Observations and comments about state government by State Representative Robert W. Pritchard.
February 4, 2013
In this issue:
- · House Establishes Rules, Committees
- · Visit My Website for Information and Assistanc
- · Credit Rating Downgrade has Quick Impact
- · Pension Crisis Must be Addressed
- · Pressure Builds for Supplemental Budget to Restore Cuts
- · Educational Leaders Encouraged to be Innovative with Budget Pressures
House Establishes Rules, Committees
With the start of each General Assembly, the chambers adopt rules that will govern their actions for the next two years, reorganize their committees and accept legislative bills from members. You can monitor the progress of bills as they are debated and acted upon by each chamber through the www.ilga.gov web site. The site allows you to search bills by legislative sponsor, topic or bill number. There are already over 1200 bills filed for consideration in the House.
Citizens have told me they hope the new legislature will deal with the critical issues facing our state—and of particular local interest—in a bipartisan and prompt manner. They are tired of the bickering and delays. My Republican colleagues sponsored House rules and procedures that would do that.
Rather than consider our bill, the Speaker and majority leader put forth a set of rules in House Resolution 34 that will erode individual representative rights and further consolidate power into the hands of House Speaker Mike Madigan.
The rules allow the Speaker to block any legislation from committee discussion for up to a year, or not allow even a majority of legislators to vote to bring legislation to the full House for action. HR34 also decreases the time to study amendments to bills before they are acted upon by committee or the full House. Often times amendments change the entire intent of legislation therefore allowing legislators time to study and hear from affected groups and citizens is critical for good laws.
Speaker Madigan also created 47 committees in the House that will consider legislation and set the number of members from each party who could serve on the committee. Because of the 71 to 47 composition of the House, the majority party most often has a 2 to 1 ratio of members on each committee.
I have been appointed to serve as Republican spokesman for State Government Administration and Appropriations for Elementary and Secondary Education. I also will serve on the Appropriation Committee and Policy Committee for Higher Education, Business Growth and Incentives, Public Safety: Police and Fire, Veterans’ Affairs.
Credit Rating Downgrade Has Quick Impact
Illinois now officially has the worst credit rating in the nation and it is impacting state and local units of government. The Quinn Administration which stopped efforts to borrow $500 million in short-term operating bonds last week, likely sensed a lack of interest from banks to lend the state money and a jump in interest costs following the downgrade.
Standard & Poor’s dropped the state’s rating from an “A” to an “A-minus” with a “negative outlook” on January 25. The rating puts Illinois six notches below the highest available rating of AAA, which is enjoyed by neighboring states Indiana and Missouri.
All three bond rating services sight the state’s failure to deal with its pension crisis as reason for the downgrade. In addition, the state has borrowed over $30 billion in bonds and has another $8.5 billion in unpaid bills for which it is paying 12 percent interest. State general revenue is only forecast to be $33.7 billion this year.
Such ratings mean Illinois—state and local units of government—will have to pay higher interest rates when it borrows money. There have been 11 credit downgrades since Governor Quinn took office.
The history of bond rating downgrades
Pension Crisis Must be Addressed
The pension crisis does not just affect teachers, state employees or retired public workers; every Illinoisan is feeling the effect. The recent income tax increase is being used to make the annual pension payment—now at $5.1 billion—rather than pay down the backlog of bills. The likelihood that the legislature will let the tax increase expire in 2015 seems unlikely without pension reform.
Every year, pension costs take more and more of the Illinois budget. In 2008, pensions consumed six percent of the state budget. When the next fiscal year starts in July 2013, pensions will consume more than 16 percent of the budget. The pension liability grows by an unbelievable $17 million per day.
Expenditures for every area of the budget were reduced this year as the legislature tried to balance the budget, make pension payments and qualify for federal matching Medicaid payments.
Many ideas have been proposed to reduce pension payments by reducing future pension benefits but legislative leaders believe they would be unconstitutional. Therefore they hesitate in making reforms.
I have called for over a year that all parties negotiate benefit changes to preserve a pension system. Finally, the unions have called a summit for February 11 and invited legislative leaders. Speaker Madigan has responded that he is not attending and wants the unions to first put a proposal on the table. More likely, he is waiting until budget cuts get so deep that citizens and public employees will demand pension reform.
Pressure Builds for Supplemental Budget to Restore Cuts
Despite a growing list of unpaid bills, legislation has been introduced to increase spending supposedly by transferring funds and re-appropriating money from the Governor’s budget vetoes. In a conference call last week, there was no estimate of how much money was available to fund a supplemental budget crafted in HB 149.
I agree with Comptroller Topinka that any additional spending should be tied to a funding source so the legislature does not revert to budget overspending. Mental Health agencies have been calling my office to restore $12 million in cuts for community-based mental health services. Between 2009 and 2012, Illinois’ funding for community mental health programs has been cut by 30 percent.
Similarly, other groups are calling for more funding for roads, job training, education, and health care services. Then there are those who would like to see Medicaid eligibility expanded to include between 350,000 and 900,000 more low- income residents.
We are falling over the proverbial fiscal cliff in Illinois and we must come to terms with what we can afford.
Visit my Website for Information and Assistance
Whether you are looking for the map of new legislative districts, contact information for a state agency or news about district events, just visit my website www.PritchardStateRep.com. You will also find daily information and discussion on my Facebook page.
In this fast paced age, you want information quick and my office tries to respond. My District Director Jesse is also available to help with individual issues you may have with state agencies if you call or stop by the office.
I will be holding morning discussions over coffee in a number of towns in the next few weeks. Circle your calendar and stop by: February 22 at the Belvidere Township Hall at 8 a.m.; Feb 23 at the Hampshire Village Hall at 8 a.m. and Kirkland Village Hall at 10 a.m.; and on March 2 at the Big Rock Township Hall at 8 a.m. and Campton Township Center at 10 a.m.
Educational Leaders Encouraged to be Innovative with Budget Pressures
Over the last few weeks I have met with school superintendents from all three of my educational regions to discuss mandates, education reforms and funding issues. Local districts are facing real challenges in educating today’s students, as educational methods from the past are no longer suitable for preparing students for today’s global economy.
Financial constraints will continue to be a serious issue facing districts. Delayed and reduced state aid payments, the looming threat that pension costs will be transferred to local school levels, and rising operating costs take a toll on districts’ and colleges’ ability to deliver adequate educational programs.
I stressed to these educational leaders that they must be innovative in their attempts to reduce costs while improving student outcomes. Outsourcing, administrative staff sharing, district consolidations, mandate waivers and closer ties with community colleges are just part of the ideas being discussed across the state.
The Lt. Governor has released two reports that offer specific suggestions to local school and community college boards about improving student learning and available revenue for classrooms. These reports are available on-line and will be the basis of educational legislation this year.
I will be Springfield this week but call the office if we can provide assistance.
District Office 815-748-3494 or E-Mail to bob@pritchardstaterep.com
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