McHenry County Blog

Take a look at a bigger version of this budget document at Andrew Gasser’s blog.  The 708 Board spent almost 20% more than budgeted.

That’s the mildest word that one might use after taking a look at Andrew Gasser’s blog today.

In an article about the McHenry County Mental Health Board’s budget, Gasser points out,

“The bottom line is that McMHB spent $712,117.20 more than it budgeted for on salaries and administration – this is an overage of 18.80 percent.“

The retired Air Force Captain continues,

“If this budget balance sheet were turned in as a graded assignment in a college accounting course the grade would be an F. Or, if you were conducting an audit you would inform your client that they had a serious problem.”

Salaries exceed the budgeted amount by 133$.

Employee health care expenses are 135% above what the budget says should be spent.

“Do we need to pay 31 employees $1,556,712.88 in salaries and healthcare to ensure $13,149,254.96 is facilitated to those organizations in McHenry County that serve the mentally ill (MI) and developmentally disabled (DD)?” Gasser asks.

The analyst has put the budget in his article.

Take a look at the red arrows pointing to overspent line items.

Then, look at the line items that were underspent.

Whatever the last 708 Board did right, budgeting was not one of them.

A press release from Congressman Peter Roskam:

Roskam: Obama’s Budget Locks in the New Normal

WASHINGTON— Congressman Peter Roskam (IL-06) released the following statement on the release of President Obama’s budget today:

Peter Roskam

“In March, half a million Americans gave up on finding work, and those who have a job haven’t seen a comparable wage increase to the cost of living in years.

“It’s getting more expensive to buy groceries and harder to save for retirement.

“Our debt has swelled to $16.8 trillion and the downward pressure on our economy will only result in tougher times for American families.

“This is a sounding alarm for a new direction, but today President Obama chose do to more of the same.

“His budget recycles the same stale plan of the last four years – one of more taxing and more spending.

“Even though he has gotten $1.6 trillion in new taxes from his healthcare law and from increased tax rates at the beginning of this year, he still wants more.

“House Republicans have a different vision for our future with a budget that balances in 10 years.

“Lifting the burden of debt will strengthen a frail labor market and give the economy a chance to recover.

“While the president is proposing incremental reforms to Social Security, I believe the solvency of vital safety net programs should not be contingent on getting more tax revenue.

“It is a standalone priority and that’s why the House budget offers reforms that will preserve these programs for our nation’s seniors for generations to come.

“The new normal under President Obama of high unemployment and a stagnant economy doesn’t have to be our future.”

I rarely watch politicians on YouTube, but this one from State Rep. Barb Wheeler probably is an indication that the House Republican staff is going to use the communication tool to try to reach constituents:

A press release from State Senator Karen McConnaughay:

McConnaughay Calls for Leadership after Budget Address

SPRINGFIELD – In response to Governor Pat Quinn’s budget address State Sen. Karen McConnaughay (R-St. Charles) emphasized the importance of leadership in these tough times for the state, she stated,

“While the Governor may have improved his rhetoric, Illinois has severe leadership and spending problems. And the two are linked, as the first intensifies the second.”

The Governor’s budget shows record high state General Revenue Fund spending at $35.6 billion dollars, which includes an increase of $1.2 billion in spending.

Karen McConnaughay

Senator McConnaughay noted,

“We were promised when they passed the temporary 67% income tax increase in 2011, that they would cut spending, reduce the pension liability and decrease the bill backlog.

“Since then, we have seen increases in spending, our backlog of bills and our deficit—and don’t forget about the multiple credit rating downgrades, making it increasingly costly to borrow money.”

When addressing pension reform Governor Quinn called on the General Assembly to put a bill before him to sign.

Senator McConnaughay stressed the need for the Governor to be an active participant in the process.

“The Governor needs to collaborate and identify opportunities to build consensus in both chambers.

“This is an all hands on deck effort that starts at the top. Leadership is sorely needed in this state and until we have that Illinois will continue on this unsustainable path.”

A press release from State Senator Dan Duffy:

Duffy Reacts to Governor’s Budget Address

Dan Duffy

SPRINGFIELD- On Wednesday, March 6, Illinois legislators including State Senator Dan Duffy (R-Lake Barrington) listened to the Governor lay out his proposed 2014 budget in his annual Budget Address.

“Illinois is facing the worst fiscal crisis in our history and the Governor’s response is to craft a budget that increases spending by $1.2 billion.” said Duffy.

“Instead of cutting costs and living within our means, just like all families and small businesses are doing, the Governor has decided to expand government by adding 2,800 state employees to the payroll.”

Duffy points to pension reform as the most important issue facing the state of Illinois today.

“Our growing pension debt is the number one threat to Illinois’ fiscal security,” said Duffy.

“During his speech Governor Quinn repeatedly intimated that we must address pension reform, but offered no solutions.

“For months Governor Quinn has been echoing this sentiment but has failed to provide leadership on the issue, leaving the burden of reforming the system entirely on the General Assembly.

