Illinois State budget—possible cuts in the budget


I’ve decided to continue this series on the Illinois budget. When finished, I plan a post or two on Arizona and its new law concerning illegal immigration within the State. Then, I’ll return to previously planned posts.

The following information is from the “2010 Illinois Piglet Book” published jointly by The Illinois Policy Institute and Citizens Against Government Waste. I have selected brief sections from the book to give some idea of possible beginning cuts from the Illinois State budget. Don’t kid yourselves though. Cutting 13 billion dollars from a State budget that has been over budget for the six years I’ve been in Illinois is going to be very, very painful. Every program in the budget does “good” for someone or some thing. Every program has supporters who believe it is a necessary part of the State budget. However, the General Assembly has a constitutional responsibility to establish and proceed with a balanced budget. When the State does NOT have the money to spend, the only constitutional alternative is to CUT, CUT, CUT!

As I’ve said in previous posts:

“And yet, the talk at the beginning of the year was for a 13 billion dollar deficit. Deficit? Where is a deficit allowed in the planning and implementation of the fiscal year budget?

In tonight’s post, I’m going to give the specific target for the amount of money that needs to be cut from the proposed budget. This is based upon the Constitution, sound economic theory, and practical experience from following my own budget and being a member of a school board for 4 years in a State where the school boards could not spend any more money than was allocated to each school board.

The first criterion is: ABSOLUTELY NO money will be spent on any NEW program. It is the height of folly to spend money on new programs when there is not sufficient money to spend on already existing programs.

The second criterion is: Set the priorities for State spending from the HIGHEST priority to the lowest priority. One being the highest. 5000, or whatever the last priority is, being the lowest.

The third criterion is: Allocate money from the highest to the lowest priority to meet the needs of each priority until the estimated money runs out. If the allocations run out at the 3,450th priority, cut all of the less important priorities out of the budget.

The fourth criterion is: Adjust the allocations as needed, if needed. If more money needs to go from some higher priorities to lower priorities or money needs to be taken from lower priorities to be allocated to higher priorities, make those needed adjustments.

The fifth criterion and last criterion as well as the most important criterion is: Obey the Constitution of the State of Illinois. ‘Appropriations for a fiscal year shall not exceed funds estimated by the General Assembly to be available during that year.’ This is the TARGET! If that means cutting 13 billion dollars from the budget, then cut 13 billion dollars from the budget.

TARGET set! PROBLEM solved!

As I’ve said repeatedly, it is insanity to give more money to a spendaholic. NO NEW TAXES until the General Assembly repeatedly proves it can actually obey the Constitution of the State of Illinois and balance the budget—spending only the estimated funds of the State.”

I have left out the appropriate footnotes. Selected material from the “2010 Illinois Piglet Book”:

“The Illinois Policy Institute is a nonpartisan research organization dedicated to supporting free market principles and liberty-based public policy initiatives for a better Illinois. As a leading voice for economic liberty and government accountability, we engage policy makers, opinion leaders, and citizens on the state and local level. Please visit our website at http://www.illinoispolicy.org/.

Chicago Office
190 S. LaSalle Street
Suite 2130
Chicago, IL 60603
Phone: 312-346-5700
Fax: 312-346-5755” (page 1)

“Citizens Against Government Waste (CAGW) is a private, nonprofit, nonpartisan organization dedicated to educating the American public about waste, mismanagement, and inefficiency in government. CAGW was founded in 1984 by the late industrialist J. Peter Grace and nationally-syndicated columnist Jack Anderson to build support for implementation of the Grace Commission recommendations and other waste-cutting proposals. Since its inception, CAGW has been at the forefront of the fight for efficiency, economy, and accountability in government.

CAGW has more than one million members and supporters nationwide. In a little over two decades, has helped save taxpayers $1.08 trillion through the implementation of Grace Commission findings and other recommendations.

