CHICAGO – Governor George H. Ryan issued the following statement in response to Congressional passage of the economic stimulus package:
“While we hope that the stimulus package passed by Congress and supported by the White House will help businesses expand and grow, it is clear in the short term that it will have a serious impact on state revenues for state and local governments across the country.
State governments across the nation already face a cumulative budget shortfall of $40 billion. This economic stimulus package will cost states an additional $15 billion over the next three years. In Illinois, state and local governments will lose approximately $400 million next fiscal year and more than $1 billion over three years. The state budget will lose $250 million in the next fiscal year and a total of $660 million over three years.
The stimulus package also unfortunately fails to address the inequitable Medicaid reimbursement that Illinois receives from the federal government. We had lobbied for a minimum $200 million increase in Medicaid reimbursements. That would have brought us to a level that would fairly compensate the state for the large number of poor people for whom we provide health care.
Last month, I proposed a balanced budget based on the revenues for next year
that we projected at that time. Now that Congress has passed the stimulus package, the General Assembly will need to find another $250 million to balance the state’s budget in the next Fiscal Year.”