By Jamey Dunn
A study released today takes a comprehensive look at Illinois’ fiscal situation and the events that led to the state’s current budget mess.
The study, which comes from the State Budget Crisis Task Force, is a follow-up to a report put out by the task force in July. The summer report focused on the budgets of California, Illinois, New Jersey, New York, Texas and Virginia. Richard Ravitch, the former lieutenant governor of New York, and Paul Volcker, the former chairman of the Federal Reserve, co-chair the task force, which seeks to parse state’s budget concerns in the wake of the national recession.
The report points to the usual suspects as cost drivers for the Illinois budget: growing pension and Medicaid costs. It also cites stagnant revenues, borrowing and shoddy accounting tactics as culprits in the state’s recent budget crisis.
The report says that that tactic of selling bonds to cover pension costs — 2003, 2010 and 2011 — has been the primary contributor to Illinois having one of the highest debt rates per capita of any state.
The study says that the 2008 economic collapse was part of a perfect storm that sunk the state budget. Revenues tanked as demand for services spiked. “But unlike other states, Illinois was effectively insolvent. Illinois had no reserves and had used fiscal gimmicks and borrowing to balance the budget for the previous six or seven years.”
The authors attribute the problems leading up to 2008 to expansions of state programs and services without corresponding revenue increases under former Gov. Rod Blagojevich. The study said that the governor’s refusal to increase the state income tax and House Speaker Michael Madigan’s unwillingness to work with Blagojevich on alternative revenue sources left the state spending more than it could afford. “During Blagojevich’s two terms as governor, new programs were created and expanded, including health insurance coverage and preschool for Illinois children and free public transportation and prescription drugs for Illinois seniors. But with an existing structural deficit, and without new sources of revenue, the state did not have sufficient resources to meet all of its obligations,” the report said. “And while the recession took a toll on the state’s resources, Illinois’ government became essentially dysfunctional with the federal investigation of Governor Blagojevich and his removal from office.”
The authors described the state’s budgeting tactics leading into the recession as such: “Illinois did all this without any sort of long-term financial plan to restore balance and without reserves. Illinois has been doing back flips on a high wire, without a net.”
Illinois economic growth has also stalled when compared with the rest of the country. “By FY 2010, Illinois’ total personal income fell 2 percent more and employment fell 1 percent more than in the U.S. as a whole. The impact of the recession on Illinois’ tax collections was much, much larger. In FY 2010, total state taxes in the U.S. were 93 percent of the amount in FY 2007, but Illinois’ tax revenues had fallen to 85 percent of the FY 2007 amount,” said the study. Illinois is recovering from the recession, but it is doing it more slowly than it recovered from the last three recessions.
The report notes that progress has been made to get the state back on secure footing. An income tax increase brought in new revenues, and lawmakers agreed on spending caps, cuts and sweeping Medicaid reforms. The authors note that such cuts are not painless and could have long-term effects on the state’s priorities, such as education and infrastructure. “There is, of course, nothing ‘encouraging’ about cuts in education, medical care and human services from the point of view of recipients or advocates. One of the most controversial budget appropriations was $6.5 billion for K-12 education, which was a cut of 3 percent from FY 2012,” said the study.
Despite cuts and new revenues, the authors say the state cannot continue on its current budget trajectory. “Illinois’ budget is not fiscally sustainable. Despite recent progress and difficult choices, it is still in a deep hole. It cannot simultaneously continue current services, keep taxes at current levels, provide all promised [public employee] benefits, and make needed investments in education and infrastructure.”
Gov. Pat Quinn’s new budget spokesperson, Abdon Pallasch, echoed the idea that the current budget is unsustainable when he spoke to the Daily Herald’s editorial board yesterday. Quinn is pushing for concessions from the state’s largest public employee union and pension reform as at least a partial solution. “The alternative is we, you know, close a few prisons or universities, I guess,” Pallasch told the Daily Herald. “I’m not threatening to close prisons or universities,” he said. “I’m just saying, let your imagination run wild with what we’d have to do.” Officials with the American Federation for State County and Municipal Employees say Quinn and lawmakers should repeal tax breaks given to corporate interests, such as a recent tax deal given the Sears and the CME group, which owns the Chicago Mercantile Exchange and the Chicago Board of Trade.
The study also looked to potential future concerns for Illinois, including cuts to federal funding as deficit reduction efforts continue, the need to invest in infrastructure upgrades and the state’s aging residents. “Illinois’ demographics show an aging population with a trend toward fewer workers and more retirees, which will pose daunting fiscal challenges in the years ahead.”
Showing posts with label State employees. Show all posts
Showing posts with label State employees. Show all posts
Wednesday, October 24, 2012
Friday, September 30, 2011
State losing ground on poverty goals
By Jamey Dunn
A government commission seeking to cut extreme poverty in half in the state by 2015 says Illinois is moving in the opposite direction of that goal.
A report released by the Commission on the Elimination of Poverty found that more than 800,000 people are living in extreme poverty in the state. That number increased by more than 200,000 since the General Assembly created the commission in 2008. Extreme poverty is defined as an income that is less than half of the federal poverty level. For a family of four that would mean $11,175 a year. Making up 10 percent of those who are extremely poor, children are the most represented age group. More than12 percent of people living below the extreme poverty line have a disability that hinders their ability to work.
The recession that has pushed more residents into poverty and made things harder for those already below the poverty line has also strangled state revenues. With fewer tax dollars rolling in and much of the money from the recent tax increase going toward the state’s deficit, lawmakers made cuts to balance the budget. “The implications of substantial service cuts for those experiencing extreme poverty — many of whom rely on state-funded services in their communities to meet their basic needs — will be nothing short of devastating,” the report said. The commission’s report focused on several of the group’s recommendations from its 2010 plan. All but two of the legislative recommendations the group made last year and revisited in the report were defined as either “losing ground” or at a standstill.
Rep. La Shawn Ford, a Chicago Democrat and sponsor of a measure that would bar the state from asking most job applicants about nonviolent criminal records, said he has hope for his legislation. House Bill 1210 failed to emerge from committee during the spring legislative session. He said that The Illinois Department of Central Management Systems, which manages the state's workforce, is concerned about implementation costs, such as printing new applications. But Ford said he is working with CMS and hopes to revisit the issue during the fall veto session, scheduled for the end of October.
Ford said the plan would allow those who have paid their debt to society a chance to get back on their feet through work. “In fact, it would save the state a lot of money. The fact that we have so much recidivism — one of the reasons is that people can’t go back to work.” Ford said that jobs with specific legal requirements barring those with criminal records would be exempt from the bill. “The bill is pretty simple. The bill is safe. It eliminates employers or jobs in the state that the law automatically disqualifies. … You can’t apply for a job with law enforcement if you have a [criminal] background. The law disqualifies you. You can’t apply for a job dealing with money. The law disqualifies you.” Ford said if the state leads by example, private businesses might follow suit and stop asking about nonviolent criminal offenses. He added that the state could also offer incentives to employers that hire people with records. “It’s about time that taxpayers stopped footing the bill for individuals that are not able to go to work and pay taxes. We have to foot the bill by continuing to pay for their health care, pay for their incarceration or pay for them through social services.”
Some business leaders say components of the commission’s recommendations would potentially put more people out of work. David Vite, president of the Retail Merchants Association, said proposals such as raising the state minimum wage and requiring employers to give their work force paid sick leave would increase costs to business and deter hiring. He said in some cases, it might lead to layoffs, and some businesses would not be able to remain afloat under such demands. “It certainly would have reduced employment in the state and probably put some people out of business.”
Vite had a lukewarm reaction to one of the recommendations that did become law, House Bill 2927, and said it could help to spur hiring. The new law will offer subsidies to be spent on wages to employers who hire new workers. The companies and nonprofits that take the subsidies must agree to keep new workers even after the state stops helping to pay their wages. The subsidies are to be distributed throughout the state based on unemployment rates. “It’s not exactly what we would like, but anytime you give an opportunity to reduce the cost of labor in the state, it can give a positive effect,” Vite said.
Maywood Democratic Rep. Karen Yarbrough, who sponsored the legislation that created the commission, said the report was upsetting but not a total surprise. “It’s very distressing. I didn’t expect it to be so dire. But it is, and I understand why it is. Because working in our district offices, I mean, you see it up front and personal. This summer has been extremely distressing. People who have lost their homes, lost their jobs and probably the most important thing is that in some cases — lost hope.”
She acknowledged it is difficult to find support for proposals that would increase costs to the state or to businesses in the midst of a budget crisis and after the passage of an income tax increase. “We have an obligation. However we get it done, we have an obligation to the least of them. … We have a moral obligation to figure this out,” she said. “I understand the reality. It’s tough. But it’s our job. We signed up for it as legislators.”
The report said that the goal of eliminating poverty did not come out on top when weighed by legislators with other concerns and limited money to spend. Along with passing few of the group’s recommendations, lawmakers also shifted money away from the Temporary Assistance for Needy Families program, slashed programs for the homeless and transitional housing and eliminated two income assistance programs. “Faced with difficult decisions about state budget cuts and policy priorities, policymakers failed to prioritize funding for programs and services and substantive bills that would meet the needs of the most vulnerable. Only by refocusing and reprioritizing in the coming year will our state be able to decrease the number of individuals and families living in extreme poverty.”
Kimberly Drew — a policy associate for the Heartland Alliance for Human Needs & Human Rights, which provides assistance to the commission — said that group considered the state’s budget shortfall when making its recommendations. “There was much discussion around the current state of the Illinois budget and really what could gain traction around the budget climate.” She said administrative changes, such as Ford’s proposal and streamlining the application process for assistance programs so those who are eligible for multiply programs could cut down on the number of applications they submit, are low cost solutions. However, she said the commission will also lobby lawmakers to restore funding to the eliminated income assistance programs and programs for the homeless, among other cuts. “We want to raise up some of the cuts that have had particularly devastating impacts on people who are in extreme poverty. … The cuts to housing programs have been particularly hard felt.”
A government commission seeking to cut extreme poverty in half in the state by 2015 says Illinois is moving in the opposite direction of that goal.
