CHICAGO - Illinois Gov. Bruce Rauner is defending his plan to pay fiscal aide Donna Arduin $120,000 for four months under a non-competitively bid contract, saying his new chief financial officer is well worth the expense to help fix the state's fiscal mess.
"She's a brilliant lady who's done financial turnarounds at a number of states," Rauner said Sunday during a public appearance. "She's the smartest state government budget person in America that I was able to find and she's well worth it, because she's going to save us billions."
The quote was broadcast by a local National Public Radio station.
Soon after taking office last month, Rauner announced his hiring of Arduin to the newly created post of chief financial officer. His aides have not responded to questions on why the new position is needed, its salary, and whether the position will be permanent.
The state's top budget official is Tim Nuding, director of the Governor's Office of Management and Budget.
Late last week, the state's procurement division issued a preliminary contract
The services being sought include "advice to the governor, GOMB, and the state to address the needs of the FY15 and FY16 state budget, to prepare the FY 16 budget and assist on such other budget and fiscal matters as GOMB may require," according to the notice.
The fee: $30,000 per month for a total of $120,000. That would translate into a $360,000 annually if the contract were continued.
The notice reports that the state's budget situation is "one of the most dire in America and the state requires the assistance of a preeminent governmental budgetary expert to assist the governor, GOMB and agencies under the governor to develop and implement governor initiatives and ongoing fiscal management of many complex issues and areas such as healthcare, human services, public safety and regulation."
In response to a question on the notice asking what unique features of the firm's services may not have been offered by other potential vendors, the notice reads: "Although there may be other budget experts, Arduin Associates has been highly recommended to the governor by other present and former governors of other states."
The notice reports that a non-competitive contract was sought because "time is of the essence."
The state is grappling with a roughly $1.4 billion gap in the current budget that runs through June 30 and the state faces a $3 billion drop in revenue in the next fiscal year due to the partial expiration last month of a 2011 income tax hike. Rauner must release the fiscal 2016 budget by Feb. 18.
The state is the weakest rated among its counterparts at the A-minus level with negative outlooks across the board due to budget and pension pressures with a $4 billion bill backlog that is expected to skyrocket in the coming years.
Rauner had hired another Arduin firm, Arduin, of Arduin Laffer & Moore Econometrics, to advise his transition team on budget issues.
Arduin held top budget and finance positions for Republican state administrations in California, Florida, and New York. Her penchant for budget cutting and recommendations to lower taxes in advice to previous governors has led to concerns that Rauner will cut deeply into services.
