Tight budget painful to cities, workers, poor

SPRINGFIELD, Ill. -- Gov. George Ryan delivered a message of fiscal pain Wednesday for state employees, nursing homes and even some Illinois cities.

His $52.8 billion budget proposal generated fear and anger among influential interest groups, but the lawmakers who must vote on his spending plan seemed open to the idea of cutting back. Still, some talked about limiting the pain.

In a dramatic turnaround from the Republican governor's first three budgets, which combined tax cuts with new programs and construction, Ryan said he would have to lay off thousands of state workers and make cuts that might hurt small cities, the poor and the mentally ill.

Aside from a cry of "No!" from the House floor as Ryan announced he would close a Southern Illinois prison, lawmakers who must wrestle with the largely maintenance budget grimly discussed making it work.

"It is not going to be pleasant," said Rep. Dan Rutherford, R-Pontiac. "What we have to do is be good public servants and come to an agreement that does not raise taxes and give the best possible state services we can."

5,000 jobs to go

Facing declining state revenues and increasing expenses, Ryan called for cutting spending by $295 million. He said the state would have to lay off about 3,000 people and lose another 800 jobs through attrition. Ultimately, early retirement offers could bring the total reduction to about 5,000.

The spending plan would close two prisons, keep a new one in mothballs, shut the doors of one mental health center and shrink two others.

It would slice almost $530 million in payments to nursing homes, doctors and pharmacies that care for Medicaid patients, on top of cuts announced last fall. Those health care providers might choose to stop accepting poor patients rather than face losing more money on every case.

The job cuts are the most glaring change compared with Ryan's first three budgets, which were flush with cash.

"Lowering the spending base cannot be done without pain," Ryan said while announcing the job cuts.

"I don't like saying that. I don't like doing that. But I will do that to ensure the fiscal stability of this state."

Ryan maintains that a weak economy will produce less than $500 million in new state money in the budget year that begins July 1, leaving him no choice but to make cuts.

Not everyone believe layoffs are inevitable.

The American Federation of State, County and Municipal Employees, the largest union of state workers, has bucked Ryan's suggestion that it accept a wage freeze or discuss contract givebacks.

In his speech, Ryan criticized "union leadership that would rather see their members laid off than consider temporary contract changes." Henry Bayer, executive director of AFSCME, defended his organization's attempts to work with Ryan.

"We understand that the budget has to be balanced. We reject his notion that it has to be balanced on the backs of our members," Bayer said. "I don't think that there are many citizens in the state who think, 'Well, gee, we shouldn't tax the profits of the casinos, we should cut back on mental health services."'

Almost 1,000 jobs would be lost by closing prisons in Vienna and St. Charles, indefinitely delaying the opening of one at Thomson, closing a Peoria mental health center and shrinking the size of facilities treating the mentally ill and developmentally disabled in Rockford and Elgin.

Residents would be transferred to other facilities or moved to local group homes.