A report released by the Commission on the Elimination of Poverty found that more than 800,000 people are living in extreme poverty in the state. That number increased by more than 200,000 since the General Assembly created the commission in 2008. Extreme poverty is defined as an income that is less than half of the federal poverty level. For a family of four that would mean $11,175 a year. Making up 10 percent of those who are extremely poor, children are the most represented age group. More than12 percent of people living below the extreme poverty line have a disability that hinders their ability to work.
The recession that has pushed more residents into poverty and made things harder for those already below the poverty line has also strangled state revenues. With fewer tax dollars rolling in and much of the money from the recent tax increase going toward the state’s deficit, lawmakers made cuts to balance the budget. “The implications of substantial service cuts for those experiencing extreme poverty — many of whom rely on state-funded services in their communities to meet their basic needs — will be nothing short of devastating,” the report said. The commission’s report focused on several of the group’s recommendations from its 2010 plan. All but two of the legislative recommendations the group made last year and revisited in the report were defined as either “losing ground” or at a standstill.
Rep. La Shawn Ford, a Chicago Democrat and sponsor of a measure that would bar the state from asking most job applicants about nonviolent criminal records, said he has hope for his legislation. House Bill 1210 failed to emerge from committee during the spring legislative session. He said that The Illinois Department of Central Management Systems, which manages the state's workforce, is concerned about implementation costs, such as printing new applications. But Ford said he is working with CMS and hopes to revisit the issue during the fall veto session, scheduled for the end of October.
Ford said the plan would allow those who have paid their debt to society a chance to get back on their feet through work. “In fact, it would save the state a lot of money. The fact that we have so much recidivism — one of the reasons is that people can’t go back to work.” Ford said that jobs with specific legal requirements barring those with criminal records would be exempt from the bill. “The bill is pretty simple. The bill is safe. It eliminates employers or jobs in the state that the law automatically disqualifies. … You can’t apply for a job with law enforcement if you have a [criminal] background. The law disqualifies you. You can’t apply for a job dealing with money. The law disqualifies you.” Ford said if the state leads by example, private businesses might follow suit and stop asking about nonviolent criminal offenses. He added that the state could also offer incentives to employers that hire people with records. “It’s about time that taxpayers stopped footing the bill for individuals that are not able to go to work and pay taxes. We have to foot the bill by continuing to pay for their health care, pay for their incarceration or pay for them through social services.”
Some business leaders say components of the commission’s recommendations would potentially put more people out of work. David Vite, president of the Retail Merchants Association, said proposals such as raising the state minimum wage and requiring employers to give their work force paid sick leave would increase costs to business and deter hiring. He said in some cases, it might lead to layoffs, and some businesses would not be able to remain afloat under such demands. “It certainly would have reduced employment in the state and probably put some people out of business.”
Vite had a lukewarm reaction to one of the recommendations that did become law, House Bill 2927, and said it could help to spur hiring. The new law will offer subsidies to be spent on wages to employers who hire new workers. The companies and nonprofits that take the subsidies must agree to keep new workers even after the state stops helping to pay their wages. The subsidies are to be distributed throughout the state based on unemployment rates. “It’s not exactly what we would like, but anytime you give an opportunity to reduce the cost of labor in the state, it can give a positive effect,” Vite said.
Maywood Democratic Rep. Karen Yarbrough, who sponsored the legislation that created the commission, said the report was upsetting but not a total surprise. “It’s very distressing. I didn’t expect it to be so dire. But it is, and I understand why it is. Because working in our district offices, I mean, you see it up front and personal. This summer has been extremely distressing. People who have lost their homes, lost their jobs and probably the most important thing is that in some cases — lost hope.”
She acknowledged it is difficult to find support for proposals that would increase costs to the state or to businesses in the midst of a budget crisis and after the passage of an income tax increase. “We have an obligation. However we get it done, we have an obligation to the least of them. … We have a moral obligation to figure this out,” she said. “I understand the reality. It’s tough. But it’s our job. We signed up for it as legislators.”
The report said that the goal of eliminating poverty did not come out on top when weighed by legislators with other concerns and limited money to spend. Along with passing few of the group’s recommendations, lawmakers also shifted money away from the Temporary Assistance for Needy Families program, slashed programs for the homeless and transitional housing and eliminated two income assistance programs. “Faced with difficult decisions about state budget cuts and policy priorities, policymakers failed to prioritize funding for programs and services and substantive bills that would meet the needs of the most vulnerable. Only by refocusing and reprioritizing in the coming year will our state be able to decrease the number of individuals and families living in extreme poverty.”
Kimberly Drew — a policy associate for the Heartland Alliance for Human Needs & Human Rights, which provides assistance to the commission — said that group considered the state’s budget shortfall when making its recommendations. “There was much discussion around the current state of the Illinois budget and really what could gain traction around the budget climate.” She said administrative changes, such as Ford’s proposal and streamlining the application process for assistance programs so those who are eligible for multiply programs could cut down on the number of applications they submit, are low cost solutions. However, she said the commission will also lobby lawmakers to restore funding to the eliminated income assistance programs and programs for the homeless, among other cuts. “We want to raise up some of the cuts that have had particularly devastating impacts on people who are in extreme poverty. … The cuts to housing programs have been particularly hard felt.”
Monday, September 28, 2009
AFSCME layoffs stopped for now
By Bethany Jaeger
About 500 state employees who anticipated losing their jobs Wednesday are on hold. A southern Illinois judge this morning ordered the administration to refrain from laying off employees pending more negotiations with the state’s largest public employee union.
Gov. Pat Quinn’s office said it plans to appeal the ruling, leaving one segment of his deficit-reducing plan — and the 2,600 employees who would be laid off — in limbo.
The American Federation of State, County and Municipal Employees Council 31 filed suit in Johnson County, where Vienna Correctional Center would lose positions. It argued that the job cuts would jeopardize public safety and cause harm to its workers if layoffs took place before the administration settled a dispute over the union’s concerns.
Judge Todd Lambert of the First Judicial Circuit Court in Johnson County ruled that AFSCME met its burden of proof. He wrote in his order, “The risk of employees targeted for layoff or laid off far outweighs any damages or other harm the state may suffer by having to delay the layoffs pending arbitration of the pending grievances.”
Lambert also wrote that the union’s grievances “are not frivolous and reflect a genuine dispute between the parties.”
AFSCME argues layoffs would cause irreparable harm if they took effect without completing negotiations about how the process of layoffs would trickle down. The complex process allows senior workers to bump less-experienced workers out of their jobs, starting a domino effect of workers who have options to take other positions or accept reduced pay, for instance. Anders Lindall, AFSCME Council 31 spokesman, said union members would be forced to make life-altering decisions without knowing all of their options.
“You can’t unscramble the eggs,” Lindall said. “Once employees make these choices, if we subsequently prevailed on our grievance, the state could not easily or at all just go back and restore the status quo.”
AFSCME’s grievances also protest the state’s contracts with private firms that do work that the union says state employees could perform. Lindall cited a $14.5 million contract with a private company that provides temporary clerical workers. Meanwhile, the state plans to lay off state-employed clerical workers in six agencies. “That $14 million contract should be reduced or eliminated and state employees kept on the job," Lindall said.
Quinn’s administration originally proposed that AFSCME members take unpaid days off or forego annual raises to help prevent the need for more layoffs. The union would not agree to concessions, leading Quinn to say he had no choice but to lay off 2,600 employees.
The court order specifically applies to AFSCME members, many of whom work in the Department of Corrections, as well as in the departments of Revenue, Human Services, Healthcare and Family Services and Commerce and Economic Opportunity.
More layoffs were scheduled to take effect October 31 from the Illinois Arts Council and the departments of Natural Resources and Aging, according to Central Management Services, the personnel and procurement agency.
The governor’s office said in a statement that it “carefully followed every step required in the AFSCME contract” and had no choice. “Illinois is experiencing an unprecedented economic crisis, and budget reductions must be made, including cuts to the state’s administrative and personnel costs. Our plan includes responsible layoffs that do not jeopardize public safety.”
The administration still is in negotiations with other public employee unions, including the Service Employees International Union, the Illinois Federation of Teachers, the Teamsters and the Laborers.
About 500 state employees who anticipated losing their jobs Wednesday are on hold. A southern Illinois judge this morning ordered the administration to refrain from laying off employees pending more negotiations with the state’s largest public employee union.
Gov. Pat Quinn’s office said it plans to appeal the ruling, leaving one segment of his deficit-reducing plan — and the 2,600 employees who would be laid off — in limbo.
The American Federation of State, County and Municipal Employees Council 31 filed suit in Johnson County, where Vienna Correctional Center would lose positions. It argued that the job cuts would jeopardize public safety and cause harm to its workers if layoffs took place before the administration settled a dispute over the union’s concerns.
Judge Todd Lambert of the First Judicial Circuit Court in Johnson County ruled that AFSCME met its burden of proof. He wrote in his order, “The risk of employees targeted for layoff or laid off far outweighs any damages or other harm the state may suffer by having to delay the layoffs pending arbitration of the pending grievances.”
Lambert also wrote that the union’s grievances “are not frivolous and reflect a genuine dispute between the parties.”
AFSCME argues layoffs would cause irreparable harm if they took effect without completing negotiations about how the process of layoffs would trickle down. The complex process allows senior workers to bump less-experienced workers out of their jobs, starting a domino effect of workers who have options to take other positions or accept reduced pay, for instance. Anders Lindall, AFSCME Council 31 spokesman, said union members would be forced to make life-altering decisions without knowing all of their options.
“You can’t unscramble the eggs,” Lindall said. “Once employees make these choices, if we subsequently prevailed on our grievance, the state could not easily or at all just go back and restore the status quo.”
AFSCME’s grievances also protest the state’s contracts with private firms that do work that the union says state employees could perform. Lindall cited a $14.5 million contract with a private company that provides temporary clerical workers. Meanwhile, the state plans to lay off state-employed clerical workers in six agencies. “That $14 million contract should be reduced or eliminated and state employees kept on the job," Lindall said.
Quinn’s administration originally proposed that AFSCME members take unpaid days off or forego annual raises to help prevent the need for more layoffs. The union would not agree to concessions, leading Quinn to say he had no choice but to lay off 2,600 employees.
The court order specifically applies to AFSCME members, many of whom work in the Department of Corrections, as well as in the departments of Revenue, Human Services, Healthcare and Family Services and Commerce and Economic Opportunity.
