Illinois Budget Briefing | Fiscal Year 2015 | Pat Quinn, Governor F - - PowerPoint PPT Presentation

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Illinois Budget Briefing | Fiscal Year 2015 | Pat Quinn, Governor F - - PowerPoint PPT Presentation

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State of Illinois Budget Briefing | Fiscal Year 2015 | Pat Quinn, Governor F IVE Y EAR B LUEPRINT T O S ECURE I LLINOIS E CONOMIC F UTURE FY 2015-2019 1 S ECURING I LLINOIS F INANCIAL F UTURE Governor Pat Quinn Governor Pat Quinn FY

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Illinois

Budget Briefing | Fiscal Year 2015 | Pat Quinn, Governor

State of

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FIVE YEAR BLUEPRINT TO SECURE ILLINOIS’ ECONOMIC FUTURE

FY 2015-2019

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Governor Pat Quinn FY 2015-2019

SECURING ILLINOIS’ FINANCIAL FUTURE

Governor Pat Quinn

Guiding Principles

  • Provide Tax Relief for middle class and working

families

  • Stable, predictable state finances
  • Avoid extreme and radical cuts to schools and

critical services while expanding educational

  • pportunities
  • Continue to pay down the backlog of bills
  • Continue efficiencies and fiscal discipline

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Governor Pat Quinn FY 2015-2019

SECURING ILLINOIS’ FINANCIAL FUTURE

Governor Pat Quinn

Addressing the Financial Crisis

  • After inheriting the nation’s worst financial

crisis, the Governor implemented major structural reforms to restore fiscal stability:

  • Unprecedented spending cuts
  • Comprehensive pension reform
  • Historic collective bargaining agreement with

unprecedented savings

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Governor Pat Quinn FY 2015-2019

SECURING ILLINOIS’ FINANCIAL FUTURE

Governor Pat Quinn

Economic Recovery

  • Illinois’ economy is seeing promising signs of

growth following the worst recession since the Great Depression.

  • Created 257,400 new private sector jobs
  • 9,000 more businesses registered in Illinois
  • Lowest unemployment in five years
  • Ranked #3 in the country for corporate

location and expansion by Site Selection Magazine

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Governor Pat Quinn FY 2015-2019

SECURING ILLINOIS’ FINANCIAL FUTURE

Governor Pat Quinn

Unprecedented Spending Cuts

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  • $5.7 billion reduced spending during the last five

years

– Medicaid Overhaul $3.2 billion – Human Services $1.2 billion – Benefits $688 million – State Facilities $214 million – Leases & support services $330 million – Dept. of Agriculture $68 million

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Governor Pat Quinn FY 2015-2019

SECURING ILLINOIS’ FINANCIAL FUTURE

Governor Pat Quinn

State Payroll Reduced

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60,961 54,177 49,831 10,000 20,000 30,000 40,000 50,000 60,000 70,000 FY04 FY09 FY14

Number of Employees

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Governor Pat Quinn FY 2015-2019

SECURING ILLINOIS’ FINANCIAL FUTURE

Governor Pat Quinn

GRF Discretionary Spending Continues to be Lower than ’08

(millions)

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$17,462 $16,431 15,800 16,000 16,200 16,400 16,600 16,800 17,000 17,200 17,400 17,600 FY '08 FY '14

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Governor Pat Quinn FY 2015-2019

SECURING ILLINOIS’ FINANCIAL FUTURE

Pension Contribution Increases

$0 $1,000 $2,000 $3,000 $4,000 $5,000 $6,000 $7,000 FY 09 FY 10 FY 11 FY 12 FY 13 FY 14 Millions of Dollars Fiscal Years

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Governor Pat Quinn FY 2015-2019

SECURING ILLINOIS’ FINANCIAL FUTURE

Governor Pat Quinn

Accomplished Comprehensive Pension Reform

  • Moody’s stated this bill “may be the largest

reform package implemented" by any state in the nation.

  • Moody’s Investors Service, Issuer Comment: “Illinois

Pension Reform Legislation is Credit Positive,” Dec. 6, 2013

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Governor Pat Quinn FY 2015-2019

SECURING ILLINOIS’ FINANCIAL FUTURE

Governor Pat Quinn

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$9.9 $4.9

$0.0 $2.0 $4.0 $6.0 $8.0 $10.0 $12.0

November 2010 June 2014

Total Backlog

$ in billions

Reducing Backlog of Bills

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Governor Pat Quinn FY 2015-2019

