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Illinois Budget Impasse

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The Illinois Budget Impasse was a 793-day-long (2 years and 62 days) budget crisis in the state of Illinois . From July 1, 2015, to August 31, 2017, Illinois was without a complete state budget for fiscal years 2016, 2017, and part of 2018. As a result, many state agencies had to cut services or continue borrowing to operate. The budget impasse has adversely affected Illinois' economy , its credit rating , and public confidence in Illinois' state government.

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44-628: According to the Constitution of Illinois , the Governor is required to submit a balanced budget proposal for the next fiscal year to the Illinois General Assembly . The General Assembly, in turn, must pass a balanced budget and send it to the Governor's desk to sign before the beginning of the new fiscal year on June 30. Historically, Illinois governors have presented budget proposals in mid-February, allowing around four and

88-457: A bill backlog from a high of $ 17 billion to just under $ 500 million. Constitution of Illinois The Constitution of the State of Illinois is the governing document of the state of Illinois . There have been four Illinois Constitutions; the fourth and current version was adopted in 1970 . The current constitution is referred to as the "Constitution of Illinois of 1970" or less formally as

132-432: A budget address on February 18, 2015. Both Governor Rauner and Speaker Madigan continued to disagree on how to implement a balanced budget. Governor Rauner insisted that the objectives listed in his Turnaround Agenda, rather than raising taxes, were essential for revitalizing Illinois' economy. Speaker Madigan, on the other hand, insisted that tax increases, rather than budget cuts, were essential. The General Assembly passed

176-471: A half months of negotiations before the deadline. Each fiscal year starts on July 1 and ends on June 30 of the following year. Each fiscal year is also named after the year in which it ends; for example, fiscal year 16 (FY16) started on July 1, 2015, and ended June 30, 2016. Although the recent Illinois budget impasse is not the first in the state's history, it is the longest. At the beginning of July 2007, disagreements between then-governor Rod Blagojevich and

220-484: A landslide to congresswoman Tammy Duckworth , yet Republicans gained seats in both chambers of the General Assembly. The ruthless campaign atmosphere did not help ongoing negotiations between Governor Rauner and Speaker Madigan. In February 2017, Governor Rauner presented an FY18 budget proposal to the General Assembly. During his address, Governor Rauner mentioned ongoing negotiations for a "Grand Bargain" in

264-410: A letter to S&P asking them to delay any judgment until after the weekend, promising that the General Assembly would convene on Saturday, July 1 to finish negotiations. As of November 2023, Illinois' credit rating has seen nine credit upgrades, with a credit rating of A currently exceeding the 2014 credit rating of A−. The main factor influencing this decision, according to Fitch, was the reduction of

308-408: A limited ability to pass ordinances. Provides for financial matters including obligation of funds, budgeting, spending, and audits. Provides rules for various forms of taxation and state debt. Establishes the goal of free schooling through secondary education and creates a state board of education. Grants each person the "right to a healthful environment." It sets that to be public policy and

352-433: A negative outlook. In June 2016, Moody's downgraded Illinois' bond ratings to Baa2 from Baa1, also with a negative outlook. These agencies each have cited the lack of a budget and a prolonged history of financial mismanagement as the causes of the downgrades. In June 2017, S&P threatened to downgrade Illinois' credit rating to junk if an FY18 budget were not passed before the end of the fiscal year. Speaker Madigan wrote

396-528: A new formula called "Evidence-Based Funding." $ 6.6 billion was appropriated in the Senate Bill 1 for Evidence-Based Funding, when technically that formula was not yet law; General State Aid legally remained the current school funding formula. The $ 6.6 billion could not be used until Evidence-Based Funding was enacted into law to replace General State Aid. On July 31, Senate Bill 1, a bill which would formally replace General State Aid with Evidence-Based Funding,

440-420: A resident of the state for 30 days to vote. Section 4 provides for the Illinois General Assembly to establish rules for elections . Section 5 establishes rules for the state board of election, requiring for no political party to have a majority on the board. Section 7 provides procedures to recall the governor. Provides rules for the Illinois General Assembly . Section 1 divides the assembly into two bodies,