More layoffs were scheduled to take effect October 31 from the Illinois Arts Council and the departments of Natural Resources and Aging, according to Central Management Services, the personnel and procurement agency.
The governor’s office said in a statement that it “carefully followed every step required in the AFSCME contract” and had no choice. “Illinois is experiencing an unprecedented economic crisis, and budget reductions must be made, including cuts to the state’s administrative and personnel costs. Our plan includes responsible layoffs that do not jeopardize public safety.”
The administration still is in negotiations with other public employee unions, including the Service Employees International Union, the Illinois Federation of Teachers, the Teamsters and the Laborers.
Tuesday, August 18, 2009
Revamped employee ethics rules enacted
By Bethany Jaeger
In a “week of reform,” Gov. Pat Quinn today signed Senate Bill 54, which addresses state employee ethics rules and lobbyist registration requirements. The governor enacted a revamped Freedom of Information Act yesterday.
Here’s the breakdown of SB 54 and some background, including why provisions to strengthen the role of inspectors general were needed (it relates to when former Gov. Rod Blagojevich formed the inspectors general but did not give them the ability to shine a light on ethics violations).
Employee ethics:
Updated revolving door ban:
New lobbying rules:
In a “week of reform,” Gov. Pat Quinn today signed Senate Bill 54, which addresses state employee ethics rules and lobbyist registration requirements. The governor enacted a revamped Freedom of Information Act yesterday.
Here’s the breakdown of SB 54 and some background, including why provisions to strengthen the role of inspectors general were needed (it relates to when former Gov. Rod Blagojevich formed the inspectors general but did not give them the ability to shine a light on ethics violations).
Employee ethics:
- Reports written by inspectors general will be made public record if the inspectors find wrongdoing and either suspend or terminate a state employee. Some information could still be blacked out, or redacted, if its release would harm an ongoing investigation.
- However, routine reports about the status of investigations will not be subject to requests under the Freedom of Information Act.
- Inspectors will be able to open investigations based on anonymous tips.
- The law clarifies the process for investigating potential ethics violations.
- The Executive Ethics Commission will house new procurement officers to oversee the way state agencies buy goods and services.
- Employees and candidates cannot promise compensated time off, benefits, raises, job promotions, favorable regulatory treatment or a state contract in exchange for a campaign contribution.
- State employees have to take an online ethics exam within 30 days of starting their new jobs, rather than within six months, as currently required.
Updated revolving door ban:
- Policymakers will not be able to resign and within a year accept a position with private companies that received significant state contracts from the agencies where the officials worked.
- The state is expected to have an easier time tracking which employees will be subject to the revolving door ban because the legislation also requires agencies and executive offices to list those employees. Those lists will be filed with the agencies' respective ethics commissions.
New lobbying rules:
- People who lobby state boards, commissions or retirement boards now will have to register as lobbyists.
- All lobbyists will have to abide by stricter disclosure requirements, including listing all expenditures related to lobbying activities, their clients and the subject matter of lobbying activities. The reports will have to be filed with the secretary of state on a weekly basis when the legislature is in session and monthly during the off-season.
- Many will have to pay a higher $1,000 fee, which is the way the state is expected to pay for more inspectors to monitor lobbying activities. House Speaker Michael Madigan previously said he would consider lowering the fee for smaller nonprofit groups in the future.
Friday, July 31, 2009
Governor: Budget plan won't fund the full fiscal year
By Bethany Jaeger
Gov. Pat Quinn started using his unprecedented discretion to spread around about $3.4 billion largely to prevent drastic cuts to human services, followed by health care, education and public safety programs. At the same time, he continued to outline general areas of state operations that will get cut by $1 billion total. However, he said the reductions won’t free up enough money to satisfy such spending needs as financial aid for needy college students and health care liabilities for state employees and retirees.
During a Chicago news conference Friday afternoon, the governor’s office said the revised operating budget also does nothing to address the exceptionally high $3.9 billion backlog in unpaid bills. As a result, Quinn said he will continue to urge lawmakers to consider a temporary income tax increase to get through the rest of this fiscal year when they return to the Capitol in October.
Quinn said the roughly $26.1 billion spending plan would run out of money before the fiscal year ends next June. “We are aware of the fact that we are going to come up short this fiscal year.”
The General Assembly approved the spending plan July 15, giving the governor wide discretion in spending lump sums for each state agency. Legislators also approved a $3.4 billion short-term borrowing plan to make the state’s contribution into the public employee pension system, freeing up that same amount to put towards state operations. Of that, $2.2 billion is dedicated to community-based human services, while another $1.2 billion is up to the governor to divvy out. The plan also charged the governor with cutting an additional $1 billion.
Quinn said on Friday that he decided to spread the cuts out in a way that would maximize federal matching funds, as well as federal stimulus dollars. And he said he chose to fund health-related initiatives that focus on disease prevention and that could reduce demand for more expensive services later, including home health programs that allow senior citizens to remain in their homes rather than be sent to more expensive nursing homes.
The general areas of reductions have not changed since announced last month. The administration still plans to cut $185 million from state operations. The administration already sent out layoff notices earlier this month. Some employees will lose their jobs. Others will fill vacancies. Lawmakers and executive branch workers also will have to take one furlough day a month. The administration wants unionized employees to consider such concessions, but that would require the unions to open their active contracts that provide for annual pay raises.
“Do we really need the pay raise for union employees in the coming fiscal year, given all the things that have happened in this fiscal year?” Quinn said. “That’s $125 million. If the union said, ‘Well, we’ll take a pay freeze. We understand that we don’t want to, but we’re going to do that,’ then they can help save a lot of jobs.”
The idea is strongly opposed by the American Federation of State, County and Municipal Employees Council 31, the largest public employee union. Officials have met with the administration to bargain over the impact of layoffs, but they have not negotiated whether unionized employees will take furlough days, according to Anders Lindall, Council 31 spokesman.
“Should the administration make a proposal, we’re obligated to listen and prepared to do so,” he said in an e-mail. “But the height of this terrible recession is the worst possible time to reduce services to Illinois residents, whether by furlough or layoff of the frontline employees who make those services happen.”
Jerry Stermer, Quinn’s chief of staff, said frontline employees such as Department of Corrections officers will not be subject to furlough days because they would be replaced by fellow workers who would be paid for overtime. Stermer said the administration within the week would release more details about which employees would have to take unpaid days off.
Other general areas of spending reductions include grants to local agencies and governments, which would be reduced by $250 million.
Even after the cuts, the administration contends that Medicaid funding will fall $600 million short of the need, and financial aid for low-income college students will be reduced by $225 million.
“Some legislators screamed to the heavens, ‘Cut, cut, cut,’” Quinn said. “We have cut. We have cut from here to Kingdom Come. I don’t like college scholarships being cut $225 million. That’s our future.”
On the other hand, the administration does plan to put more money toward some education programs, human services and other public health and safety initiatives.
As part of the $3.4 billion borrowing scheme, Quinn must dedicate $2.2 billion to human services. Here’s how he said he would spend it:
- $1.4 billion for grants to programs that serve people with developmental disabilities, drug and alcohol addictions and mental health needs.
- $342 million for Department on Aging community care program, aimed at keeping seniors in their homes.
- $272 million for the Department of Children and Family Services for court-ordered services.
- $27 million for community adult education and GED services.
- $18 million for Chicago-area mass transit subsidies and free rides for seniors and people with disabilities.
The remaining $1.2 billion is slated to be split among programs related to health, education, disease prevention and public transportation. Some examples include:
- $300 million for Medicaid.
- $700 million for group health insurance for state employees and retirees.
- $85 million for early childhood education (brining it up to about 90 percent of last year’s funding levels). See our July 21 blog for background.
- $11 million for bilingual education (bringing it up to about 90 percent of what they were operating at before).
- $17 million for HIV/AIDS community-based programs (“pretty much full strength” funding levels compared with last year).
- $9 million for breast and cervical cancer screening programs.
- $13 million for Amtrak.
Stermer said while the new spending plan authorizes $26 billion in spending from the general revenue fund, it falls $1.4 billion short of funding services at last year’s levels and does nothing to address the $3.9 billion backlog of unpaid bills.
The cuts that are being implemented now may not be the last, he said. “We may have to make additional cuts as time goes on if we cannot make resolution with the General Assembly as to the unmet needs.”
He referred to the administration’s belief that an income tax increase will be necessary to get through the rest of the fiscal year.
Tuesday, July 14, 2009
12-month budget deal within reach
By Bethany Jaeger, with Jamey Dunn contributing
The top four legislative leaders and the governor have a general agreement to work toward a full 12-month budget, as opposed to a partial-year budget that would last only five months, without raising income taxes.
But even with a general agreement, the state still is likely to face a deficit that the legislature would have to address this fall or winter, possibly during its annual fall “veto” session. The size of that deficit, however, is still unknown or, at least, debatable. The governor’s most recent estimate is a $9.2 billion gap in revenues versus spending.
The leaders met twice with the governor Tuesday. Senate Minority Leader Christine Radogno said after the second meeting that while the state would still have a massive backlog of unpaid bills, the revenue outlook could improve with activity from the federal stimulus package, the statewide construction program enacted Monday and other longer-term reforms to Medicaid and pension liabilities sought by Republicans.
“So we have to wait and see how the reforms and how the stimulus elements come together, and that may improve our revenue position,” she said. “I don’t know that. But I do know, as of tonight, we should avoid having a meltdown in state government.”
AFSCME lawsuit
If things fall into place tomorrow, then some groups of state workers would be paid up to a few days late.
In an attempt to ensure that state workers continue to get paid if things fall apart and a budget is not in place, the American Federation of State, County and Municipal Employees Council 31 filed a lawsuit today in St. Clair County. The union made a similar move in 2007 when the legislature failed to produce a budget by the end of the fiscal year. AFSCME spokesman Anders Lindall said, “Unfortunately, we’re in the same boat.”
The lawsuit would apply to all state employees. “The fundamental legal principles are the same for any state employee,” Lindall said. “If you work, you are entitled to be paid in full and on time for that work.” He added that if lawmakers can agree on a budget in the next few days, the suit would not be necessary.
The top four legislative leaders and the governor have a general agreement to work toward a full 12-month budget, as opposed to a partial-year budget that would last only five months, without raising income taxes.
