OUR STATE FACES A FIVE BILLION DOLLAR DEFECIT.

TODAY — I’M GOING TO GIVE YOU A BLUEPRINT FOR SOLVING THIS CRISIS.

IT WON’T BE EASY OR SIMPLE.

BUT YOU’RE ABOUT TO HEAR THE DETAILS, SO I HOPE YOU’RE ALL SITTING DOWN.

I’D LIKE TO WELCOME OUR CONSTITUTIONAL OFFICERS. LT. GOVERNOR PAT QUINN. ATTORNEY GENERAL LISA MADIGAN. COMPTROLLER DAN HYNES. TREASURER JUDY BARR TOPINKA. AND SECRETARY OF STATE JESSE WHITE.

I’D ALSO LIKE TO RECOGNIZE THE DIRECTOR OF THE BUDGET, JOHN FILAN, AND HIS TALENTED AND HARDWORKING TEAM.

WHEN I CAME INTO OFFICE MY ADMINISTRATION HAD TO COME TO GRIPS WITH THE SIZE OF THE STATE’S FISCAL PROBLEMS —

AN UNPRECEDENTED FIVE BILLION DOLLAR BUDGET DEFICIT.

OVER THE LAST FEW MONTHS JOHN FILAN HAS WORKED HARD TO WRAP HIS HANDS AROUND THIS BUDGET.

AND ONCE I’M DONE WITH THIS SPEECH TODAY, MANY OF YOU MAY WANT TO WRAP YOUR HANDS AROUND HIS NECK.

BUT BEFORE I BEGIN, I’D LIKE TO ASK ALL OF US TO TAKE A MOMENT AND SAY A PRAYER FOR THE BRAVE MEN AND WOMEN OF OUR ARMED FORCES AT WAR IN IRAQ.

OUR PRAYERS GO OUT TO THEM AND TO THEIR LOVED ONES.

PLEASE JOIN ME NOW, FOR A MOMENT OF PRAYER.

OUR PRAYERS ALSO GO OUT TO THE INNOCENT CIVILIANS CAUGHT BETWEEN HOSTILITIES,

AND FOR OUR PRESIDENT, AS HE LEADS OUR COUNTRY DURING THIS TIME OF WAR.

ILLINOIS FACES A FIVE BILLION DOLLAR BUDGET DEFICIT.

FIVE BILLION DOLLARS.

THE LARGEST IN OUR HISTORY.

THIS UNPRECEDENTED BUDGET DEFICIT IS THE RESULT OF SEVERAL THINGS.

STRUCTURAL CHALLENGES LIKE RISING HEALTHCARE COSTS, PARTICULARLY MEDICAID.

A TAX-STRUCTURE BASED ON AN INDUSTRIAL ECONOMY THAT HAS NOW BECOME A SERVICE ECONOMY.

AND AN ECONOMIC DOWNTURN THAT OUR STATE GOVERNMENT DIDN’T REACT TO QUICKLY ENOUGH — EVEN THOUGH ALL THE SIGNALS WERE THERE.

IT’S A DEFICIT MADE WORSE BY MISMANAGEMENT, BY SHADY ACCOUNTING,

BY RAMPANT OVERSPENDING.

SOME PEOPLE SEE THIS HISTORIC BUDGET DEFICIT AS AN INSURMOUNTABLE HURDLE. THAT THE ONLY WAY TO BALANCE THE BUDGET, IS TO EITHER RAISE TAXES ON WORKING FAMILIES,

SIGNIFICANTLY CUT SPENDING IN CRITICAL AREAS LIKE EDUCATION, HEALTHCARE AND PUBLIC SAFETY

OR EVEN WORSE, A COMBINATION OF BOTH.

WELL I HAVE A DIFFERENT ANSWER.

I SEE THIS BUDGET DEFICIT AS AN OPPORTUNITY.

AN OPPORTUNITY TO BRING ABOUT THE FUNDAMENTAL CHANGES THAT THE PEOPLE OF ILLINOIS DEMANDED LAST NOVEMBER.

AN OPPORTUNITY TO SHAKE UP A SYSTEM IN DESPERATE NEED OF REFORM.

AN OPPORTUNITY TO HAVE THE PEOPLE BELIEVE IN US AGAIN.

TODAY I AM PRESENTING TO THE GENERAL ASSEMBLY, AND TO THE PEOPLE OF ILLINOIS, A BALANCED BUDGET.

IF WE DO THIS RIGHT WE WILL DO MORE THAN JUST BALANCE THE BUDGET. WE WILL REGAIN THE TRUST AND THE CONFIDENCE OF THE PEOPLE.

THE BUDGET I’M PRESENTING TODAY ASKS FOR A LOT OF SHARED SACRIFICE.

BUT THIS IS NOT THE TIME TO ASK TAXPAYERS TO SACRIFICE BY BAILING OUT A SYSTEM THAT DESPERATELY NEEDS TO BE CHANGED.

