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*** UPDATED x2 *** Quinn announces more budget cuts

Wednesday, Aug 4, 2010 - Posted by Rich Miller

* The governor has announced his $1.4 billion in cuts to the state’s budget. You can read the actual cuts by clicking here. From the AP

The Department of Healthcare and Family Services, which oversees Medicaid for the poor, will lose $216 million, or about 2.7 percent. Last month, Quinn said the agency would be one of the few getting more money.

The Department of Human Services is being cut by $576 million, about 14 percent. Originally, the department was going to lose just $312 million.

Education spending, from preschool to high school, will be cut by $311 million, or about 4.3 percent. Quinn announced last month that education would be cut by $241 million.

The school cuts include $146 million for student transportation and $68.5 million in reading improvement block grants.

SJ-R

Quinn’s budget office said the total additional reductions amount to about $891 million. Quinn held a news conference in July to say he would be cutting $1.4 billion from the budget, but he did not specify then how the entire $1.4 billion would be achieved.

“He said details would be forthcoming,” said Quinn budget spokeswoman Kelly Kraft. “This details the (entire) $1.4 billion.”

* Here are the education cuts…

Overall, P-12 education funding is reduced by $311 million in the fiscal year 2011 budget. Reductions include:

• $146 million in student transportation

• $68.5 million in reading improvement block grants
 
• $16 million in hold harmless subsidy to school districts with declining enrollment

• $3 million in operations and support programs at the State Board of Education

• $80 million in support for other grant programs

Not a whole lot of detail there. According to the SJ-R, that student transportation cut is a 42 percent reduction from last year. We’re still waiting on a Quinn campaign press release blasting the governor’s education cuts for surely causing property taxes to skyrocket [/snark].

* Some agencies receive a boost, like Veterans Affairs…

Overall, funding for the Department of Veterans’ Affairs is increased by $7.8 million in the fiscal year 2011 budget.

• $8.2 million increase in operations, mostly for staffing at veterans’ homes to increase the level of nursing care provided to resident veterans.

• $0.4 million reduction in grants

* And some lines were restored or cuts averted over at the Department of Human Services…

Community Mental Health Residential services have been restored.

Funding has been identified to mitigate Developmental Disabilities rate reduction.

Teen REACH and Safety Net Works are maintained with minor reductions.

But DHS was in line for other cuts…

• $60.3 million from operations
o Impacts operations at local offices, state psychiatric hospitals and developmental centers; DHS will achieve operating efficiencies through review of contracts and programmatic changes

• $515.7 million from grants
o Reduces or eliminates non-Medicaid programs in mental health, developmental disabilities and rehabilitative services
o Extends payment cycles for developmental disabilities programs
o Reduces Community Health and Prevention programs

* And Quinn is still counting on a higher level of federal Medicaid reimbursement…

Overall, funding for the Department of Healthcare and Family Services is decreased by $216 million in the fiscal year 2011 budget.

• $207.8 million decrease in Medicaid lines and Group Insurance. The department plans to enact various quality and efficiency initiatives.

• $8.0 million in operations reductions

Assumptions include continued enhanced federal Medicaid match (FMAP).

Without that FMAP cash, those cuts will have to be deeper.

* But details matter, and we don’t have a lot. For instance…

Overall, funding for the Illinois State Police is reduced by $18.8 million in the fiscal year 2011 budget. […]

Funding to support AMTRAK operations will be $2 million less in the fiscal year
2011 budget with no reduction in service.

That’s all the explanation we have for ISP and Amtrak. Not much.

*** UPDATE 1 *** From Progress Illinois

Earlier this morning, the U.S. Senate voted to overcome a Republican fillibuster of legislation providing state governments with $26 billion to prevent teacher layoffs and Medicaid cuts. U.S. Sens. Susan Collins (R-ME) and Olympia Snowe (R-ME) sided with Democrats after Senate Majority Leader Harry Reid (D-NV) rolled back $11.9 billion in food stamp benefits that were first approved as part of the economic recovery bill last year. (This move comes one day after Illinois announced a record increase in Supplemental Nutrition Assistance Program participants.)

Illinois is in line for $750 million in Medicaid and $415 million in education funding.

*** UPDATE 2 *** Related and a roundup…

* Sun-Times: Now isn’t the time for thinking small: The real shame is that Quinn has now backed himself into a corner. If he wins re-election, he can propose no more than the 1-percentage point tax increase, offering up a measly compromise when Illinois needs tough, courageous leadership.