But even with a general agreement, the state still is likely to face a deficit that the legislature would have to address this fall or winter, possibly during its annual fall “veto” session. The size of that deficit, however, is still unknown or, at least, debatable. The governor’s most recent estimate is a $9.2 billion gap in revenues versus spending.
The leaders met twice with the governor Tuesday. Senate Minority Leader Christine Radogno said after the second meeting that while the state would still have a massive backlog of unpaid bills, the revenue outlook could improve with activity from the federal stimulus package, the statewide construction program enacted Monday and other longer-term reforms to Medicaid and pension liabilities sought by Republicans.
“So we have to wait and see how the reforms and how the stimulus elements come together, and that may improve our revenue position,” she said. “I don’t know that. But I do know, as of tonight, we should avoid having a meltdown in state government.”
Not all were so sure. “They’re close," said Rep. Art Turner, a Chicago Democrat, "but … close counts in horseshoes. This is politics. We still haven’t gotten there, yet.”
The general agreement among legislative leaders includes enacting a 12-month budget that relies on revenue from refinancing state debt (Senate Bill 1609, which already was enacted), sweeping dedicated funds (SB 1433) and borrowing more money. The short-term borrowing scheme has changed from its original version. Instead of floating $2.2 billion in bonds, the state would float $3.6 billion. The governor also would still have to cut an additional $1 billion in spending. The legislature would give him wide discretion to cut as he saw fit.
The short-term borrowing would help the state make its $4 billion payment into the public employee pension system this fiscal year. The borrowing would free up money that would be used to prevent severe cuts to community-based services. While numbers vary, one estimate by a House Democrat is that the new budget deal could result in service providers receiving about a 13 percent cut, as opposed to a 50 percent cut, as previously approved. The governor vetoed that measure (SB 1197).
Human services
So instead of the so-called 50 percent budget for human services, providers would get about 87 percent of what they received in state support last fiscal year.
“We’re getting very close to what [the governor] was looking for,” said House Minority Leader Tom Cross.
But, he added, the situation has been painted as more severe than it needed to be. “I think the approach a month ago was to attempt to scare legislators into a tax increase. I didn’t think that was a good approach,” Cross said. “I think at the end of the day, [cuts to human services] will not be nearly as severely as the governor portrayed six weeks ago.”
Both minority leaders and Senate President John Cullerton added that state employees and service providers now need reassurance that they’ll still get paid. “Unfortunately, some people come to believe that they’re going to be shut down, that their not-for-profit agencies are not going to be able to operate,” Cullerton said. “And that’s been unfortunate because that was never the case, never had to be the case.”
Under the new version of a budget deal, about $2.2 billion of the short-term borrowing scheme would benefit human services. Quinn would be able to decide how to spend the additional $1.3 billion that the legislature is expected to add to the borrowing scheme Wednesday.
Income tax update
An income tax increase temporarily is off the table. Quinn recently said he would delay his campaign for a tax increase until the fall or winter. Fewer votes would be needed in January. And some legislators have requested the governor “tone down the rhetoric” for the next few months, which would allow them to find out whether they face serious opponents in the 2010 elections before being called to vote on a tax increase.
But the idea of a tax hike still has support, particularly among Senate Democrats.
“It’s not dead,” said Sen. Terry Link, a Waukegan Democrat. “It may be on pause, but it’s definitely not dead.”
Sooner or later, he added, state government will have to have a “revenue infusion” to keep operating. Cullerton gave a sneak peak into his campaign for a tax increase when he seeks support from Republicans. He said if the legislature had approved an income tax increase this year, the state could have used the revenue to pay its backlogged bills rather than borrowing money to do so. “That would be a conservative, responsible response to a fiscal crisis,” he said. “That’s what our income tax increase could be characterized as.”
After spending most of the day in closed-door meetings, some legislators headed to the Major League Baseball All Star baseball game in St. Louis, where President Barack Obama was scheduled to toss the ceremonial opening pitch. The legislative leaders are scheduled to meet again at 11 a.m. Wednesday. And they expect to take action on parts of the budget deal as early as Wednesday afternoon.
The general agreement among legislative leaders includes enacting a 12-month budget that relies on revenue from refinancing state debt (Senate Bill 1609, which already was enacted), sweeping dedicated funds (SB 1433) and borrowing more money. The short-term borrowing scheme has changed from its original version. Instead of floating $2.2 billion in bonds, the state would float $3.6 billion. The governor also would still have to cut an additional $1 billion in spending. The legislature would give him wide discretion to cut as he saw fit.
The short-term borrowing would help the state make its $4 billion payment into the public employee pension system this fiscal year. The borrowing would free up money that would be used to prevent severe cuts to community-based services. While numbers vary, one estimate by a House Democrat is that the new budget deal could result in service providers receiving about a 13 percent cut, as opposed to a 50 percent cut, as previously approved. The governor vetoed that measure (SB 1197).
Human services
So instead of the so-called 50 percent budget for human services, providers would get about 87 percent of what they received in state support last fiscal year.
“We’re getting very close to what [the governor] was looking for,” said House Minority Leader Tom Cross.
But, he added, the situation has been painted as more severe than it needed to be. “I think the approach a month ago was to attempt to scare legislators into a tax increase. I didn’t think that was a good approach,” Cross said. “I think at the end of the day, [cuts to human services] will not be nearly as severely as the governor portrayed six weeks ago.”
Both minority leaders and Senate President John Cullerton added that state employees and service providers now need reassurance that they’ll still get paid. “Unfortunately, some people come to believe that they’re going to be shut down, that their not-for-profit agencies are not going to be able to operate,” Cullerton said. “And that’s been unfortunate because that was never the case, never had to be the case.”
Under the new version of a budget deal, about $2.2 billion of the short-term borrowing scheme would benefit human services. Quinn would be able to decide how to spend the additional $1.3 billion that the legislature is expected to add to the borrowing scheme Wednesday.
Income tax update
An income tax increase temporarily is off the table. Quinn recently said he would delay his campaign for a tax increase until the fall or winter. Fewer votes would be needed in January. And some legislators have requested the governor “tone down the rhetoric” for the next few months, which would allow them to find out whether they face serious opponents in the 2010 elections before being called to vote on a tax increase.
But the idea of a tax hike still has support, particularly among Senate Democrats.
“It’s not dead,” said Sen. Terry Link, a Waukegan Democrat. “It may be on pause, but it’s definitely not dead.”
Sooner or later, he added, state government will have to have a “revenue infusion” to keep operating. Cullerton gave a sneak peak into his campaign for a tax increase when he seeks support from Republicans. He said if the legislature had approved an income tax increase this year, the state could have used the revenue to pay its backlogged bills rather than borrowing money to do so. “That would be a conservative, responsible response to a fiscal crisis,” he said. “That’s what our income tax increase could be characterized as.”
After spending most of the day in closed-door meetings, some legislators headed to the Major League Baseball All Star baseball game in St. Louis, where President Barack Obama was scheduled to toss the ceremonial opening pitch. The legislative leaders are scheduled to meet again at 11 a.m. Wednesday. And they expect to take action on parts of the budget deal as early as Wednesday afternoon.
AFSCME lawsuit
If things fall into place tomorrow, then some groups of state workers would be paid up to a few days late.
In an attempt to ensure that state workers continue to get paid if things fall apart and a budget is not in place, the American Federation of State, County and Municipal Employees Council 31 filed a lawsuit today in St. Clair County. The union made a similar move in 2007 when the legislature failed to produce a budget by the end of the fiscal year. AFSCME spokesman Anders Lindall said, “Unfortunately, we’re in the same boat.”
The lawsuit would apply to all state employees. “The fundamental legal principles are the same for any state employee,” Lindall said. “If you work, you are entitled to be paid in full and on time for that work.” He added that if lawmakers can agree on a budget in the next few days, the suit would not be necessary.
Thursday, July 09, 2009
Looks good for capital, not so much for budget
By Bethany Jaeger
It’s taken a decade, but Gov. Pat Quinn said that come Monday, the state would have a major infrastructure program in place to help spur the economy and send people back to work.
Downstate legislators who met with the governor Thursday afternoon in the Executive Mansion expressed bittersweet sentiments: The governor would sign the long-awaited public works program to send laborers and others back to work, but thousands of other public employees and the people they serve are on the brink of losing their jobs and their access to critical aid. That's because the governor and the legislature still haven’t enacted a balanced operating budget, despite a new fiscal year that started July 1.
Rep. Brandon Phelps, a Harrisburg Democrat, for instance, is in a downstate area in need of economic development. However, he also has a prison in his district that could lose employees under Quinn's plan to cut spending by an additional $1 billion. Enacting the capital bill wouldn’t prevent layoffs of 1,000 Department of Correction employees, he said, adding that such significant layoffs might not save as much money as needed to cover the increased overtime costs.
The General Assembly is scheduled to return to the capital city Tuesday, about the same time the comptroller’s office needs to process checks so the first round of state employees would get paid on time. The governor, facing doubt about whether he can persuade more legislators to support an income tax increase to fill what he says is a $9.2 billion budget deficit, said he would consider Plan B, even if that includes a temporary spending plan.
“I’m open to anything that gets us moving in a positive direction, whatever it takes,” Quinn said. That could include a five-month budget so he could continue to lobby for an income tax increase.
But, asked Rep. Bill Black, a Danville Republican, at what level would the five-month budget be based? Would it be based on the $26 billion plan already approved by the legislature but partially vetoed by the governor? Or would it be the $28 billion originally proposed by Quinn?
In May, the legislature approved along partisan lines a budget that reduced funding for human services by half of what the governor proposed. Quinn then vetoed much of that spending plan and said that regardless of whether an income tax increase passes, he would still have to make about $1 billion in cuts. He recently announced a general plan that lacked specifics, although legislators said today they hope by Tuesday to receive more details.
Rep. Roger Eddy, a Hutsonville Republican, said a five-month budget is risky because it would assume that the legislature would approve an income tax increase before the end of the year. “Then you’ve spent for five months based on revenue you may or may not get. I think it’s very risky.”
He added, however, that it might be the most politically palatable option for many legislators because by this fall, incumbents would know whether they faced a serious challenger in the next election.
