Budget-Patching Deal Dips Into Various State Funds
SPRINGFIELD, Ill. (AP) -- A bipartisan agreement to plug a $1.6 billion budget hole includes more than $1.3 billion in fund transfers from a variety of sources to avert shutdowns of Illinois state programs and services.
The move, signed into law by Gov. Bruce Rauner on Thursday, digs into some of the largest piles of money in the state, including one intended to pay for highway construction, and some lesser known funds, such as ones to promote renewable energy sources and oversee the disposal of used tires. These kinds of funds have been raided repeatedly over the years to help close budget gaps.
A 2.25 percent across-the-board budget cut will cover what's left of the shortfall, which arose when the Democrat-majority Legislature passed a $35.7 billion budget last spring that didn't allocate enough money for expenses. A state child care program needed another $300 million to keeping going through June, while other state programs also were expected to run out of money.
Illinois Senate President John Cullerton warned that drawing from the funds is a one-shot deal that is "not going to work in the future."
Here are a few fund sweeps, at a glance:
Road Fund, $250 million: The largest amount is coming from this fund, which is used to pay for state highway construction. Critics warn a hit to this and similar funds, such as a $50 million sweep from the Motor Fuel Tax, would result in less money for projects and fewer jobs for road crews.
Local Government Tax Fund, $200 million: A portion of a municipality's sales taxes for restaurants, medicine and drugs goes back to that community. It will make a dent at a time when local governments face a possible threat of losing some of their state income tax share in the budget that begins July 1.
Illinois Power Agency Renewable Energy Resources Fund, $98 million: The Illinois Power Agency oversees this fund, which is intended to promote clean energy.
Used Tire Management Fund, $20 million: Money for this fund comes from costs from the sale of used tires and for managing used tire sites. It is used to help pay for and oversee the handling of used tires.
Illinois State Medical Disciplinary Fund, $10 million: Former Gov. Rod Blagojevich's administration had bankrupted this fund in a previous sweep. So, former Gov. Pat Quinn approved a hike in fees that doctors have to pay to the state agency overseeing their licenses two years ago and borrowed from another fund in order to keep money flowing.
Illinois State Fair Fund, $1 million: Revenue from use of the fairground facilities in Springfield go into this fund.
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