Illinois' growing budget deficit means one near-certainty for the winner of this year's gubernatorial election - they'll be making cuts in state spending. The two Democrats and five Republicans all say they'll reduce spending to some degree, while looking at ways to bring in new revenue. The questions are how much and where. AM 580's Jim Meadows reports.
Illinois Public Media News
Before his removal from office, former Governor Rod Blagojevich made it a priority to extend health care to more lower-income Illinoisans. Today more children, their parents and others are covered under state-supervised programs with names like AllKids, Family Care and Illinois Cares RX. But massive budget pressures may make this year's candidates for governor rethink those expansions. AM 580's Tom Rogers looks into what those programs do - and where health care stands in the minds of potential officeholders.
NPR's David Schaper reports on how Governor Pat Quinn and other politicians are addressing the budget crisis in Illinois. First aired on All Things Considered, 1/13/10.
Furlough days could be just the beginning of the changes ahead at the University of Illinois. Two top university leaders say the next few years could see a host of changes, as the U of I adjusts to diminishing state funding.
Interim Urbana campus chancellor Robert Easter says the state's budget crisis has forced U of I administrators to start looking at how they can maintain the integrity of the institution in the long-term, considering the financial problems they're facing. He says university officials are starting to hold conversations they haven't had for some time.
"Those conversations are around what are we really about, what are our key programs that we want to have as a part of our future. What do we want to look like in 20 years?" Easter said. "And how do we decide those things that we no longer do? They may have been important at some time in the past, they may still be important. But what are our priorities?"
Easter says he'll be meeting with deans and vice-chancellors on the Urbana campus this Friday to start work on designing the framework for those conversations. While their outcome is unknown, U of I interim president Stanley Ikenberry says he envisions a U of I five years from now with the same number of faculty or more, but with fewer non-teaching and administrative staff.
Ikenberry and Easter made their comments Monday night during a live interview on WILL Radio and TV.
About 11-thousand University of Illinois employees will have to take four unpaid days off work between now and the middle of May.
U of I administrators say furlough days have become unavoidable as the university faces a 440 million dollar shortfall in state funding. Administrators say the state has given the U of I only seven percent of the support it expected from this year's budget.
Interim president Stanley Ikenberry says no layoffs have been ordered, but departments are being asked to consider them because of a grim immediate future.
"Next year is not any more comforting," Ikenberry said. "So I think until we see the state leadership -- the governor, the leaders and members of the General Assembly, and frankly the citizens of the state -- rallying around a long term solution, I think we're going to be dealing with a mounting financial crisis."
Ikenberry believes the state will need to cut state spending and increase taxes to dig itself out of its budget deficit.
Chief financial officer Walter Knorr says the U of I has borrowed millions of dollars from its own funds - he says money from tuition, federal support and private giving have also kept the university going. "And indeed it's these other areas of the university that are giving us the liquidity that we require to be able to cope with the shortfall in funding from the state," Knorr said.
The four-day furloughs announced today do not affect civil service employees, but Knorr says their bargaining groups will be asked to put similar actions into their contracts. About 100 top administrators will take ten furlough days over the next five months.
December was another month of slow economic improvement for Illinois --- according to the University of Illinois Flash Index.
The Flash Index increased by a fifth of a point, to 91.2 in December, from November's 90.0. U of I Economist Fred Giertz says the Index has been gradually going up since hitting a low of 90 in September.
"There has been now three months of small increases", says Giertz. "So it's good news in a very limited sense --- good news in the sense that things aren't getting worse, but it doesn't necessarily mean there's a lot of improvement."
Giertz says he thinks slow economic growth will continue in Illinois, provided there are no unforeseen reversals, but says it will take a couple of years for the Flash Index to reach 100, which would indicate the start of actual economic growth.
"I think the evidence suggests that we are on the path to recovery", says Giertz. "But the recovery's going to be pretty slow. But there's not guarantee about that. There could be some unforeseen circumstance or some reversal. We've certainly seen that in the last couple of years."
