Governor Quinn Takes Budget Action

CHICAGO ¬- June 30, 2012. Governor Pat Quinn today reduced the budget he received Friday from the General Assembly by $57 million. After a careful review of the budget bills, the Governor enacted a $33.7 billion balanced budget. This budget cuts discretionary spending by $1.4 billion from fiscal year 2012, pays $1.3 billion of old bills, closes and consolidates 57 facilities, and restructures the state's Medicaid program while preserving the state's vital services. Governor Quinn also cut his own office budget by nine percent.

"Cutting the budget is never easy but we must make the difficult decisions necessary to restore fiscal stability to Illinois," Governor Quinn said. "This budget is a serious fiscal plan that pays our bills, closes facilities and prevents the collapse of our Medicaid system."

Reductions

Overall, this budget reduces discretionary spending by approximately $1.4 billion from the previous fiscal year. The fiscal year 2012 discretionary budget was $25.3 billion compared to $23.9 billion for fiscal year 2013. This budget reduces overall spending at agencies under the Governor's control, including a 9 percent reduction in the Governor's office.

Governor Quinn reduced the budget through the closures and consolidations of 57 state facilities in order to improve state government efficiency and the quality of life for people with developmental disabilities and mental health challenges. These actions will save the state approximately $82 million in fiscal year 2013, and will result in an annualized savings of at least $136 million beginning in fiscal year 2014. Illinois can no longer afford outdated, half-full, very expensive facilities.

Department of Corrections

Reductions to the department will be achieved through the closures of Tamms Correctional Center, Dwight Correctional Center, Southern Illinois Adult Transition Center, Decatur Adult Transition Center and Westside Adult Transition Center.

Department of Juvenile Justice

Reductions to the department will be achieved through the closures of the Illinois Youth Center Murphysboro and Illinois Youth Center Joliet.

Department of Human Services

Reductions to the department will be achieved through the closures of Tinley Park Mental Health Center, Singer Mental Health Center and Jacksonville Developmental Center (JDC). The Department of Human Services will begin the process of closing Murray Developmental Center once the closure of JDC is complete. The funding in these lines will be used to ensure smooth transitions and coordinated care as individuals move from costly institutions to supportive community settings.

Governor Quinn strongly objects to the General Assembly's cuts to education and the Department of Children and Family Services, which is dedicated to protecting and saving children from abuse and neglect. The governor will seek to reallocate funding in the fall towards protecting children.

"Our priority should always be the safety and well-being of our children," Governor Quinn said.

For a more detailed explanation of reductions, please see attachments.

Pension

Under Governor Quinn's leadership, the state of Illinois has made the statutorily required pension payment every year since 2009. The fiscal year 2013 budget continues to fully fund the pension systems.

Without major changes to our pension systems, pension costs will continue to place a tremendous strain on Illinois' budget. In fiscal year 2008, the state's pension payments were $1.8 billion, and have since grown to $5.2 billion in fiscal year 2013. These rising costs continue to squeeze all other areas of state government including education, public safety and services relied on by some of the state's most vulnerable residents.

Governor Quinn laid out a pension plan to address these rising costs and eliminate the state's unfunded liability; however, any changes require legislative action. The Governor continues to work diligently with legislators on both sides of the aisle to solve Illinois' pension challenges that continue to impact taxpayers on a daily basis.

Reforms are also needed immediately in order to make certain the men and women who have faithfully contributed to the system receive their benefits. Governor Quinn is committed to making sure the pension systems are 100 percent funded by 2042 while saving taxpayer funds. The Governor is committed to continuing to work on the issue until pension reform is accomplished.

Today, Governor Pat Quinn took action on the following bills:

Approved

SB 2378 - General Services appropriations

SB 2413 - P-12 Education appropriations

SB 2443 - Higher Education appropriations

SB 2454 - Human Services appropriations

SB 3802 - Budget Implementation Act

Line Item and Reduction Vetoed
SB 2474 - Public Safety appropriations

Reduction Vetoed
SB 2409 - General Services appropriations

Line Item Vetoed
SB 2332 - Capital re-appropriations

The fiscal year 2013 budget takes effect July 1, 2012.