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January 4, 2010
An update on the Illinois Budget from Art Dykstra
The Economic Reality of Illinois
In terms of the Illinois economy, many of you have asked the question where are we now? Before sharing the current situation at Trinity, I thought it might be helpful to comment the State of Illinois budget.
Recently, I was able to meet with Governor Quinn’s Chief of Staff, Jerry Stermer and the newly appointed Secretary of Human Services, Michelle Saddler. According to Mr. Stermer, at this point in the year (early December), the State of Illinois is down almost another billion dollars from previously forecasted revenue levels.
Many elected and appointed officials are indicating that even with the passage of an income tax, the State would still face a budget deficit of 6 billion dollars next fiscal year.
While I am not an advocate for increased taxes, I do not believe that Illinois can cut its way out of the current financial disaster. Savings in the range of thousands or even millions of dollars can be identified but savings in the billions of dollars are a different matter. The State payroll is around 3 billion dollars, even if every state employee were to be laid off, the shortfall would still be massive.
It does seem as if budget cuts will be inevitable in terms of state monies. The obvious question is how much and to what programs? A number frequently bantered about is from 3 to 5%. At this time, Governor Quinn has indicated that some smaller state agencies may be cut as mush as 14%.
A cut of 5% at Trinity, if taken across the board, would be about 2 million dollars – a scary thought. Since most of Trinity’s operating budget is in personnel services, it is apparent that reductions in staff would have to occur.
At this time, leadership staff are diligently looking at expenditures and income sources and working to develop a realistic contingency plan. It is premature to forecast a precise course of action but it certainly appears that next fiscal year will be a difficult one. Trinity’s Board of Directors is well aware of the situation and is deeply involved in ongoing budget discussions.
We will continue to fight, plan and pray as we go forward. If you have suggestions for helping us think through the challenges ahead, I would welcome them.
We will keep you informed.
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