Giertz says the best-case scenario would be a healthier financial sector combining with renewed public confidence in the economy to create a snowball effect. But he thinks gradual sluggish improvements are more likely.
The Flash Index is based on corporate, personal income and sales tax receipts in Illinois. Despite the recent improvement, all three categories are down from a year ago.
A spokeswoman for the Chicago-based agency that helps run the waterways into Lake Michigan says it's unfortunate that Michigan's attorney general is going to the U.S. Supreme Court over Asian carp.
Michigan Attorney General Mike Cox today sued the Metropolitan Water Reclamation District of Greater Chicago, the state of Illinois and the U.S. Army Corps of Engineers.
The lawsuit seeks closure of shipping locks near Chicago to prevent Asian carp from invading the Great Lakes and endangering the $7 billion fishing industry.
Water district spokeswoman Jill Horist calls the lawsuit unfortunate and says it won't bring a solution any sooner.
A spokeswoman says Illinois Attorney General Lisa Madigan's office is reviewing the lawsuit and has no comment for now.
Opponents and supporters of a plan to move up to 100 alleged terrorists to Illinois from Guantanamo Bay are preparing to address the first state legislative hearing on the issue.
Around 50 people are scheduled to testify at Tuesday's hearing before the Commission on Government Forecasting and Accountability.
They include labor union officials who say selling the Thomson Correctional Center to the federal government to house detainees will create hundreds of jobs.
Opponents scheduled to speak include conservative activist Beverly Perlson. She says U.S. Naval detention center in Cuba has worked well and that there's no good reason to bring prisoners to the small northwestern Illinois community.
The hearing is at a high school auditorium in Sterling, which is southeast of Thomson.
An Illinois lawmaker has set his sights on a tuition waiver program for children of state university employees as a potential target for elimination.
A bill filed last week by Representative Dave Winters of the Rockford area would remove language that makes children of an employee eligible for a 50 percent waiver on undergraduate tuition at any state institution.
That prospect concerns Winters' fellow Republican representative Chapin Rose of Mahomet. But he also says he was under the impression that universities should make up their own minds on whether to offer the benefit.
"I guess the way I'd look at it is that's a choice that each university has just like any business in terms of their overall compensation package," Rose said. "If they want to give their faculty a raise rather than a 50 percent tuition waiver, that's their business. If they'd rather do a flat salary and a 50 percent tuition waiver, that's their business."
University of Illinois spokesman Tom Hardy says the U of I hasn't taken a stand on the bill yet, saying administrators will want to talk with Winters.
Rose says it would make more sense for the state to get rid of the program that lets General Assembly members offer scholarships to the students of their choice. Winters has not returned a call seeking comment.
Vermilion County's Board of Health is considering different scenarios for the future of its health department, ranging from maintaining the status quo to closing its doors.
While state funding remains shaky, Department Administrator Steve Laker says a downsizing remains the most likely scenario. He says the department has received about 200-thousand dollars from the state the last two weeks, providing some relief. But the department is still relying on the county to fund areas like payroll, and can't pay back a loan from the county for 300-thousand.
Laker says the county may have to borrow from a bank to cover a revenue shortfall, but he says one other amusing possibility surfaced recently.
"I got a phone call last week from the state treasurer's office wanting to know if we were interested in special loan funds they had," Laker said. "Are we going to borrow money from the state to counter state funding shortages? It's a possibility. They've got some low-interest loan programs. I referred them to the county board chairman."
The state still owes the department about 600-thousand dollars.
Laker says the health department needs to finalize a presentation for the Vermilion County Board by the end of this week. Its meeting on December 29th will decide the structure of the health department for the immediate future.
All options for downsizing include termination of state grant contracts, and cutting some jobs. Laker says programs that could be on the bubble include maternal and child health programs and nursing home screening for senior citizens.