion GRF number.

- George - Tuesday, Mar 9, 10 @ 5:10 pm:
Also - DCEO’s $2.4 billion listed here is probably only $50-100 million GRF.

- Chicago Cynic - Tuesday, Mar 9, 10 @ 5:14 pm:
George,

That was exactly my point.

- Rich Miller - Tuesday, Mar 9, 10 @ 5:24 pm:
Yes. They are total numbers. More details later.

- George - Tuesday, Mar 9, 10 @ 5:43 pm:
What that means, folks….

Is that some of the increases and decreases that you see in the year-over-year list could be due to an increase in Federal Money (Medicaid), or a reduction in it (Education).

- gary klass - Tuesday, Mar 9, 10 @ 5:43 pm:
I think the higher ed numbers are just GRF

- gary klass - Tuesday, Mar 9, 10 @ 5:50 pm:
I assume this:
TEACHERS’ RETIREMENT SYSTEM … 951,540 … 157,594

means that he is borrowing $800,000 more from the pension fund than he did last year.

- Wild Willie - Tuesday, Mar 9, 10 @ 6:20 pm:
I think they should dump the entire bunch from CMS. The agency is bloated with political hacks and overcharge every agency regarding the cost of things. A good example is the state cell phones recently issued were $14.99 in a Walmart ad and the cost to state agencies from CMS was $200.00 each.

- Walt - Tuesday, Mar 9, 10 @ 6:23 pm:
I imagine the state does overpay a lot….I once wanted to order a book for a project and was about to order a used one from amazon. But I had to get the new one from Borders because they were the preferred vendor or something like that.

- LINK - Tuesday, Mar 9, 10 @ 6:28 pm:
Am I reading this right that DNR gets a boost?

Just curious, any numbers on Public Health?

- returning dog - Tuesday, Mar 9, 10 @ 6:30 pm:
I assume this:
TEACHERS’ RETIREMENT SYSTEM … 951,540 … 157,594
means that he is borrowing $800,000 more from the pension fund than he did last year.

No quite; try $800,000,000.00

- returning dog - Tuesday, Mar 9, 10 @ 6:55 pm:
These are the percentage up/down.

General Assembly … 50099 … 43155 … -13.9%
Legislative Agencies … 103601 … 83348 … -19.5%
Judicial Agencies … 400764 … 376608 … -6%
Office of the Governor … 93896 … 4705 … -95%
Office of the Lieutenant Governor … 94 … 0 … -100%
Office of the Attorney General … 76852 … 69556 … -9.5%
Office of the Secretary of State … 394391 … 355967 … -9.7%
Office of the State Comptroller … 108968 … 87325 … -19.9%
Office of the State Treasurer … 1743160 … 1732926 … -0.6%
Elected Officials and Elections … 2435411 … 2286215 … -6.1%
Department of Aging … 732919 … 703147 … -4.1%
Department of Agriculture … 101262 … 97560 … -3.7%
Department of Central Management Services … 846129 … 1064405 … 25.8%
Department of Children and Family Services … 1394312 … 1439450 … 3.2%
Department of Commerce and Economic Opportunity … 1053678 … 2389531 … 126.8%
Department of Natural Resources … 214092 … 278731 … 30.2%
Department of Corrections … 1202307 … 1305163 … 8.6%
Department of Employment Security … 306510 … 350649 … 14.4%
Department of Financial and Professional Regulation … 78014 … 84185 … 7.9%
Department of Human Services … 6199214 … 6346019 … 2.4%
Department of Healthcare and Family Services … 14630665 … 15920104 … 8.8%
Department of State Police … 357519 … 359019 … 0.4%
Illinois Arts Council … 9215 … 9577 … 3.9%
Governor’s Office of Management and Budget … 321930 … 338319 … 5.1%
Office of Executive Inspector General … 6859 … 6931 … 1%
Illinois Gaming Board … 117127 … 137359 … 17.3%
GOVERNOR’S AGENCIES TOTAL … 36013295 … 39719582 … 10.3%
STATE BOARD OF EDUCATION … 10314159 … 9861256 … -4.4%
TEACHERS’ RETIREMENT SYSTEM … 951540 … 157594 … -83.4%
HIGHER EDUCATION TOTAL … 2796227 … 2591954 … -7.3%

