SPRINGFIELD, Ill. — June 1 came and went with Illinois lawmakers once again failing to enact a year-long budget in their third consecutive session, leaving ag leaders wondering just how significant the impact will be on agriculture throughout the state.

 

Gov. Bruce Rauner last week called on lawmakers to come back for a 10-day special session starting June 21, through June 30, if necessary, so they could enact a spending plan before the state’s next fiscal year begins on July 1.

Reasons for the budget logjam have been tied to a number of issues, but the common belief is the firstterm Republican governor and GOP members and longtime House Speaker Michael Madigan and his Democratic majority can’t see eye-to-eye on how much taxes ought to be raised, how much spending should be cut and what other reform measures Rauner seeks should play into budget negotiations.

It has left ag leaders frustrated, in large part because a share of state funding each year goes toward dozens of programs and policies that support the industry, including university funding, conservation work, state and county fair funding and general Illinois Department of Agriculture (IDOA) expenses.

On average, Illinois in recent years has spent about $33 billion annually.

As of last week, according to Comptroller Susana Mendoza, the state has a backlog of bills that total about $14.92 billion. State pension funds also remain grossly underfunded.

Illinois Farm Bureau President Richard Guebert Jr., asked shortly after the session adjourned whether lawmakers should return in a special session to pass a budget before July 1, put his reply succinctly: “The answer must be yes.

“Ag education, University of Illinois extension, the Illinois Department of Agriculture and Soil and Water Conservation Districts face continuing pressure to reduce, suspend or eliminate programs,” Guebert noted.

Less than 24 hours after state lawmakers failed to pass a budget, Standard & Poor’s dropped the state’s credit rating to one step above junk status, to BBB-minus. It was the seventh credit rating drop since January 2015, said S&P analyst Gabriel Petek.

“The rating actions largely reflect the severe deterioration of Illinois’ fiscal condition, a byproduct of its stalemated budget negotiations,” Petek said, describing the circumstances under the Capitol dome as “unrelenting political brinkmanship” that poses a serious threat to core state priorities and services.

University funding has been slashed; roughly 1,500 public university positions have been cut and/or remain unfilled since the state’s fiscal stalemate. Dozens of social service agencies have shut the doors or are getting ready to do so without continued state assistance.

During a legislative roundtable discussion earlier this month in Bloomington, IDOA Director Raymond Poe recalled his years as a state representative and was reminded of the phrase “kicking the can down the road.”

He said it echoes today’s sentiment, with all lawmakers failing to agree and compromise.

“That’s what is happening again this year. We do need to have a balanced budget,” Poe said.

The Senate already has passed a package of bills that call for higher income taxes on individuals and corporations, along with expanded sales taxes on a variety of services such as satellite feeds and dry-cleaning, along with casino expansion. Madigan never called the bills in the House because he didn’t believe there was enough support for the measures.

Now, since the regular session has ended, it will take a three-fifths majority in the House, rather than a simple majority, to pass any tax hike legislation.