Statement Regarding Civic Federations Five Year Budget Projection

              STATE OF ILLINOIS
EXECUTIVE OFFICE OF THE GOVERNOR
GOVERNOR’S OFFICE OF MANAGEMENT AND BUDGET
SPRINGFIELD 62706
Via Email: January 30, 2012 Contact: Kelly Kraft (c-217-720-2574)
kelly.kraft@illinois.gov
Statement Regarding Civic Federation’s Five Year Budget Projection
The Governor's Office of Management and Budget is pleased the Civic Federation recognizes the meaningful reforms enacted by Governor Quinn. Those reforms have begun to address decades of serious financial mismanagement in Illinois.
As the report notes, due to that long history of mismanagement, the coming years will bring significant fiscal challenges. As such, we call on the Civic Federation, legislators, interest groups and individuals to partner with the Governor to pursue major reforms and return Illinois to sound financial footing.
Report documents: Governor Quinn tackles inherited challenges while significantly reducing discretionary spending.
According to the report, between FY2008 and FY2012, spending by state agencies has declined by 2.2 percent - from $24.9 billion in FY2008 to $24.4 billion in FY 2012. That reduction indicates Governor Quinn continues to be the only governor in the past two decades who has significantly reduced discretionary spending. Those spending reductions, while still continuing to invest in education and healthcare, are unprecedented in Illinois.
Report documents: Governor Quinn’s significant reforms to save taxpayers billions.
As the Civic Federation acknowledges, Governor Quinn has enacted significant reforms impacting pension, Medicaid, education, unemployment insurance, and workers’ compensation. As a result, taxpayers are saving billions of dollars.
The Governor will continue to manage state agencies to further reduce expenses and find additional efficiencies. Since January 2009, such actions have produced close to $200 million in annual savings through decreasing the number of state employees by more than 2,000, which also has reduced future pension funding requirements.
Report documents: State’s challenges are pension and Medicaid costs not discretionary spending.
The report focuses on the state’s two largest fiscal challenges: pension and Medicaid costs. Pension costs have skyrocketed due to decades of underfunding, while Medicaid costs have increased at approximately 6 percent a year.
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