Deputy Governor’s report blames Rauner for state’s poor fiscal condition

CHICAGO – A report on Deputy Governor Daniel Hynes' findings released Thursday about the state's budget blames former Governor Bruce Rauner for Illinois' poor financial condition. The report – distributed by Governor JB Pritzker's office – itself is named "Digging Out: The Rauner Wreckage Report" lines out specific ways Rauner's Ideology and politics worked against the state.

"Four years of failure and ideological warfare in Illinois state government created a mess that will take years to put behind us," Hynes' said in the opening paragraph of the report. "Many of the worst consequences are well-known: more than $1 billion in interest penalties, the decimation of human service providers, college enrollment that dropped by more than 70,000 students, and universities in jeopardy of losing their accreditation.

"This report builds on previous work and identifies damage that is even worse than previously known, including a projected $3.2 billion budget deficit for FY20 that is 16 percent higher than previous estimates." 

No mention was made in the report that the state's budget was fully passed into law by the Democrat= controlled General Assembly.

The report's Executive Summary of Findings says: 

1. If left unaddressed, the State of Illinois’ general funds budget deficit for FY20 would be approximately $3.2 billion, roughly 16 percent higher than the Rauner administration officially estimated just three months ago.
2. The state’s debt associated with unpaid bills is nearly $15 billion: $7.9 billion in unpaid bills, $5.5 billion in backlog borrowing, $650 million in interfund borrowing and $500 million in estimated backpay for state workers. This is almost triple the amount outstanding before Governor Rauner’s impasse began.
3. Rauner’s failed and prolonged dispute with AFSCME over step increase wages has resulted in a court finding that he improperly withheld wages from state employees. The cost of his antiunion battle may total more than $500 million with the impact of compounded interest penalties.
4. The State’s projected unpaid bill backlog at the end of FY19 is likely to be $500 million more than previously stated, creating longer delays in vendor payment cycles and additional pressure on the provider community – and, most critically, the vulnerable Illinoisans they serve.
5. Interest alone on additional general obligation bonds attributable to the refinancing of Rauner’s bill backlog will exceed $2 billion.
6. Late Payment Interest Penalties that built up during the impasse exceeded $1.25 billion. Continued interest payments will likely exceed $60 million in FY19 in part because this year’s budget maintains a structural deficit that went unaddressed during Rauner’s term.
7. The State’s management and administrative infrastructure has deteriorated significantly, with major fiscal, legal and other critical positions unfilled for years. Reductions in staffing have affected public safety and social service programs.
8. The mismanagement of state contracts has allowed increased costs and lengthy project delays, resulting in, for example, information technology systems that don’t function effectively. This mismanagement severely impacts the administration and delivery of vital services, including healthcare. In some cases, it threatens the flow of federal reimbursement funds. The mismanagement extends to basic government functions like processing revenues and paying rent.
9. Tens of millions of dollars have been and will continue to be allocated to comply with court orders and consent decrees due to management failures to address the state’s most serious challenges.

The report is available online HERE