Q: What options does the state have to address the structural deficit?
We call these options the "Five Pillars of Fiscal Recovery". They are:
- Promote JOB GROWTH
- Request continued FEDERAL ASSISTANCE through the recession
- Use short-, intermediate- and long-term BORROWING
- Continue to CUT SPENDING
- Adopt REVENUE ENHANCEMENTS
For a more detailed explanation of these options, click here.
Q: How much American Recovery and Reinvestment Act of 2009 (ARRA) funding has Illinois received? How is it being spent?
As of Dec. 31, 2009, Illinois had disbursed ARRA funds totaling $5.9 billion. The state anticipates receiving an additional $7 billion in funding, pending legislation that is anticipated to increase this amount. Although ARRA concludes Dec. 31, 2010, much of the larger capital project spending will conclude by 2015.
The best source of information on ARRA spending is located at Illinois' Web site for ARRA reporting: http://www.recovery.illinois.gov/. The site is updated monthly, and includes spending data by county and project, detailed to the particular funding stream. Capital funds cannot be used to address General Revenue Fund shortfalls.
Q: Will ARRA continue through fiscal year 2011?
Pending legislation would extend parts of the ARRA — namely, enhanced Medicaid match — but it is premature to say for certain if it will pass.
Q: What is Governor Quinn doing to modernize and reform government?
During this fiscal crisis, Governor Quinn has taken a number of steps to modernize the way that Illinois does business, which will protect taxpayers’ dollars, and will allow the State of Illinois to better serve its citizens.
One of these steps includes the implementation of an Integrated Care Delivery System for Medicaid patients who are older adults or persons with disabilities. This population is a small share of the total number of people that are covered by the State of Illinois, but their care requires a majority of the costs. By implementing this system, the state will be able to save hundreds of millions of dollars in the coming years, and provide a higher quality of care to those who need it the most.
Governor Quinn also worked with members of the General Assembly to overhaul the way that the state purchases goods and services. This reform will create a more ethical environment in state government, and may also save the state money. By reforming the way contracts are entered, we ensure that the State of Illinois’ purchases are based on the best value and not based on politics.
Illinois still has a way to go in modernizing the way we do business, including changing the public pension system. Governor Quinn believes we need to modernize our pension system to reduce costs while still providing quality retirement benefits to public employees.
Q: Can’t the state cut its way out of this budget mess?
The simple answer is no. There is no way to reasonably cut more than $11 billion from the state’s operating budget without running a grave risk of violating federal law, court orders, Illinois’ Constitution or various other state statutes. Under existing federal law, the State of Illinois is required to maintain fiscal year 2006 education funding levels, and to maintain existing eligibility criteria for Medicaid. These federal requirements limit the state’s ability to reduce our two largest spending areas.
There are existing federal court orders that mandate that we provide a minimal level of service to vulnerable children that may require us to fund DCFS at near current levels.
It is also important to note that some cuts would reduce the amount of money Illinois receives from the federal government. For example, the State of Illinois currently receives a 62 percent federal reimbursement for Medicaid expenditures, and reducing Medicaid spending will result in fewer federal matching dollars.