Analysis: Quinn faces big questions on state budget

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illinois Governor Pat Quinn

SPRINGFIELD — Gov. Pat Quinn is about to deliver his fourth and perhaps most anticipated budget proposal. He already has cut spending and raised taxes, yet Illinois remains in dire financial shape, in large part because of ballooning health and pension costs.

When Quinn delivers his speech Wednesday, he’ll face big questions. In recent days, he or his office have spoken about cuts to Medicaid and constitutional officers’ budgets and closing state facilities.

“Some of the news is not going to be happy news, but necessary news,” Quinn said Sunday in Chicago. “You’ll hear some people gnashing their teeth on Wednesday afternoon that have been kind of used to the budget the way it is.”

Here are five key questions he’ll face:

How many state facilities could be closed?

Quinn told The Associated Press last week that his budget will call for closing “quite a few” state facilities. He told WBEZ radio that those facilities will include youth prisons. Illinois has eight.

“You have to make some sound decisions. I have,” Quinn told the station.

Two facilities, one in Jacksonville and one in Tinley Park, already face closure in an effort to get people with mental disabilities and illnesses out of large institutions.

Five places that have reason to worry are Chester, Dixon, Lincoln, Murphysboro and Rockford.

How deep will the
Medicaid cuts be?

Quinn says the $14 billion Medicaid program should be chopped by $2 billion. It’s not clear what that will mean for the 2.7 million Illinois residents who depend on the program for some or all of their health care.

The governor could propose cutting rates paid to doctors and hospitals for providing care to the poor. That’s what he tried last year, unsuccessfully. If that happens, some struggling hospitals could reduce services or even close. More doctors might refuse to see Medicaid patients.

Quinn could also propose tightening eligibility so that fewer people qualify for care. Or he could try to eliminate optional services.

How will Quinn pay for new spending?

In his State of the State address, Quinn offered a handful of proposals that would add to the state’s budget difficulties by increasing costs or reducing revenue. He said little about how he would fill the new hole.

So Quinn has to explain how he plans to replace the $160 million Illinois would lose under his proposal to eliminate a tax on natural gas. He also has to spell out his ideas for $140 million worth of tax breaks to families with children and to businesses that hire unemployed veterans.

What does he want to do about pension costs?

Next year, the state must contribute $5.3 billion to the pension systems for teachers, university staff and state employees.

Quinn has hinted that he’d like to make downstate and suburban Chicago schools share the retirement costs for their employees, as Chicago schools do. If he goes that route, Quinn can expect a hurricane of opposition.

Another option is cutting retirement benefits. Quinn and the Legislature already have reduced benefits for state employees hired now and in the future. They haven’t done the same for people already on the payroll.

What will he do about unpaid bills?

At any given time, state government is billions of dollars behind in paying its bills to the people and organizations that provide services

In the past, he proposed borrowing money to pay the bills. State government would still owe money, but that debt wouldn’t fall on the shoulders of struggling organizations across Illinois. But he proposed borrowing more than was needed, fueling fears that he was interested in spending even more money, not just paying overdue bills.