How Illinois General Assembly Budget Affects Low-Income People

The Illinois House and Senate passed a state budget for the 2008 fiscal year, and Gov. Rod Blagojevich announced that he would veto $500 million in spending in the budget bill and apply it toward the implementation of a series of health care reforms (see “Illinois Health Initiatives Will Expand Coverage to Over Half Million Uninsured” in this issue). After Governor Blagojevich files his veto, the budget lines that are not affected by the veto will become final. The General Assembly can override his veto with a three-fifths majority in each house, but Illinois Senate President Emil Jones already announced that he would not call a veto override motion for a vote.

The Sargent Shriver National Center on Poverty Law has been analyzing the budget bill to determine its impact on low-income people in Illinois. Following is a summary of the most significant provisions in the budget bill approved by the General Assembly. Governor Blagojevich has not fully specified which budget lines he intends to reduce or delete, and because this will not be known for sure until he files his official veto, the budget lines described below are subject to change.

Health Care
The budget bill includes no funding for the Illinois Covered Health Care for All initiative. The bill provides a maintenance level of funding for Medicaid, including additional funds to pay for natural program growth. There are some cost savings projected from measures recommended by the Department of Health Care and Family Services’ Office of the Inspector General. Nursing home funding is increased by $150 million.

Human Services
The General Assembly scaled back some of the governor’s proposed funding increases. The proposed $56 million increase in funding for the community care program, which assists elderly people in remaining in their homes rather than entering institutional care, was reduced to $32 million. Increased funding for child care assistance was reduced from the governor’s proposed $33 million to $3 million on the ground that there has been a significant drop in the child care caseload and hence less funding is needed. Members and staff clarified their intent that the provider rate increase and other child care program improvements that the governor had proposed would be carried out and that no cut in child care program services was intended.

The governor’s initiatives included in the General Assembly’s budget are the 2.5 percent cost-of-living adjustment (COLA) for community-based providers serving individuals with developmental disabilities, full annualization of the 2007 mid–fiscal year community health and prevention COLA, and a 3 percent COLA for community-based substance abuse providers.

The appropriation for the Department of Human Services does not include funds for a Temporary Assistance for Needy Families (TANF) grant increase, even though TANF grants are now only 27 percent of the federal poverty level.

Education
The General Assembly’s budget includes $600 million in added elementary and secondary education funding. This will increase the per-pupil foundation level by $400. Although this is the highest single-year increase ever, it is modest in comparison to education reform proposals during regular sessions. This increase will also fully fund mandated categorical grants and give a much-needed increase to the reimbursement rate for special education personnel. In the higher-education budget, there is a $27 million increase in the Monetary Assistance Program for low-income college students.

Instead of the governor’s proposed $69 million increased funding for Preschool for All, the General Assembly’s budget includes a $25 million increase. This is below even last year’s increase of $45 million. It represents a setback in achieving the goal of universal access to preschool. Among rank-and-file members of the General Assembly, there was considerable discontent with this low funding level.

Transit
There is no funding in the General Assembly’s budget for the Regional Transportation Authority or the Chicago Transportation Authority (CTA). Nor is there any authorization for a regional solution such as the proposed regional sales tax. The CTA announced that there would be major fare increases and service cuts if legislative action was not taken before September 1.

For more information, contact Dan Lesser.