Either way, Eddy said, Quinn faces a “triple negative” in trying to persuade lawmakers to vote for a tax hike because the new revenue would not prevent further budget cuts. “It would be nice to vote for a tax increase — if you have to — and go home and talk about all the new wonderful programs you’re going to start. This combination is: Vote for revenue, borrow $2.2 billion, make $1 billion in cuts above the cuts that have already been made. That’s a pretty tough sell.”
Rep. Mike Bost, a Murphysboro Republican, said he appreciates that Quinn is showing some direction in where he might cut, but he’s concerned that the governor is making broad statements to stir up local residents so they pressure their legislators to approve an income tax increase. The GOP has remained mostly united on opposing a tax hike without action on other cuts and what they see as reforms because they fear giving billions of new dollars to a group of leaders which he said “can’t control themselves.”
Legislators said they could be in session Tuesday through Thursday, although several expressed doubt about how they would solve the budget impasse by then. “I think it’s going to be a challenge for all the pieces to come together,” said Rep. Bob Flider, a Mount Zion Democrat.
CAPITAL
After the legislature in May overwhelmingly approved the first major infrastructure program in a decade, Quinn said he wouldn’t sign the package into law until he received a balanced operating budget on his desk. With little consensus on how to balance a severely out-of-whack budget, the capital program remained in limbo and jeopardized federal matching funds.
The governor said today he would sign the capital program into law on Monday. He previously said on May 31 that the lack of an operating budget would hurt the state’s bond rating, making it more expensive to borrow money.
Thursday afternoon, he said the state still needed both. “I think we need to have a good budget that is a balanced budget that’s fair and decent. Together with a good jobs program, we can get Illinois focused on economic recovery and budget stabilization.”
Shovels might not move dirt for weeks, maybe months. We’ll have more on that and other reaction soon.
It’s taken a decade, but Gov. Pat Quinn said that come Monday, the state would have a major infrastructure program in place to help spur the economy and send people back to work.
Downstate legislators who met with the governor Thursday afternoon in the Executive Mansion expressed bittersweet sentiments: The governor would sign the long-awaited public works program to send laborers and others back to work, but thousands of other public employees and the people they serve are on the brink of losing their jobs and their access to critical aid. That's because the governor and the legislature still haven’t enacted a balanced operating budget, despite a new fiscal year that started July 1.
Rep. Brandon Phelps, a Harrisburg Democrat, for instance, is in a downstate area in need of economic development. However, he also has a prison in his district that could lose employees under Quinn's plan to cut spending by an additional $1 billion. Enacting the capital bill wouldn’t prevent layoffs of 1,000 Department of Correction employees, he said, adding that such significant layoffs might not save as much money as needed to cover the increased overtime costs.
The General Assembly is scheduled to return to the capital city Tuesday, about the same time the comptroller’s office needs to process checks so the first round of state employees would get paid on time. The governor, facing doubt about whether he can persuade more legislators to support an income tax increase to fill what he says is a $9.2 billion budget deficit, said he would consider Plan B, even if that includes a temporary spending plan.
“I’m open to anything that gets us moving in a positive direction, whatever it takes,” Quinn said. That could include a five-month budget so he could continue to lobby for an income tax increase.
But, asked Rep. Bill Black, a Danville Republican, at what level would the five-month budget be based? Would it be based on the $26 billion plan already approved by the legislature but partially vetoed by the governor? Or would it be the $28 billion originally proposed by Quinn?
In May, the legislature approved along partisan lines a budget that reduced funding for human services by half of what the governor proposed. Quinn then vetoed much of that spending plan and said that regardless of whether an income tax increase passes, he would still have to make about $1 billion in cuts. He recently announced a general plan that lacked specifics, although legislators said today they hope by Tuesday to receive more details.
Rep. Roger Eddy, a Hutsonville Republican, said a five-month budget is risky because it would assume that the legislature would approve an income tax increase before the end of the year. “Then you’ve spent for five months based on revenue you may or may not get. I think it’s very risky.”
He added, however, that it might be the most politically palatable option for many legislators because by this fall, incumbents would know whether they faced a serious challenger in the next election.
Either way, Eddy said, Quinn faces a “triple negative” in trying to persuade lawmakers to vote for a tax hike because the new revenue would not prevent further budget cuts. “It would be nice to vote for a tax increase — if you have to — and go home and talk about all the new wonderful programs you’re going to start. This combination is: Vote for revenue, borrow $2.2 billion, make $1 billion in cuts above the cuts that have already been made. That’s a pretty tough sell.”
Rep. Mike Bost, a Murphysboro Republican, said he appreciates that Quinn is showing some direction in where he might cut, but he’s concerned that the governor is making broad statements to stir up local residents so they pressure their legislators to approve an income tax increase. The GOP has remained mostly united on opposing a tax hike without action on other cuts and what they see as reforms because they fear giving billions of new dollars to a group of leaders which he said “can’t control themselves.”
Legislators said they could be in session Tuesday through Thursday, although several expressed doubt about how they would solve the budget impasse by then. “I think it’s going to be a challenge for all the pieces to come together,” said Rep. Bob Flider, a Mount Zion Democrat.
CAPITAL
After the legislature in May overwhelmingly approved the first major infrastructure program in a decade, Quinn said he wouldn’t sign the package into law until he received a balanced operating budget on his desk. With little consensus on how to balance a severely out-of-whack budget, the capital program remained in limbo and jeopardized federal matching funds.
The governor said today he would sign the capital program into law on Monday. He previously said on May 31 that the lack of an operating budget would hurt the state’s bond rating, making it more expensive to borrow money.
Thursday afternoon, he said the state still needed both. “I think we need to have a good budget that is a balanced budget that’s fair and decent. Together with a good jobs program, we can get Illinois focused on economic recovery and budget stabilization.”
Shovels might not move dirt for weeks, maybe months. We’ll have more on that and other reaction soon.
Tuesday, July 07, 2009
Layoff notices go out
By Bethany Jaeger
Gov. Pat Quinn said about 2,600 layoffs are needed to help reduce state spending by $1 billion. At the same time he outlined the cuts in Chicago Tuesday, Quinn also vetoed another portion of the state budget. He said the General Assembly sent him a spending plan that “just spends too much money.”
“I think the best way to operate with the budget that I was given by the General Assembly a week ago is to veto it in its entirety because it doesn't cut spending as it should,” he said in a Chicago news conference. He later added: “We're not playing tennis here. We're playing with people's lives.”
Quinn vetoed House Bill 2145, which authorized $3.8 billion in spending on state operations, because it didn't follow the principle of shared sacrifice, he said. “There were too many instances of entities getting the same budget they did the year before or a very modest reduction, where others are taking very painful cuts. I don't believe that that's fair, and I don't think the people, the taxpayers of Illinois think that's fair.”
Of his $1 billion in cuts, he proposed 12 furlough days, or unpaid days off, for all state employees, including unionized workers and those in the executive and legislative branches. The 2,600 layoffs would spread across all state agencies. He said the furlough days would save about $108 million. Without them, he would seek an additional 2,500 layoffs.
The list of cuts proposed by the governor also would include:
“We're all in this together,” Quinn said. “So whether you're the governor of Illinois or a member of the legislature or somewhere in the state bureaucracy, we have to cut costs, cut costs, cut costs.”
But a large chunk of the governor's cuts would require negotiations with public employee unions, which would mean reopening active labor contracts to implement furlough days and to reconsider pay raises scheduled for this year. Quinn said those raises account for about $125 million.
Anders Lindall, spokesman for the American Federation of State, County and Municipal Employees Council 31, said yesterday, “We have a duty to listen to anything that the administration proposes, and we've indicated a willingness to do that.” However, he added, furloughs have the same effect of service cuts, and layoffs could result in more expensive overtime pay.
Furloughs are the “least painful way of going,” Quinn said. “We want to limit layoffs wherever possible. That's why the use of the furlough can help preserve jobs on the state.” Despite furloughs, he added the state would still have to lay off about 2,600 workers and that Illinois only has as many employees today as it did in 1973. The roughly 58,000 workers is one of the nation's lowest ratios of state employees per state resident. “But having said that," Quinn said, "we still have to do these very difficult cuts because we simply don't have the money.”
The dramatic cuts are nothing new to many legislators. The governor has been making similar warnings since the spring legislative session. However, some Republican lawmakers said they're still waiting for the governor to act on other types of reforms before they'll consider a tax increase, which Quinn maintains is the other major way to avoid such deep budget cuts.
For instance, Rep. Franco Coladipietro, a Blooomingdale Republican, said the governor and the General Assembly need to address initiatives that affect not just this year's budget, but budgets several years down the road. He cited job growth, as well as more significant ethics and public employee pension reforms. “Passing a tax increase right now with making no changes to the structural budget process in Illinois only puts us in a position where we'll be in the same exact position three years from now,” he said. “And it doesn't change anything.”
Coladipietro was one suburban Chicago legislator at a closed-door meeting with the governor yesterday. Quinn also previously met with female legislators. He said he plans to meet with downstate legislators in Springfield later this week, and he's scheduled to meet Monday with legislative leaders in the Executive Mansion.
Gov. Pat Quinn said about 2,600 layoffs are needed to help reduce state spending by $1 billion. At the same time he outlined the cuts in Chicago Tuesday, Quinn also vetoed another portion of the state budget. He said the General Assembly sent him a spending plan that “just spends too much money.”
“I think the best way to operate with the budget that I was given by the General Assembly a week ago is to veto it in its entirety because it doesn't cut spending as it should,” he said in a Chicago news conference. He later added: “We're not playing tennis here. We're playing with people's lives.”
Quinn vetoed House Bill 2145, which authorized $3.8 billion in spending on state operations, because it didn't follow the principle of shared sacrifice, he said. “There were too many instances of entities getting the same budget they did the year before or a very modest reduction, where others are taking very painful cuts. I don't believe that that's fair, and I don't think the people, the taxpayers of Illinois think that's fair.”
Of his $1 billion in cuts, he proposed 12 furlough days, or unpaid days off, for all state employees, including unionized workers and those in the executive and legislative branches. The 2,600 layoffs would spread across all state agencies. He said the furlough days would save about $108 million. Without them, he would seek an additional 2,500 layoffs.
