Governor Issues Budget Outlook, Recognizes Severity of Problem

DOWNERS GROVE, IL – As required by recently enacted laws to improve public oversight of the state’s budget process, on Jan. 3 Gov. Pat Quinn released an abysmal outlook for the next fiscal year budget. The bleak report comes as no surprise to State Sen. Ron Sandack (R-Downers Grove) and his Senate Republican colleagues, who have been warning for months that the budget was unbalanced and the current rate of spending and growth could not be sustained. 

“With the budget outlook released yesterday, it seems that the Governor finally recognizes Illinois has a spending problem,” Sen. Sandack said. “The state has over-committed and managed to over-tax, not to mention that pension and Medicaid costs are out-stripping inflation and crowding out room in the state budget for human services, education and other vital state services.”

The Governor’s office documents show that the budget will be $500 million out of balance by the end of the fiscal year, which does not include approximately $2 billion in Medicaid payments that were shifted to the next fiscal year. Additionally, pension payments are expected to increase by at least $1 billion in the coming year.

Sen. Sandack said that Gov. Quinn’s outlook further acknowledges concerns the Senate Republicans presented last spring in their “Reality Check” budget proposal. The Reality Check plan identified reasonable ways for Illinois to balance the budget, eliminate the state’s deficit, and phase out the Democrat’s January 2011 tax increase.

“I’m pleased that the Governor and his budget office is now beginning to recognize the severity of the problem by highlighting the very issues we sought to address last March,” Sen. Sandack said. “It is my hope that the Governor is truly up to the challenge to correct these budget woes. It will require no growth in education or Medicaid spending over three years, as well as tackling our unfunded pension and retiree health care liabilities that total about $140 billion. Without a pension reform solution, Illinois’ budgetary problems cannot be overcome. Additionally, we have another $44 billion in state debt and $7.4 billion in unpaid vendor obligations, which is all a recipe for financial disaster. We have no other choice but to get serious about this immediately.”

The Reality Check plan offered a menu of more than $6.5 billion in spending cuts to bring the budget into line with available revenues.  Simply bringing Illinois’ Medicaid benefits into line with the national average would save $1.6 billion, and other savings are available by correcting state education formulas that have been skewed. Significant savings could also be achieved by eliminating a number of programs and agencies throughout the state. Find more information on the Reality Check plan at www.illinoisrealitycheck.com.