484-495: A series of budget bills to the Governor; however, on June 25, 2015, he vetoed most of them. One notable exception to the Governor's veto was a partial budget for the Illinois State Board of Education (ISBE), which manages Illinois' K-12 education. In August 2015 a supplemental education budget would be passed. However, on July 1, 2015, the fiscal year ended without a budget for all state agencies except for ISBE. As

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528-481: Is as follows: We, the People of the State of Illinois—grateful to Almighty God for the civil, political and religious liberty which He has permitted us to enjoy and seeking His blessing upon our endeavors—in order to provide for the health, safety and welfare of the people; maintain a representative and orderly government; eliminate poverty and inequality; assure legal, social and economic justice; provide opportunity for

572-600: Is described by the Illinois state government's website as an agency that "provides leadership and resources to achieve excellence across all Illinois districts..." Governor JB Pritzker appointed eight new members in February 2019. He re-appointed Susie Morrison who had been appointed by Governor Bruce Rauner . 39°48′8.6″N 89°39′15.8″W  /  39.802389°N 89.654389°W  / 39.802389; -89.654389 This Illinois school-related article

616-533: Is uncertain where the subsequent meeting was held. However, John Reynolds later noted that the meeting was largely peaceful although there were questions about how to handle slavery. Succeeding constitutions were ratified in 1848 , 1870 and 1970 . In 1862 a constitutional convention was held, but the changes known as the " Copperhead constitution" were not ratified by the voters. Thomas J. Turner and Tazewell B. Tanner were delegates to an 1863 Illinois constitutional convention. A constitutional convention

660-466: The 2016 elections. Donald Trump 's unpopularity in Illinois provided Democratic candidates with the opportunity to tie Governor Rauner – and by extension, the budget impasse – to Trump. The Illinois Democratic Party performed strongly in the 2016 Illinois elections . Former City Clerk of Chicago Susana Mendoza defeated incumbent Comptroller Leslie Munger , while incumbent senator Mark Kirk lost in

704-519: The Governor with the consent of the Senate . Board members serve four-year terms, with State Board membership limited to two consecutive terms. The board sets educational policies and guidelines for public and private schools, preschool through grade 12. It analyzes the aims, needs and requirements of education and recommends legislation to the Illinois General Assembly and Governor for the benefit of

748-542: The Illinois Senate with 59 legislative districts, and the Illinois House of Representatives , with 118 representative districts. Section 2 describes the composition of the two bodies. Section 3 describes legislative redistricting procedures. Section 9 describes procedures involving executive vetoes of legislation. Section 14 describes impeachment rules, under which Governor Blagojevich was impeached in

792-435: The Illinois State Board of Education was the sole exception, receiving a full-year FY17 budget. No meaningful revenue increases or legislative reforms occurred. Both Governor Rauner and Speaker Madigan admitted that the stopgap budget was not perfect, and neither solved nor ended the budget impasse. Although the first half of FY17 began with a budget, both Republicans and Democrats in the General Assembly were preoccupied with

836-489: The United States Constitution like section 18, which prohibits discrimination based on sex and section 19, which prohibits discrimination based on physical or mental handicaps. Describes the division of powers into executive , legislative and judicial branches. Describes voting qualifications, disqualifications and other election rules. Section 1 stipulates that a person must be 18 years old and

880-406: The "1970 Constitution." The document is still referred to as the "Constitution of Illinois of 1970" even though there have been amendments to it after 1970. Important features of the 1970 Constitution include the creation of home rule powers for larger municipalities and other units of local government. The 1970 Constitution has a preamble and 14 articles. The preamble of the 1970 Constitution

924-528: The General Assembly delayed the FY08 budget by six weeks. Under Governor Pat Quinn , Illinois went 16 days in FY10 without a budget. On January 12, 2015, Bruce Rauner was sworn in as the 42nd Governor of Illinois . During the 2014 Illinois gubernatorial election , Rauner ran against incumbent governor Pat Quinn on a platform of a series of reforms dubbed "The Turnaround Agenda." The Turnaround Agenda included but

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968-611: The House Michael Madigan . At the time, Illinois was still in FY15 with a budget that had been signed by then-governor Quinn the previous summer. That budget would not expire until June 30, 2015. From January 12, 2015, until February 18, 2015, the Illinois Governor's Office of Management and Budget, in conjunction with Illinois' state agencies, crafted a proposed FY16 budget which Governor Rauner introduced in

