* Illinois Statehouse News has a really good story today on how the House’s proposed budget is taking shape. Three of five committees have completed their work…
State Rep. Kenneth Dunkin, D-Chicago, who heads the budget committee on higher education, said his group made it under the House’s higher education budget goal of $2.1 billion by targeting for-profit schools through the state’s monetary award program, or MAP. […]
MAP funds were reduced by $17 million, which represents the largest cut for the higher education budget, Dunkin said. The program’s grants offer financial aid to Illinois residents who attend approved state colleges and demonstrate financial need.
General services also stayed in the black, making the largest cuts to those agencies that had a record of mismanagement based on audit reports, said state Rep. Fred Crespo, D-Streamwood, who chaired the general services appropriations committee. The agencies with records of mismanagement are Department of Revenue, Department of Commerce and Economic Opportunity and the Department of Central Management Services.
About 15 percent was cut across the board from fiscal year 2011 from the three agencies, said Crespo, who pointed to smaller cuts for all agencies in telecommunications and contractual services.
After spending hours debating individual line items, “…we realized we (couldn’t) keep nickel-diming this thing. We need to look at fundamentally how to make big cuts to really bring down that number,” Crespo said.
The K-12 approp isn’t finished yet, however…
For elementary and high school education, state Rep. William Davis, D-East Hazel Crest, expects to keep most spending flat, with most of the cuts coming from general state aid. As a result, school districts should expect 96 percent of a fully funded budget.
School transportation was the only line item that saw increased funding, Davis said.
“We left the table with something to give the Republicans to look at. I do not know if they will or will not agree with this idea. That wasn’t decided when we parted company,” said Davis, who emphasized that the budgeting process for $6.8 billion was still ongoing.
The Illinois House finalized a bill to cut state funding for the Department of Human Services by $500 million to $600 million Monday, six days after Service Employees International Union Healthcare Illinois & Indiana, a group that represents health care workers in Illinois, launched its advertising campaign to advocate full funding for its Child Care Assistance Program and Home Service Program, which operate under the DHS.
“It’s not that I don’t agree with the ads,” said Rep. Patricia Bellock (R-Westmont),, a member of the House Appropriations Human Services Committee. “The bottom line is, we cannot continue to provide services and not pay the provider.”
The new bill will slash state funding to the DHS, Illinois’ largest state agency, by more than 10 percent. The House committee agreed to an across-the-board cut in order to reduce the impact on individual programs, Bellock said. It also reinstated a few programs previously cut in Gov. Quinn’s budget, such as youth prevention programs and substance abuse programs.
“Rather than a few agencies take huge cuts, we try to make it that all agencies will take smaller cuts,” Bellock said.
Whatever comes out of the legislature budgeting process will involve real cuts in people programs. There will thus be intense pressure to increase revenue — painlessly.
So expect a strong push by gambling interests to expand gaming to include a casino in Chicago and others downstate, plus slots at the tracks. This could generate $1 billion plus in license fees this coming year and maybe $500 million a year later in annual tax revenue. Increasing the cigarette tax by a buck a pack could generate $300 million a year.
And “decoupling” Illinois from a federal “bonus depreciation schedule” for industry equipment purchases could raise another $600 million. Business, which already feels the state climate unfriendly, will fight this, as it would come on top of a new 9.5 percent corporate income tax rate.
I can see foresee the legislature sending the governor a budget less than he believes necessary, which could cause him to veto it and send the legislature back into special session.
- Posted by Rich Miller at Capital Fax.Com: http://capitolfax.com/2011/05/10/reports-house-budget-to-cut-map-school-aid-dhs-to-be-cut-10-percent/
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