Illinois Comptroller Dan Hynes in a speech last week indicated that a lack of political leadership and Gov. Rod Blagojevich’s management style, not the state’s fiscal profile, were to blame for the state’s budget mess.
“Our problem isn’t really a financial deficit. It’s a leadership deficit, and that’s what must change,” Hynes said in an address sponsored by the Paul Simon Public Policy Institute at Southern Illinois University, the Center for Tax and Budget Accountability, and the Donors Forum. “Leadership starts at the top. The governor should be bringing people together to solve the challenges we face. Instead, he continues to pull people apart.”
Hynes said the governor has failed to lead the state in three central areas: being present to guide the budgeting process, managing in a fair and principled manner, and respecting the existing process.
“The economy is slowing,” the comptroller said. “Our revenues are disappearing. The deficit is worsening. Our infrastructure is crumbling. Our backlogs are growing. And our hospitals are closing. And, all the while, our governor, he’s hiding. People say they want to recall the governor. I say you’d need to find him first.”
Hynes accused Blagojevich of contradicting himself, pushing for expanded health care funding and education, but then delaying payments to hospitals. He said the governor has also failed to work with the General Assembly on significant funding and policy issues. “Being principled means being consistent, being honest, and it means being fair,” Hynes said.
Illinois lawmakers have yet to pass an operating budget for fiscal 2009, which begins July 1. Many are opposed to key measures proposed by the governor in his $59 billion plan, and Blagojevich and lawmakers have also yet to settle differences over how to fund a $25 billion capital budget.
Meanwhile, the state faces a $750 million deficit in the current budget, a $42 billion unfunded pension liability, a $24 billion unfunded liability for other post-employment benefits, and an increasing delay in its payment of Medicaid bills.
Fitch Ratings recently affirmed Illinois’ AA credit with a negative outlook, while Moody’s Investors Service affirmed its Aa3 rating with a stable outlook. Standard & Poor’s affirmed its AA with a stable outlook. The state carries nearly $19.4 billion of outstanding GO debt.
The governor’s office did not return calls to comment.
