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Transcript of Gbp Resent at Ion
8/6/2019 Gbp Resent at Ion
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Governor Rod R. Blagojevich FY07 Budget Address
FY07 Budget AddressFebruary 15, 2006
Governor Rod R. Blagojevich
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Governor Rod R. Blagojevich FY07 Budget Address
The Budget Puzzle
The Mess We Inherited
FY03
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Governor Rod R. Blagojevich FY07 Budget Address
The Mess We Inherited
Uncontrolled Spending
TotalSta
teB
udget ,in
millions Illinois’ budget was
growing by 5.4% fromFY93 to FY03, more
than double the rateof inflation.
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Governor Rod R. Blagojevich FY07 Budget Address
The Mess We Inherited
Large Payroll
S
tateE
mploye
es
From FY72 to FY03, headcount ranged from62,000 to 71,000, and it averaged over 69,000state employees during Gov. Ryan’s term.
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Governor Rod R. Blagojevich FY07 Budget Address
The Mess We Inherited
Underfunded Education
GeneralStat e
Aid
Appro
p.Incr e
ase,
inmill io
ns
General Student Aid went upby more than $150 million inonly two years between FY93
and FY03. It actually wentdown in FY03.
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Governor Rod R. Blagojevich FY07 Budget Address
The Mess We Inherited
Limited Health Care
E
ligibilityas %
ofFedera
lPove
rtyLevel
Kids
Parents
Health Care eligibility for kids didn’t grow at all fromFY99 to FY03. And eligibility for working parentsshrank each year until it grew slightly in FY03.
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The Mess We Inherited
Growing Unemployment
2001 2002
In January 2003,Illinois’ unemploymentrate had risen to 6.7%.
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The Mess We Inherited
Massive Pension Shortfalls
Pension
Sho
rtfall,
in
millions From FY93 to FY03,
pension payments wereunderfunded annually by
at least $810 million.
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The Mess We Inherited
• The $5 billion deficit we inherited in FY04
represented more than 20% of our total
general revenue budget.
Inherited Deficit
$5.0B
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Making Progress
Reduced Headcount
StateE
mplo
yees
We have 13,000 fewer employees today than
in FY01, saving
taxpayers more than$800 million this year.
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Making Progress
Consolidated Agencies
To cut costs, we consolidatedor eliminated 19 agencies.
agencies
agencies
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Making Progress
Controlled GRF Spending
GRF
Spending,in
millions We’ve cut the spending
growth rate by 40%, evenwith more money for schools and health care.
5.4% growth 3.3% growth
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Making Progress
Managed Our Debt
Bonds
Issue
d,inm
illions
We’ve issued less inbonds than Gov. Ryanand are returning to
historical levels.
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Making Progress
Special Purpose Funds for Schools
SpecialFund
sBal a
nce,
inmill io
ns
Even after transferring $1.1 billion for schools and healthcare, Special Purpose Funds maintained their balance.
Transfers: $165 $508 $449
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Making Progress
NoDeficit
D
eficit,inbil
lio
ns
Eliminated the Deficit
By eliminating the deficit, we were able todedicate more money to programs thathelp people.
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Governor Rod R. Blagojevich FY07 Budget Address
Making Progress
Increased Education Funding
NewEduca
tionFu
nding,inmil
lions
$400
$789
$1,119Since FY04, we haveinvested $2.3 billionin new funding for
our schools.
+ + =$2.3
Billion
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Governor Rod R. Blagojevich FY07 Budget Address
Making Progress
Increased Preschool Funding
StateEarlyC
hildho
odSpendin
g,
inmill io
ns
We have increased pre-Kfunding by 50% over the lastthree years.
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Governor Rod R. Blagojevich FY07 Budget Address
Making Progress
Helped Parents Get Health Care
TotalEnro
llm
ent,i n
thousands
Parents Enrolled in State Health Care Programs
The Kaiser Foundation now ranksIllinois number one in insuring
parents who need health coverage.
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Governor Rod R. Blagojevich FY07 Budget Address
Making Progress
Helped Kids Get Health Care
TotalE
nro
llment,i n
thou
sands
Kids Enrolled in State Health Care Programs
Illinois is now the only stateto guarantee access to
comprehensive health carefor all uninsured kids.
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Governor Rod R. Blagojevich FY07 Budget Address
Making Progress
Helped Kids Get Health Care
Kid
CareElig
ibility
Income
forF
amilyof
Fou
r By getting rid of income limits alltogether with All Kids, Middle Classchildren can now have access toaffordable health care.
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Governor Rod R. Blagojevich FY07 Budget Address
Making Progress
98,000 Free screenings through our breast and cervical
cancer program.
167,000 Women offered free care through our Healthy WomenProgram.
77 Women’s Health grants awarded to fund local
education programs.
