CHICAGO – Illinois is losing budget director Tim Nuding.
The news of Nuding's departure came in a series of staff changes Gov. Bruce Rauner announced Friday.
"Tim Nuding, director of the Governor's Office of Management and Budget, will be transitioning out of state government after a 27 year career in public service to pursue other opportunities," the statement said. GOMB chief of staff Scott Harry was named the new director of the GOMB.
"Harry has served as GOMB's chief of staff since January 2015. He has 27 years of public service experience working for the state of Illinois with responsibilities in budgeting, financial management and grant accountability," the statement said.
Rauner tapped Nuding as his top fiscal chief before taking office in January 2015. Nuding is well known and respected in Springfield, having worked for the Senate Republican staff for 25 years, with the first 16 years spent working on state fiscal issues through the Senate Appropriations Committee, both as a budget analyst and as the director of the Senate Appropriations staff. He later served as chief of staff to Senate Minority Leader Christine Radogno.
"Tim's experience working in the legislature has given him a unique perspective and understanding of the budget problems facing Illinois," Rauner said at the time.
The change comes with the state government set to enter the New Year amid an 18-month-old budget impasse that has seen just piecemeal spending approved in addition to spending that continues under continuing appropriations – such as general obligation bond payments – or due to court orders or consent decrees.
The gridlock between the first-term Republican governor and the Democrat-controlled General Assembly over tax and spending and Rauner's policy agenda has driven the state's GO ratings down to the lowest among states, in the triple-B category.
Further deterioration is threatened unless leaders resolve their differences and adopt a budget that moves the state toward structural balance and tackles a massive unpaid bill backlog. The state comptroller's office reported the backlog at $10.99 billion on Friday.
The state's stopgap budget approved in June is set to expire with the New Year. That will leave cash-strapped universities and human services providers without funding. Kindergarten through 12th grade is funded through the fiscal year that ends June 30 as is transportation related spending.
"To stabilize the rating, the state will need to address the fiscal 2017 budget following the election in November or at the latest during a January legislative session," Fitch Ratings wrote in a recent report. It rates the state BBB-plus and has the rating on negative watch. "Failure to do so would result in a rating downgrade."
The stopgap plan was designed to get the state past the November election, making it easier for politicians to pass pension reforms and tax increases to help tackle a $5.3 billion budget gap and bill backlog. Tensions over the budget impasse intensified during the fall veto session and no progress was made on a long term budget.
Lawmakers are scheduled to return Jan. 9, two days before the new legislature selected in November's election is convened, but it's unclear what will be voted on aside from pension legislation for Chicago which was approved by the House during the veto session but not the Senate.
Rauner has tied various policy and governance reforms to passage of a budget that probably would include an income tax hike and possibly other new revenues as well as cuts. He said he could agree to another stopgap plan if Democrats agree to term limit legislation as well as a permanent property tax freeze. He recently said worker's compensation changes are a top priority for any budget agreement.
