Service agencies worry while lawmakers lock in budget stalemate

Suburban social service agencies warned of severe cuts under a proposed state budget Wednesday, even as lawmakers appeared to be playing chicken over how to resolve the problem.

Democratic leaders challenged Republicans to agree to a state income tax increase, while Republicans demanded Democrats first pass reforms and reduce spending.

In a meeting with Gov. Pat Quinn in Chicago, leaders from both parties agreed to a special session of the General Assembly Tuesday in Springfield to again pass the capital budget. The capital plan includes infrastructure and other building projects lawmakers want but needs some procedural revisions.

Lawmakers have approved a $7 billion operating budget, but the governor said it would not be "prudent" to pass the capital budget without an operating budget, a position that could give him some leverage in negotiations.

Quinn also said it wouldn't be right to sign a budget that would cut social service funding in half.

"Everybody has to make some compromises," he said.

While some Democrats voted for raising the state income tax, House Speaker Michael Madigan said the rest refused to do so without Republicans joining in.

"We need Republican support," Madigan said.

But Senate Republican leader Christine Radogno called it a "manufactured crisis," saying there's no need for severe cuts when the new fiscal year starts July 1, because current operations can continue month to month.

House Republican leader Tom Cross accused the Democrats of passing a half-funded budget to embarrass the governor or Republicans, but he said the plan "backfired."

He insisted on proposed ethical reforms and spending cuts first.

"Until you do that," Cross said, "don't come looking for more money."

Meanwhile, a coalition of service providers, religious and advocacy groups, including the Center for Tax and Budget Accountability, called for leaders to pass a tax increase to fully fund the budget.

One of those agencies, Lutheran Social Services of Illinois, based in Des Plaines, got notices from the state Friday that it faces severe cuts for many of its 190 programs and 73,000 people served statewide.

Dan Schwick, assistant to the agency's president, said it would have to cut some programs entirely, because operating at 50 percent literally would not pay the rent at many sites.

The agency runs substance abuse treatment in Elgin, child welfare in Aurora and DUI counseling in Palatine, among many other services.

The Children's Advocacy Center of North & Northwest Cook County, based in Hoffman Estates, has seen funding cuts in previous years, but nothing like this, Development Director Susan Reedquist said.

"How can we let down innocent people that have been abused?" she said.

Yet lawmakers indicated no one is ready to budge in the budget showdown.

State Rep. Michael Tryon, a Crystal Lake Republican, said balancing the projected $12.6 billion deficit with a tax hike would work out to $766 for every adult and child in the state.

Because spending has gotten out of control, he said, the All Kids health insurance coverage for children and other programs by former Gov. Rod Blagojevich have to be "dismantled."

In Carol Stream, state Rep. Randy Ramey said his fellow Republicans have proposals to cut billions in Medicaid and elsewhere.

"We have ideas that will take care of the budget, take care of social services without cuts and without tax increases," he said, "but they (Democrats) don't want to talk that way."