- Leatherneck - Tuesday, Mar 9, 10 @ 7:29 pm:
Looks like all of the constitutionals’ budgets are cut nearly 10% (but wouldn’t that actually be small potatoes compared to the axe that Blago used on their budgets 2 years ago for FY09, although some was restored by Quinn), except for Hynes’ office getting a 20% axe. Hmmm.

- RJW - Tuesday, Mar 9, 10 @ 7:32 pm:
Rich:

How are you posting this? It is supposed to be embargoed.

- RJW - Tuesday, Mar 9, 10 @ 7:33 pm:
Rich is totally wrong on the headcount numbers above. He is not at all interpreting them correctly, therefore making it look like some of those agencies are getting huge HC increases when they are not.

- Bookworm - Tuesday, Mar 9, 10 @ 7:40 pm:
“Legislative agencies” include:
– the Legislative Reference Bureau (which drafts bills),
– Legislative Information System (maintains the GA website and all its computer equipment),
– Joint Committee on Administrative Rules (reviews all agency regulations; best known for Blago dissing them on his healthcare expansion);
– Committee on Govt. Forecasting and Accountability (holds hearings on proposed state facility closures/sales; their most recent big one was on Thomson prison);
– the Architect of the Capitol;
– the Legislative Inspector General;
– and the Legislative Research Unit.

Does anyone know why Quinn would decide to whack them harder than almost anyone else? Last I looked, they weren’t exactly overstaffed or renowned for waste, fraud, or abuse.

- RJW - Tuesday, Mar 9, 10 @ 7:41 pm:
I’m fairly certain the TRS number listed is also a typo. I’ve found many errors in their briefing materials.

- RJW - Tuesday, Mar 9, 10 @ 7:48 pm:
Bookworm:

I don’t know without seeing the details. It used to be etiquette before Blago that the Governor submitted whatever the GA and its agencies, the Constitutional officers, and the Judges asked to be submitted (or at least a flat budget). Then, somehow the Governor’s office assumed it had control over their budgets. By doing so - though the amounts aren’t great - creates a false cut in the budget b/c the Governor has no say over those budgets. He should propose things for only what he controls and leave those three groups out of the “mix.”

- How Ironic - Tuesday, Mar 9, 10 @ 8:04 pm:
@ returning dog. % up or down is off. GRF is where the $$ savings are. You are looking at OSF/FED #’s mixed in.

After address, I’m sure more info will be available.

- returning dog - Tuesday, Mar 9, 10 @ 8:04 pm:
“Does anyone know why Quinn would decide to whack them harder than almost anyone else?”

No/little federal match?

- Give Me A Break - Tuesday, Mar 9, 10 @ 8:25 pm:
returning dog: you are correct, without medicaid match, a lot human service lines are hard to fund.

- ok - Tuesday, Mar 9, 10 @ 8:28 pm:
” Last I looked, they weren’t exactly overstaffed or renowned for waste, fraud, or abuse.”

I think you misunderstand. That isn’t really a qualifier for cuts right now.

There ain’t no money. Lots of great things will get cut.

- Arthur Andersen - Tuesday, Mar 9, 10 @ 8:41 pm:
I can’t believe that 83% reduction for TRS. At this level of detail, it’s impossible to determine what might have been done to SERS and SURS.

The $954m listed as FY10 for TRS may have been what was actually spent from GRF to fund TRS (and maybe CTPF) before the pension note cash became available. The $154m is also about the total State share of TRS and CTPF health care, fwiw. Could be apples to oranges accounting instead of a haircut, but that doesn’t tell us where the FY11 TRS (and SURS) is located.

