Both the Illinois House and Senate passed bills this evening that, as expected, circumvents the obvious need for an income tax hike by borrowing $3.5 billion and putting off billions more in unpaid bills to state vendors until next year. The spending plan will also include ...
Both the Illinois House and Senate passed bills this evening that, as expected, circumvents the obvious need for an income tax hike by borrowing $3.5 billion and putting off billions more in unpaid bills to state vendors until next year. The spending plan will also include significant cuts to state spending (at Gov. Quinn's discretion), including to third party social service providers -- the same agencies whose layoffs we've been tracking for the past 10 days. It's unclear exactly how large a cut they will see to their FY 2009 funding levels, but the Tribune publishes one estimate:
Under an earlier budget plan passed by lawmakers in May and mostly vetoed by Quinn, social service agencies faced cuts of 50 percent or more in state grants. The borrowing would allow many of those grants to be funded at more than 80 percent, budget negotiators said.
In the coming days, we'll be circling back with the providers that we've identified -- and many, many more -- to get a sense of how this spending plan will affect them.
Moments before the final bill passed the Senate tonight, Senate President John Cullerton made clear that lawmakers will be returning in January to reassess the situation -- as well as the need for more sustainable revenue. Watch his remarks (you'll also see Sen. Donne Trotter closing the debate and Sen. Rickey Hendon calling the roll):
Finally, here is the reaction from Keith Kelleher, president of SEIU Healthcare (whose Illinois state council sponsors this website):
“Instead of doing what needed to be done to protect vital services, lawmakers passed a dangerous budget that relies on borrowing billions of dollars and deep cuts to keep the state from shutting down. Tens of thousands of jobs and vital services have already been lost and the lives of tens of thousands of Illinois seniors, people with disabilities and children are still in serious jeopardy because our elected officials failed to find a long-term solution. In the weeks ahead, Illinois families are counting on their elected officials to take leadership in this crisis and do the responsible thing by passing a fair revenue plan that protects vital programs from devastating cuts once and for all.”
More details and reactions to come tomorrow.