McKenna, Murphy put state deficit at $5 billion in balance plan
SPRINGFIELD - In his political ads, Republican governor hopeful Andy McKenna refers to the state's crushing $11 billion budget deficit, but in his plan to balance state spending the candidate pegs that budget hole at less than half that amount.
On Wednesday, McKenna told reporters that if elected, he'd roll back state spending to 2006 levels, reverse expensive health care expansions initiated during Rod Blagojevich's years as governor and push for pension reforms in order to save $5 billion and balance the budget.
Asked about the other $6 billion in red ink, McKenna, a Chicago Republican, questioned the figure and challenged the current administration to explain it.
But everyone from the legislative agency tasked with tracking economic activity to investment analysts who set the state's credit rating have put the state's deficit for the next year at $11 billion if not more. Lawmakers and Gov. Pat Quinn attempted to create the illusion of a balanced budget this year by borrowing $3.5 billion to make pension payments, plugging education and health care holes with billions from the federal stimulus program and not paying nearly $4.5 billion to vendors on time.
McKenna's budget plan appears to hinge on continuing those delays almost as much as cutting spending.
"You know, we've got at least, at this point, four-and-a-half billion dollars in unpaid bills that have been rolling over. We didn't accumulate that in one year. You're not going to pay that off in one year," said Palatine Republican state Sen. Matt Murphy, McKenna's favorite for the lieutenant governor post. "The only time it's ever suggested that we're going to pay that off in one year is when people down here are trying to sell a tax hike. That figure of 11 (billion dollars) is obviously inclusive of that rollover in any estimate I've seen. So the five billion we're talking about, in my view, is pretty close to filling the entire hole. As Andy has said, if you don't have the money, you can't spend the money."
The two leading Democratic picks for governor - Quinn and state Comptroller Dan Hynes - have both proposed income tax increases as part of their budget fixes.
McKenna and Murphy oppose a tax increase, saying it would likely drive up unemployment and worsen the state economy, a view generally shared by the GOP field.
In calling for cutting state spending, McKenna did not rule out reducing education or prison spending. "I think, unfortunately, everything has to be on the table," he said.
Although he said he'd freeze spending at 2006 levels, McKenna said he'd honor the state employees' union contract. And while he singled out health care expansion under Blagojevich for cuts, he would not commit to ending any of the programs by name, including the All Kids insurance program Blagojevich launched without legislative approval, a move that was ultimately included in the sweeping abuse of power charge in the impeachment trial the ended in his removal from office earlier this year.
"No, we're not specifically talking about repealing All Kids," McKenna said. "Eligibility was expanded in a variety of ways, we're going to review eligibility because, as I said, it didn't accomplish the purpose that was laid out. We've not decided yet specifically which elements of eligibility need to be rolled back."
McKenna is one of seven Republicans seeking the GOP nomination on Feb. 2. Murphy is among the half dozen Republicans vying for the lieutenant governor nomination.