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Weekly Review Forward the Weekly Review using the forward link at the bottom of the page!
November 11, 2008
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Veto Session |
Veto
Session to Begins Tomorrow in Senate, House to Convene Next
Week
The Senate is scheduled to convene the six day fall Veto Session tomorrow November 12th. The Senate's session dates are November 12-14 and 19-21. The House has cancelled the first week of its Veto Session (November 12-14). The House is scheduled to hold session from November 19-21. Cindy Davidsmeyer, spokeswoman for Senate President Emil Jones, told the Pantagraph lawmakers are expected to spend their time dealing with legislation aimed at helping build a coal-fired power plant in Taylorville, the Governor's veto of a law that is supposed to protect consumers from high fees charged by private finder firms (State Treasurer Alexi Giannoulias wants lawmakers to override the governor's changes) and the sign off on Blagojevich's appointments to numerous agencies and boards and commissions. They include new directors at a number of state agencies. It is unclear if the Senate or House will deal with state revenue shortfalls predicted by the Commission on Government Forecasting and Department of Revenue (see next story). See the Senate schedule here See the House schedule here |
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Revenues |
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Base Revenues Down $406 Million From This Point Last Year The Illinois Commission on Government Forecasting and Accountability (COGFA) reported that on a monthly comparison, FY 2009 October revenues were down $369 compared to FY 2008 October revenues. Most of the declined stemmed from lower federal reimbursements. On a year to date basis, through the first four months of the fiscal year, revenues are down $406 million from this point last year. October FY 2009 Compared to October FY 2008 As stated, most of the October decline was due to a $239 decline in federal sources. Other revenue sources experiencing a decline in October FY 2009 Compared to October FY 2008 were:
Some revenue sources did experience gains in October:
Through the first four months of FY 2009, overall base revenues are down $406 million. Most of the loss is due to the state receiving $296 million less from federal sources, as well as $99 million less from transfers. This month, COGFA again stated, "...a number of items will serve to restrict revenue growth in FY 2009 [i.e. increased refund percentage, lower miscellaneous transfers, reduced Cook County IGT, less from riverboat transfers, returns from interest income, no expected growth from federal sources]. Those items, when combined with an economy now in recession, will cause already difficult budgetary pressures to build." COGFA has found that current rates of growth in economic related revenue sources are very close to those forecast but that unfortunately, worsening economic conditions suggest that even these modest rates of growth will be unable to be maintained over the remainder of the fiscal year. Growth Rates Personal Income Tax (Gross) FY 2009 Actual Through October: 3.2% COGFA FY 2009 Forecast May 2008: 3.2% Corporate Income Tax (Gross) FY 2009 Actual Through October: 1.5% COGFA FY 2009 Forecast May 2008: 0.0% Sales Tax FY 2009 Actual Through October: 1.6% COGFA FY 2009 Forecast May 2008: 2.0% NOTE: Growth rates for each category above (Personal and Corporate Income Taxes and Sales Tax) are below what they would be if they kept up with inflation, meaning these revenue sources are not projected to grow with inflation this year. COGFA finds that even though growth rates are similar to those forecasted for the fiscal year, If employment measures continue to fall as expected over the coming quarters, there is little reason to believe the current growth rate can be maintained, thus revenues will be down. COGFA will hold a meeting sometime during the upcoming fall veto session. Topics of discussion will include updated economic as well as revenue outlooks. Continue to check the Weekly for new information or visit COGFA's website athttp://www.ilga.gov/commission/cgfa2006/home.aspx |
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Budget |
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Fund Sweeps Companion Spending Bill Remains Unsigned Governor Blagojevich has signed Senate Bill 790 into law. The bill outlines transfers of $221,250,000 from special state funds to the General Revenue Fund (also known as fund sweeps). However, the Governor has still not taken any action on the companion appropriations bill, SB1103. SB1103 outlines how the state should use the funds in SB 790. Spending in SB 1103 is intended to restore some of the $1.4 billion in cuts the Governor made to the fiscal year 2009 budget. With revenue concerns looming, it is unclear if the Governor will sign SB 1103, which authorizes the spending. Katie Ridgway, a spokesperson for the Governor told the State Journal Register that the Governor is still reviewing the measure to see what the state can afford. Governor Blagojevich has until early December to act on the bill, and Ridgway said there's no timetable for action. "It's clear that it's hard to look at new spending when we don't have enough revenue to meet our current spending. There are core services that we need to make sure that we