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Governor Delivers Budget Address

Illinois Governor Bruce Rauner says his budget is a responsible path after years of ``financial recklessness.''

The Republican delivered his first budget address Wednesday.  He says the state has been living beyond its means by spending money that taxpayers can't afford.    Rauner wants to make deep cuts and is outlining a plan to fix the state's massively underfunded pension system.   He says the state needs to start on a ``responsible path after years of financial recklessness.''      Rauner's plans will likely be a tough sell in the Legislature, where Democrats hold veto-proof majorities in both chambers.

In a prepared release, Governor Rauner says his so called "turnaround" budget will eliminate the state's $6.2 billion structural deficit; does not rely on tax increases or borrowing; increases K-12 spending by $300-million; increases early childhood education funding by $25-million; and will save $3-billion on pension spending in the coming year.   Rauner told lawmakers Wednesday that he wants a 6.7 percent boost in general state aid, which is state funding which takes care of basic costs of educating students. A 30% decrease in funding to higher education is also expected to offset the bump... though the Governor, in his speech, did not specifically talk about his plan to cut higher education funding.  The Governor indicates higher education reductions of 30% would be less than 6% of the state universities' total budgets.  Other cuts the governor is proposing includes $1.5-billion in Medicaid spending.  Governor Rauner says lawmakers must be willing to make unpopular decisions to make up for a more than $6 billion budget hole next year.

Rauner outlined a pension plan where he wants to move workers to a less-generous pension plan lawmakers approved in 2010 for new hires. Workers hired before 2011 also could have the option of moving to a 401(k)-style plan. Police and firefighters could keep their current benefits.      Lawmakers passed a pension overhaul in 2013. But labor unions and retirees sued, arguing it was unconstitutional. The Illinois Supreme Court is considering the case.    Even if Rauner could get a new plan through the Legislature, it's unlikely savings would be realized in the next fiscal year because of legal challenges.

Following the Governor's speech, Democratic IL House Speaker Michael Madigan said the governor can not work his way out of the state's budget deficit with cuts alone.  Madigan says there must be a blend of cuts and new revenue.  Madigan says he would support a 3% surcharge on millionaires with the funds dedicated to education funding.   Madigan says he's not going to declare the governor's budget as "dead on arrival."  Madigan says he plans to move forward with standard budget hearings and hopes to work with the governor and republican lawmakers on the normal collaborative budget making process.
 

budget collage

*** Previous Story ***

llinois' new Republican governor will pitch a plan for fixing the state's budget mess that includes deep spending cuts, according to three lawmakers with knowledge of the proposal.

Gov. Bruce Rauner's first budget address is set for Wednesday at noon.

Three lawmakers briefed on details of the plan that Rauner discussed with legislative leaders told The Associated Press that the governor will recommend cutting Medicaid by $1.5 billion to help close a more than $6 billion budget hole next year. They say he'll also call for cutting nearly $400 million from higher education and propose reducing state aid to local governments.

The lawmakers spoke on condition of anonymity because they were not authorized to pre-empt Rauner's address.

Meanwhile Gov. Rauner's first budget address may also include a proposal to hire more than 470 corrections officers at the state's prisons.

That's according to an official in the Republican's administration. The person also spoke on the condition of anonymity so as not to pre-empt the governor's Wednesday speech.

The official said the plan is expected to save the department roughly $10 million next year in overtime costs while improving safety. The official says Rauner also wants to add more than $65 million to improve inmate mental-health care and assess safety risks.

It's unclear where Rauner will get the extra money since Illinois faces a more than $6 billion budget hole next year. Rauner has hinted at possible cuts to Medicaid and is expected to propose cuts in spending on higher education.

Madigan Expectations:
A top Democratic lawmaker says Illinois' Gov. Bruce Rauner plans to deliver ``tough medicine'' in his budget address.

House Speaker Michael Madigan and other legislative leaders met Tuesday afternoon with the Republican governor.

The governor has been tight-lipped about his plan as the state faces an expected $5.7 billion budget hole next year. Madigan says the governor ``understands some people will not be happy'' and that he ``doesn't plan to propose any tax increases.''

Advocates for low-income, elderly and disabled people are bracing for possible cuts to Medicaid and other programs. Rauner is also expected to propose cutting spending on higher education.

Many Democrats who control both chambers of the Legislature prefer to raise income tax rates to avoid massive cuts. Income tax rates were rolled back on Jan. 1
 

Jeff Williams is the Associate Director for Radio and Station Manager for WSIU Radio. Jeff is a native of southern Illinois and has been in broadcasting for 30 years. Contact WSIU Radio at 618-453-6101 or email wsiuradio@wsiu.org
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