AT THE SAME TIME WE MUST NOT SACRIFICE OUR COMMITMENT TO EDUCATING OUR CHILDREN, TO PROVIDING HEALTHCARE FOR THOSE WHO NEED IT, AND TO KEEP THE PUBLIC SAFE.

IF THE LEGISLATURE SENDS ME A BUDGET THAT RAISES THE INCOME TAX OR THE SALES TAX I WILL VETO IT.

ILLINOIS IS A LOW-INCOME TAX STATE AND I’M GOING TO KEEP IT THAT WAY.

IF THE LEGISLATURE SENDS ME A BUDGET THAT CUTS K-12 EDUCATION, HEALTHCARE OR PUBLIC SAFETY I WILL VETO THAT TOO.

WE WILL NOT BALANCE THE BUDGET BY SACRIFICING OUR VALUES.

INSTEAD, WE WILL BALANCE THE BUDGET BY ENDING BUSINESS AS USUAL.

IN THE LAST TWO BUDGET ADDRESSES, YOU WERE TOLD THAT THE BUDGET BEING PRESENTED TO YOU WAS A BALANCED BUDGET.

IN FACT, THOSE BUDGETS ONLY TOLD HALF THE STORY.

FOR DECADES THE STATE UNDERFUNDED ITS PENSION FUNDS. THE ACCUMULATED DEFICIT WILL COST THE STATE $2 BILLION DOLLARS THIS YEAR ALONE.

YOU DIDN’T SEE THAT IN ANY PAST BUDGET.

MEDICAID COSTS WERE HIDDEN BEHIND QUESTIONABLE PROJECTIONS AND MYTHICAL SAVINGS.

AFTER THREE YEARS OF SHODDY ACCOUNTING, OUR MEDICAID DEFICIT IS ALMOST

$300 MILLION DOLLARS.

YOU DIDN’T SEE THAT IN ANY PAST BUDGET EITHER.

PREVIOUSLY, A $200 MILLION DOLLAR SHORTFALL WAS COVERED UP BY IGNORING THE IMPACT OF INCREASED DEDUCTIONS ON STATE TAX REVENUES.

IT IS TIME FOR HONEST BUDGETING AND LONG-TERM PLANNING.

IN THE PAST, EACH BUDGET WAS DESIGNED TO GET FROM ONE FISCAL YEAR TO THE NEXT.

FROM NOW ON, OUR BUDGETS WILL BUILD THE FOUNDATION FOR LONG-TERM STRUCTURAL REFORM.

AND WE’LL NEED TO PLAN FOR A RAINY DAY. THINGS GO WRONG ALL THE TIME. WE NEED INSURANCE.

THIS BUDGET MAKES A DOWN PAYMENT ON A FUND THAT CAN HELP US WHEN TIMES ARE HARD.

SPENDING USED TO BE ON AUTO PILOT. NO COST BENEFIT ANALYSIS WAS PERFORMED BEFORE TAXPAYER DOLLARS WERE SPENT — AND ONCE PROGRAMS WERE IN PLACE — THEY STAYED THERE.

NOT ANYMORE.

GOING FORWARD EVERY PROGRAM IS GOING TO BE ACCOUNTABLE — NO MATTER HOW LONG IT’S BEEN AROUND.

IN THE LAST ELECTION THE VOTERS GAVE CONTROL OF THE LEGISLATURE AND THE GOVERNOR’S OFFICE TO DEMOCRATS.

AS A DEMOCRAT –I’M HAPPY ABOUT THAT.

BUT I AM NOT THE DEMOCRATIC GOVERNOR OF ILLINOIS. I’M THE GOVERNOR OF ILLINOIS WHO HAPPENS ALSO TO BE A DEMOCRAT.

THE PROBLEMS AND CHALLENGES WE CONFRONT ARE WAY TOO BIG TO BE STUCK IN THAT OLD PARADIGM OF DEMOCRATS VS. REPUBLICANS.

TURNING THIS FISCAL CRISIS INTO THE OPPORTUNITY TO REGAIN THE PUBLIC CONFIDENCE MEANS ALL OF US WORKING TOGETHER

BOTH CHAMBERS OF THE LEGISLATURE

BOTH SIDES OF THE AISLE.

THE STAKES ARE TOO HIGH TO DO ANYTHING ELSE.

TOUGH TIMES REQUIRE TOUGH CHOICES.

SO LET ME SAY AT THE OUTSET, THERE WILL BE SOME THINGS IN THIS BUDGET THAT YOU WON’T LIKE.

AND THEN AGAIN, THERE WILL BE SOME THINGS IN THIS BUDGET THAT YOU WON’T LIKE.

SO LET’S START WITH THE THINGS IN THIS BUDGET THAT YOU WON’T LIKE.

