Friday, June 04, 2010

Illinois Governor to cut the budget?


As I said in a recent post, the Illinois General Assembly sent a budget, of sorts, to the Governor before ending the regular session before the long Memorial Day weekend. It was more of the same old inability of the General Assembly to face reality. The Governor did not send a balanced budget proposal to the General Assembly. The General Assembly did not send a balanced budget to the Governor for his signature.

As I wrote in an earlier post, the Illinois Constitution states the following in relation to the yearly State budget:

1) Article VIII—Finance, Section 2. State Finance, paragraph (a):

‘The Governor shall prepare and submit to the General Assembly … a State budget for the ensuing fiscal year. … Proposed expenditures shall not exceed funds estimated to be available for the fiscal year as shown in the budget.’ In short, if the estimated funds are 30 billion dollars, then the proposed expenditures SHALL NOT BE FOR MORE THAN 30 billion dollars! That is the wording of the Constitution!

2) Article VIII—Finance, Section 2. State Finance, paragraph (b):

‘The General Assembly by law shall make appropriations for all expenditures of public funds by the State. Appropriations for a fiscal year shall not exceed funds estimated by the General Assembly to be available during that year.’ In short, if the estimated funds are 30 billion dollars, then the proposed expenditures SHALL NOT BE FOR MORE THAN 30 billion dollars! That is the wording of the Constitution!

Did the above happen? Absolutely NOT!

The following quotes are from an article published in the Peoria Journal Star on June 2, 2010, page B1. The title for the article is “Governor vows tough cuts, offers few specifics.”

“At a news conference after an appearance at a Chicago elementary school the governor would not talk specifics about how he would address a state budget approved by lawmakers that left open a $13 billion shortfall.”

(In other words, the Democratic controlled General Assembly did NOT even attempt to balance the budget as REQUIRED by the Illinois Constitution!—my addition)

“‘The bottom line is legislators this year and last, I think, disappointed me and I think disappointed the people of Illinois by their reluctance to squarely address the fiscal calamity that we’re in,’ he said.” (He being the Governor—my addition.)

(Squarely address? Talk about an understatement! Disappointed? Talk about an understatement! The Democratic General Assembly didn’t even attempt to fulfill the constitutionally mandated authority given it. Do the members even understand what a budget is? Do the members even understand a normal budgeting process?

On Sunday May 30th, the Peoria Journal Star began a series on the problems caused by the State in local education because the State has not been paying the school districts the money the State owes for this fiscal year which ends on June 30, 2010. The material quoted is from the Peoria Journal Star, May 30, 2010, page A20.

“The cost of a deadbeat state: People, money”

“Without details from the state about current and future funding for education, school districts across Illinois have issued massive layoffs.

While some school employees will be called back when more is learned about what funding is available, districts face unprecedented cuts, leaving many of the schools with no job to come back to.

Below is a list of initial job cuts of certified (teachers and administrators—my addition) and non-certified employees (all other employees—my addition), in addition to the dollar amount the state is in arrears to school districts. A majority of the money owed to school districts is for special education and transportation reimbursements, as well as early childhood programs and reading grants school districts were approved for this year.”

The article then lists the schools and amounts for three counties in this area. The largest county is Peoria County, then Tazewell County, followed by Woodford County. The article gives subtotals for each county followed by the totals for the three counties. The totals for the three counties are as follows:

Enrollment for the three counties: “56,210 students”

Initial job cuts for certified employees: “395 certified employees”

Initial job cuts for non-certified employees: “486 non-certified employees”

Money owed to the school districts in this current fiscal year: “$32, 258,000”

Thus, the State of Illinois owes the school districts in three Central Illinois counties over 32 million dollars for the current fiscal year which ends at the end of this month. And the budgetary solution that the Illinois General Assembly comes up with for the new fiscal year: Sending an unbalanced budget with a huge deficit to the Governor giving him the unconstitutional authority to cut the budget as he sees fit to somehow balance the budget as required by the Constitution? Are they serious? Do these people know what their constitutional duty is?

Meanwhile, in the continuing articles dealing with the loss of money to local school districts, the Peoria Journal Star on June 2, 2010, page A5 printed selected quotes from selected local area legislators. Indicative of the mind set of many in the State legislature are two quotes from two of the biggest spenders from our area. The quotes as given by the Peoria Journal Star:

State Senator Dave Koehler, Democrat from Peoria: “‘We’ve got to have cuts plus raise revenues, and that’s just the truth. … I’m hoping we can come back in November and seriously look at revenue increases.’”

State Representative Mike Smith, Democrat from Canton: “‘There’s no way out of this crisis without more revenue. It’s painful, but it’s the simple reality. … We’re basically holding government together with chewing gum and bailing wire.’”

It is NOT the truth that revenues need to be raised! It is NOT the simple reality that there is no way out of this crisis without more revenue! Does State Representative Mike Smith really believe that OUR money and/or OUR debt are nothing more than chewing gum and bailing wire? The truth is, the reality is, that the State DOES NOT have a revenue problem. The State has a spending problem. The State has had a spending problem for a number of years. Members of the General Assembly are spendaholics! It’s easy, it’s way too easy, for them to spend other people’s money!

As I’ve said before, the State is the largest single employer in the State. That fact, in and of itself, speaks volumes. The State is spending too much if the State is the largest employer in the State. Many of these employees do no more than collect money from one source and then transfer that money to another source. How productive is that?

I’ve said it before. The following needs to be done if we are to right the wrongs committed by this and past governments. And yes, it is painful; it is also necessary.

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.

Until the State actually decides to work with a true, accurate budget, nothing will be solved. The State will continue to go further into debt, the State will continue to stiff selected entities by NOT paying its bills—deadbeat government, and the State will continue to lust after MORE of OUR money believing that they are MORE capable of spending OUR money than we are! Revenue IS NOT the problem! SPENDING IS THE PROBLEM.

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