* Illinois’ Income Tax Rate In Context

* More workers face pay cuts, not furloughs

* Cook Co. Treasurer Pappas furious over tax law: “This is a bad economy,” Pappas told the Sun-Times. “Springfield comes in, Quinn comes in and says now you’ve got to pay right away. And he says he’s on the side of homeowners? What planet is he on? This is outrageous for taxpayers. It’s outrageous. Who’s advising him and what is he smoking?”

* Gov, AG Halt Predatory Debt Settlers

* New law limits rights of debt settlement companies

* New law strengthens debt settlement firm regulations

* Illinois imposes new restrictions on debt-settlement companies

* Tribune: This one’s a sound bet

* Tribune: The bad guys won: The Illinois Gaming Board’s efforts to keep organized crime out of state-sanctioned gambling could leave veterans with no place to go on a Tuesday night. That’s Gov. Pat Quinn’s rationale for signing a bill that strips regulators of the discretion they need to police thousands of new video poker terminals coming online soon.

* Tax Holiday Aims to Save School Shoppers Ca$h

* Illinois has new health IT implementation law

* Illinois governor signs new nursing home rules into law

* In Illinois, Wage Thieves Will Pay

* Four appointed to East St. Louis financial oversight panel

       

35 Comments
  1. - Wumpus - Wednesday, Aug 4, 10 @ 10:18 am:

    Leave it to Quinn to take care of Veterans (although that should be a fed responsibikity primarily). Good though


  2. - Montrose - Wednesday, Aug 4, 10 @ 10:30 am:

    The lack of detail is so frustrating. Remember line item budgets? How I miss them.


  3. - Ahoy - Wednesday, Aug 4, 10 @ 10:31 am:

    Will the Brady campaign issue a press release blasting the governor for the cuts or for not cutting enough?

    Of course I don’t even know why we have a budget anymore in Illinois, we can’t follow it.


  4. - Fan of Cap Fax - Wednesday, Aug 4, 10 @ 10:34 am:

    Shouldn’t each constitutional office provide a list of cuts for their office?


  5. - jack the dog - Wednesday, Aug 4, 10 @ 10:40 am:

    This is smoke and mirrors.ISP has a cadet class starting 9/6.That’s 60 new people hired,and certainly can be useful.If there’s a cut,why the hires?Would suspect the same is happening in other depts.More slush than a 7-11 store


  6. - dave - Wednesday, Aug 4, 10 @ 10:42 am:

    jack… it is possible to hire and make cuts at the same time. you do understand that, right?


  7. - dave - Wednesday, Aug 4, 10 @ 10:52 am:

    Not sure if the $750M FMAP number is correct, as they adjusted the FMAP %, making it a phase out, I believe. Or, at least, that was one of the options on the table as of yesterday.


  8. - Pete Mitchell - Wednesday, Aug 4, 10 @ 10:54 am:

    Way to go congress! 12 less furlough days.


  9. - OneMan - Wednesday, Aug 4, 10 @ 11:08 am:

    The new health implementation law sounds nice, but they haven’t been able to pick a platform the video gaming yet.

    In less than three years they are going to dev and interchange standard and approve EMR systems?


  10. - Ghost - Wednesday, Aug 4, 10 @ 11:33 am:

    These cuts are going to have large ripple effects setting back the whole states economic recovery.

    The better solution to me is still the one where the states borrow money from the fed to get through these tough times; fill budet gaps to help stimulate the economy; and offset te borrowing agaist future federal disbursements to the states. i.e. long term borrowing against our future federal dollars to get us through this rough patch. Along with trimming waste.


  11. - Wensicia - Wednesday, Aug 4, 10 @ 11:57 am:

    I guess Brady can ask Quinn if he had his fingers crossed when he said “I’m a person who wants to hold down property taxes,” after blasting Brady about a possible property tax hike if he cut education.


  12. - Cincinnatus - Wednesday, Aug 4, 10 @ 11:58 am:

    Ghost,

    I have been thinking about your borrowing scheme and I am beginning to think there may be the seeds of an idea there. Using an IMF model where there are preconditions to receiving a loan such as fiscal restraint, a workable solution may be achievable. I still have huge concerns because of the likelihood of tampering with the program by bureaucrats and politicians. I can see a lot of room for mischief, we only need to look at they type of activity of which Maxine Waters/Barney Frank stand accused to understand what I mean.


