General Assembly Agrees Deal with Gov. Rauner to Resolve FY15 Budget Shortfall


Faced with a $1.6 billion FY15 budget deficit upon taking office, Governor Bruce Rauner almost immediately asked for executive powers to reorganize spending and enable the State to get through the fiscal year, which covers spending needs through June 30, 2015.

Without immediate action, the State would have been unable to make payroll at Illinois prisons, low-income working families would lose their child care assistance, court reporters would be laid off and money for services for the mentally ill and developmentally disabled would run out. In addition, inaction would have further delayed and perhaps jeopardized critical categorical school funding and State aid payments.

After negotiations in which House Republicans were full participants, the General Assembly agreed last week to language contained in HB 317 and HB 318. HB 317, an appropriations bill, made cuts and transfers in State spending. HB 318, a budget implementation bill, granted the Governor the legal authority to carry out and implement the cuts in spending and spending transfers made in HB 317. Together, these bills work to fill critical holes in the deliberately unbalanced FY15 budget passed by majority Democrats and signed by former Governor Quinn.

Approximately $1.3 billion of the moves occurred in the form of budget transfers from various funds, and approximately $400 million was in the form of an across-the-board budget cut. The HB 317-HB 318 package created $97 million in budgetary flexibility that can be used to respond to specific challenges, including the challenge of school districts that have run out of reserves.

The House vote on HB 317 was 72-45-0 and the House vote on HB 318 was 69-48-0, with all House Republicans voting in favor of the measures. The Senate followed up by approving both bills on Thursday, March 26, sending the measures to Governor Rauner for final action. Rauner, who pushed for and signed both bills into law, expressed a readiness to follow up on this work in alliance with House Republicans. The two bills became law as Public Acts 99-0001 and 99-0002, the first bills signed into law by the new Governor.

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