ACTUALLY, LET’S BEGIN BY SEEING HOW WE CAN DO MORE WITH LESS.

THIS IS AN UNPRECEDENTED TIME TO RE-THINK THE WAY GOVERNMENT WORKS.

FROM THE MOMENT I TOOK OFFICE MY TEAM HAS SCRUTINIZED HOW OUR STATE SPENDS MONEY.

WITHIN THREE SHORT MONTHS WE HAVE BEEN ABLE TO IDENTIFY OVER ONE AND A QUARTER BILLION DOLLARS IN CUTS AND REDUCTIONS WITHOUT AFFECTING FRONTLINE SERVICES.

THE FIRST STEP IS TO CUT THE WASTE THAT HAS CHEATED THE TAXPAYERS FOR FAR TOO LONG.

THE DEPARTMENT OF PUBLIC AID DOES NOT NEED TO EXPAND INTO NEW OFFICE SPACE, AT A COST OF $600,000 DOLLARS PER YEAR, WHEN ITS STAFF SIZE HAS DECLINED BY 600 PEOPLE.

THE DEPARTMENT OF THE LOTTERY DOES NOT NEED CLASS AA OFFICE SPACE, IN THE STREETERVILLE NEIGHBORHOOD, ONE OF THE MOST EXPENSIVE IN CHICAGO.

THE STATE OF ILLINOIS DOES NOT NEED TO PAY ITS 512 COMPUTER CONSULTANTS TWO TO THREE TIMES THE MARKET VALUE.

WHY SHOULD WE PAY OVER TWICE AS MUCH PER MINUTE TO USE A CELL PHONE THAN THE AVERAGE CONSUMER?

WHY SHOULD THE STATE PAY 20 PERCENT MORE FOR WINDSHIELD-WASHER FLUID THAN THE AVERAGE CONSUMER?

WHY SHOULD STATE AGENCIES SPEND MILLIONS OF DOLLARS ON NEW COMPUTERS WHEN SOFTWARE IS AVAILABLE TO PERFORM THE SAME FUNCTIONS FOR 20 CENTS ON THE DOLLAR?

THE STATE POLICE DOES NOT NEED 216 MORE CARS THAN OFFICERS.

AND THE DEPARTMENT OF CORRECTIONS CERTAINLY DOES NOT NEED ITS OWN PLANE. WE WILL GROUND THAT PLANE AND SAVE THE STATE $800,000 DOLLARS.

ADMINISTRATIVE CUTS ALONE WILL SAVE THIS STATE OVER $175 MILLION DOLLARS.

THE REMAINING $1.1 BILLION DOLLARS WILL COME BY DOING MORE WITH LESS.

THE KIND OF WASTE I JUST DESCRIBED MAY BE HARD TO FIND, BUT IT’S EASY TO CUT.

BUT MAKING PROGRAMS WORK MORE EFFICIENTLY IS HARDER.

EXTRA OPERATING HOURS, UNDER-UTILIZED RECREATIONAL PROGRAMS,

SEMI-ANNUAL CONVENTIONS, NEW EQUIPMENT, AND TRAVEL ARE THE SORTS OF ITEMS THAT CAN BE CUT FROM A DEPARTMENT’S BUDGET, WITHOUT AFFECTING ITS PROVISION OF SERVICES.

CAN SOMEONE MAKE A COMPELLING ARGUMENT FOR JUST ABOUT EVERY EXISTING PROGRAM?

PERHAPS.

BUT WHEN TIMES ARE THIS HARD YOU HAVE TO MAKE CHOICES. LEADERSHIP IS ALL ABOUT SETTING PRIORITIES.

THE CHOICE I MADE WAS TO PROTECT THE HONEST, HARDWORKING PERSON WHO GOES TO WORK AND PAYS TAXES, TO PROTECT OUR INVESTMENTS IN EDUCATION, HEALTHCARE AND PUBLIC SAFETY, AND TO PROTECT THE CONSUMER.

I’VE DIRECTED EACH AGENCY AND DEPARTMENT, TO CUT ADMINISTRATIVE COSTS BY 10% ON AVERAGE.

IN ADDITION, OPERATIONAL RESERVES WERE REDUCED BY 8%.

GRANTS AND AWARDS WILL BE REDUCED BY 5%, EXCEPT IN THE CRITICAL AREAS OF K-12 EDUCATION, HEALTH CARE, AND PUBLIC SAFETY.

IF YOU TOTAL AGENCY CONSOLIDATIONS, APPROPRIATION REDUCTIONS AND OTHER COST SAVING MEASURES, ALONG WITH SPENDING CUTS, THE TOTAL SAVINGS TO TAXPAYERS IS ONE AND A QUARTER BILLION DOLLARS, FOR THE LATTER HALF OF FISCAL YEAR 2003 AND FOR ALL OF FISCAL YEAR 2004.