1012-590: The House 90–25. The bill provides some appropriations for FY17. including the Illinois State Board of Education. However, the House adjourned in the early afternoon before voting on the bill. On July 4, 2017, the House passed Senate Bill 6 and sent it to the Governor's desk; however, later that day Governor Rauner vetoed the legislation, claiming that the bill, along with the proposed tax increase, would not address Illinois' fiscal crisis. Later that same day,

1056-566: The House and removed from office after a trial in the Senate. Describes rules for the six state elected members, Governor , Lieutenant Governor , Attorney General , Secretary of State , Comptroller , and Treasurer . Sets up rules for Supreme Court of Illinois , the Illinois Appellate Court , and the circuit or trial courts of Illinois. Provides rules for county, township, and city governments and provides them with

1100-430: The House failed to override the veto, voting 63–46 while requiring a 3/5 majority. In late August, both Democratic and Republican leaders announced a tentative bipartisan education funding reform compromise bill, Senate Bill 1947. The bill contains much of the language of the defunct Senate Bill 1, including replacing General State Aid with Evidence-Based Funding. On August 28, in wake of the failed override of Senate Bill 1,

1144-499: The House passed Senate Bill 1947 73–34, with 3 voting present. An amendment passed later that day, 38–13 with 4 voting present, and the bill was sent to the Governor. On August 31, the bill was signed into law. Throughout the impasse, Illinois' credit rating has been downgraded by several credit rating agencies. In 2014, Illinois' S&P credit rating was A−, already the worst out of the 50 United States. In October 2016, S&P downgraded Illinois' credit rating from BBB+ to BBB with

1188-625: The Senate voted 39–15 to override the Governor's veto. On July 6, 2017, the Illinois House of Representatives voted 71–42 to override Governor Rauner's veto of an income tax increase and FY17 state budget, providing Illinois with its first full year budget since FY15. Although appropriations in the FY18 budget are ostensibly for FY18 costs only, the budget allows for some of its appropriations to also be used to pay for costs incurred in FY17. However,

1232-531: The State Senate, although the details of this bargain were yet to be determined. In March 2017, negotiations came to a standstill as the General Assembly failed to vote on the series of bills that included appropriations, tax hikes and freezes, and school funding. In late June, Governor Rauner announced he would order a special session of the General Assembly to convene until a budget had been passed. On June 30, 2017, House Amendment 2 to Senate Bill 6 passed in

1276-476: The continuation of various health and social service programs. While this prevented a government shutdown, it also meant that state agencies were required to continue purchasing services with no way to pay the vendors. Throughout the remainder of summer and autumn of 2015, negotiations between the Governor and Speaker continued, with few results. As January 2016 approached, the Illinois Governor's Office of Management and Budget began preparing an FY17 proposal despite

1320-473: The duty of individuals to that a healthful environment is maintained. Sets rules for the state militia : "The State militia consists of all able-bodied persons residing in the State except those exempted by law." It establishes the governor as the commander in chief of the militia and grants authority to use the militia to "enforce the laws, suppress insurrection or repel invasion." Establishes rules for persons holding public office. Section 5 prohibits reducing

1364-454: The election of constitutional officers, did not take effect for several years. Important features of the fourth Illinois Constitution include the creation of home rule powers for larger municipalities and other units of local government. Illinois State Board of Education The Illinois State Board of Education ( ISBE ) administers public education in the state of Illinois . The State Board consists of nine members who are appointed by

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1408-436: The election were whether it was sensible to have a constitution at that time and, if so, whether to form it and how to select appropriate representatives to frame it. Madison , St. Clair , and Gallatin counties were allocated three delegates each, while all other counties were allocated two delegates each. Delegates elected were to attend a meeting at Kaskaskia on August 3. Any record of this election has been lost and it

1452-614: The fact that FY16 did not yet have a budget. On February 17, 2016, Governor Rauner presented his FY17 budget proposal. In response, in May 2016, the General Assembly attempted to pass its own budget for the Governor to sign, but it failed in the Senate. However, close to midnight on June 30, 2016, a stopgap budget was passed by the General Assembly and signed by the Governor. The stopgap budget provided limited appropriations to help agencies pay off their backlog of bills from FY16, and fully funded all state agencies in FY17 until January 1, 2017. Again,