The list of cuts proposed by the governor also would include:
- $150 million - Moving Medicaid patients to managed care health plans so they have medical "homes" and reducing IllinoisCares Rx, a prescription drug program started by former Gov. Rod Blagojevich.
- $250 million - Reducing grants to local agencies, local governments and programs by 10 percent across most state agencies, except the Department of Veterans' Affairs.
- $175 million - Maintaining last year's funding levels for education, while preserving the investment needed to secure all federal stimulus dollars.
- $125 million - Laying off about 1,000 Department of Corrections employees and possibly closing some prisons (he previously mentioned letting non-violent criminal offenders out of jail early).
- $100 million - Requiring all state agencies to reserve some spending for an even rainier day.
- $25 million - Reducing spending in other state offices and departments not under the governor's control.
“We're all in this together,” Quinn said. “So whether you're the governor of Illinois or a member of the legislature or somewhere in the state bureaucracy, we have to cut costs, cut costs, cut costs.”
But a large chunk of the governor's cuts would require negotiations with public employee unions, which would mean reopening active labor contracts to implement furlough days and to reconsider pay raises scheduled for this year. Quinn said those raises account for about $125 million.
Anders Lindall, spokesman for the American Federation of State, County and Municipal Employees Council 31, said yesterday, “We have a duty to listen to anything that the administration proposes, and we've indicated a willingness to do that.” However, he added, furloughs have the same effect of service cuts, and layoffs could result in more expensive overtime pay.
Furloughs are the “least painful way of going,” Quinn said. “We want to limit layoffs wherever possible. That's why the use of the furlough can help preserve jobs on the state.” Despite furloughs, he added the state would still have to lay off about 2,600 workers and that Illinois only has as many employees today as it did in 1973. The roughly 58,000 workers is one of the nation's lowest ratios of state employees per state resident. “But having said that," Quinn said, "we still have to do these very difficult cuts because we simply don't have the money.”
The dramatic cuts are nothing new to many legislators. The governor has been making similar warnings since the spring legislative session. However, some Republican lawmakers said they're still waiting for the governor to act on other types of reforms before they'll consider a tax increase, which Quinn maintains is the other major way to avoid such deep budget cuts.
For instance, Rep. Franco Coladipietro, a Blooomingdale Republican, said the governor and the General Assembly need to address initiatives that affect not just this year's budget, but budgets several years down the road. He cited job growth, as well as more significant ethics and public employee pension reforms. “Passing a tax increase right now with making no changes to the structural budget process in Illinois only puts us in a position where we'll be in the same exact position three years from now,” he said. “And it doesn't change anything.”
Coladipietro was one suburban Chicago legislator at a closed-door meeting with the governor yesterday. Quinn also previously met with female legislators. He said he plans to meet with downstate legislators in Springfield later this week, and he's scheduled to meet Monday with legislative leaders in the Executive Mansion.
Monday, July 06, 2009
Gov. Quinn: Cuts are coming
By Bethany Jaeger
Gov. Pat Quinn is slated to announce layoffs and other government spending cuts in what he said is an effort to cut another $1 billion from the state’s operating budget. He’s scheduled to announce specific cuts in Chicago tomorrow afternoon, one week before the legislature is scheduled to return to Springfield to consider his recent veto of the part of the budget that would fund human services at reduced levels.
After meeting with suburban legislators today, Quinn said public employee unions would be notified this week of unpaid days off and layoffs. He did not specify where the layoffs would take place; however, Republican Rep. Jim Durkin of Western Springs attended the meeting and said the administration outlined 1,000 layoffs from the Illinois Department of Corrections and about 900 layoffs from the Department of Human Services, as well as cuts in grant programs.
One of the largest unions, the American Federation of State, County and Municipal Employees Council 31, had not received official notice, said Anders Lindall, union spokesman, adding that layoffs are expected without a new flow of revenue into state coffers. “As long as the budget is broken and legislators haven’t passed sufficient revenue, layoffs would be inevitable. Not just layoffs, but damaging cuts to essential human services and public safety.”
Lindall said furlough days or layoffs at state agencies would be tantamount to cutting services, wouldn’t save as much money as needed and could actually cost the state more money in added overtime pay. “Certainly, the thousands of layoffs he’s now talking about would have a profound harmful impact on basic services in DHS, safety in the prisons, DCFS functions and all of the basic services that Illinoisans [rely upon].”
According to Durkin, the governor indicated in the private meeting that he was willing to operate on a temporary state budget until a more permanent solution could be reached. That would counter Quinn’s previous statements that he would not accept a temporary budget.
The governor continues to frame a state income tax increase as the only solution to balancing the budget, which he estimates is $9.2 billion out of balance, but several legislators said they don’t expect a tax hike to win approval next week.
“I don’t think anybody’s mind was changed with today’s meeting,” Durkin said. “And I think that at this point in the year, I just don’t know how you get to 71.” He referred to the 71 votes needed in the House to approve any legislation now that the legislature has gone into overtime session. And cutting thousands of employees from prisons, for instance, won’t win political points with legislators, Durkin added. “I can see where a lot of these jobs are. These are in districts where you might have people who previously were supportive of an income tax increase. You lost ’em.”
Rep. Jack Franks, a Woodstock Democrat who attended today’s meeting, said the governor hasn’t proven to the public that a tax increase is a last resort. Instead of identifying specific spending cuts and negotiating with unions early in the spring, the governor has waited until the new fiscal year this summer to lay the groundwork for a tax hike. “This should have been the very last option on the table. And for him, it was the first and only,” he said.
Franks said his recommendations to the governor have been to cut member initiatives, otherwise known as pork projects, reduce or eliminate the pay of various board members and commissioners, close some state prisons and move to a two-year budget cycle.
Few legislators had high expectations for next week’s special session. “I think next will be a colossal waste of time,” said Rep. Dennis Reboletti, an Elmhurst Republican. “I don’t think any suburban legislators’ mind was changed by this meeting.”
In addition to considering the governor’s veto of the human services budget, the Senate also could reconsider a short-term borrowing scheme that the governor initially proposed but then lobbied against at the last minute — a bone of contention with many lawmakers.
Quinn, however, remains an eternal optimist. He has met with female and suburban legislators and said he plans to meet with groups of legislators from all regions of the state because he believes answering questions, offering suggestions and listening to criticisms has resulted in progress. “I would like to see all of this done by the 16th of this month,” he said.
Gov. Pat Quinn is slated to announce layoffs and other government spending cuts in what he said is an effort to cut another $1 billion from the state’s operating budget. He’s scheduled to announce specific cuts in Chicago tomorrow afternoon, one week before the legislature is scheduled to return to Springfield to consider his recent veto of the part of the budget that would fund human services at reduced levels.
After meeting with suburban legislators today, Quinn said public employee unions would be notified this week of unpaid days off and layoffs. He did not specify where the layoffs would take place; however, Republican Rep. Jim Durkin of Western Springs attended the meeting and said the administration outlined 1,000 layoffs from the Illinois Department of Corrections and about 900 layoffs from the Department of Human Services, as well as cuts in grant programs.
One of the largest unions, the American Federation of State, County and Municipal Employees Council 31, had not received official notice, said Anders Lindall, union spokesman, adding that layoffs are expected without a new flow of revenue into state coffers. “As long as the budget is broken and legislators haven’t passed sufficient revenue, layoffs would be inevitable. Not just layoffs, but damaging cuts to essential human services and public safety.”
Lindall said furlough days or layoffs at state agencies would be tantamount to cutting services, wouldn’t save as much money as needed and could actually cost the state more money in added overtime pay. “Certainly, the thousands of layoffs he’s now talking about would have a profound harmful impact on basic services in DHS, safety in the prisons, DCFS functions and all of the basic services that Illinoisans [rely upon].”
According to Durkin, the governor indicated in the private meeting that he was willing to operate on a temporary state budget until a more permanent solution could be reached. That would counter Quinn’s previous statements that he would not accept a temporary budget.
The governor continues to frame a state income tax increase as the only solution to balancing the budget, which he estimates is $9.2 billion out of balance, but several legislators said they don’t expect a tax hike to win approval next week.
“I don’t think anybody’s mind was changed with today’s meeting,” Durkin said. “And I think that at this point in the year, I just don’t know how you get to 71.” He referred to the 71 votes needed in the House to approve any legislation now that the legislature has gone into overtime session. And cutting thousands of employees from prisons, for instance, won’t win political points with legislators, Durkin added. “I can see where a lot of these jobs are. These are in districts where you might have people who previously were supportive of an income tax increase. You lost ’em.”
Rep. Jack Franks, a Woodstock Democrat who attended today’s meeting, said the governor hasn’t proven to the public that a tax increase is a last resort. Instead of identifying specific spending cuts and negotiating with unions early in the spring, the governor has waited until the new fiscal year this summer to lay the groundwork for a tax hike. “This should have been the very last option on the table. And for him, it was the first and only,” he said.
Franks said his recommendations to the governor have been to cut member initiatives, otherwise known as pork projects, reduce or eliminate the pay of various board members and commissioners, close some state prisons and move to a two-year budget cycle.
Few legislators had high expectations for next week’s special session. “I think next will be a colossal waste of time,” said Rep. Dennis Reboletti, an Elmhurst Republican. “I don’t think any suburban legislators’ mind was changed by this meeting.”
In addition to considering the governor’s veto of the human services budget, the Senate also could reconsider a short-term borrowing scheme that the governor initially proposed but then lobbied against at the last minute — a bone of contention with many lawmakers.
Quinn, however, remains an eternal optimist. He has met with female and suburban legislators and said he plans to meet with groups of legislators from all regions of the state because he believes answering questions, offering suggestions and listening to criticisms has resulted in progress. “I would like to see all of this done by the 16th of this month,” he said.
Thursday, May 21, 2009
Procurement, ethics, employee reforms sail to Senate
By Bethany Jaeger
The House overwhelmingly approved three measures to shield state contracts from political influence, to shine a light on the secretive process of investigating ethical violations and to “fumigate” the state of political appointees of former Govs. George Ryan and Rod Blagojevich.
The measures, all sponsored by House Speaker Michael Madigan, now head to the Senate, where more government reforms are expected to be debated tomorrow.
