Distributed via Email: July 1, 2009

G.A. LEAVES TOWN; GOVERNOR VETOES BUDGET BILL

Though called back into legislative session this week to improve the state budget for the next fiscal year, members of the Illinois General Assembly left the Capitol Tuesday with no new budget plan and sent the governor the budget that originally passed the legislature at the end of May. Governor Pat Quinn tried in vain this week to convince enough members of the legislature to support a hike in the state income tax rate; no new tax vote was taken.

The governor today (Wednesday) vetoed the budget bill that contained the "50% budget" (SB 1197). House Speaker Michael Madigan and Senate President John Cullerton issued a joint proclamation calling for the legislature to return to Springfield on July 14 to address the vetoed budget bill and any other issue related to the Fiscal Year 2010 budget.

MORE GRIDLOCK

The relationships between the governor and the House Speaker and between the governor and the Senate President – all Democrats – were strained this week. Accusations flew Tuesday evening as allegations of untruthfulness aimed at the governor came from both legislative leaders – an eerie reminder that the situation in Springfield has not changed much even with the removal of former Governor Rod Blagojevich.

Governor Quinn says that without new state revenue, preferably found through an increase in the state income tax rates, the state cannot offer the necessary social services for needy Illinois residents. He vowed to stay in session all year rather than approve the "50% budget" that was on the table. The House speaker said that he did not have the votes to pass an income tax increase bill this week and that the only option was to pass a budget with the current available state revenues. Republican leaders say that they have not closed the door on finding new state revenues, but that they demand some budget restraint and fiscal reforms first. They claim that Democrat leaders have not taken their requests seriously.

BILLS MOVING THIS WEEK

The excitement Tuesday evening was not about the bills that moved, but the one that did not. The last Alliance Legislative Report highlighted a bill that would allow for the state to issue pension "notes" that would borrow money to make the full pension payment in FY 2010 but would free up over $2 billion in the state budget. The House of Representatives approved SB 415 on Monday – a bill supported by the governor – and sent it to the Senate for consideration. The Senate, however, defeated the bill on the Senate floor – twice. Senate President Cullerton claimed that Governor Quinn had made calls to Senators urging them to vote against the measure on the Senate floor.

Both chambers did approve several "clean-up" bills and send them to the governor's desk. The bills made minor changes to the previously passed appropriations bills. SB 265 (clean-up for fund "sweeps"), SB 349 (clean-up for the capital bill), SB 1221 (clean-up for some budget line items), and SB 1959 (clean-up for the capital budget implementation bill) all head to Governor Quinn.

THE BUDGET BILLS

What were sent to the governor for consideration were the budget bills that were approved on May 31 (see Alliance Legislative Report 96-22 for details). Generally, they are:

HB 2129, the bill that contains funding for General State Aid (a $231 increase in the foundation level) and full mandated categorical grant funding.

HB 2145, the bill that contains funding for ISBE personnel and administration.

HB 2206, the bill that contains funding for the ISBE that is generated from the federal government.

SB 1197, the bill that contains 50% of the requested funding for the other Illinois State Board of Education (ISBE) budget line items. This is the bill that the Governor vetoed.

SB 2218, the bill that contains the budget implementation bill for the ISBE.

Several of these bills were being withheld from the governor by implementation of a parliamentary maneuver. However, these bills were released by the House this week and were sent to the governor's office.

SCHOOL CONSTRUCTION

As was first reported in Alliance Legislative Report (96-19), the legislature approved a $26 billion capital infrastructure plan earlier this spring. This includes $1.5 billion for school construction and $100 million for school maintenance grants. Though the bills were approved, the House used the same parliamentary maneuver to keep those bills in the House and out of the governor's control. This week the House released the bills and HB 255 (the revenue streams), HB 312 (the spending allocations), and HB 2400 (the bonding authority) were sent to Governor Quinn.

The governor had earlier said that he would not sign the capital bills until the operating budget was finalized. He has 60 days to take action on the bills.

SCHOOLS CAN RECEIVE MEDICAID REIMBURSEMENT

The U.S. Department of Health & Human Services has announced a reversal of the Centers for Medicare and Medicaid Services (CMS) rulemaking that would have virtually eliminated school-based Medicaid reimbursement for transportation and administrative healthcare services for students.  In their announcement, the Department cited that the rule would have limited the Medicaid administrative outreach activities of schools and their ability to offer Medicaid services to students.  Since the rule was proposed in December 2007, legislation was passed several times at the federal level to delay implementation, so this rule was never in effect.

This legislative report is written and edited by the lobbyists of the Illinois Association of School Boards to provide information to the members of the organizations that comprise the Illinois Statewide School Management Alliance.

General Assembly Bill Text/Status

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