CAGW’s official newsletter is Government WasteWatch, and the group produces special reports and monographs examining government waste and what citizens can do to stop it. CAGW is classified as a Section 501(c)(3) organization under the Internal Revenue Code of 1954 and is recognized as a publicly-supported organization described in Section 509(a)(1) and 170(b)(A)(vi) of the code. Individuals, corporations, companies, associations, and foundations are eligible to support the work of CAGW through tax-deductible gifts.

1301 Pennsylvania Avenue, NW
Suite 1075
Washington, DC 20004
Phone: (202) 467-5300
http://www.cagw.org/” (page 1)

“The State of Illinois faces a historic budget crisis, caused by years of lawmakers’ fiscal profligacy. Chronic overspending on non-essential functions has stretched the state’s finances to the breaking point, a problem exacerbated by the recent economic downturn and falling tax revenue. Historically, legislators addressed such shortfalls by issuing bonds without building in corresponding spending restraint mechanisms. Such actions are untenable; the state cannot attempt to fund everything it wants today while passing the costs on to future generations. Future bond initiatives must be focused and have a clear repayment plan in order to avoid burdening future generations of Illinoisans with unprecedented debt. (Also, such a practice is patently unconstitutional according to the Illinois Constitution. Read “Article IX—Revenue, Section 9. State Debt” of the Illinois Constitution—my addition.)

Rather than addressing their spending addiction, many elected officials insist that the only way to solve the problem that they created is through raising taxes, further penalizing citizens. The federal government’s stimulus funds, intended to shore up the state’s faltering economy, merely delayed Illinois’s much-needed budget reforms. The state must pare back its portfolio so that it can better fulfill its basic obligations to its citizens. Every day, Illinoisans make hard choices about what to spend their money on, foregoing what they want for what they need because of budgetary constraints. Lawmakers should do the same. The state owes its residents the courtesy of responsible spending.” (page 2)

“Despite these hardships, the state of Illinois manages to pay a fair amount of money to higher education institutions for ongoing employee education … many of which are out-of state. For example, for ‘employee tuition and fees’ in fiscal year 2010:

• Mid-Continent University of Kentucky is receiving $84,690

• Ashford University of Iowa is receiving $45,162

• The University of Colorado is receiving $14,410

• The Grand Rapids Educational Center is receiving $13,403 and

• Indiana University is receiving $790.45

It is not clear how state employees attend classes at these distant educational institutions. Even if these classes were taken online, they should not be paid for with taxpayer dollars. Overall, the state has paid $1,049,639 from August 1, 2009 through January 7, 2010 in employee tuition and fees. If state employees are interested in taking classes to burnish their resumes or to bump themselves up to the next pay grade, it should be incumbent upon that individual to decide whether the long-term investment in additional schooling is worth the money. Many private employers subsidize education, but not with taxpayer dollars.” (page 6)

“The state is paying $1.4 million for the ‘Diversifying Higher Ed Faculty’ program, which did not exist in 2009. The governor initially requested $2.8 million, but later revised that figure. The purpose of the initiative is to increase the number of ‘traditionally underrepresented minority groups’ in faculty and staff positions in Illinois institutions of higher education and higher education governing boards. Although diversity is a laudable goal, it should not be a concern to the state when it is in such dire financial straits—and certainly not for $1.4 million.” (page 7)

“The state should be colorblind, treating all of its citizens equally. Unfortunately, in allocating tax dollars to specific ethnic service organizations, it runs the risk of looking, in the words of George Orwell’s “Animal Farm”, like ‘some are more equal than others.’

Certainly, many of these organizations are worthy causes; yet the unequal distribution of funds leaves some groups flush, and others underserved. Some ethnic groups should not receive more state money because they are better at applying for state grants.

Organizations should be self-sufficient, raising money from their communities in proportion to their need.