Madigan focused on procurement, employee ethics and political appointees. They received near-unanimous support. Republican Rep. Bill Black of Danville said, “These bills are some of the most important bills we’ve discussed in a long, long time.”
Procurement, SB 51
The speaker’s proposal would not go as far as preferred by Gov. Pat Quinn’s Illinois Reform Commission when changing the way the state purchases products and services. But Madigan’s goal mirrors that of the commission’s. “This was designed to shut the door on misuse of procurement and to isolate the procurement process and the procurement people from undue influence, especially from the office of the governor,” Madigan said on the House floor.
Rather than create one “procurement czar” in a new state procurement agency, as the commission wanted, Madigan proposed hiring a series of independent procurement officials in a "six-level system" of oversight:
Each procurement officer, compliance monitor and internal auditor would serve a five-year term, pending Senate confirmation. And they couldn’t be fired without a public hearing that determined cause for removal.
The use of sub-contractors would have to be disclosed, CORRECTION: but a provision that would have strengthened the so-called pay-to-play ban so that businesses holding state contracts of $25,000 (instead of the current $50,000) would be banned from donating to the officeholders' political campaign didn't make it into the final version. The $50,000 threshold remains.
“The bill is laced with transparency requirements,” Madigan said. “Our whole intent was two-fold: open up the process — make it more transparent — and insulate the process from undue influence, especially coming out of the governor’s office.”
Employee ethics, SB 54
Blagojevich enacted a law in 2003 that created inspectors to root out corruption or improper political donations from state contractors. But the process of investigating allegations lacked teeth and was cloaked in secrecy, with no way for the general public or legislators to know whether a corruption allegation was investigated or addressed.
“In the past, a lot of this work has been done in the dark,” Madigan said.
So his measure would allow reports of the inspectors to be public record if they found wrongdoing and either suspended or terminated an employee. Some of the information could be blacked out if it would jeopardize an ongoing investigation. And it would change the law so the inspectors could start an investigation based on anonymous tips.
It also would strengthen the so-called revolving door ban to prevent high-ranking officials from accepting jobs with private companies that received significant state contracts from the agency where the official worked. Agencies would have to list all of the employees who would be affected by the ban.
Stricter lobbying regulations would require people who lobby state boards, commissions or retirement boards to register as lobbyists, and all lobbyists would have to abide by stricter disclosure requirements. They’d also pay a higher fee of $1,000, as opposed to the current $350, which is how the state would pay for two inspectors to oversee lobbying activities. Madigan said he would consider reducing the fees for smaller nonprofit lobbying groups down the road.
Employee “fumigation,” SB 1333
At the request of the governor, Madigan reduced his original attempt to force Quinn to fire up to 3,000 employees or commissioners appointed by Ryan or Blagojevich. His measure now would apply to about 750 agency directors and their assistants, who can be hired or fired based on their political affiliations. He also would give the governor 90 days instead of 60 to review each of those employees before they would automatically be terminated.
Also at Quinn’s request “on a very personal level,” Madigan removed a provision that would have fired one of the governor’s longtime friends, John Filan. But that’s with the understanding the Filan would resign as the executive director of the Illinois Finance Authority July 1. “I took the governor at his word,” Madigan said. Filan was Blagojevich’s first-term budget director and former chief operating officer who played an integral role in several of Blagojevich’s controversial budget proposals, including floating $10 billion in pension obligation bonds and skipping $2.3 billion in state contributions in fiscal years ’06 and ’07.
Even without the provision to fire Filan, the bill drew concerns about the separation of powers because the legislature would fire people appointed by the executive branch. “We are, if not blurring those lines, we may actually be crossing those lines,” Black said.
Rep. Will Davis, a Chicago Democrat who voted present on the measure, said: “If [Quinn] wants to fire employees, he should do that and not come to the General Assembly to ask us to do that for him. … It certainly appears like maybe they’re doing him a favor.”
Madigan said the legislature has changed boards and commissions that were appointed by the executive branch before, including when the legislature twice revamped the Illinois State Board of Education and the Health Facilities Planning Board. Madigan added that Quinn “agreed to the bill.”
The House overwhelmingly approved three measures to shield state contracts from political influence, to shine a light on the secretive process of investigating ethical violations and to “fumigate” the state of political appointees of former Govs. George Ryan and Rod Blagojevich.
The measures, all sponsored by House Speaker Michael Madigan, now head to the Senate, where more government reforms are expected to be debated tomorrow.
Madigan focused on procurement, employee ethics and political appointees. They received near-unanimous support. Republican Rep. Bill Black of Danville said, “These bills are some of the most important bills we’ve discussed in a long, long time.”
Procurement, SB 51
The speaker’s proposal would not go as far as preferred by Gov. Pat Quinn’s Illinois Reform Commission when changing the way the state purchases products and services. But Madigan’s goal mirrors that of the commission’s. “This was designed to shut the door on misuse of procurement and to isolate the procurement process and the procurement people from undue influence, especially from the office of the governor,” Madigan said on the House floor.
Rather than create one “procurement czar” in a new state procurement agency, as the commission wanted, Madigan proposed hiring a series of independent procurement officials in a "six-level system" of oversight:
- Chief procurement officers would oversee procurement for the Capital Development Board, the Illinois Department of Transportation and higher education. The rest would be placed with the state’s main purchasing arm, Central Management Services.
- Procurement compliance monitors would oversee the procurement process in real time and be able to recommend changes or expose abuses.
- Independent internal auditors would be placed in their respective agencies, reversing a Blagojevich decision to consolidate them all into Central Management Services.
- One executive procurement officer in the governor’s office would advise the governor and the procurement officers. The position would end in January 2011, either when Quinn started his first full term as governor or when a new governor took office.
- The Procurement Policy Board would be strengthened so it could review contracts or bidder information and make recommendations for the chief procurement officers regarding conflicts of interest.
Each procurement officer, compliance monitor and internal auditor would serve a five-year term, pending Senate confirmation. And they couldn’t be fired without a public hearing that determined cause for removal.
The use of sub-contractors would have to be disclosed, CORRECTION: but a provision that would have strengthened the so-called pay-to-play ban so that businesses holding state contracts of $25,000 (instead of the current $50,000) would be banned from donating to the officeholders' political campaign didn't make it into the final version. The $50,000 threshold remains.
“The bill is laced with transparency requirements,” Madigan said. “Our whole intent was two-fold: open up the process — make it more transparent — and insulate the process from undue influence, especially coming out of the governor’s office.”
Employee ethics, SB 54
Blagojevich enacted a law in 2003 that created inspectors to root out corruption or improper political donations from state contractors. But the process of investigating allegations lacked teeth and was cloaked in secrecy, with no way for the general public or legislators to know whether a corruption allegation was investigated or addressed.
“In the past, a lot of this work has been done in the dark,” Madigan said.
So his measure would allow reports of the inspectors to be public record if they found wrongdoing and either suspended or terminated an employee. Some of the information could be blacked out if it would jeopardize an ongoing investigation. And it would change the law so the inspectors could start an investigation based on anonymous tips.
It also would strengthen the so-called revolving door ban to prevent high-ranking officials from accepting jobs with private companies that received significant state contracts from the agency where the official worked. Agencies would have to list all of the employees who would be affected by the ban.
Stricter lobbying regulations would require people who lobby state boards, commissions or retirement boards to register as lobbyists, and all lobbyists would have to abide by stricter disclosure requirements. They’d also pay a higher fee of $1,000, as opposed to the current $350, which is how the state would pay for two inspectors to oversee lobbying activities. Madigan said he would consider reducing the fees for smaller nonprofit lobbying groups down the road.
Employee “fumigation,” SB 1333
At the request of the governor, Madigan reduced his original attempt to force Quinn to fire up to 3,000 employees or commissioners appointed by Ryan or Blagojevich. His measure now would apply to about 750 agency directors and their assistants, who can be hired or fired based on their political affiliations. He also would give the governor 90 days instead of 60 to review each of those employees before they would automatically be terminated.
Also at Quinn’s request “on a very personal level,” Madigan removed a provision that would have fired one of the governor’s longtime friends, John Filan. But that’s with the understanding the Filan would resign as the executive director of the Illinois Finance Authority July 1. “I took the governor at his word,” Madigan said. Filan was Blagojevich’s first-term budget director and former chief operating officer who played an integral role in several of Blagojevich’s controversial budget proposals, including floating $10 billion in pension obligation bonds and skipping $2.3 billion in state contributions in fiscal years ’06 and ’07.
Even without the provision to fire Filan, the bill drew concerns about the separation of powers because the legislature would fire people appointed by the executive branch. “We are, if not blurring those lines, we may actually be crossing those lines,” Black said.
Rep. Will Davis, a Chicago Democrat who voted present on the measure, said: “If [Quinn] wants to fire employees, he should do that and not come to the General Assembly to ask us to do that for him. … It certainly appears like maybe they’re doing him a favor.”
Madigan said the legislature has changed boards and commissions that were appointed by the executive branch before, including when the legislature twice revamped the Illinois State Board of Education and the Health Facilities Planning Board. Madigan added that Quinn “agreed to the bill.”
Wednesday, October 08, 2008
Only half way there ...
... With a long way to go.
Gov. Rod Blagojevich approved a way to restore money that was cut from the state budget earlier this year, but human service providers, state parks and historic sites and hundreds of state employees are still in limbo.
Blagojevich signed into law a deal between the House and the Senate that authorizes the governor to transfer about $221 million from special dedicated funds that have “excess” money. (For example, a plumbing licensure fund has about $750,000 available from fees paid by people applying for a plumbing license.) The transferred money would go into a new fund, called the FY09 Budget Relief Fund, which serves as a lockbox that can only be used to restore money to human services, state parks and historic sites and constitutional officers who had to lay off employees or require paid days off.
But that's only half the solution. The other half is an appropriations bill, SB 1103, which authorizes the comptroller to write the checks. Without spending authority, the “fund sweeps” money just sits there.
The governor's office issued this statement: “The governor did sign the funds sweep bill, but the budget office and agencies have expressed concern over certain funds that are included in the bill. With that in mind, there is no certainty at this time how much money will actually be available and, thus, it would be preliminary to say how far this money will go.”