LET ME REPEAT —

THIS IS A BUDGET WHERE WE’VE MADE DIFFICULT CHOICES.

THESE CHOICES HAVE ALLOWED US TO BALANCE THE BUDGET.

THE CUTS BY DEPARTMENT ARE AS FOLLOWS:

THE DEPARTMENT OF AGING. $6.24 MILLION DOLLARS IN CUTS.

THIS REFLECTS A REDUCTION IN ADMINISTRATIVE COSTS AND A REDUCTION OF PERSONNEL FROM 126 TO 114 FOR A SAVINGS OF $850,000 DOLLARS.

THE DEPARTMENT WILL CUT $5 MILLION DOLLARS IN GRANTS, DUE TO LOWER THAN PROJECTED CASELOADS IN THE COMMUNITY CARE PROGRAM.

THESE CUTS WILL HELP US COVER THE GROWING COST OF PAYING FOR HOME HEALTHCARE WORKERS AND IT MEANS THAT INSTEAD OF INCREASING BY $13.6 MILLION DOLLARS, THE DEPARTMENT OF AGING’S BUDGET WILL ONLY INCREASE BY

$7.3 MILLION DOLLARS.

THE DEPARTMENT OF AGRICULTURE.

$14.8 MILLION DOLLARS.

ADMINISTRATIVE SPENDING WILL BE REDUCED BY $3.1 MILLION DOLLARS. THESE SAVINGS WILL BE ACHIEVED THROUGH PERSONNEL REDUCTIONS, AND REDUCED SPENDING ON ELECTRONIC DATA PROCESSING AND CONTRACTUAL SERVICES.

AN ADDITIONAL $5.5 MILLION DOLLARS IN GRANTS WILL BE CUT.

THE DEPARTMENT OF CENTRAL MANAGEMENT SERVICES.

$90.2 MILLION DOLLARS.

PERSONNEL WILL BE REDUCED BY 177 POSITIONS, AND NON-CRITICAL REPAIR AND MAINTENANCE PROJECTS WILL BE DELAYED.

UPGRADES AND REPAIRS AT THE THOMPSON CENTER AND BILANDIC BUILDING WILL HAVE TO WAIT — SAVING THE STATE $444,000 DOLLARS IN GENERAL REVENUE FUNDS.

AND CMS’S EFFINGHAM REGIONAL OFFICE WILL NOT GET A NEW ROOF AS SCHEDULED, SAVING A FURTHER $450,000 DOLLARS.

SHOULD IT RAIN IN EFFINGHAM, WE ARE CONFIDENT THE EXISTING ROOF WILL SUFFICE.

CONSOLIDATION OF EDUCATION TECHNOLOGY PROGRAMS TO CMS’S TECHNOLOGY OFFICE, WILL PROVIDE SAVINGS AND THE KNOW HOW, TO MAKE TECHNOLOGY IMPROVEMENTS AT ALL LEVELS OF EDUCATION

THESE CUTS WILL HELP US DEAL WITH THE SKYROCKETING EXPENSE OF PAYING FOR EMPLOYEE HEALTHCARE.

ALTHOUGH THE COSTS OF PROVIDING HEALTHCARE FOR STATE EMPLOYEES IS GOING UP AN ADDITIONAL $385 MILLION DOLLARS, OUR NEGOTIATIORS DROVE DOWN

THE PRICE BY $75 MILLION DOLLARS FROM WHAT THE PREVIOUS ADMINISTRATION HAD EXPECTED TO PAY.

THE DEPARTMENT OF CHILDREN AND FAMILY SERVICES.

$48.9 MILLION DOLLARS.

SAVINGS COME FROM A PERSONNEL REDUCTION OF 253, AND REDUCTIONS IN EQUIPMENT PURCHASES, LEASES, AND GRANTS.

BUT LET ME MAKE THIS CLEAR, WE ARE GOING TO TAKE THE MONEY SAVED BY ELIMINATING INEFFICIENCY, AND SEND IT RIGHT BACK INTO THE AGENCY TO PROTECT THE WELFARE OF OUR CHILDREN.

THE DEPARTMENT OF COMMERCE AND ECONOMIC OPPORTUNITY. $243 MILLION

DOLLARS.

THESE SAVINGS WILL BE ACHIEVED BY REDUCING 28 ADMINISTRATIVE POSITIONS, AS WELL AS MAKING CUTS IN TRAVEL, EQUIPMENT, TELECOMMUNICAITONS, AND DELAYING OR CANCELING PERMANENT IMPROVEMENTS.

TELECOMMUNICATION SAVINGS WILL INCLUDE $40,000 DOLLARS, INCLUDING THE ELIMINATION OF 100 CELL PHONES, AND $100,000 DOLLARS FROM STORING

E-MAIL AND OTHER ELECTRONIC FILES AT CMS.

