Layoffs, closures loom under FY 15 budget

The FY 2015 budget passed by the General Assembly last week could force closures, cutbacks and layoffs across multiple state agencies – all because legislators were unwilling to keep existing tax rates in place. 

The impact of these cuts will fall particularly heavily on state agencies, which could see steep cuts in staffing levels – and even facility closures – early in 2015 if no further action is taken to raise needed revenue.

This fall’s elections may determine whether legislators come back ready to provide the state with the revenue it needs or if the cuts will remain in place, sending the state down a dangerous path.

When Gov. Pat Quinn unveiled his budget plan earlier this year, he offered two options: A budget based on making permanent the income tax rate increase passed in 2011 and another based on letting those rates expire.

An extension of current income tax rates would have meant around 1,400 new state jobs and possibly reopening of closed facilities after years of cuts.

The alternative “cuts” budget, however, demonstrated the consequences of failing to extend the income tax – massive reductions in funding to agencies already stretched to the limit.

Unfortunately, the budget ultimately passed by the General Assembly bears great similarity to that “cuts” budget. It provides no new funding to cover the cost or negotiated wage or step increases, meaning many departments will have no choice but to eliminate positions, close facilities, or further reduce services.