Helped Women Get Health Care
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Governor Rod R. Blagojevich FY07 Budget Address
Making Progress
Helped Seniors Keep Health Care
$250 - $2,250 $5,100+THE DONUT HOLE $2,250 - $5,100
Illinois’ Medicare Wrap Fills the Donut Hole
Federal Coverage Federal Coverage
The New Federal Medicare Part D Program
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Governor Rod R. Blagojevich FY07 Budget Address
Making Progress
Increased Public Safety
State Violent Crimes State Property Crimes
Down 9% Down 6%
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Governor Rod R. Blagojevich FY07 Budget Address
Making Progress
Increased Public Safety
Highest Levels of Homeland Security
Illinois is one of only three
states that has achieved thehighest level of bioterrorismpreparedness and emergencymanagement according tofederal agencies.
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Governor Rod R. Blagojevich FY07 Budget Address
Making Progress
64,000 New Jobs
State Unemployment Rate (2001 - Present)
2001 2002 2003 2004 2005
Unemployment has fallenback to pre-9/11 levels.
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Governor Rod R. Blagojevich FY07 Budget Address
Making Progress
Corporate Profits Are Up
Corpo r
ateProfits, in
mill io
ns CorporateIllinois’ corporate profits in 2004 were
higher than they’ve been since 1997.
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Governor Rod R. Blagojevich FY07 Budget Address
Making Progress
Increased Job Creation
Programs
Belvidere1,000 jobs
DeKalb500 jobs
Macomb480 jobs
Naperville1,500 jobs
Edwardsville230 jobs
Marion800 jobs
Champaign150 jobs
Lanark250 jobs
HEADQUARTERS
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Governor Rod R. Blagojevich FY07 Budget Address
We have kept Illinois’
income tax at thelowest average of allneighboring states.
1.5%-6.0%
0.4%-9.0%
4.6%-6.8%
3.9%
3.4%
2.0%-6.0%
5.4%-7.9%
0.7%-7.5%3.0%
Making Progress
No Increase to Income or Sales
Tax
3.0%
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Governor Rod R. Blagojevich FY07 Budget Address
Making Progress
Invested in Our Pensions
Edgar I Edgar II Ryan Blagojevich
Inve
st m
ent,inbilli
ons
We will have investedmore in pensions thanany administration inhistory.
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Governor Rod R. Blagojevich FY07 Budget Address
Making Progress
Invested in Our Pensions
Pensi
onFun
dingL
evel
Our pensions are better funded todaythan they were in 2003 -- a 25% increase.
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Governor Rod R. Blagojevich FY07 Budget Address
Proposed FY07 Budget
New Investments in Education and Health Care
New Investments in Public Safety and Job Creation
Strengthening Our Pension System
Streamlining Government and Cutting Costs
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Governor Rod R. Blagojevich FY07 Budget Address
Proposed FY07 Budget: Cutting Costs
Remaking Government
Payroll Human Resources Accounting
9SYSTEMS9
SYSTEMS 38SYSTEMS
38SYSTEMS 104SYSTEMS104SYSTEMS
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Governor Rod R. Blagojevich FY07 Budget Address
Proposed FY07 Budget: Cutting Costs
• Combines state agency back-office functions to
make them more efficient.
• Functions that every agency has like accountingand payroll will be put in one place to cut down on
repetitive costs.
• This is expected to save taxpayers over $115 million
a year.
Remaking Government
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Governor Rod R. Blagojevich FY07 Budget Address
Proposed FY07 Budget: Health Care
EnrollingAll Kids
LaunchingVeterans
Care
Closing theNursingShortage
FundingStem CellResearch
Who We Can Help With This Budget
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Governor Rod R. Blagojevich FY07 Budget Address
Proposed FY07 Budget: Health Care
• Illinois will face a shortage of over 21,000
nurses by the year 2020.
• Our proposal will increase nursing faculty,
decrease education costs, and attract more
nursing candidates.
• Cost would be $50 million over 15 years.
Closing the Nursing Shortage
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Governor Rod R. Blagojevich FY07 Budget Address
Proposed FY07 Budget: Health Care
• Stem cell research will help treat and cure
major illnesses.
• Illinois was the first state in the Midwest to
publicly fund stem cell research.
• Would provide $100 million of funding over five
years from tobacco settlement.
Funding Stem Cell Research
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Governor Rod R. Blagojevich FY07 Budget Address
Proposed FY07 Budget: Job Creation
RiverfrontRedevelopment
FilmTax Credit
JobsBill
LicensingReform
How This Budget Will Create More Jobs in Illinois
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Governor Rod R. Blagojevich FY07 Budget Address
Proposed FY07 Budget: Job Creation
• Projects filmed in Illinois created 15,000
new jobs last year. A new film credit will
help us stay competitive with other states.