GRANTS WILL BE CUT BY $241 MILLION DOLLARS.

AND THE DEPARTMENT WILL ALSO MERGE EXISTING WORKFORCE TRAINING PROGRAMS, TO AVOID DUPLICATE SERVICES AND ADMINISTRATION–SAVING THE STATE $16 MILLION DOLLARS.

THE DEPARTMENT OF CORRECTIONS.

$69.7 MILLION DOLLARS IN REDUCTIONS.

ADMINISTRATIVE SPENDING WILL BE STREAMLINED BY ELIMINATING FIVE LAYERS OF BUREAUCRACY.

WE WILL HAVE CUT THE BUREAUCRACY BY 1,273 POSITIONS SINCE THE BEGINNING OF FISCAL YEAR 2003, AND SAVE $64 MILLION DOLLARS. CORRECTIONS WILL ALSO SUSPEND THE CONSTRUCTION OF PRISONS IN HOPKINS PARK, SAVING

$76.3 MILLION DOLLARS. AND WE WILL NOT OPEN THREE OTHER PRISONS.

IN FACT, WE ARE IN THE MIDDLE OF NEGOTIATIONS THAT WOULD RENT THEM TO THE FEDERAL GOVERNMENT.

AND OF COURSE, WE’RE GETTING RID OF THAT PLANE.

THE MONEY WE SAVE HERE, WILL BE REINVESTED TO HELP PAY FOR NEW MEASURES TO KEEP THE PEOPLE SAFE. THIS INCLUDES REOPENING SHERIDAN PRISON AS A NATIONAL MODEL DRUG OFFENDER CENTER, AND LAUNCHING OPERATION SPOTLIGHT TO KEEP AN EYE ON REPEAT OFFENDERS.

THE DEPARTMENT OF FINANCIAL INSTITUTIONS.

$1.7 MILLION DOLLARS.

ADMINISTRATIVE SPENDING WILL BE CUT BY $741,000 DOLLARS, THROUGH HEADCOUNT REDUCTIONS FROM EARLY RETIREMENTS AND THE HIRING FREEZE, AS WELL AS CUTS IN CONTRACTS, COMMODITIES, PRINTING, EQUIPMENT AND ELECTRONIC DATA PROCESSING.

THE DEPARTMENT OF HUMAN RIGHTS.

$941,400 DOLLARS, REFLECTING A REDUCTION OF $619,000 DOLLARS IN ADMINISTRATIVE COSTS THAT INCLUDES A REDUCTION IN PERSONNEL.

THE DEPARTMENT HAS ALSO ELIMINATED ITS PRESS OFFICE.

THE DEPARTMENT OF HUMAN SERVICES.

$73.6 MILLION DOLLARS.

ADMINISTRATIVE CUTS TOTAL $36.4 MILLION DOLLARS, INCLUDING SIGNIFICANT REDUCTIONS IN PERSONNEL.

ADDITIONAL CUTS INCLUDE $9.1 MILLION DOLLARS IN OPERATIONS FOR EQUIPMENT, CONTRACTUAL SERVICES, TELECOMMUNICATIONS, AND TRAVEL.

$16.7 MILLION DOLLARS WILL BE CUT BY ELIMINATING EXCESS BED CAPACITY.

CUTTING THOSE 120 BEDS WILL REDUCE DESIRED FLEXIBILITY, BUT WILL NOT AFFECT THE DELIVERY OF HEALTH SERVICES, AS THE AGENCY WILL CONTINUE TO MAINTAIN THE REQUIRED 2.4 RESIDENT TO STAFF RATIO.

HUMAN SERVICES HAS 216 LOCAL OFFICES AND WAREHOUSE LEASES. 216!

WE’RE CANCELING AND CONSOLIDATING 42 OF THEM, SAVING

$5.4 MILLION DOLLARS IN LEASES AND UTILITIES ALONE.

IN ONE INSTANCE, HUMAN SERVICES HAD THREE OFFICES LESS THAN HALF A MILE FROM COMISKEY – WELL, ACTUALLY, IT’S CELLULAR – AH, COMSIKEY PARK. THOSE THREE OFFICES WERE CONSOLIDATED INTO ONE.

DEPARTMENT OF INSURANCE.

$4 MILLION DOLLARS.

IN ADDITION TO PERSONNEL REDUCTIONS, THE AGENCY WILL REDUCE SPENDING FOR TRAVEL, EQUIPMENT PURCHASES AND CONTRACTUAL SERVICES.

DEPARTMENT OF LABOR.

$1.1 MILLION DOLLARS.

A SIGNIFICANT PORTION OF CUTS WILL RESULT FROM PERSONNEL REDUCTION.

DEPARTMENT OF MILITARY AFFAIRS.

$2.4 MILLION DOLLARS IN REDUCTIONS.