Some organizations that are receiving aid from the state in 2010 include:

• $3,544,368 to Jewish Child & Family Services

• $2,662,579 to the Chinese American Service League

• $1,189,387 to the Asian Human Services of Chicago

• $816,428 to the Chinese Mutual Aid Association

• $122,060 to the Asian Health Coalition of Illinois

• $53,309 to Korean American Community Services

• $27,498 to American Hispanic Wellness Services

• $20,006 to the Pui Tak Center in Chicago

• $19,562 to the American Indian Health Service

• $15,000 to the Asian American Institute

• $3,600 to Arab-American Family Services and

• $909 to the American Muslim Mission Center.” (pages 7 & 8)

“Each year, the state of Illinois distributes a considerable amount of money to various disease research groups, foundations, and patient advocacy organizations. Although such contributions are well-intentioned, and while many recipients are worthy causes, lawmakers and bureaucrats do not possess the knowledge to fairly allocate taxpayer funds to the best possible recipients. There is certainly no need to provide any support for national organizations, or their state chapters, when such groups have tens of millions of dollars in assets and receive funding from the federal government and private donations.

In 2010, the state of Illinois is spending:

• $3,150,000 for minority AIDS/ HIV prevention & outreach

• $979,229 to the AIDS Foundation of Chicago whose 2009 operating budget was $18.7 million

• $355,000 for the AIDS Hotline

• $200,000 to AIDSCare

• $1,994,000 for women’s ‘health promotion’ programs

• $1,801,238 to Easter Seals Metropolitan Chicago

• $1,201,837 to Easter Seals Joliet Region

• $319,427 to Easter Seals DuPage

• $47,930 to Easter Seals Central Illinois

• $1.2 million for a prostate cancer public awareness initiative

• $297,000 for prostate cancer screening and awareness

• $1 million for ALS (Lou Gehrig’s Disease)

• $73,992 to the American Lung Association of Illinois

• $21,000 to the American Diabetes Association which had a fund balance of $76.9 million as of December 31, 2007

• $17,700 to the Juvenile Diabetes Research Foundation which had a fund balance of $49.5 million as of June 30, 2008 and

• $12,600 to the National Kidney Foundation which had net assets of $18 million as of June 30, 2008

If Illinois residents feel inclined to make charitable contributions to causes, they should be free to give to those that are of personal interest and concern. As it stands, the Illinois government, often steered by well-connected lobbying teams, is picking winners and losers over a spectrum of causes—many of which are already generously funded.” (page 8)

“Illinois legislators repeatedly proclaim their concern for the environment, but it looks like the green that they’re most interested in is what’s in taxpayers’ wallets. In 2010, the state is lavishing money on conservation, and similar to the medical research grants, some of the funds are going to national organizations that already have tens of millions of dollars:

• $104,271 for The Nature Conservancy which had total net assets of $4.6 billion as of June 30, 2009

• $78,066 for Quail Unlimited and $706 for Tri-County Quail Unlimited which is ‘dedicated to the wise use and management of America’s wild quail, doves, upland game birds and other forms of wildlife’

• $71,579 for the Chicago Horticultural Society which manages the Chicago Botanic Garden

• $61,312 for Pheasants Forever which is ‘dedicated to the conservation of pheasants, quail and other wildlife through habitat improvements, public awareness, education and land management policies and programs’

• $39,631 for the Illinois Audubon Society

• $24,895 for the Morton Arboretum which had net assets of $182 million as of December 31, 2008

• $13,775 for the National Wild Turkey Foundation an organization that works ‘for the conservation of the wild turkey and preservation of our hunting heritage’ and which had a fund balance of $17 million as of August 31, 2009

• $2,890 to Friends of Ryerson Woods

• $2,400 for the Chicago Wilderness Trust

• $2,000 for the Lake Forest Open Lands

• $2,000 for the Illinois Raptor Center which doesn’t refer to an awesome ‘Jurassic Park’ in the state, but rather, a habitat for birds of prey and

