Blagojevich seeks new power to address budget woes
SPRINGFIELD -- Facing a growing hole in the state budget, Gov. Rod Blagojevich said Tuesday that he will seek authority to cut spending, including education money, by up to $2.2 billion.
The Democratic governor said he'll ask lawmakers to let him make 8 percent cuts in a wide array of government programs, from schools to pensions to revenue-sharing with local governments.
But his "Emergency Budget Act" is likely to get a skeptical reaction from lawmakers, few of whom trust Blagojevich. In the past, they've overturned other cuts he has tried to make and balked at giving him blanket authority over spending.
What's more, Blagojevich is raising the idea in the second half of the Legislature's fall session, giving them little time to review it and make a decision.
The governor's budget director, Ginger Ostro, acknowledged the administration hadn't discussed the concept with lawmakers before unveiling it in a press release. "We have not had that conversation," Ostro said in an interview with The Associated Press.
It's not even clear that Blagojevich will be in Springfield to promote his proposal. He was scheduled to be in California for a conference on climate change Tuesday and part of Wednesday.
The General Assembly approved a budget in May that was far from balanced. Blagojevich estimated it was $2 billion in the red, and used his veto powers to cut spending by $1.4 billion and initiated other spending controls to cover the rest.
But lawmakers voted to reverse some of those cuts, and tax revenues are falling as the economy weakens. The administration's latest estimate is that the budget hole is $800 million and could reach $1 billion.
That's not counting the billions of dollars in overdue bills the state has allowed to pile up.
"Like a family who has seen their income cut dramatically, we need to take fiscally responsible action to ensure the state can pay all of our bills and provide the core services that Illinoisans need," Blagojevich said in a statement.
The Emergency Budget Act would let Blagojevich and other constitutional officers hold back up to 8 percent of the money budgeted for state agencies.
If he took the full 8 percent out of education, schools would lose about $600 million. Education got a $300 million increase in existing budget.
Rep. Gary Hannig, the top budget expert for House Democrats, noted that schools would have to absorb a major budget cut while nearly halfway through the school year.
"I'm not sure how you do that," he said.
Hannig said lawmakers recognize the budget problems are serious and will listen to any ideas from the governor. But he noted the fall session is almost over and lawmakers haven't had a chance to study Blagojevich's proposal.
"We didn't have any advance notice. We didn't get any input. We didn't have a chance to ask any questions," Hannig said. "Right now it's just a press release."
Blagojevich also said he's working with the comptroller and treasurer on a short-term borrowing plan that would be used to pay off some overdue Medicaid bills.
He is asking the federal government to increase the amount of matching funds it sends to Illinois for Medicaid and to pump money into programs that will encourage consumer spending.