AA is too tired today to try and figure it out.

God forbid that one of the two top spending drivers would be coherently presented from the gitgo, but we have to remember who we’re dealing with.

- Michelle Flaherty - Tuesday, Mar 9, 10 @ 8:50 pm:
And the 11 billion in borrowing doesn’t bother anyone so far?
As if any of this is real.

- Anon Again - Tuesday, Mar 9, 10 @ 9:31 pm:
262 more people at IDOT i hope they are engineers cause we dont need 262 more dems in Business services acting like they are there to save the world

- Ed Rooney - Tuesday, Mar 9, 10 @ 10:03 pm:
As noted above, it looks like Hynes is getting hit the hardest…reminds me of another Governor who took out his revenge with uneven budget cuts on Constitutionals.

- Gregor - Tuesday, Mar 9, 10 @ 10:04 pm:
This is a sick joke. Most of these five pillars are made of playdough.
Quinn really does seem to be playing chicken with the leg. on a tax hike.

- Bookworm - Tuesday, Mar 9, 10 @ 10:09 pm:
“it’s not a diet regimen…not at all.”

Although in the case of the legislative agencies (I work for one) it’s more like a starvation regimen. Yes, we probably are taking the hit because 1) we don’t get federal matching or stimulus funds, 2) the public has little if any idea what we do and won’t get upset if a bunch of us get canned.

- Leatherneck - Tuesday, Mar 9, 10 @ 10:09 pm:
Ed,

I agree–but even the SOS budget is being slashed 9.7% (unless this amount was negotiated and agreed upon beforehand between OMB and the SOS office, unlike 2 years ago with Blago) despite Jesse’s support of Quinn in the primary.

- Horace Mann - Tuesday, Mar 9, 10 @ 10:10 pm:
That huge whack for TRS might have something to do with the IEA, er,TRS board selection for the Director of TRS.Quinn could not have been pleased with that choice.

- Park - Tuesday, Mar 9, 10 @ 10:39 pm:
Fascinating numbers, though probably a lot of errors, considering Quinn’a mismanagement. So the Department of Aging (in the news today) has 10 times the budget of, say, the attorney general’s office (which I think we’re supposed to have). What does the Department of Aging do again? Does it REALLY need to be done by the State in this financial crisis? Commerce and Economic Opportunity darn near doubles. Rent going up at the Paris offfice? How much of that junk was set up by Jim Thompson for questionable reasons? Can’t cut that out, eh? Well, maybe Brady can.

Major expansions in all the social service areas. More money for, say, the City of Harvey (also in the news today) to blow on nepotism? Good for you Gov.

Any reduction for eliminated free senior transit gov? Hello, Gov.?? I don’t think he’s paying attention, oh well.

What a bonehead. Can’t wait for November. SEE YA!

- RJW - Tuesday, Mar 9, 10 @ 11:35 pm:
I think there is a lot of confusion here b/c of their number comparisons. It was perfectly clear to me - someone who works on budget stuff in state government - in our meeting earlier in the day what was being presented, so either the press briefing was really screwed up or there is not an understanding of what was presented. Either way is bad.

- anon - Wednesday, Mar 10, 10 @ 12:09 am:
This is all just smoke and mirrors — just like it is every year. Just sit back and enjoy the show that’s about to unfold.

- Louis Howe - Wednesday, Mar 10, 10 @ 6:21 am:
David Vaught is making a dangerous proposition when he says the state’s borrowing isn’t like a household charging operating expenses to a credit card because the state’s interest rate is only 1%. The interest rate is of secondary importance, it’s the principle that citizens should only receive services that they are willing to pay for. After all, we are not the federal government, we can’t print money. The credit card mentality is why we have a 13 billion deficit within a $26 billion budget.

- Rich Miller - Wednesday, Mar 10, 10 @ 6:47 am:
RJW, those headcount numbers came directly from the briefing book.

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