Law Allows More Intergovernmental Purchasing

For decades local governments have been allowed to purchase items State government has negotiated or bid a price on.

A bill signed today, with State Senator Pam Althoff having played a part in its enactment, goes further.

A press release from Governor Bruce Rauner follows:

Gov. Rauner signs bill to streamline procurement process

Bill reduces bureaucracy and allows state institutions, including universities, to operate more efficiently and effectively

URBANA (Aug. 9, 2017) – Gov. Bruce Rauner today signed Senate Bill 8, a bipartisan bill that makes the state procurement process more efficient and transparent, thus saving money for Illinois taxpayers.

“Procurement rules are often confusing and difficult for vendors, state entities and universities,” Gov. Rauner said.

“Reforming the procurement process allows more flexibility for vendors.

“Removing red tape will make it easier for small and midsize businesses to bid on state contracts.

“This is a win for our government agencies, for universities, for businesses and, most importantly, for taxpayers.”

Specifically, SB 8 eliminates unnecessary administrative delays for state universities.

The bill also permits Illinois to enter into joint purchasing agreements with other units of government, allowing state and local government entities to save money because of their increased purchasing power.

“I want to thank the governor for signing this necessary bill today,” State Sen. Chapin Rose (R-Mahomet) said.

“The state’s draconian procurement code has wasted money for far too long. As many know, I have been leading the charge on this issue for several years. This law will save money for taxpayers and drive more money to student services across Illinois universities.”

“This bill finally starts to address unnecessary costs within our procurement code,” State Rep. Mark Batinick (R-Plainfield) said. “Illinois is a state with almost unlimited potential. If we could just get out of our own way, we would be much better off. I hope this is only the start.”

Pam Althoff

“This new set of procurement rules creates a more efficient purchasing system here in Illinois by streamlining bureaucracy and slashing government red tape,” said State Sen. Pamela Althoff (R-McHenry).

“The current procurement process is extremely cumbersome and a waste of money and time.

“These new rules are critical in order to provide increased efficiency and greater savings.

“Thanks to the bipartisan work done this spring, Illinois is now more in line with the best practices followed by other states.”

The bill was supported by a bipartisan group of legislators, state universities and the Illinois Chamber of Commerce.

“This reform is an important reminder that government can work smarter and more efficiently while still protecting taxpayer interests,” said Illinois Chamber of Commerce President and CEO Todd Maisch.


Comments

Law Allows More Intergovernmental Purchasing — 5 Comments

  1. That’s funny Althoff.

    State’s bankrupt, but you manage to find a way to spend money more efficiently.

    Shrewd.

  2. Wait, what?!?!

    Bruce Rauner and friends keep telling us that NO reforms were passed.

    But then he signs a bill with significant reforms to the State’s procurement process.

    Also, why doesn’t he acknowledge the Democratic sponsors of this bill?

  3. SB 6 was signed into law as Public Act 100-0043 (PA 100-0043).

    While hopefully this bill results in the government spending money more efficiently, it would be nice to reduce spending and have a truly balanced budget that results in no deficit spending.

    Since 2001 phony numbers have been used in the annual state budget and at the end of the fiscal year, after the final numbers are audited and released to the public in the Comprehensive Annual Financial Report (CAFR), the balanced budget becomes a deficit.

  4. To put the state procurement code overhaul in perspective.

    July 4, 2017 – The State Senate overrides Governor Rauner’s veto of the revenue bill portion of the budget which includes a state income tax hike. That’s Senate Bill 9 (SB 9) in the 100th General Assembly.

    The result is effective July 1, 2017, for individuals, trusts, and estates, the Illinois income tax increased from 3.75% to 4.95%.

    For corporations (excluding S corporations), the IL income tax increased from 5.25% to 7%.

    July 6, 2017 – The State House overrides Governor Rauner’s veto of SB 9, and SB 9 becomes law as Public Act 100-0022 (PA 100-0022).

    ++++++++

    SB 9 was estimated to bring in an approximate $5 billion additional revenue annually.

    Were the savings from the procurement code overhaul even estimated?

    Were the savings from the procurement code substantial compared to the enormous state debt & obligations.

    Some of the major state debt and obligations are:

    – unfunded pensions

    – unfunded retiree healthcare

    – past due bills

    – bonds

    – and more

    +++++++++

    Any annual relief to state income taxpayers resulting from savings due to reforming the procurement process is more than wiped out by the state income tax hike.

    And, the state income tax hike of $5B annually does not stop the debt from growing.

    +++++++++

    Procurement reform was about as substantial to addressing the overall financial problems as swatting a mosquito in the jungle.

    Negligible.

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