Fw: Arc and Governor Makes Gloomy Forcast

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Arc and Governor Makes Gloomy ForcastI think we all need to be aware and keep up

on this...

Don't stop talking to local legislators about your loved ones who will be

greatly harmed by 9% cuts.

Ellen

Ellen Garber Bronfeld

egskb@...

Arc and Governor Makes Gloomy Forcast

It is going to be another tough year for human service

providers as the Governor outlines his budget priorities. Is this email not

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Dear Ellen,

Yesterday, the Governor outlined his budget priorities

for the next three years. The Governor is scheduled to unveil his full state

budget proposal on Feb 22. Cuts of 9% are being considered.

Tony

Governor makes gloomy forecast for Illinois budget

By DOUG FINKE (doug.finke@...)

The State Journal-Register

Posted Jan 03, 2012 @ 11:00 PM

Last update Jan 04, 2012 @ 06:09 AM

Gov. Pat Quinn on Tuesday issued an outline of his

likely budget for the next fiscal year. It won’t be pretty.

Most state operations should expect a 9 percent

reduction in the next budget, Quinn warned, and “further and larger reductions

are needed to stabilize Medicaid costs.â€

The governor also said he still wants the General

Assembly to approve his plan to pay off old state bills by borrowing up to $7

billion.

The information is contained in an economic and fiscal

policy report that must be filed annually by Quinn’s budget office under

recently enacted laws designed to improve the state’s budgeting process.

The report is not the detailed budget proposal that

Quinn will present to lawmakers in March. However, it does give an outline of

what to expect when Quinn makes his budget presentation.

“We’re in a squeeze,†said Vaught, Quinn’s

budget director. “The pension costs and the Medicaid costs are going up more

than the rate of inflation and more than the revenue growth. That squeezes

everything else out.â€

Consequently, Vaught said, other areas of government

have to look at 9 percent reductions to compensate.

“Most likely (employee headcount) will go down,â€

Vaught said. “I don’t see a lot of prospect in the collective bargaining

that’s going to be under way for a lot of good news for the employees.â€

Vaught said programs also are likely to be cut. The

administration is required to file a three-year budget projection as part of the

report. It shows a $350 million reduction next year in human service programs,

listed on the report as “protecting the most vulnerable among us.â€

“These will be painful cuts,†Vaught said. “You

don’t cut 9 percent out of budgets that have already been cut just by finding

a little extra here and there. It’s going to be real cuts that affect real

people.â€

The General Assembly last year approved some Medicaid

reforms that are supposed to save $700 million over five years. Quinn also

proposed a 6 percent reduction in Medicaid reimbursement rates last year, but

that was rejected by lawmakers.

Still, Medicaid costs continue to increase, and Vaught

said something must be done to further control those increases.

“We have to have real cost reductions, however they

are arrived at, that begin to get this under control,†he said. “If we can

get the rate of growth down, it will be a great victory.â€

Quinn is also working to convene a work group to discuss

ways of controlling soaring pension costs. The state’s pension costs are

expected to increase by $1 billion in the next budget.

There is heated disagreement about whether benefits for

current employees can be reduced. But, Vaught said, many attorneys believe that

annual cost-of-living increases for pensioners could be reduced without

violating the state constitution.

He also said more money could be put into the system

from someplace other than the state. That could include higher employee

contributions or “more from the real employers of our K-12 educators.â€

“Three quarters of pension payment is for employees

that are not state employees,†Vaught said. “You have a different employer

negotiating pay and benefits, but then the state picks up the pension.â€

Still, Vaught said things are better than they were.

“I think we are doing better. We have plenty of

challenges in Illinois, but I think we are going better,†Vaught said.

Doug Finke can be reached at 788-1527.

Copyright 2012 The State Journal-Register. Some rights

reserved

Tony auski

Executive Director

The Arc of Illinois

20901 S. LaGrange Rd. Suite 209

fort, IL 60423

815-464-1832 (OFFICE)

708-828-0188 (CELL)

Tony@...

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