Quinn: Budget Cuts Could Mean 2,200 State Layoffs

CHICAGO (AP) -- Gov. Pat Quinn announced Thursday that 2,200 state employees could lose their jobs as he attempts to cut an additional $1 billion in state spending amid continued uncertainty about the Illinois budget.

Quinn also wants state employees to take 12 unpaid furlough days and have their wages frozen.

"We have to cut costs, cut costs and cut costs," Quinn told business leaders at a gathering of the Illinois Chamber of Commerce at a downtown Chicago hotel.

The state's largest employee union, which would have to agree to furlough days and other concessions, said it had already dismissed the idea in an earlier meeting with Quinn administration officials.

"We made very clear that we don't believe it would make a significant difference toward balancing the budget," said Anders Lindall, spokesman for the American Federation of State, County and Municipal Employees.

With a new fiscal year starting Wednesday, the state budget is far from resolved. Quinn continues to insist on an unpopular income tax that he says will help close a $9.2 billion deficit. He has warned about deep cuts to social service programs without the tax increase because there's not enough money in a makeshift budget lawmakers already approved that the governor calls "half-baked."

But Quinn has backed away from those threatened cuts in recent days.

"I'm not going to accept that budget," he said. "I'm going to send it right back to the Legislature, and we're going to sit there and we're going to get a full budget."

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If Quinn does that, the groups facing cuts won't be saved, they'll just be thrown into limbo until a state spending plan is eventually worked out.

The Democratic governor did offer new details Thursday on concessions he's willing to make to build legislative support for his income tax increase.

Quinn said he would settle for raising the corporate income tax rate to 6 percent from 4.8 percent, instead of the 7.2 percent he originally proposed. He hasn't budged on the personal tax rate, which he wants to move up to 4.5 percent from the current 3 percent.

Patti Schuh, spokeswoman for Senate Minority Leader Christine Radogno, was unmoved.

"We've been clear and consistent that there's lots of things that need to be done in state government and a tax increase is not the first one," Schuh said.

Quinn has gotten no guarantees his new proposal would win lawmakers to his side.

"There's no promises for votes at all," he said.

As time runs out for an alternative budget, Republicans have been pushing for a short-term spending plan to give lawmakers more time to sort out the state's finances and move forward with some of the spending reforms and government efficiencies the Republican party has called for.

Republicans have new leverage because any new budget or tax increase needs a super majority to pass and that requires their support.

Quinn said he's "not very excited" about a short-term budget to keep government running.

"I think that's just postponing our rendezvous with reality," he said.

-ASSOCIATED PRESS

Comments

[Hans1967]

I’m not an economist but I am a social worker who will be laid off come July 1st. I wonder if the state losing tax revenue and having to shell out unemployment benefits to myself and an estimated 100,000* other social service workers will help or hinder the budget debacle?

* This is the estimated number of social service workers who are not state employees but who will lose their jobs because the agencies they work for will close down due to lack of funding as of July 1st. This number came from a budget briefing by Quinn’s chief of staff to social service administrators that I attended on June 16th.

[crookedcountyillinois]

That is an excellent point. In the short-term, those workers are going to be moved from the state payroll system to a system of unemployment benefits. This does slightly contribute value to the state budget deficit since those workers will now be collecting payments at a reduced rate, and they'll be drawing on the payments they've made into the system rather than collecting salaries from taxpayer dollars. However, they'll be contributing nothing of value to the system while unemployed. And in that since, it's a financial loss.

However, the long-term picture is much better since they'll eventually find work, hopefully, in private industry. Or at least their unemployment benefits will eventually expire. Either way, the Illinois government will be somewhat reduced in size. And 2,200 workers is certainly a good start. And if I lived in a more fiscally responsible state, I'd say that this is good news for the taxpayers. Unfortunately, we're talking about Illinois; and the politicians will just find more social "pork" and continue to expand the role of government without consent of the taxpayers.

[GordonM2]

In addition to the extra unemployment benefits, pehaps lawamakers should also consider the additional budren on other State run facilites and agencies.

If adult group homes for the mentally disabled are forced to vlose, where will those people go. They will either become homeless or end up in alreay overcrowed and unfderstaffed State mental facilites.

If privately run groups homes for abused and neglected children are forced to close, those kids will either be returned to their families for further abuse or be put in state run programs where the care is less and the per child costs are more.

If programs that work with at-risk families to prevent child abuse are cut we will have to deal with the long term effects of child abuse and neglect.

While the Governor says he willnot make these cuts, the agencies that might be harmed by such cuts are already making plans to lay off and cut back their programs. They have no confidence in State government and are panning for the worst.

As always it is the poorest and weakest among us that will suffer at the hands of the politicians whose only goal is retain their positions and grab for power.

If they can not get their house in order without putting the burden on the waekest they should all be removed from office.