Springfield,
IL – Democrat leaders forced a $59 billion budget out of the General
Assembly on strict party lines, despite protests from Republican
lawmakers that legislation defers the state’s current debt obligations
while increasing spending through continued raids of the Illinois’
severely under-funded pension system and special dedicated funds.
State
Senator Dan Rutherford (R-Pontiac) voted against the budget, which was
balanced by skipping $1.1 billion in payments to the retirement systems
of Illinois’ downstate and suburban teachers and state employees.
The
pension system was raided for the second year in a row, despite
warnings from pension authorities who cautioned that looting the
pension system—which is already ranked the worst funded in the
nation—will only serve to increase the systems’ deficit, and could cost
the state tens of millions of dollars in the long run.
“Skipping pension payments is a quick-fix. By forgoing payments to the retirement systems for two years, Illinois is incurring billions of dollars in interest and debt,” said Rutherford.
Rutherford
explained that the budget increases state spending by $1.4 billion,
bringing the total spending increase over the last four years to
approximately $3.5 billion. As state spending increases, so has Illinois’ debt. The senator explained that the state currently owes doctors and hospitals almost $2 billion in unpaid bills.
“The Governor is introducing expensive new programs, even as current obligations go unfunded. In some instances Illinois
six or seven months behind in its payments to Medicaid providers, and
many nursing homes, doctors and hospitals are in serious financial
jeopardy,” said Rutherford.
“Recently,
residents of a LaHarpe nursing home were forced to hold a fund drive in
order to pay the home’s bills, and many of facilities and health care
providers are only staying afloat because of the patience and
understanding of their banks, landlords and vendors. It’s commonsense: Illinois should fulfill its existing responsibilities before undertaking any new initiatives.”
Rutherford
also said that the budget allocation for the state’s higher education
system will do little to help the state’s universities and community
colleges, which are struggling financially after three years of budget
cuts. He noted that Illinois State University was allocated a 1.3% budget increase—the second lowest allotment for any state university.
“While
I’m sure school administrators are happy to receive an increase of some
type, the reality is that such a small increase will do very little to
help the universities recover from three years of funding cuts,” said
Rutherford.
A consistent opponent of the fund sweeps that have been used to balance the budget over the last four years, Rutherford
also spoke out against an additional $200 million in fund raids of
nearly 100 important state funds included in the current budget.
“Not
only is it irresponsible to fund programs by taking the revenue from
one program and diverting it into another, I think it is deceitful to
divert funds for purposes other than that for which they were
intended,” Rutherford said. “I know that these are tough fiscal times
for this state, but instead of relying on ‘surpluses’ from these funds,
the Governor simply needs to cut back on spending and fight the urge to
implement new programs. We’ve been robbing Peter to pay Paul for the
last four years at the expense of Illinois’ current and future taxpayers.”