“… You’re about to hear the details, so I hope you’re all sitting down,” said Gov. Rod Blagojevich beginning his budget address Wednesday.

The state is facing a budget deficit of $5 billion for Fiscal Year 2004.

The governor accredited the deficit as the largest in state history, blaming it on structural challenges like in Medicaid, the economy’s tax structure and a failure of the state to react in the progressing economic downturn.

Blagojevich presented a balanced budget, saying “we must not sacrifice our commitment to educating our children, to providing health care for those who need it and to keep the public safe.”

However, a low “sacrifice” in education only applies to kindergarten through 12th-grade.

Higher education will face over $112 million in recommended cuts.

Private colleges and universities will save the state $21 million because of proposed elimination of enrollment-based subsidies.

“We have been able to identify savings that will not impact what happens inside the classroom.”

Blagojevich announced a plan to not cut financial aid and keep the Monetary Award Program at $336 million.

Tuition costs at Illinois universities increased by 10.7 percent last year.

The governor proposed a freshman tuition increase of 5 percent, and said the freshman rate should be the cost students pay until their senior year.

Eastern’s interim President Lou Hencken said that type of tuition increase would be detrimental.

“Tough times require tough choices,” Blagojevich said. “It’s a deficit made worse by mismanagement, by shady accounting, by rampant overspending.”

The breakdown

Many hits to state departments were administrative, to other personnel and office supply cuts.

With agency consolidations, appropriation reductions and spending cuts, “the total savings to taxpayers is $1.25 billion for the later half of Fiscal Year 2003 and for all Fiscal Year 2004,” Blagojevich said.

The governor listed the departmental cuts:

-The Department of Aging will have recommended cuts of $6.24 million.

-The Department of Agriculture could be cut by $14.8 million.

-The Department of Central Management Services: $90.2 million. The department’s Effingham office will not get a new roof, saving $450,000.

“Should it rain in Effingham, we are confident the existing roof will suffice,” Blagojevich said.

-The Department of Children and Family Services: $48.9 million. “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.

-The Department of Corrections: $69.7 million.

-The Department of Financial Institutions: $1.7 million.

-The Department of Human Rights: $941,400.

-The Department of Human Services: $73.6 million.

-The Department of Insurance: $4 million.

-The Department of Labor: $1.1 million.

-The Department of Military Affairs: $2.4 million. However, the department’s overall budget has increased by $8.7 million, $5 million going to state residents who have family on active duty.

-The Department of Natural Resources: $204 million.

-The Department of Professional Regulation: $3.6 million.

-The Department of Public Aid: $49.2 million.

-The Department of Public Health: $24 million, much of it from a reduction of 114 personnel.

-The Department of Revenue: $120 million. The Illinois Racing Board, Department of the Lottery and Liquor Control Commission will be consolidated into the Department of Revenue, saving $2.1 million.

-State police will see $39.1 million saved and reinvested in public safety with $8.4 million in retirement and personnel cuts.

-The Department of Transportation: $484 million.

-The Department of Veterans’ Affairs: $6.1 million.

-The Office of Banks and Real Estate: $6.3 million.

uHistoric preservation will be cut $4.1 million without any planned closing of historical sites.

-Environmental protection: $37.4 million.

-The Office of the State Fire Marshal: $3.1 million.

-The Department of Nuclear Safety: $4.2 million.

-The Illinois Emergency Management Agency: $1.4 million.

-The Capital Development Board: $246 million. The cuts come from suspending the capital program for state facilities and moving capital planning duties to the budget office.

-The Illinois Commerce Commission: $11.7 million.

-The Illinois Arts Council: $1.9 million.

The rest of the agencies will be cut $7.3 million, with an additional $5 million loss for MCPIER.

The next step:

“There’s an old saying: When times are hard, you drink beer, not champagne,” Blagojevich said.

The legislature now has until the constitutional date of May 31 to approve the budget.

“I’ve laid out my spending priorities loud and clear: education, health care and public safety.”

The governor said the Bureau of the Budget’s name will be changed to the Governor’s Office of Management and Budget.

Blagojevich said his office cut expenditures by 15 percent, saying “… we have to lead by example.”