“We need a Governor who will roll up his sleeves and join us in making Illinois a more fiscally secure place.”

One proposal in the Governor’s speech raised eyebrows among the legislators in the House chamber.

“Governor Quinn mentioned closing ‘loopholes for mobsters’ in the gambling industry.

“I appreciate that the Governor wants to close these loopholes, but my question is if they exist, and the Governor knows about them, why haven’t they been closed already?”

“Our state needs a real leader to step forward and offer solutions.

“Instead the Governor has chosen to grow government, he has failed to participate in the pension reform process, and has recently handed out a sweetheart deal to AFSCME increasing their wages by $160 million,”said Duffy.

“It’s time that Governor Quinn pulled his head out of the sand and faced our fiscal reality.

“We are broke.

“This budget will not solve any of our fiscal problems.”

A press release from State Rep. Barb Wheeler:

Wheeler Statement on Budget Address

Barbara Wheeler

Springfield, IL…Amidst a growing financial crisis and dyer fiscal outlook, Governor Quinn addressed a joint session of the Illinois General Assembly to outline his budget for Fiscal Year 2014.

State Rep. Barbara Wheeler (R-Crystal Lake) released this statement in response to the governor’s address:

“Nineteen percent of Quinn’s budget is going towards pensions,” said Wheeler.

“We cannot continue down this path of unaffordable pensions while Democrats play political games with reform.

“Our unfunded pension liability is growing every day, we have nearly $10 billion in unpaid bills, and the tax increase is about to expire.

“We need to take serious action on pensions before Illinois tumbles over its own fiscal cliff.”

A press release from State Rep. Mike Tryon:

Rep. Tryon Responds to Budget Address

SPRINGFIELD…..Governor Pat Quinn presented a Fiscal Year 2014 budget address on Wednesday which calls for an increase in spending that is almost double the amount of additional revenue that is expected to come in next year.

On Tuesday, members of the House approved resolutions that set the spending ceiling for Fiscal Year 2014 at $35.081 billion.

The revenue estimate is used during the House’ budget process as a maximum spending limit.

It was stated as the resolutions were discussed that any spending number the Governor presented that was above $35.081 billion would put him in direct conflict with the House.

Mike Tryon

“Governor Quinn has presented a spending plan that exceeds our resolved spending limit by $500 million dollars,” said State Representative Mike Tryon (R-Crystal Lake).

“He should know by now that once we set that revenue estimate we will not change course and give in to his threats and political pressures.”

Quinn has proposed cutting K-12 Education by $300 million and Higher Education by $50 million.

Specifically, he has proposed a regular and vocational transportation reduction of $145.6 million and a General State Aid reduction of $150.4 million.

He has proposed keeping funding for early childhood education programs level.

“Once again, Governor Quinn is trying to pressure lawmakers into approving higher spending by proposing painful cuts to our state’s schools,” Tryon said.

According to Tryon, the proposed education cuts target transportation funding and state aid primarily for downstate and suburban school districts.

Tryon said he was especially disappointed Wednesday to hear about the Governor’s plans for a massive expansion of Medicaid, an optional component of President Obama’s Affordable Care Act.

“Governor Quinn wants to implement a massive Medicaid expansion one year after legislators worked very hard to downsize our Medicaid program to rein in out-of-control costs,” he said.

“His administration has yet to fully implement the reforms the General Assembly approved last year, and now it appears he is charging ahead with an expansion that is not required and that we simply cannot afford.”

The Governor’s budget address is a suggested spending plan.

Legislators in the House and Senate set the appropriation levels for the different parts of the budget in bills that go to the Governor for ultimate approval.

As Governor Pat Quinn is about to deliver his annual Budget Address, State Rep. Mike Tryon lays out some background information:

Mike Tryon

As we prepare to hear Governor Quinn’s annual Budget Address on Wednesday, I thought it would be appropriate to provide a summary of our budget process and information about how Illinois has reached its current financial condition.

It is no secret that Illinois is in horrible financial shape.

Today we are known as the state with the worst-funded pension system, the lowest bond rating, and the worst budget deficit of any state in the nation.

Illinois currently has 210,000 unpaid bills totaling $9 billion.

The debt per person in Illinois is over $21,000 per man, woman and child.

These are sobering statistics.

How Did We Get Here?

The pension liability is the single issue that places the most pressure on the budget.

Simply put, the pension payment takes up so much of the available funds that there is not enough money left to pay for all the items in the rest of the budget.

For many years, legislators made only partial pension system payments or skipped them altogether.

During my eight years in the House I have never voted for anything less than a full pension payment.

However, those poor decisions by the majority of lawmakers, combined with benefit perks that were not actuarially calculated to ensure future sustainability, and increasing life expectancies for pension recipients, has created a $97 billion pension liability that grows by a staggering $17 million every day.

The second primary cause for the state’s financial problems relate to the shell games and fund “sweeps,” where money earmarked for one program has been moved around and used for other purposes.

