Cuts, closures loom without income tax extension
Devastating cuts and facility closures are on the way unless legislators take action soon to make the temporary income tax increase permanent.
Even though many state services have already been cut to the bone, many lawmakers are hedging on whether they will vote to extend the income tax rates enacted in 2011. If the tax rates are not extended by May 31, the state will face a $2 billion shortfall in the FY 15 budget that would require deep cuts, including possible facility closures as well as thousands of layoffs. While layoffs would be concentrated in state government, they would also likely ripple out to state universities, local governments and nonprofit agencies.
Call or e-mail your legislators TODAY and tell them to extend current income tax rates so we can preserve vital services, address our state’s needs and protect good jobs.
You can reach lawmakers toll-free by calling the
AFSCME hotline at (888) 912-5959.
Click here to e-mail your lawmakers.
Today Democrats in the House strongly rejected a budget based on the rollback of the income tax rates. Now they need to do what’s required to fund a budget that will ensure the state can meet the needs of its citizens: Cast an affirmative vote to extend the tax rates currently in place.
Earlier this year Governor Pat Quinn submitted two budget plans for FY 15 to the General Assembly. His recommended budget was based on extending the income tax rates now in place and maintained, or even increased, education, public safety and other vital services. He also submitted a budget that made clear the kind of devastating cuts that would result if the tax increase is not extended.
If current income tax rates are not extended, the impact would be catastrophic for the people of Illinois and public employees. State government – along with municipalities, universities, school districts and human services providers that depend on state funding – will tumble over a billion-dollar fiscal cliff of nightmarish cuts, closures and layoffs.
STATE EMPLOYEES
For state government, the Governor’s recommended budget – contingent on adequate revenue – would take steps to reverse years of cuts that have left state agencies critically short of staff and state employees struggling to do their jobs. Some 1,400 new frontline employees would be hired across state government, with DOC, DHS, DPH, DNR and DJJ getting badly needed help. And two major correctional facilities would be reopened – the former Illinois Youth Center at Joliet as a DOC facility for inmates with mental illnesses, and IYC-Murphysboro as a DOC facility for DWI offenders.
But a bad budget – the looming consequence of the fiscal cliff – would result in nearly 6,900 layoffs among state employees, including in DHS, DOC, DCFS, DJJ, state police, vets affairs, revenue and more.
Unfortunately, both budget plans assume that DHS will keep trying to close Murray Developmental Center. The union and families of Murray residents are fighting to keep it open.
UNIVERSITIES
If no action is taken on revenue and the “cuts” budget is passed, every Illinois public university would see its state funding slashed by 14 percent across the board, a cut of $153 million in all.
Reductions of this magnitude would undoubtedly force the layoff of university employees, along with further increases in tuition costs for students.
The “good” budget would maintain university funding and prevent cuts, but depends on state lawmakers taking action to preserve adequate revenue.
LOCAL GOVERNMENTS AND SCHOOL DISTRICTS
It’s a similar story for the possible scenarios facing Illinois cities, counties and school districts that employ AFSCME members.
A budget based on stable revenue at or above current levels would allow the state to maintain grants provided by DHS, DPH, DCEO and other agencies to municipalities to support programs administered at the municipal level.
But that funding – along with state support for K-12 education – would be slashed if no action is taken to replace current tax revenues. Reduced services, layoffs and pressure to raise local property taxes would likely follow in the tide of red ink.
DIRECT CARE WORKERS FOR PEOPLE WITH DEVELOPMENTAL DISABILITIES
In a big victory for our union – and for The Care Campaign of which AFSCME is a leading partner – the budget plan that depends on adequate revenue includes the $1-an-hour across-the-board wage increase for direct-service personnel (DSPs) represented by AFSCME at not-for-profit agencies like Trinity Services, the Hope Institute, UCP, Milestone and elsewhere.
While not all we had pushed for – the increase wouldn’t take effect until midway through the fiscal year – it’s a strong step in the right direction for workers whose employers haven’t had a rate increase since 2007, and an essential part of our push to raise DSP wages to $13 an hour over the next three years.
On the flip side, an all-cuts budget would do nothing to raise pay for DSPs who are struggling to get by on a statewide average wage of just $9.35 an hour. Worse, it would force a cut of nearly $300 million to developmental disability services under DHS, an across-the-board reduction of nearly 25 percent that would likely get passed down to private agencies funded by state grants.