maintain," Ridgway said. Which funds were swept? How much will be transferred from the fund? Read SB 790 here. FUND SWEEPS Special State Funds are various, smaller funds identified and held in the State Treasury as "special funds" under in Section 5 of the Illinois Finance Act restricted in use to the specific purpose for which they were created. There are over 300 of these special state funds that support activities as diverse as medical assistance and environmental cleanup. They are, for the most part, designed as segregated accounts, restricted in use and funded from specifically earmarked revenue or fee sources. Examples include the Illinois Affordable Housing Trust Fund, the Youth Drug Abuse Prevention Fund and the Brownfields Redevelopment Fund. Since FY 2003, the state has transferred almost $1 billion from these Special State Funds to the General Revenue Fund. However, this is not new revenue, it is simply a transfer of revenue from Special State Funds into the General Fund. This revenue swap would not be available next year without legislative approval. Read more about how the state transfers revenue from special use state funds to the General Fund on page 25 of the CTBA report, Citizens Guide to the Illinois State Budget and Tax System. The report contains a wealth of information on all of these budget issues. Background Governor Blagojevich announced that 450 state workers will be laid off along with the closure of 12 historic sites and 11state parks as a result of the $1.4 billion in cuts he made to the fiscal year 2009 budget. Four departments will be hit with the lay offs, including 300 positions at the Department of Children and Family Services, 75 at the Department of Human Services, and another 75 from the Department of Natural Resources and the Historic Preservation Agency. According to the State Journal Register (SJ-R), the lay offs will be effective December 1st. The historic sites will close Oct. 1st and state parks Nov. 1st. The union that represents the laid off workers, the American Federation of State, County and Municipal Employees (AFSCME) along with state lawmakers told SJ-R the layoffs and closings were unnecessarily heavy just a couple of months into the new budget year that began July 1. "Every time I think he can't do something worse, he does," Sen. Larry Bomke, R-Springfield, said of the governor. AFSCME warned that the cuts will put abused children and needy families at risk and further hurt parks and historic sites. It urged lawmakers to return to the Capitol soon to try to reverse them. "These cuts are irresponsible, and they are deep," AFSCME executive director Henry Bayer said. Department of Natural Resources spokesman Chris McCloud told the SJ-R, "This is a tough day for DNR and Illinois." Jonathan Goldman, executive director of the Illinois Environmental Council, said state parks had about 45 million visitors last year, and the resulting loss in economic activity probably will outweigh any savings. |
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Calendar |
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WHAT:
Leadership for Diversity
Conference Social Justice for Illinois Schools Pre K-12 WHEN: Friday-Saturday, January 30-31, 2009 WHERE: Bradley University · Robert H. Michel Student Center · Peoria, IL INFO: The purpose of this conference is to promote a statewide dialogue about best leadership practices to promote learning in diverse environments. We seek to understand policy implications at the local, state, and national levels that affect all stakeholders in diverse settings. It is our hope that from this dialogue will emerge effective leadership practices that build inclusive learning communities where diversity is valued, respected and promoted. Keynote Speakers: Dr. Linda Skrla, Associate Dean for Research, P-16 Initiatives, & International Programs, Texas A&M University, Ralph Martire, Executive Director, Center for Tax and Budget Accountability, Phillip Jackson, Founder & CEO, The Black Star Project Registration Fees: Friday Afternoon Diversity & Inclusion Awareness Workshop $50.00 Friday Evening $50.00 Saturday $125.00 CPDU credit available - $15.00 Register online at www.iwel.org. (Deadline for registration is January 9th.) Questions? Contact Dr. Jenny Tripses at 309-677-3593 or jtripses@bradley.edu WHAT: Dupage Federation on Human Services Reform, Making the Connection: Accessing Public Benefits for Low Income Persons WHEN: October 1, 8, 15, 22, 29 February 18, 25 March 4, 11, 18 June 3, 10, 17, 24 July 1 WHERE: All trainings held at NIU Naperville, 1120 Diehl Road, Naperville, IL INFO: Making the Connection training sessions contain information in an easy-to-understand format regarding many programs available to assist low income persons. Individuals who register for a Making the Connection training session now receive membership access to the Federation's newly developed Making the Connection Illinois website, www.mtcil.org. To register and for more information please visit www.dupagefederation.org. |
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Do you have something to add to the Weekly Review? email Chrissy Mancini @ cmancini@ctbaonline.org ___________________________________________________________________________ Center for Tax and Budget Accountability 70 East Lake Street, Suite 1700 Chicago, IL 60601 312-332-1041 www.ctbaonline.org |
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