THESE CUTS RESULT FROM LIMITING OR ELIMINATING SPENDING ON EQUIPMENT, PRINTING AND ELECTRONIC DATA PROCESSING PURCHASES.

ALSO, THE DEPARTMENT WILL PUT MORE OF AN EMPHASIS ON REPAIRING EQUIPMENT INSTEAD OF PURCHASING IT NEW.

HOWEVER, IN ORDER TO PROVIDE ECONOMIC RELIEF TO THE FAMILIES OF OUR SOLDIERS, CALLED UP TO ACTIVE DUTY IN IRAQ, THE DEPARTMENT’S OVERALL BUDGET HAS INCREASED BY A TOTAL OF $8.7 MILLION DOLLARS. $5 MILLION DOLLARS OF WHICH IS BEING DEDICATED TO THE FAMILIES OF ILLINOIS RESIDENTS NOW ON ACTIVE DUTY.

NEXT YEAR’S TAX FORMS INCLUDE A CHECK-OFF BOX TO HELP THE FAMILIES OF OUR SOLDIERS.

WE ALL KNOW ABOUT THE RISKS THEY’RE TAKING AND THE SACRIFICES THEY’RE MAKING TO SERVE OUR NATION IN A TIME OF WAR.

IF WE CAN MAKE THEIR LIVES A LITTLE EASIER, IF WE CAN HELP PUT THEIR MINDS AT EASE, AS CITIZENS, IT IS OUR DUTY TO DO SO. WHEN YOU FILL OUT YOUR TAX FORMS NEXT YEAR, PLEASE KEEP OUR SOLDIERS IN MIND.

DEPARTMENT OF NATURAL RESOURCES.

$204 MILLION DOLLARS.

THIS WILL INCLUDE CUTS OF $10.2 MILLION DOLLARS IN ADMINISTRATIVE COSTS AND A PERSONNEL REDUCTION OF 126, REDUCTIONS OF $9 MILLION DOLLARS IN GRANTS, AND $6 MILLION DOLLARS IN WATERWAY IMPROVEMENTS.

DEPARTMENT OF PROFESSIONAL REGULATION.

$3.6 MILLION DOLLARS.

THE DEPARTMENT WILL ELIMINATE 26 POSITIONS AS WELL AS CANCEL ITS ACCESS TO ONLINE LAW BOOKS.

DEPARTMENT OF PUBLIC AID.

$49.2 MILLION DOLLARS IN CUTS.

THE DEPARTMENT OF PUBLIC AID’S BUDGET REFLECTS OPERATIONAL CUTS INCLUDING REDUCING PERSONNEL FROM 2,794 TO 2,521. THIS WILL SAVE $29.1 MILLION DOLLARS.

THE DEPARTMENT WILL ALSO CLOSE AND CONSOLIDATE SIX OFFICES WHICH WILL SAVE $1.2 MILLION DOLLARS.

BECAUSE OF MEDICAID –, PUBLIC AID SPENDING WILL INCREASE BY $689 MILLION DOLLARS. ALTHOUGH THIS IS A HUGE JUMP, IT REPRESENTS THE FIRST HONEST ACCOUNTING OF MEDICAID SPENDING IN YEARS.

THE INCREASE WILL ALLOW US TO FINALLY BEGIN PAYING HOSPITALS AND NURSING HOMES, WITHIN 60 DAYS OR LESS.

IF THE STATE EXPECTS A SERVICE TO BE PROVIDED, WE SHOULD PAY FOR IT WITHIN A REASONABLE AMOUNT OF TIME.

AND YOU SHOULD NOTE; — WE ARE ALSO NOT CUTTING PAYMENT RATES FOR HOSPITALS, NURSING HOMES OR MEDICAL PROVIDERS. THE HEALTH OF OUR CITIZENS AND THE HEALTH OF THE FACILITIES THAT SERVE THEM IS TOO IMPORTANT TO JEOPARDIZE.

DEPARTMENT OF PUBLIC HEALTH.

$24 MILLION DOLLARS.

MUCH OF THAT COMES FROM A PERSONNEL REDUCTION OF 114 — A SAVINGS

$2 MILLION DOLLARS.

THE DEPARTMENT OF REVENUE:

$120 MILLION DOLLARS.

MUCH OF THAT AMOUNT, $103 MILLION DOLLARS, IS IN GRANT REDUCTIONS.

THE DEPARTMENT OF THE LOTTERY, THE ILLINOIS RACING BOARD, AND THE LIQUOR CONTROL COMMISSION, WILL BE CONSOLIDATED WITH THE DEPARTMENT OF REVENUE SAVING AN ADDITIONAL $2.1 MILLION DOLLARS.

STATE POLICE:

$39.1 MILLION DOLLARS WILL BE SAVED AND REINVESTED IN PUBLIC SAFETY.

