Weekly Review
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November 25,
2008
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Veto Session
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Senator
John Cullerton Elected Senate President
Senator Christine Radogno Elected Senate
Minority Leader
Last week Illinois Senate Democrats chose John
Cullerton to become the new Senate President.
Senate Republicans elected Christine Radogno as
their leader. Senator Radogno is the first
woman to be elected to a top leadership
position.
Cullerton and Radogno will officially begin
their new posts in January when the new General
Assembly is sworn in.
Congratulations to Senators Cullerton and
Radogno. CTBA looks forward to working with
them in the coming Spring session.
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Revenues
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State Revenues Projected to Decrease in FY 2009
Last week the Commission on Government
Forecasting and Accountability (COGFA) issued a
new Fiscal Year (FY) 2009 revenue estimate.
COGFA projects revenues to decrease $550 million
in FY 2009. When accounting for inflation (CPI)
FY 2009 revenues will decrease an estimated
$2,033 billion.
When the FY 2009 budget was adopted in July, it
was based on expected revenues of $30.451
billion. At the time, however, State officials
could not predict the present state of the
economy. The new revenue estimate is $1.342
billion less than the FY 2009 budget was based
In March, when COGFA made their first FY 2009
revenue estimate they stated, "In conclusion,
given the current uncertain status of the
economy, the revenue picture for FY 2009 is far
from clear." At the time, COGFA estimated
revenues would be up slightly at $630 million.
However, actual revenue performance through the
first third of the year was substantially down.
Interest earnings, sales and income taxes,
lottery, riverboat and federal revenues are all
expected to be down this fiscal year.
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Currently it is unclear how the State will choose to
fix the situation. Governor Blagojevich recently
announced a four-part plan to manage the State's FY
2009 budget deficit. The plan includes:
1. Passage of the Emergency Budget Act, which would
give the Governor the authority to hold back in
contingency reserve as much as 8 percent of total
appropriation and distributions for all General
Funds spending,
2. A request to Congress for an increase of $1
billion annually over the next three years in
federal aid,
3. Further administrative reductions in the
agencies. The Governor has already cut the FY 2009
budget by $1.4 billion and ordered all agencies to
reduce spending by 3 percent.
4. Short-term borrowing.
The plan requires legislative action and it is
unknown if the General Assembly will pass or amend
the Governor's proposal or create their own plan.
What is known is that the State has found itself in
a critical situation that it must find its way out
of by either drastically cutting services or
increasing tax or other revenues. Both actions
require legislative and janitorial approval.
Read the entire COGFA report here
Read last week's Weekly on the state's debt picture
here
Look
for CTBA's full report on the FY 2009 budget in the
coming weeks.
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Gaming
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10th Riverboat License
In July 2008, the Illinois Gaming Board
began the process of choosing a new location
for the 10th riverboat casino license. They
hired Credit Suisse Securities LLC to handle
the bidding process.
On October 15th, the Gaming Board announced
the up-front license fee amount bids they
received. In total, the Board
received seven bids ranging from $60 million
to $435 million.
(See the bids here).
The Board picked three finalists; A Rosemont
bid of $435 million, a Waukegan's bid of
$225 million and a Des Plaines' bid of $100
million.
The board will now hold a series of public
meetings.
10th
Riverboat License and the Budget
In July budget negotiators included the
anticipated riverboat license fee as part of
their revenue estimate for the fiscal year.
At the time, however, budgeters projected
the 10th riverboat license would bring $575
million to state coffers. The three winning
bids are well short of the $575 budgeted
amount.
Illinois Gaming Board website
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Budget
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Fund Sweeps
Companion Spending Bill Signed
Last Thursday
Governor Blagojevich vetoed over $55 million
from SB 1103. The line items not cut are now
law, funded under SB 790 or the fund sweeps
bill.
Read SB 1103 here
Read the Governor's veto message here
In the veto
message, the Governor outlined his reasoning for
cutting the $55 million, "This legislation
relies, in part, on funds that are restricted by
the federal government. Using such funds could
put future federal funding in jeopardy."
The Governor
approved monies for funding for alcohol and
substance abuse treatment centers, to fund free
rides for seniors, students and the handicapped
on the RTA, to keep state parks open and for
DCFS employees. However, the administration
said human services workers will still be laid
off and seven parks will close (only four of the
eleven slated to be closed will remain open).
Cuts to
constitutional officer's budget and to close
thirteen historic sites will remain.
Background
Senate Bill 790
outlines transfers of $221,250,000 from special
state funds to the General Revenue Fund (also
known as fund sweeps).
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.
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.
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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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