Civic Federation: Many Of Rauner's Proposed Cuts Not "Achievable Or Prudent"
CHICAGO (CBS) -- A respected budget watchdog group has come out with a sharply critical analysis of Gov. Bruce Rauner's fiscal plan for Illinois.
The Chicago-based Civic Federation said Rauner's plan relies on billions of dollars of projected savings which "do not appear achievable or prudent in light of the State of Illinois' obligations and long-term policy objections."
Civic Federation President Laurence Msall said about $3 billion of Rauner's proposed cuts are penny-wise, but pound-foolish.
"The most keenly being the cuts to the community care for the developmentally disabled, and mental health services," he said.
The federation also expressed concerns about reducing local governments' share of income tax revenue.
"The Civic Federation is concerned that if the state attempts to address its financial crisis, but puts a greater burden on the local governments, it will be a hollow victory," he said.
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The group's 81-page report also criticized the governor's estimate of $2.2 billion in savings from new pension changes, even though the measure has not been formally introduced in Springfield, and likely will face a lawsuit from labor unions representing state workers.
The Civic Federation also expressed doubts about Rauner's assumption he can achieve a $655 million cut in state health insurance costs through contract bargaining.
The report did commend Rauner for recognizing the urgency of the state's financial troubles, but challenged lawmakers to come up with their own ideas combining spending cuts with new revenues.
A statement from Rauner spokeswoman Catherine Kelly suggested the governor might support some form of tax hike, but only if lawmakers also compromise on his so-called "Turnaound Agenda," which relies on spending cuts, changes to worker's compensation laws, and tort reform, among other changes to state government.
"Illinois' fiscal crisis has been years in the making, because career politicians were more interested in sweetheart deals with Springfield insiders than helping the taxpayers they were supposed to be working for. The structural reform addressed in the governor's Turnaround Agenda will help free up resources to tackle our $6 billion deficit. New revenue cannot be discussed until we address the underlying structural issues that have landed us here in the first place," Kelly said in an email.