$8.4 MILLION DOLLARS OF THOSE CUTS WILL BE ACHIEVED THROUGH EARLY-RETIREMENT AND A TOTAL PERSONNEL REDUCTION OF 206.

WE WILL ALSO SAVE OVER $20 MILLION DOLLARS BY FOREGOING NEW PURCHASES THAT AREN’T ESSENTIAL.

THESE REDUCTIONS WILL NOT IMPACT PUBLIC SAFETY. THEY WILL NOT REDUCE PATROLS ON OUR HIGHWAYS OR OUR STREETS.

THESE REDUCTIONS WILL BALANCE OUT THE COST OF MORE AGGRESSIVE CRIME FIGHTING INITIATIVES, INCLUDING OUR NEW CRACKDOWN ON CLUB DRUGS, LIKE ECSTASY.

DEPARTMENT OF TRANSPORTATION — $484.5 MILLION DOLLARS.

SPENDING REDUCTIONS INCLUDE NOT REPLACING 115 EARLY RETIREMENT POSITIONS IN ADMINISTRATION AND PERSONNEL.

THERE WILL ALSO BE A REDUCTION OF 624 POSITIONS, THROUGH REORGANIZATION AND REALLOCATION OF EXISTING STAFF.

THERE WILL BE NO LAYOFFS OF CURRENT EMPLOYEES. NO PROJECTS WILL BE CANCELED FROM THE ROAD PROGRAM. HOWEVER, THERE WILL BE DEPARTMENT OF VETERANS’ AFFAIRS.

$6.1 MILLION DOLLARS IN CUTS.

$1.2 MILLION DOLLARS IN SAVINGS WILL BE ACHIEVED BY REDUCING STAFFING LEVELS, AND CUTTING OTHER EXPENSES.

BUT LET ME MAKE THIS

CLEAR —-

WE ARE NOT CUTTING ANY PROGRAMS OUR VETERANS RELY UPON. WE WILL NOT TURN OUR BACKS ON THE PEOPLE WHO HAVE RISKED THEIR LIVES TO DEFEND OURS.

THE OFFICE OF BANKS AND REAL ESTATE.

$6.3 MILLION DOLLARS.

ADMINISTRATIVE SPENDING WILL BE REDUCED BY $2.4 MILLION DOLLARS.

THIS WILL BE ACHIEVED THROUGH A PERSONNEL REDUCTION OF 18 POSITIONS –

SUBSTANTIALLY REDUCED TRAVEL EXPENDITURES -AND CUTBACKS IN EQUIPMENT, ELECTRONIC DATA PROCESSING, AND CONTRACTUAL SERVICES.

THE OFFICE WILL ALSO DOWNSIZE THE FINANCIAL LITERACY PROJECT.

HISTORIC PRESERVATION. $4.1 MILLION DOLLARS IN CUTS.

SAVINGS COME FROM ADMINISTRATIVE REDUCTIONS. NO HISTORIC SITES WILL BE CLOSED.

FUNDING FOR THE LINCOLN LIBRARY WILL REMAIN AT LAST YEAR’S LEVEL, BUT IT WILL NO LONGER BE CONSUMED WITH SALARIES.

THE FACT THAT THE LINCOLN LIBRARY HAS BEEN SEEN AS A PLAYGROUND FOR PATRONAGE IS SIMPLY UNACCEPTABLE. EVERY PENNY SHOULD BE USED TO PROMOTE AND ENHANCE ABRAHAM LINCOLN’S LEGACY.

HE IS ILLINOIS’ GIFT TO THE WORLD AND THE THIS PRESIDENTIAL LIBRARY SHOULD EMBODY ALL HE STOOD FOR.

ENVIRONMENTAL PROTECTION.

$37.4 MILLION DOLLARS.

THIS AGENCY WILL NOW COVER ITS OWN COSTS.

FEES – PERMITS – AND PENALTIES — WILL FUND THE EXPENSE OF CLEANING UP AFTER POLLUTERS.

THE OFFICE OF THE STATE FIRE MARSHAL.

$3.1 MILLION DOLLARS.

THESE SAVINGS WILL BE ACHIEVED IN LARGE PART BY REDUCING ADMINSTRATIVE PERSONNEL BY 19.

THE DEPARTMENT OF NUCLEAR SAFETY.

$4.2 MILLION DOLLARS.

WHEN THE DEPARTMENT IS CONSOLIDATED INTO THE ILLINOIS EMERGENCY MANAGEMENT AGENCY – WE’LL SAVE EVEN MORE.

ILLINOIS EMERGENCY MANAGEMENT AGENCY.

$1.4 MILLION DOLLARS IN CUTS.

THAT MONEY WILL BE REINVESTED – INTO A NEW PROGRAM TO PROVIDE STATE-OF-THE-ART PROTECTION EQUIPMENT – TO OUR FIRST RESPONDERS.