1496-524: The fullest development of the individual; insure domestic tranquility; provide for the common defense; and secure the blessings of freedom and liberty to ourselves and our posterity—do ordain and establish this Constitution for the State of Illinois. The bill of rights and contains similar provisions as the United States Bill of Rights , such as freedom of religion, freedom of speech and freedom of assembly. It also contains items not included in

1540-435: The measure. 1,069,939 other voters chose neither option. In 2008, there was an effort by citizens to support a convention. Ultimately, the measure was also defeated by a wide margin, 1,493,203 votes for and 3,062,724 against from a total of 5,539,172 votes cast. 983,245 voters chose neither option. (Source: Southwestern Illinois College . Constitution study Guide . The Illinois Constitution .) When statehood for Illinois

1584-841: The more than 2 million school children in the state. Local municipalities and their respective school districts operate individual public schools but the ISBE audits performance of public schools with the Illinois School Report Card . The agency is headquartered at 100 North 1st Street in Springfield . The agency also has offices at the James R. Thompson Center in the Chicago Loop . The ISBE also oversaw private business schools and other vocational schools until 2012, when responsibility for regulating those schools

1628-495: The new fiscal year began, not all spending stopped. State agencies often purchase goods and services from vendors on credit. The agencies are then reimbursed from the State according to appropriations in the budget and, in turn, are able to pay the vendors. However, on September 18, 2015, the Supreme Court of Illinois ordered that the State of Illinois must pay state workers and adhere to federal consent decrees which mandated

1672-451: The pension benefits of public employees. Section 7 provides for public transportation and allows the General Assembly to spend money to provide it. Describes procedures for amending the constitution. Section 1 describes rules for constitutional conventions. This article requires that Illinois voters be asked at least every 20 years if they desire a constitutional convention . In 1988 the measure failed 900,109 votes for and 2,727,144 against

1716-447: The veto override did not fully end the budget impasse, as there was still risk that the state's public school districts would not receive much of their funding for FY18. As of late August 2017, school districts had already missed two regular installments of state aid due to the impasse. A full appropriation for the Illinois State Board of Education depended on replacing Illinois' current school funding formula, called General State Aid, with

1760-484: Was approved on April 18, 1818, the U.S. Congress approved the formation of a state constitution. An election for delegates to a state constitutional convention was scheduled for July 6, 1818. All white male U.S. citizens who had resided in the Illinois Territory for at least six months prior to the election, or whom were otherwise qualified to vote for representation, were permitted to vote. The main topics of

1804-476: Was held in 1920, but in 1922 the changes were rejected by voters. The Sixth Illinois Constitutional Convention convened on December 8, 1969 and concluded on September 3, 1970. The resulting fourth version of the Illinois Constitution was ratified by special election on December 15, 1970 , and went into effect on July 1, 1971. However, some provisions, such as the change in the dates for

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1848-469: Was not limited to proposals such as unemployment insurance reform, tort reform , right-to-work reform, and collective bargaining reform. Upon his ascension to the governorship, Governor Rauner intended to act on the Turnaround Agenda. These reforms were largely supported by Illinois' Republican legislators, but largely opposed by Illinois' Democratic legislators, including Illinois Speaker of

1892-542: Was sent to the Governor. On August 1, Governor Rauner submitted an amendatory veto of Senate Bill 1 to the General Assembly. In his veto message, he articulated his disagreements with the bill's mechanisms holding districts harmless and appropriating money for the Chicago Teacher's Pension Fund (CTPF). However, on August 13, the Illinois Senate voted 38–19 to override the Governor's veto, but on August 28,

1936-507: Was transferred to the Illinois Board of Higher Education . Under the 1970 Illinois Constitution, the modern ISBE board replaced the elected position of Illinois state superintendent , assuming its powers on January 12, 1975. The ISBE describes itself as an agency that "commits to promoting and implementing comprehensive policies, practices, and programs that ensure fair access to quality for all students in our state." The ISBE

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