Film Tax Credit
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Governor Rod R. Blagojevich FY07 Budget Address
Proposed FY07 Budget: Job Creation
Jobs Plan
RoadConstruction
$2.3 Billion
140,000 jobs
Mass TransitConstruction
$425 Million
85,000 jobs
SchoolConstruction
$500 Million
7,000 jobs
$3.2 Billion in Capital Will Create 230,000 Jobs
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Governor Rod R. Blagojevich FY07 Budget Address
Proposed FY07 Budget: Streamlining
• New systems would reduce processing time for
most state licenses from 4-19 weeks to 1-4
weeks.
• Impacts 1 million professionals in Illinois.
• Total cost to implement new processing systems
is $1.6 million.
Licensing Reform to Help Businesses
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Governor Rod R. Blagojevich FY07 Budget Address
Proposed FY07 Budget: Public Safety
Provide Fundingfor New
Police Officers
How We Can Improve Public Safety With This Budget
CreateMeth Prison
Unit
Launch thePrairie StateDNA Institute
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Governor Rod R. Blagojevich FY07 Budget Address
Proposed FY07 Budget: Public Safety
• We have invested $62 million in DNA testing and
reduced the backlog from 10 months to under 3.
• But as long as we outsource cases, the backlog is notfully in our control.
• The DNA institute gives us more control to reduce the
backlog even more.
Prairie State DNA Institute
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Governor Rod R. Blagojevich FY07 Budget Address
Proposed FY07 Budget: Public Safety
• The DNA Institute would improve training and retention of forensic
scientists.
• The program would expand State DNA laboratories and offer
scholarships to train students at Illinois universities.
• This institute would help create a cottage industry of forensic scientists
in Illinois.
Prairie State DNA Institute
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Governor Rod R. Blagojevich FY07 Budget Address
Proposed FY07 Budget: Pensions
Guaranteeing Pensions
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Governor Rod R. Blagojevich FY07 Budget Address
Proposed FY07 Budget: Pensions
• Use 10th license to strengthen pensions.
• Create incentives to work longer .
• Contribute sale of surplus property to pensions.
• Identify new sources of revenue for pensions.
Guaranteeing Pensions
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Governor Rod R. Blagojevich FY07 Budget Address
Proposed FY07 Budget: Education
Increase
K-12 andHigher EdFunding
Reduce
ClassroomSizes
Make
CollegeMore
Affordable
Improve
EarlyChildhoodEducation
How We Can Improve Education With This Budget
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Governor Rod R. Blagojevich FY07 Budget Address
Proposed FY07 Budget: Education
$400 Million Increase in K-12 Funding
NewE
ducationFu
ndin
g,
inbillions
Since FY04, we willhave invested anadditional $3.8 billion
in our schools.
$400
$789
$1,119
$1,519
+ + + = $3.8Billion
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Governor Rod R. Blagojevich FY07 Budget Address
Proposed FY07 Budget: Education
Increase in Higher Education Funding
• Funding for higher ed would increase by almost
$40 million in our proposed budget.
• Universities would receive over $18 million to
attract and retain the best faculty.
• Community college grants would increase by
almost $7 million.
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Governor Rod R. Blagojevich FY07 Budget Address
Proposed FY07 Budget: Education
Universal Preschool
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Governor Rod R. Blagojevich FY07 Budget Address
Proposed FY07 Budget: Education
How We Can Improve Education
Attend
schools withsmaller
class sizes
Save $1,000per year on
college
START
Children inIllinois Can:
Benefit from$3.8 billion in
new state fundsfor our schools
Enter preschoolat 3 years old
Take more math,science, writing,
and reading.
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Governor Rod R. Blagojevich FY07 Budget Address
Moving Forward
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Governor Rod R. Blagojevich FY07 Budget Address
Moving Forward: Fiscal Picture
Massive Deficit
Balanced the Budget
FY03
FY04 -FY06
FY07 Remaking Government
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Governor Rod R. Blagojevich FY07 Budget Address
Moving Forward: Economy
Recession and Job LossFY03
FY04 -FY06
FY07
Created 64,000 Jobs in 2005
Pass the Jobs Bill,
New Tax Credits,
Faster Licensing
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Governor Rod R. Blagojevich FY07 Budget Address
Moving Forward: Education
Underfunded EducationFY03
FY04 -FY06
FY07
$2.3 Billion Increase in K-12 Funding
Universal Preschool,
$3.8 billion in New funding,College Tuition Tax Credit
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Governor Rod R. Blagojevich FY07 Budget Address
Moving Forward: Health Care
Underfunded Health CareFY03
FY04 -FY06
FY07
400,000 More People Enrolled,
Health Care for All Kids,
Rx Help for Seniors
Veterans Care,More Nurses,
Stem Cell Research
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Moving Forward
FY03
FY07