THE DEPARTMENT OF EMPLOYMENT SECURITY BUDGET WILL REMAIN AT LAST YEAR’S LEVEL, BUT ITS WORKFORCE DEVELOPMENT PROGRAMS WILL BE TRANSFERRED TO THE DEPARTMENT OF COMMERCE AND ECONOMIC OPPORTUNITY.

THE CAPITAL DEVELOPMENT BOARD. $246 MILLION DOLLARS.

THE MAJORITY OF THESE CUTS COME FROM THE SUSPENSION OF THE CAPITAL PROGRAM FOR STATE FACILITIES. AND MOVING CAPITAL PLANNING RESPONSIBILITIES TO THE BUDGET OFFICE.

THE ILLINOIS COMMERCE COMMISSION — $11.7 MILLION DOLLARS — MAINLY IN ADMINISTRATIVE CUTS.

THE ILLINOIS ARTS COUNCIL: $1.9 MILLION DOLLARS

MCPIER: $5 MILLION DOLLARS.

THIS IS A CUT IN THE SUBSIDY GIVEN BY THE STATE TO MCPIER – EVERY YEAR. THESE FUNDS ARE GENERALLY USED TO COVER MCPIER’S UTILITY COSTS.

IT’S NOT A CUT WE’D LIKE TO MAKE – BUT IN THESE DIFFICULT TIMES -IT’S A CUT WE HAVE TO MAKE.

I COULD GO ON –AGENCY BY AGENCY – FUNCTION BY FUNCTION –

BUT I PROMISED I’D CUT WASTE, SO I WON’T WASTE YOUR TIME.

THE REST OF THE BOARDS AND AGENCIES WILL BE CUT $7.3 MILLION DOLLARS – AND ALL OF THE SPECIFIC CUTS ARE AVAILABLE IN OUR BUDGET BOOKS.

AS YOU CAN SEE –MANY DEPARTMENTS HAVE FOUND THAT ONE OF THE BEST WAYS TO DO MORE WITH LESS – IS TO REDUCE STAFFING LEVELS.

A DEPARTMENT THAT GETS THE JOB DONE WITH FEWER PEOPLE – IS A MORE PRODUCTIVE DEPARTMENT – AND OPERATES MORE LIKE A BUSINESS.

IN THE PREVIOUS ADMINISTRATION, IT TOOK 69,000 EMPLOYEES TO SERVE THE PEOPLE. IN FISCAL YEAR ’04 — WE’LL DO A BETTER JOB WITH 63,000 – THAT’S 6,000 FEWER-AND THE LOWEST HEAD COUNT IN STATE GOVERNMENT SINCE 1991.

LESS GOVERNMENT-MORE SERVICE.

WE ARE SEIZING THE OPPORTUNITY PRESENTED BY ATTRITION AND EARLY RETIREMENT.

THE PREVIOUS ADMINISTRATION HAD PLANNED TO REPLACE HALF OF THOSE EMPLOYEES. WE BELIEVE WE CAN DO BETTER.

OF POSITIONS LEFT OPEN DUE TO EARLY RETIREMENTS – STATE EXECUTIVE AGENCIES WILL LIMIT THEMSELVES TO REHIRING ONLY 29% IF THE SALARIES ARE PAID OUT OF THE GENERAL REVENUE FUND – AND 32% OVERALL.

FRONT-LINE EMPLOYEES – THOSE WHO WORK DIRECTLY WITH THE PUBLIC -WILL BE REPLACED IF THEY RETIRE.

BUT IF WE OTHERWISE REPLACE JUST ONE IN THREE OF THOSE NON-FRONTLINE EMPLOYEES – WE CAN SAVE ALMOST $60 MILLION DOLLARS THIS YEAR ALONE.

SEVERAL SMALLER STATE AGENCIES WILL NOW SHARE STAFF AND OFFICE SPACE – IN BOTH SPRINGFIELD AND CHICAGO.

THESE NEW SHARED SERVICE CENTERS WILL LET EIGHT DIFFERENT AGENCIES –

GET BY WITH: ONE FAX -ONE COPIER – AND A WHOLE LOT LESS THAN BEFORE.

THIS IS WHAT IT MEANS TO DO MORE WITH LESS.

SPEAKING OF DOING MORE WITH LESS — ON THE SUBJECT OF BOARDS AND COMMISSIONS — THIS IS CERTAINLY ONE AREA THE PUBLIC WOULD LIKE TO DO MORE WITH – AND SEE LESS OF.

ON FEBRUARY 27 -I ANNOUNCED THAT I WOULD STREAMLINE THE NUMBER OF THE STATE’S BOARDS AND COMMISSIONS – CUTTING BACK THEIR SPENDING BY 60%.

LESS MEANS FEWER MEMBERS – FEWER DOLLARS – AND A LOT MORE ACCOUNTABILITY.