Gov. Quinn Vetoes Bare-Bones Budget

Future of Arts Funding Uncertain - Take Action To Stop Cuts

Act now and urge your elected officials to stand up for the arts by passing a responsible state budget.

Earlier today, Governor Pat Quinn vetoed the bare-bones budget the Illinois General Assembly passed in May. "It's very important for the people of Illinois to know we will not relax in our battle to have a balanced budget. This is a fight worth fighting for."

In anticipation of the governor's veto, House Speaker Michael Madigan and Senate President John Cullerton announced that the legislature will return to Springfield on July 14 to continue negotiations.

One option for the General Assembly on July 14 is to override Governor Quinn's veto (which requires a 2/3 majority in the House and Senate), in which case the bare-bones budget would stand.

Yesterday, in an address before the Illinois House and Senate, the governor vowed to veto the bare-bones budget passed in May: "If we don't get a balanced budget, if this General Assembly sends me a partial budget that decimates the social safety net of our state, I will veto that budget."

"I'm prepared to stay here all summer to get the job done!" Governor Quinn added.

Despite the governor's pledge, both the House and Senate adjourned without raising new revenue to stop catastrophic cuts to state services.

As things stand, state funding for the arts and arts education is in limbo.
In a message to Illinois Arts Council grantees on June 12, Shirley Madigan and Terry Scrogum, Chairman and Executive Director of the Arts Council respectively, highlighted how a bare-bones budget would impact the Council: "Due to the General Assembly's failure to approve the revenue plan proposed by Governor Quinn, the State of Illinois will no longer be able to provide grants for ArtsTour, Youth Employment, Literary Awards, Master/Apprentice, Open Deadline, and the Public Radio and Television stations operating grants."

If a state spending plan is not in place by July 15, analysts expect a meltdown of all state services. That's the day when the comptroller must cut the first payroll checks of the fiscal year. Some state agencies and nonprofits are already cutting staff and programs.

As Illinois Issues summed up in its analysis of recent events, "Renewed hope and high spirits defined the transition from impeached Governor Rod Blagojevich to Governor Pat Quinn early this year, but frustration and gridlock have stained the end of the fiscal year."

Budget Negotiations Continue: Options on the Table
At the heart of this crisis is disagreement over how to close the multi-billion dollar deficit that the State faces. As the Arts Alliance reported in May, the recession is sapping the State's main sources of revenue: the individual income tax, the corporate income tax, and the sales tax. As a result, the State's already significant budget shortfall has ballooned to an estimated $9-$12 billion.

Options on the table include:

• Raising revenue through an increase in the income tax
• Buying time by borrowing money
• Delaying "doomsday" by passing a provisional 30-day budget

Increasing the corporate and individual income tax is the approach that the governor favors. Governor Quinn included a raise in the individual income tax rate from 3 to 4.5 percent and in the corporate rate from 4.8 to 7.2 percent in his original budget proposal.

The Illinois Senate approved an increase in the income tax on May 30. The measure, HB174, which passed by a margin of 31-27, would raise the individual income tax rate from 3 to 5 percent and the corporate rate from 4.8 to 5 percent.

In the Illinois House, Speaker Michael Madigan opted to hold HB174 back from a vote on the House floor-even though one of the chamber's committees approved the Senate-backed proposal.

Instead, in a vote on Governor Quinn's budget proposal on May 31, the Illinois House voted down an increase in the income tax. 42 representatives supported the bill, SB2252, but 74 opposed it.

Buying time by borrowing money is another option on the table. In this scenario, the General Assembly would send the bare-bones budget it passed in May to Governor Quinn as well as an additional $2.2 billion in borrowed money, which would be earmarked for state services.

This option seemed to be gaining ground as the General Assembly considered a plan to borrow $2.2 billion to fund the State's pension system, thereby freeing up a like amount of money for state services. The measure, SB415, passed by a margin of 101-7 in the House, but failed in the Senate by 4 votes.

Legislators estimate that this option would cover 70 percent of the governor's proposed spending for state services, which otherwise face at least a 50 percent cut in the bare-bones budget passed in May.

Nevertheless, some state services would still sustain devastating cuts upwards of 50 percent in this scenario.

As Illinois Issues explains, "Not all providers would reach the 70 percent funding level. The 70 percent would be an average. And the governor would have significant latitude to spend the money within human services, potentially directing the money toward services that would recapture the largest amount of federal matching funds."

Senator James Meeks, who voted against this approach, explained why the Senate voted it down: "The Senate wants this matter solved sooner rather than later. If we had appropriated an additional $2 billion, then we may not ever come back here to try to solve the budget deficit."

"We want whatever the deficit is to be solved," Senator Meeks continued. "And we decided, there was a number of us who decided, we prefer to have the entire number solved."

Passing a provisional 30-day budget to delay "doomsday" is the third option on the table. This strategy would sustain state government and spare state services from catastrophic cuts as the governor and General Assembly continued to negotiate a compromise.

Advocacy Efforts Continue: New Tools for ActivistsAdvocacyEffortsContinue
Act now and urge your elected officials to stand up for the arts by passing a responsible state budget.

As negotiations on the budget continue, activists across the state are stepping up their efforts. On June 23, more than 5,000 human and social service advocates rallied in Springfield, urging the General Assembly to pass a fully funded and full-year budget. There was another rally at the Statehouse yesterday.

We must continue to make our voices heard too. The arts are a proven investment in our economy and workforce-creating jobs, stimulating the economy, and attracting tourists and new investments.

Since May-when we first alerted you to the catastrophic cuts facing the arts and arts education-arts advocates from across the state have generated more than 6,200 emails, letters, and calls to legislators.

In addition, the Arts Alliance:

• Developed resources to assist activists, including a roll call of legislators' votes on a responsible budget, key talking points about the arts and arts education, and a guide for meetings with legislators
• Reached out directly to Governor Quinn and Illinois' legislative leaders about the importance of arts funding
• Alerted the media to the devastating effect of a "doomsday" budget on the arts and arts education
• Issued findings from a survey that assessed the impact of the draconian FY08 cuts to the Illinois Arts Council

LegislatorsRespondingLegislators Responding to Arts Advocates
As a result of your efforts, lawmakers across the state are reaffirming their support for the arts and arts education. Your efforts are making a difference.

Here's what state legislators are saying:
From Senator Heather Steans (D-7-Chicago), who received 222 messages from arts advocates since May and voted for a sensible budget solution: "Arts funding offers jobs, after school programs, free public programs, and educational programs that benefit our community. I am worried that cuts to these programs will worsen our economic situation by cutting jobs and lessen community safety by removing some of the few programs that provide youth in my district with something positive to do after school. I will be fighting to keep these programs funded."

From Representative Naomi D. Jakobsson (D-103- Champaign), who received 55 messages from arts advocates since May and also supported a responsible budget solution: "The arts play an important role in educating our children, adding to our local economy, and enhancing our communities. I am proud to represent an arts rich district in Champaign County and I will be fighting to ensure that funds for the arts are not cut."

"As budget negotiations continue, it's important that elected officials hear from the people they represent," Representative Jakobsson continued. "There's no better way for us to understand community views and opinions than to hear directly from the people of the district."

The General Assembly is expected to return to Springfield on July 14. As news on the state budget becomes available, the Arts Alliance will keep you informed.

In the meantime, please feel free to contact either Ra Joy at joy@artsalliance.org or 312-855-3105 x14 or Scarlett Swerdlow at swerdlow@artsalliance.org or 312-855-3105 x13.