Dear Neighbor,
 
The 2010 budget for the State of Illinois was passed yesterday by the Illinois General Assembly and signed by the Governor. 
 
The budget has numerous unresolved challenges including:
 

• Borrowing $3.5 billion in pension obligation notes (PON) to cover the State’s contribution to the pension systems.
• Appropriating $26 billion to fund state operations and grant programs in FY10.  This is about $2.2 billion less than the FY09 appropriation level and includes the dollars freed up from the pension obligation notes.  About $9 billion of the $26 billion is appropriated for grant programs (compared to about $10.5 billion in FY09).
• Appropriating funds for service providers and state operations in  lump sums so that the Governor alone decides how to cut spending.

 
I voted no on this budget.  This budget is highly irresponsible.  We are essentially borrowing to fund state operating costs, thus delaying, and increasing the size of our problem later.  The budget cuts authorized by this inadequate budget also are undetermined because we did not provide the Governor with specific line items for individual programs.  Finally, we further delay payments for critical social services programs and in effect, both reduce their budget with smaller appropriations and require these same under-funded agencies to incur borrowing costs for their own operating expenses.
 
I could not support such an abdication of our responsibility to Illinois residents for needed services and basic financial responsibility to balance our budget.  Illinois has a structural budget deficit that has been growing over the last 10 years.  Rather than continuing with “financial gimmicks” such as fund sweeps, debt restructuring, sale of assets, or more borrowing, I believe we need a comprehensive solution that includes:
 

• Spending reforms (e.g. medicaid and pension system improvements) to restore long-term financial stability;
• Prudent reductions (these will need to be implemented within this budget given it is $2.2 billion less than last year);
• Improvements in the manner in which we make budgeting decisions (e.g. more transparent budgeting process with public access to information and a performance measurement system to prioritize dollars spent); and
• Additional revenues.

I believe citizens throughout Illinois crave a responsible budget and desire elected officials to make the difficult decisions that are needed.  I look forward to working toward a more comprehensive solution in partnership with many interested parties.
 
Once we know more clearly how cuts will be made I will send out an additional update on the budget.  Please call my office at 773-769-1717 or email me with any questions or thoughts.

Sincerely,

Heather A. Steans
State Senator