  13. - Leatherneck - Wednesday, Aug 4, 10 @ 12:06 pm:

    Pete,

    If Congress officially approves the $26 billion to states, IMO I don’t think that will restore the cuts that Quinn was planning to make (including the new ones announced today)–plus IMO the 24 furlough days will probably still remain in effect. After all, there’s still $12 billion left to cut anyway.


  14. - wordslinger - Wednesday, Aug 4, 10 @ 12:12 pm:

    Just trying to get past November….


  15. - Anonymous - Wednesday, Aug 4, 10 @ 12:24 pm:

    Jack the dog

    This ISP class of 60 doesn’t even come close to replacing the ISP officers that have retired and you will see more than 50 leave this coming Jan, you can hire 2 cadets/troopers for every one that leaves.They are still saving dollars.,


  16. - 47th Ward - Wednesday, Aug 4, 10 @ 2:09 pm:

    Where are all those commenters who’ve been screaming for real cuts from Quinn? Hello? Anybody out there? Is this thing on?


  17. - Rich Miller - Wednesday, Aug 4, 10 @ 2:11 pm:

    Good point.


  18. - Pete Mitchell - Wednesday, Aug 4, 10 @ 2:11 pm:

    Leatherneck

    I do not think the Governor will reduce furlough days. I only mentioned it because the extra furloughs were tied to the 750 Mil. I was being FACETIOUS!


  19. - Small Town Liberal - Wednesday, Aug 4, 10 @ 2:23 pm:

    - Where are all those commenters who’ve been screaming for real cuts from Quinn? -

    Maybe they’re finally busy contacting the Brady campaign to see if he’ll actually propose some budget ideas.


  20. - cassandra - Wednesday, Aug 4, 10 @ 2:53 pm:

    Is this a result of the review process Quinn and Vaught told us would be occurring with individual agencies when they presented the budget earlier this year?

    I’d like to believe they are actually making some responsible cuts–there are definitely responsible cuts to be made. But these are projected cuts, I believe. After all, we won’t even know the final tally on last year until January. Then at least we’ll have hard figures on what Quinn really cut in 2010, since the state has until the end of this year to pay 2010 bills. By that time, the election will be over, of course. Before that, it’ll be smoke and mirrors and as many headlines trumpeting “cuts” as Quinn thinks he can get away with. The game now is obfuscation.


  21. - Pat Robertson - Wednesday, Aug 4, 10 @ 4:02 pm:

    ==Way to go congress! 12 less furlough days. ==

    Fixed it for you:

    Way to go congress! Another round of raises for PQ’s staff.


  22. - Rich Miller - Wednesday, Aug 4, 10 @ 4:17 pm:

    All the folks who demanded more budget stories and more cuts have, indeed, been way too quiet today. I’ll remember that.


  23. - 47th Ward - Wednesday, Aug 4, 10 @ 4:29 pm:

    Me too Rich. While I think it was nice of Cassandra to weigh-in, her predictable “these aren’t really cuts” comment was, well, predictable.

    Where is DuPage Dan, PalosParkBob, VanillaMan and the rest of the “I’m with Brady Crowd” who think there are billions more that can be cut so easily?

    Quinn just laid-out $1.4 billion with a B in cuts. Serious cuts. Cuts that will hit some vulnerable people very hard. I’m not asking for applause on behalf of the Governor. But simple recognition that he’s identified specific places to cut would be nice.

    And all we hear are crickets. Maybe everybody is on vacation. Or on furlough. Or in the jury room. Or outside the jury room waiting like the rest of us.


  24. - Montrose - Wednesday, Aug 4, 10 @ 5:05 pm:

    An update from the New York Times on FMAP funding:

    http://www.nytimes.com/2010/08/05/us/politics/05spend.html?hp

    “The vote quickly prompted calls for the House, which left for its summer break last Friday, to return to Washington. And in a Twitter message on Wednesday afternoon, Ms. Pelosi said that she would bring lawmakers back next week.”


  25. - RJW - Wednesday, Aug 4, 10 @ 5:29 pm:

    I’d love somebody to ask Quinn if he is rescinding the extra 12 furlough days since they so openly tied it to the lack of additional FMAP. I know it won’t change anything but it will be nice to see them squirm for another story to cover up the fact that they did it b/c Quinn got caught giving raises to his staff.