Over time, the result was expenditures that outpaced available resources (in some years by billions of dollars), a growing backlog of bills, and an accumulation of bonded debt.

How the Illinois Budget is Created

Beginning in FY12, a new budgeting process was implemented in the House. Resolutions are now adopted to set the revenue estimate for the coming fiscal year.

Using the revenue estimate as a ceiling for spending, mandatory budget items are funded first when developing the budget.

Much like your household budget where the mortgage, insurance and other required payments are made first, the House funds the non-discretionary items before divvying up the remaining funds for other programs and services.

The non-discretionary, or mandatory, items in the Illinois budget include

• pensions,
• debt services, and
• transfers that the State is obligated to send to local governments.

After mandatory budget items are funded, any remaining funds are then sent to the appropriation committees (Appropriations – Human Services, Appropriations – Higher Education, Appropriations – General Services, Appropriations – Public Safety, and Appropriations – K-12 Education) for funding non-mandatory budget items line by line.

Difficult decisions are made at the appropriations committee level, as the amount of money left after the mandatory items are funded is decreasing every year.

For FY14, estimated general revenues will be $35.081 billion, an increase of about $1 billion from this current year.

With that revenue estimate in place, attention will now turn to determining the non-mandatory spending levels.

The required pension payment for FY14 will increase by an estimated $1 billion, thereby consuming most or all of the increased available revenue.

Additional items, such as

• Medicaid spending and
• the State Employees Group Insurance program

will also require additional mandatory allocations.

As a result, the appropriations committees will have more difficult decisions to make as their share of the pie is decreased even further.

The “Temporary” Income Tax Hike

Beginning in FY15, the income tax increase implemented in 2011 will begin to phase down.

As a result, general funds are currently estimated to decrease in FY15 by $1.7 billion compared to FY14.

Unless reforms are made to reduce the amount of funds which must be allocated to mandatory budget pressures, such as pensions, this would require the reductions to be made at the appropriations committee level.

I look forward to the Governor’s speech on Wednesday, and hope to hear a solid, conservative plan that does not increase the state’s level of debt while addressing the backlog of unpaid bills. You may watch the address at noon at this link: http://www.ilga.gov/house/audvid.asp.

Sincerely,

Michael W. Tryon, State Representative, District 66

A press release from State Rep. David McSweeney:

McSweeney Votes Against $2.1 Billion Supplemental Spending Plan

David McSweeney

“This bill is all that is wrong with Springfield,” McSweeney stated shortly after his vote against the Democrats hand crafted, supplemental appropriation bill which includes new special interest spending.

“If legislators want to increase spending, they should identify ways to cut spending to pay for it.

“Let’s have a vote on every line item instead of combining everything into a last minute massive bill that won’t allow us to pay down our $9 billion of unpaid bills.

“For example, I would support additional standalone mental health spending, but only if we pay for it with other spending cuts.

“Let’s fix the real problem – state pensions.

“Let’s have that discussion today on the floor.

“The Supplemental Appropriation bill is merely enabling the Democratic leaders of this state to spend more money that we don’t have.

“Illinois is insolvent.

“Let’s do our job and cut spending.”

A press release from McHenry County government:

McHenry County FY13 Budget on Public Display

WOODSTOCK, IL – At their Tuesday, October 16 evening meeting, the McHenry County Board placed on public review their proposed budget for Fiscal Year 2013 (FY13), which will begin on December 1, 2012.

The budget is anticipated to be adopted at the County Board’s evening meeting on Tuesday, November 20.

Highlights of the proposed FY13 Budget are noted below.

• In developing the FY13 Budget, McHenry County maintained the professional, conservative approach to budgeting that earned an Aaa bond rating from Moody’s Investor Services. McHenry County is one of only three counties in Illinois (also Lake & DuPage) to have earned in this distinction.
• The McHenry County Board directed staff not to capture the allowable inflationary growth in the property tax extension. The County is collecting $2.3 million less than is allowable under tax cap law.
• The proposed FY13 Budget is $252,079,699. This compares to the current FY12 Budget which was approved at $256,714,170.
• In developing the FY13 Budget, the County is responding to a revenue environment that continues to be challenging with a corresponding control on expenses.
  • There are no dramatic cuts to services, but as in recent years, there are adjustments and reductions in almost all areas of County Government.
  • The proposed FY13 Budget maintains compensation parity between union and non-union employees.
  • Through an active management of the employee roster, there are 83 positions that have now been eliminated since 2009 and 19 positions have been added to the roster through consolidation and rethinking responsibilities. The result is 64 fewer positions than three years ago.

A copy of the proposed McHenry County FY13 Budget can be found in the County Clerk’s Office or on the County website at www.co.mchenry.il.us under “Quick Links”. For more information, please contact John Labaj at 815-334-4924 or jwlabaj@co.mchenry.il.us

= = = = =
This press release does not tell what the suggested levy is.

My question is whether it is the same as show on the preliminary budget document prepared October 9, 2012.

See this article comparing Kane, McHenry and Will County property tax increases since 2005.

.