State GOP seeks $6.7 billion budget cut

SPRINGFIELD – Senate Republicans have revealed $6.7 billion in potential state budget cuts – including another $200 million in reductions to higher education and the loss of $300 million in aid to local governments.

And they're challenging Democrats to join with them in the severe reductions. Without cutting now, they say, the state budget will be as much as $23 billion in the hole within five years.

"That's a huge problem for this state. That means that not only will the tax increase not go away, but we'll probably have to raise taxes again," said Senate Minority Leader Christine Radogno, R-Lemont.

Republicans alone can't make the cuts. With just 24 out of the 59 members in the Senate, they'd need at least six Democrats to go along with any particular reduction. Radogno said she could guarantee at least 15 GOP votes for each of the dozens in individual cuts.

"So we're not just talking about cuts. We're actually willing to vote on these cuts. If other people have other ideas, we're willing to talk to them. We want to know if they're willing to put votes on these cuts," she said.

"Releasing a list of possible cuts shouldn't be the end of their participation in the budget process. I hope that this is just the beginning," Senate President John Cullerton, D-Chicago, said in a statement.

Sen. Mike Frerichs, D-Champaign, said he recognizes the need to make cuts, but added that he was pleased that the Republicans seemed to make a tacit admission that the recent income tax increase was necessary as well.

"They didn't offer enough cuts to balance the budget without the tax increase, so I'm glad to see that they're admitting we needed new revenue plus the cuts," he said. "We've said all along there would be cuts. But the Republicans say we can do this with cuts alone."

Regarding the Republicans' menu of particular cuts, Frerichs said, "I would have to look at their cuts. I haven't seen them yet."

"I would say off the top of my head that slashing higher education – which has been severely cut over the last decade – is not really a good thing to do for our future. But I do acknowledge that additional cuts have to be made."

The GOP plan mentions "targeted savings" of $200 million in higher education, although it doesn't recommend specific cuts.

"Reductions could be achieved, in part, by reviewing sabbatical policies, professor hours in the classroom and reviewing the extensive use of tuition waivers," said a Republican booklet on the cuts. "Last year public universities awarded almost $400 million in tuition waivers to students, while those same universities collected $1.5 billion in tuition from paying students. A limit on tuition waivers is something Senate Republicans would be willing to explore."

The controversial General Assembly scholarships "should be eliminated as a first step," said the GOP members.

The Republicans also suggested that the Legislature may want to take control again of university income funds, which were ceded to the universities several years ago.

"This would allow the Legislature to have a level of oversight into how much tuition rates at public universities may increase," the Republicans said.

The two biggest budget reductions, each worth approximately $1.3 billion, would be in Medicaid and pension reforms.

The Medicaid cuts would be achieved with a number of changes, including increasing co-pays, reviewing optional services and rolling back eligibility standards at the higher end of income levels.

The pension reductions would come by adopting proposals by the Civic Committee of Chicago. They call for offering three retirement options for current employees, including the status quo but at a higher price to employees; a new defined benefit plan being offered to all new employees; and a defined contribution plan with a 6 percent employer match.

"Incorporated in all of this," said Sen. Matt Murphy, R-Palatine, "is that everything you've earned to date in the current system you will get under the rules of the current system. But after the passage of this proposal you will be in a different system."

Among the other suggested cuts:

– Cutting $250 million from the Department of Human Services, including an aggressive program of removing developmentally disabled individuals from institutional care into community facilities.

– Spending less on inmate compensation in the Department of Corrections, including $7 million in stipends to inmates that can be used to buy candy, cigarettes and cable TV. The Republicans say the state should look into reducing the number of non-violent offenders in prisons, something that could save as much as $65 million.

– A cut of $725 million for elementary and secondary education, including freezing the general state aid contribution at last year's level, and re-evaluating all programs not related to the state funding formula or mandated categorical grants.

– Elimination of state stipends for local officials, such as county treasurers, auditors and sheriffs.

– Elimination of funding for the lieutenant governor's office.

– Combining the state treasurer and comptroller offices, at an estimated savings of $12 million.

– Reducing revenue sharing to local governments by $300 million.

– Cutting up to $150 million in subsidies to Chicago area and downstate transit districts, including the Champaign-Urbana MTD.

– Enacting a statewide state government hiring freeze, eliminating pay for three of 13 state holidays and foregoing scheduled pay raises in the next fiscal year.

– Reducing the number of state take-home cars by 50 percent and selling unused state automobiles for a savings of $9 million.

– A 10 percent across-the-board cut in the budgets of legislative, judicial and constitutional officers, for a savings of $85 million.

– Eliminating funding for the Illinois Arts Council, an agency headed by Shirley Madigan, wife of Speaker of the House Michael Madigan.

– Reducing the number of state-issued electronic communication devices by 50 percent for a savings of $2.3 million.

Comments

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Over-Taxed-Payer wrote on March 18, 2011 at 6:03 am

It is simple: You cannot spend more than what your income revenues are. One word: CUT!!

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