 |
 |
|
Weekly Review Forward the Weekly Review using the forward link at the bottom of the page!
November 18, 2008
|
|
|
|
Veto Session |
Veto
Session Continues This Week
Last week the Senate began its veto session. The Senate spent time confirming Governor Blagojevich's appointments and discussing new leadership. The Senate will continue veto session tomorrow through the 21st. The House will begin its veto session tomorrow also through the 21st. See the Senate schedule here See the House schedule here |
|
Revenues |
State Bill Backlog Reaches $4 billion - Could be $5 billion by
March
Comptroller Hynes says $1.5 billion of the backlog is from
health-care bills for the poor. The remaining $2.5 billion
covers "the entire spectrum of state service providers,
vendors and institutional payees
COGFA to issue new revenue projections Comptroller Dan Hynes reported the state currently owes nearly $4 billion in bills and that number can be as much as $5 billion by March. $1.5 billion of the backlog is from unpaid health care bills. Hynes urged state leaders to take immediate steps to ease the crisis which is threatening service providers and government units across Illinois. Hynes said vendors now face 12-week payment delays and he noted the uncertainty of the national economy makes it difficult for vendors who are owed money by the state to borrow funds to bridge the gap between the time they provide services and the time they are paid for those services. "There can be no doubt that these record-setting payment delays pose a serious danger to the solvency and operations of any institutions that depend on state funding," said Hynes, who predicted the payment delays could rise to 20 weeks by spring. "To call this as an imminent crisis is an understatement." He added,
"Suppliers who have been threatening to
suspend goods and services to the state will have no choice
but to make good on those threats," Hynes said. "Payrolls
could be missed and some businesses, already stretched to
the limit, may be forced to close their doors for good."
Hynes reported events that are already unfolding or are threatening to occur include:
In a letter to the Governor and legislative leaders,
Hynes urged changes in Illinois law that would provide
greater flexibility when the state borrows money and
allow the state to establish a revolving line of credit
to deal with the current problem
(Read more on state borrowing and debt on page 20 here).
Hynes said he would work with state leaders and their staffs to obtain approval for the changes during the fall veto session this month. He said he is open to any ideas that work to ease the severity of the backlog. Governor Announces Plan The afternoon, Governor Blagojevich announced a four-part plan to manage the state's budget deficit. The Governor's proposed plan includes passage of the Emergency Budget Act, which would give the Governor and other constitutional officers added authority to help them make additional cuts, a request to Congress for increased federal stimulus aid, and further administrative reductions in the agencies. In addition to these budget solutions, the Governor is also proposing short-term borrowing which will help manage the state's cash flow and pay providers in a more timely matter. (Read the entire press release here.) The Governor's plan includes the following components:
Tomorrow the Illinois Commission on Government Forecasting and Accountability will hold a meeting to discuss the FY 2009 revenue estimate. Date: Wednesday, November 19, 2008 Time: 2:00 p.m. or immediately following session Place: CDB Conference Room, 349 Stratton Building Purpose: Economic update & FY 2009 Revenue Estimate RESOURCES: Read more about the State's unpaid Medicaid liability here Last Week's Revenue Recap 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 |
|
Education |
|
136 Struggling Schools Making Significant
Improvement
35 Schools and 11 Districts Make AYP for Second Year to Move Off Academic Improvement Status The Illinois State Board of Education (ISBE) announced that nearly 50 schools and districts are being removed from improvement status as a result of their student performance, attendance rates and graduation rates. The schools and districts met Adequate Yearly Progress (AYP) for two consecutive years by meeting the standards of No Child Left Behind (NCLB) (Read the entire press release here). "These schools and districts are making significant improvement, and this accomplishment is even more noteworthy given the various performance targets that continue to increase each year," said Christopher A. Koch, State Superintendent of Education. "The staffs and students at these schools and districts should be very proud of their success to improve student achievement in their schools." ISBE Analysis of the statewide data for 2008 shows that 35 schools and 11 districts have been removed from improvement status by making AYP for two consecutive years. In addition, the data also shows that 101 schools and 23 districts in improvement status will not advance to further sanctions because they made AYP this year. The most recent tests were given in March and April. Students in third - eighth grades took the Illinois Standards Achievement Test (ISAT) in reading and mathematics while students in fourth and seventh grades were tested in science and fifth, sixth and eighth grade students were tested in writing. Students in 11th grade take the Prairie State Achievement Exam (PSAE), which tests students in math, reading, science and writing. Statewide averages for the 2008 testing were released last month. Only reading and mathematics results are used in calculating AYP. Highlights of the 2008 Report Card include: Student Demographics
A full list of the 35 schools and 11 districts that were removed from improvement status can be found online at http://www.isbe.net/pdf/improvement_removed_2009.pdf . A full list of the 101 schools and 23 districts that are in improvement status but will not advance to further sanctions because they made AYP this year http://www.isbe.net/pdf/ayp_improvement_2008.pdf Background: Schools and districts are placed into improvement status when they do not make AYP for two consecutive state testing cycles. After two years, schools and districts enter academic early warning status. Failing to make AYP for the fourth time, schools and districts are in academic watch status. After a fifth calculation, a school enters restructuring planning and will implement that plan should it fail to make AYP for the sixth time. Federal sanctions can include offering school choice and supplemental education services for schools in improvement and corrective action which receive Title I funds. State and federal requirements merge for schools in restructuring. Districts are charged with developing a restructuring plan for schools after not making AYP for the fifth calculations. NCLB requires all states to measure each public school's and district's achievements and establish annual achievement targets for the state. The overreaching goal is for all students to meet or exceed standards in reading and mathematics by 2014. |
|
Budget |
|
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. |
|
Calendar |
|
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. |
|
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 |
|
|