Gov. Rauner presented his first budget proposal to lawmakers Wednesday.
Illinois’ finances are ailing. That’s been a story for years, but the situation got a lot worse at the beginning of the year when a tax cut took effect.
The Republican is proposing significant cuts to everything from healthcare for the poor to colleges and universities.
“We must be willing to take actions we’d rather avoid, and make decisions that may seem unpopular in the short run, but serve the best interests of the people of Illinois in the long run," Rauner said.
One area in which Rauner wants to increase funding is for elementary and high schools.
This is just the opening salvo in what’s expected to be a long fight among Rauner and Democrats — and even some Republicans — who want to protect what they view as the essential role of state government.
Mixed Reaction
The Governor's budget address focused on spending cuts. But Democrat and House Speaker Michael Madigan says more revenue has to be in the equation:
"I don't think you can just cut your way out of the budget deficits. I think you need a blend. Cuts in services and new revenue. I'm not going to start commenting today on what the revenue sources would be. I would simply say we will need some additional revenue in order to balance the budget," Madigan said.
Madigan says he plans to work cooperatively with Republicans to deal with the state's financial problems.
House Republican Leader Jim Durkin says the budget proposal would force the state to live within its means.
"We're not going to spend more than we bring in. And that's refreshing. That is for years what (Republicans) have been talking and railing about on the floor. We've talked about it in campaigns. So Illinoisans will finally see a real budget. One where revenues will match up with spending," Durkin said.
The budget includes major cuts to state funding for higher education. Northern Illinois University stands to lose 31.5% of its state funding: other state universities face similar percentages. NIU President Doug Baker said in a statement released by the university the proposed cuts are "greater than we had hoped," but notes this is the beginning of the legislative process. NIU and other schools will work together to make their case to lawmakers about the importance of their institutions to the state's economy.
NIU President Baker's Statement on the Governor's Budget Proposal
"Gov. Rauner today in his budget proposal for Fiscal Year 2016 has included a significant reduction in the state’s higher education appropriation. While the magnitude of his proposal is certainly of concern to us and greater than we had hoped, it is important to note that this is the beginning of a legislative process that will play out over the next few months. During that time, a great deal of discussion and negotiations will occur. Keep in mind that the 31 percent reduction contemplated in the governor’s budget relates to that portion of our budget that is state supported, which at $93 million is currently less than 25 percent of our overall budget of more than $400 million. In conjunction with our peer institutions and stakeholders, we will continue to make our case to the governor and the state legislature for the value of higher education and what we deliver to the State of Illinois.
The governor’s budget proposal and the implications for the financial sustainability of higher education is a reminder of the important work on which we have embarked with the launch of our program prioritization effort. This effort to align our resources with our mission and vision will help ensure that we are delivering the programs that will facilitate the success for our students as well as faculty, staff and stakeholders. In addition, it is apparent that we need to look for ways to deliver our services in the most efficient manner possible. We will look for the best thinking across our university and in partnership with other schools to discover creative ways of dealing with this challenge. Our objective is to be good stewards of our public funding and to hold ourselves accountable not only to the state, but to our students, parents and other stakeholders.
The good news is that the financial systems we have put in place over the past year and the significant contingency planning we’ve done in advance of the governor’s budget proposal position us to deal with the current situation. We are committed to continuing to be transparent and timely in our communications about the state budget."