    @Cassandra:
    Do you just have certain comments ready to copy and paste onto this blog. You seem to be a broken record. You also seem to know all there is about state government. Problem is, when you speak you clearly indicate your ignorance. If you don’t believe there are real cuts going on, visit some of us in the agencies working in this budget mess. He may not be cutting things you think he should cut but I can speak from experience that cuts have been and continue to be made. Also, if you want to look what agencies have spent you don’t have to wait until January. You can go to the following website (http://accountability.illinois.gov/) and get all kinds of info on agency spending, contracts, what people make,etc. You can look at reports from the Comptrollers office which are posted on the website. You can even FOIA an agency which would have the actual expenditure amounts ready and available. Nothing is being hidden.


  26. - Wensicia - Wednesday, Aug 4, 10 @ 5:32 pm:

    He’ll cut education, again, but won’t touch free rides for seniors.


  27. - RJW - Wednesday, Aug 4, 10 @ 5:34 pm:

    @Wensicia:

    LOL. Though he did cut free rides - that is, free rides for STUDENTS!


  28. - Wensicia - Wednesday, Aug 4, 10 @ 5:39 pm:

    @RJW

    Good point.


  29. - Old Timer - Wednesday, Aug 4, 10 @ 6:05 pm:

    All these cuts and IDOT keeps hiring and promoting and handing out those temporary assignment cush jobs.


  30. - DuPage Dave - Wednesday, Aug 4, 10 @ 7:04 pm:

    Quinn said the reason we non-union staff needed to take 24 furlough days was the lack of this $750 million in federal funds.

    So now that Congress is going to restore these funds to Illinois, can we count on the Governor to be a man of honor and reverse his decision on furloughs?

    I think everyone reading this blog knows the answer to that one…


  31. - gsb - Wednesday, Aug 4, 10 @ 7:52 pm:

    I’ve been on the road all day and am just now catching up on things. Nobody likes these cuts, but I give the Gov credit for putting them out there. I never thought he (or anyone else for that matter) would before that November event. Good for him….GOP/Brady…your move.


  32. - ironman - Wednesday, Aug 4, 10 @ 10:29 pm:

    Let’s talk about DHS. Down at Chester Mental Health, they hire a PSA midnight nursing supervisor, which there never was a position before and she makes around 90,000.00 per year.. A transfer from Chicago…They hire another woman who makes around the same salary. she was place in a job that was not filled in the past 6 plus years. Down at Choate, the more you get in trouble, the better your opportunity is for advancement. Many unqualified people with out degrees are in positions that make a lot of money.. Can’t wait for a audit…..


  33. - wordslinger - Thursday, Aug 5, 10 @ 7:18 am:

    Rich and 47th, the silence is deafening. A Dem gov. cuts a half billion in DHS grants? How about a song, VMan? Once you get to work, that is.

    But given the short-term memories of some of those folks, they’ll be back today probably.

    Maybe they can lay the Brady supply side voodoo on us. You know, cut taxes, economy booms and revenues go up (why would those who favor smaller government want revenues to go up, anyway?).

    Check out the latest unemployment numbers from no-personal-income-tax Florida — 11.6% — and no personal or corporate income tax Nevada — 14.2%.

    Is it possible that in a global economy state income taxes aren’t a dominating factor in the economy? Who knew?


  34. - Small Town Liberal - Thursday, Aug 5, 10 @ 8:30 am:

    - Is it possible that in a global economy state income taxes aren’t a dominating factor in the economy? -

    C’mon word, some of these guys have taken Econ 101 and have been successful businesspersons. Only they truly understand that the very word “tax” spoken by a butterfly in Illinois can cause a financial storm as far away as Florida or Nevada.


  35. - anon - Thursday, Aug 5, 10 @ 10:32 pm:

    Quinn is getting criticism left and right with his budget proposals, and for some, rightfully so. One of his critics concerning homeowner legislation has been Cook County Treasurer Maria Pappas. What I find appalling is that there has been no real media coverage on Maria Pappas hiring of President Stroger’s former Chief of Staff Joe Fratto at 157 K a year. I guess Maria is picking the best and the brightest. After all, the buck stopped with Mr. Fratto in regards to his stellar leadership in running Cook County. Maria really served the public well on this one. Perhaps, she also can find Todd a job. Anyway…I just get a kick out of these so called “reformers” or “good government” types, as Ms. Pappas would like us to see her as, in doing the same old business as usual. I am sure there are no other laid off executive types out there that could have filled this position at 157 K, and it definitely had nothing to do with him being from Bridgeport. Thanks Maria…I really can take you seriously next time you look out for the Seniors and taxpayers of Cook County.


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