SECURING ILLINOIS’ FINANCIAL FUTURE

Governor Pat Quinn

5-Year Blueprint Securing Illinois’ Financial Future

  • Provide Tax Relief for the middle class and

working families

  • Stable, predictable state finances
  • Avoid extreme and radical cuts to schools and

critical services and expand educational

  • pportunities
  • Continue to pay down the backlog of bills
  • Continue efficiencies and fiscal disciplines

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Governor Pat Quinn FY 2015-2019

SECURING ILLINOIS’ FINANCIAL FUTURE

Governor Pat Quinn

FY15 Proposed Budget Highlights

  • Targeted tax relief for homeowners and working families
  • Continue to pay down backlog of bills
  • Increased funding for P-20 education to the highest level in Illinois

history

  • Invests $100 million in Birth to Five Initiative
  • Increased MAP Scholarships for students in need by $50 million
  • Workforce training incentives for businesses to help create new

jobs and ensure a skilled workforce

  • Programs to further reduce recidivism and drive down incarceration
  • Improved behavioral health and disabilities programs to provide

more quality care and achieve long term savings

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Governor Pat Quinn FY 2015-2019

SECURING ILLINOIS’ FINANCIAL FUTURE

Governor Pat Quinn

Not Recommended

  • Great harm to children, working families, and the Illinois

economy

  • Thousands of teacher layoffs and increased class sizes
  • Local property tax increases
  • Thousands of frail elderly denied community care

programs

  • Thousands of low wage working parents lose child care
  • Nursing home protections and oversight put at risk
  • Hundreds of state trooper lay-offs
  • Hundreds of millions of federal dollars lost
  • Reduced critical services for people with disabilities

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Governor Pat Quinn FY 2015-2019

SECURING ILLINOIS’ FINANCIAL FUTURE

Governor Pat Quinn

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FY15 Overview

FY14 FY15 Governor’s Proposed Budget

Not Recommended: Extreme, Radical Cuts

General Funds $36,725 $38,575 $34,934

(-$3,641)

FY14 FY15 Governor’s Proposed Budget

Not Recommended: Extreme, Radical Cuts

General Funds $36,627 $36,820 $34,600

($1,275 property tax relief, $480 bills)

(-$3,495)

EXPENDITURES (Millions) REVENUES (Millions)

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Governor Pat Quinn FY 2015-2019

SECURING ILLINOIS’ FINANCIAL FUTURE

Governor Pat Quinn

FY15 Fixed Costs

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FY15 Budget Pensions $6.2 billion Medicaid $7.1 billion Debt Service $2.2 billion Transfers $3 billion Group Health Insurance $1.5 billion Total $20 billion

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Governor Pat Quinn FY 2015-2019

SECURING ILLINOIS’ FINANCIAL FUTURE

Governor Pat Quinn

FY15 Program Costs

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FY 15 Governor’s Proposed Budget FY15 Not Recommended Education $8.797 billion $7.796 billion

(-$1.001 billion)

Economic Development $109 million $68 million

(-$41 million)

Public Safety $1.638 billion $1.246 billion

(-$392 million)

Human Services $5.716 billion $4.604 billion

(-$1.112 billion)

Environment and Culture $68 million $54 million

(-$14 million)

General Services $1.067 billion $866 million

(-$201 million)

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Governor Pat Quinn FY 2015-2019

SECURING ILLINOIS’ FINANCIAL FUTURE

Governor Pat Quinn

Relief for Families

  • Property tax refund- Every homeowner in Illinois will

receive a $500 property tax refund each year.

  • Property tax is the most unfair tax of all and not

based on ability to pay.

  • Double the Earned Income Tax Credit- Further

doubling this anti-poverty, pro-job creating tax credit to provide relief to working families and strengthen

  • ur economy.

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Governor Pat Quinn FY 2015-2019

SECURING ILLINOIS’ FINANCIAL FUTURE

Governor Pat Quinn

Enhanced Fiscal Reforms

  • Additional Fiscal Reforms to secure Illinois’

long term financial future

  • Spending caps- strengthen spending cap to

ensure state government doesn’t spend beyond its means

  • Rainy Day Fund- ensure financial stability

even in times of economic downturn and

  • ther emergencies

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Governor Pat Quinn FY 2015-2019

SECURING ILLINOIS’ FINANCIAL FUTURE

Governor Pat Quinn

Highlights of FY15-19

  • Classroom funding to highest levels in Illinois history
  • Long term certainty for taxpayers and businesses
  • Continued spending restraint and fiscal reforms
  • More tax relief for working families and businesses
  • Pay down bills to $2.2 billion within 5 years, less than a

30 day payment cycle, which is a common private sector standard

  • Invest a total of $1.5 billion in Birth to Five Initiative
  • Double MAP Scholarships for students in need

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