• $1,000 for the Chicago Zoological Society, which manages Brookfield Zoo

Illinois’s generosity even expands across state lines. The Missouri Botanical Garden is receiving $60,198 and the Iowa Oil Company is receiving $12,945.” (pages 9 & 10)

“Chicago is known for its world-class entertainment, which draws talent from around the globe. Strangely, the state is still providing money to many of the city’s most prestigious organizations, despite their star power and expansive donor base. In 2010, Illinoisans are contributing $69,070 to the Chicago Symphony Orchestra which had a fund balance of $283 million on June 30, 2008; $61,500 to the Art Institute of Chicago which had a fund balance of $1 billion on June 30, 2008; $39,200 to the Ravinia Festival Association which had a fund balance of $116 million on September, 30, 2008; $30,700 to the Goodman Theater; $24,000 to the Steppenwolf Theatre Company which had a fund balance of $21 million on August 31, 2008; $18,800 to Hubbard Street Dance Company, and $407,300 to the Illinois Humanities Council which, according to its most recently released numbers, has a budget topping $2,000,000.” (pages 13 & 14)

“The same economic factors are at play in the transportation industry, where the state is passing out taxpayers’ hard-earned dollars to large businesses. Amtrak is receiving $28 million in fiscal year 2010 in a state subsidy for an operating deficit for intercity rail services and Amtrak will also receive a $1.5 billion subsidy in 2010 from the federal government. The broader population should not have to pay for the company’s mismanagement. The state should end its subsidies and encourage Amtrak to raise ticket prices for users of its services in Illinois. Amtrak should be bearing the full cost of operating its portion of the transportation system.

The Boeing Corporation is also pocketing $1,168,427. The world’s third-largest defense contractor with estimated revenues in 2008 of more than $60 billion should not have its hand out for taxpayer dollars in the state of Illinois.

Finally, a highly controversial transportation program is also receiving a significant amount of money. In fiscal year 2010, the state is providing $33,570,000 for reimbursement for reduced fares through the Regional Transportation Authority Service Boards. The RTA oversees the Chicago Transit Authority (CTA) bus and rail system, Metra commuter rail, and Pace suburban bus service. The state’s funding distribution has recently been called into question through a class action lawsuit, where plaintiffs allege that minorities have been historically shortchanged.

Since 1965, seniors and low-income individuals with disabilities have received discounts on their fares. This program was expanded under former Gov. Blagojevich to provide free transportation on select routes for seniors and the disabled, despite warnings of the costs it would impose on the state budget. Such a program should only be available to individuals who truly need assistance, with means-testing implemented for fare reductions. The phrase ‘free rider problem’ exists for a reason, after all.” (page 15)

“The DCEO is paying the Illinois AFL-CIO Outreach $1,370,000 in fiscal year 2010 for ‘support services for unemployed.’ The DCEO is also paying the Illinois AFL-CIO $1,010,000 for the same purpose. With union dues so high, and the Illinois AFL-CIO representing over one million workers, members’ annual dues and contributions should be used for this purpose—not taxpayer dollars.

United Neighborhood is not union-affiliated, but it is following the same tactics, and is receiving $122,400. Its website says that it is ‘Modeled on the Saul Alinsky style of community organizing’ a frightening proposition for anyone who values ethics and civility in public discourse.” (page 18)

Remember also that the State of Illinois—our government—is the largest single employer in the State. No government that is the largest employer in its State is practicing fiscal responsibility. The State government must follow the Constitution of the State of Illinois and allocate its expenses to no more than the anticipated revenue for the fiscal year. Anything less is a violation of the State Constitution and a violation of the oath of office of every elected official who is responsible for over spending in the State budget. The fiscal practices of this State demonstrates that it’s “easy to spend other people’s money!” Our money!

It is past time that the voters of this State hold the representatives of this State accountable. For in the end, it is the voter who is responsible! Why would any responsible electorate continue to reelect spendthrifts election year after election year?