Rep. Gary Hanning, a Litchfield Democrat and House member who negotiated the deal, said the bill was in the public domain in the House for a week, and it sat in the Senate for two weeks. Democrats and Republicans of both chambers had an opportunity to voice concerns and ask for changes, some of which were accommodated before they sent it to the governor.
“All through that period of time, the governor and his people sat silently by and never weighed in one way or the other, so we assumed that they were OK with this bill,” Hannig said.
The governor's office offered another statement that his office made its concerns known in September, and the rest is up to the controller to decide which funds can be moved over.
Carol Knowles, spokeswoman for Comptroller Dan Hynes, said the measure, which the governor signed into law without changes, spells out which funds to sweep, how much to sweep and when to sweep. “There is no ambiguity what the law states,” she said. The transfers should be completed within the next day.
But even if the governor signs the spending bill without making any changes, he's not compelled to actually spend the money. To do that, he would have to send a voucher over to the state comptroller, who would then write the check. “He could sign the bill, but if he doesn't send over the vouchers, the comptroller still can't issue a check,” Hannig said.
The governor has until the first week of December to act on the spending bill. It could come up in the annual fall session — if there even is a “veto” session (because the House and Senate already acted on all but a few of the governor's various vetoes last month).
One more note: Before this mess started, the governor sought authority to transfer about $530 million (scroll down) from special funds. But his proposal would have let him sweep the money at any time in any amount up to about $530 million, Hannig said. The House changed the proposal to limit the spending to $221 million and to identify which funds could be swept and what the money could be spent on.
Gov. Rod Blagojevich approved a way to restore money that was cut from the state budget earlier this year, but human service providers, state parks and historic sites and hundreds of state employees are still in limbo.
Blagojevich signed into law a deal between the House and the Senate that authorizes the governor to transfer about $221 million from special dedicated funds that have “excess” money. (For example, a plumbing licensure fund has about $750,000 available from fees paid by people applying for a plumbing license.) The transferred money would go into a new fund, called the FY09 Budget Relief Fund, which serves as a lockbox that can only be used to restore money to human services, state parks and historic sites and constitutional officers who had to lay off employees or require paid days off.
But that's only half the solution. The other half is an appropriations bill, SB 1103, which authorizes the comptroller to write the checks. Without spending authority, the “fund sweeps” money just sits there.
The governor's office issued this statement: “The governor did sign the funds sweep bill, but the budget office and agencies have expressed concern over certain funds that are included in the bill. With that in mind, there is no certainty at this time how much money will actually be available and, thus, it would be preliminary to say how far this money will go.”
Rep. Gary Hanning, a Litchfield Democrat and House member who negotiated the deal, said the bill was in the public domain in the House for a week, and it sat in the Senate for two weeks. Democrats and Republicans of both chambers had an opportunity to voice concerns and ask for changes, some of which were accommodated before they sent it to the governor.
“All through that period of time, the governor and his people sat silently by and never weighed in one way or the other, so we assumed that they were OK with this bill,” Hannig said.
The governor's office offered another statement that his office made its concerns known in September, and the rest is up to the controller to decide which funds can be moved over.
Carol Knowles, spokeswoman for Comptroller Dan Hynes, said the measure, which the governor signed into law without changes, spells out which funds to sweep, how much to sweep and when to sweep. “There is no ambiguity what the law states,” she said. The transfers should be completed within the next day.
But even if the governor signs the spending bill without making any changes, he's not compelled to actually spend the money. To do that, he would have to send a voucher over to the state comptroller, who would then write the check. “He could sign the bill, but if he doesn't send over the vouchers, the comptroller still can't issue a check,” Hannig said.
The governor has until the first week of December to act on the spending bill. It could come up in the annual fall session — if there even is a “veto” session (because the House and Senate already acted on all but a few of the governor's various vetoes last month).
One more note: Before this mess started, the governor sought authority to transfer about $530 million (scroll down) from special funds. But his proposal would have let him sweep the money at any time in any amount up to about $530 million, Hannig said. The House changed the proposal to limit the spending to $221 million and to identify which funds could be swept and what the money could be spent on.
Friday, January 26, 2007
Dream job ends at IDOT
Illinois’ Secretary of Transportation Tim Martin resigned today, according to an abrupt announcement from the governor’s office that provides little explanation other than he’s returning to the private sector.
Martin has led the Illinois Department of Transportation since 2003 under Gov. Rod Blagojevich. In the governor's release, Martin calls it “a dream job for any engineer that grew up in Illinois.” The governor’s announcement says Martin’s leadership was “instrumental in modernizing and making IDOT more efficient and focused the agency on better using technology to accomplish its goals.” He also marked the agency’s 2006 record of having the fewest fatalities since 1924.
Also on Martin’s watch, however, is IDOT’s status as one of at least 15 agencies to have received federal subpoenas in an ongoing federal investigation into hiring and contracting practices within Blagojevich’s administration. No one has been charged with wrongdoing.
IDOT spokesman Matt Vanover says Martin resigned and was not asked to leave. These types of changes are common as administrations transition into new terms, he says.
Milt Sees, IDOT director of highways, takes over until the governor nominates a permanent secretary, which requires Senate approval.
Martin has led the Illinois Department of Transportation since 2003 under Gov. Rod Blagojevich. In the governor's release, Martin calls it “a dream job for any engineer that grew up in Illinois.” The governor’s announcement says Martin’s leadership was “instrumental in modernizing and making IDOT more efficient and focused the agency on better using technology to accomplish its goals.” He also marked the agency’s 2006 record of having the fewest fatalities since 1924.
Also on Martin’s watch, however, is IDOT’s status as one of at least 15 agencies to have received federal subpoenas in an ongoing federal investigation into hiring and contracting practices within Blagojevich’s administration. No one has been charged with wrongdoing.
IDOT spokesman Matt Vanover says Martin resigned and was not asked to leave. These types of changes are common as administrations transition into new terms, he says.
Milt Sees, IDOT director of highways, takes over until the governor nominates a permanent secretary, which requires Senate approval.
Monday, May 22, 2006
More background
Last week I said most state positions are supposed to be protected from political influence, but the courts have ruled that some jobs, such as a governor’s spokesperson, can be based on party affiliation. For those of you who want a little more legal background, here’s some food for thought:
In 1990, the U.S. Supreme Court ruled in Rutan et al v. Republican Party of Illinois et al that hiring decisions involving low-level public employees may NOT be based on party affiliation or support. The suit dates back to November 1980, when then-Gov. James Thompson proclaimed a hiring freeze. No one was to be hired, fired or promoted without permission from the governor’s office. They looked at everything from whether the person voted in Republican primaries to whether the person had donated to or had the backing of the GOP. Five employees said politics impacted their employment. One was Cynthia Rutan, a rehabilitation counselor who said she had been denied promotions because she hadn’t worked for the Republican Party.
The court said the governor’s office crossed the line and violated the employees’ First Amendment rights. Referring to a 1976 case, Elrod v. Burns, the court said, “Political parties have already survived the substantial decline in patronage employment practices in this century,” and, “Second, patronage decidedly impairs the elective process by discouraging free political expression by public employees.”
In Elrod, Cook County Republicans holding jobs that were not protected by the state’s civil service code claimed they were fired when a Democratic sheriff came into office, which they said violated their rights under the First and Fourteenth Amendments. The state Supreme Court agreed.
The line of protection (saying you cannot hire, fire or promote based on political allegiance) seems to be moving lower and lower on the state’s staff list. Read more about patronage rulings at Illinois Issues’ Retrospective.
In 1990, the U.S. Supreme Court ruled in Rutan et al v. Republican Party of Illinois et al that hiring decisions involving low-level public employees may NOT be based on party affiliation or support. The suit dates back to November 1980, when then-Gov. James Thompson proclaimed a hiring freeze. No one was to be hired, fired or promoted without permission from the governor’s office. They looked at everything from whether the person voted in Republican primaries to whether the person had donated to or had the backing of the GOP. Five employees said politics impacted their employment. One was Cynthia Rutan, a rehabilitation counselor who said she had been denied promotions because she hadn’t worked for the Republican Party.
The court said the governor’s office crossed the line and violated the employees’ First Amendment rights. Referring to a 1976 case, Elrod v. Burns, the court said, “Political parties have already survived the substantial decline in patronage employment practices in this century,” and, “Second, patronage decidedly impairs the elective process by discouraging free political expression by public employees.”
In Elrod, Cook County Republicans holding jobs that were not protected by the state’s civil service code claimed they were fired when a Democratic sheriff came into office, which they said violated their rights under the First and Fourteenth Amendments. The state Supreme Court agreed.
The line of protection (saying you cannot hire, fire or promote based on political allegiance) seems to be moving lower and lower on the state’s staff list. Read more about patronage rulings at Illinois Issues’ Retrospective.
Friday, May 12, 2006
State employees fired
Two state employees have been fired after a year-long investigation into the hiring practices of the state’s main administrative agency, Central Management Services. The agency director, Dawn DeFraties, and her deputy, Michael Casey, were fired for allegedly fudging 28 applications for civil service jobs. That made the applicants more likely to be hired even if they weren’t qualified. Not all of the 28 people were hired, according to a governor’s spokeswoman, Abby Ottenhoff.
In a Chicago press conference Monday, John Harris, the governor’s chief of staff, and Bill Quinlan, chief counsel to the governor, said the investigation started when the state brought in a consultant to help streamline operations. The consultant reported several irregularities, which made their way up to the state’s independent inspector general.
The governor’s office also hired a law firm to take a broader look at the entire hiring process, which is ongoing, Ottenhoff said.
Findings were turned over to the U.S. Attorney’s office, with investigations still pending. “There could be potential criminal activity, which is for the attorney general’s office to decide,” Quinlan said.
Both employees have appealed.
In a Chicago press conference Monday, John Harris, the governor’s chief of staff, and Bill Quinlan, chief counsel to the governor, said the investigation started when the state brought in a consultant to help streamline operations. The consultant reported several irregularities, which made their way up to the state’s independent inspector general.
The governor’s office also hired a law firm to take a broader look at the entire hiring process, which is ongoing, Ottenhoff said.
Findings were turned over to the U.S. Attorney’s office, with investigations still pending. “There could be potential criminal activity, which is for the attorney general’s office to decide,” Quinlan said.
Both employees have appealed.
Subscribe to:
Posts (Atom)
Posts
