SPRINGFIELD -- Governor George H. Ryan has issued a call to all members of the Illinois General Assembly for a special session, 2:00 p.m. Monday, June 10, 2002 to finalize the state’s Fiscal Year 2003 budget and review the Governor’s line-item and reduction vetoes to the budget bill the General Assembly sent to his desk.
The General Assembly passed the Fiscal Year 2003 budget in an overtime session. However, members added $277.5 million in new state spending above what the Governor recommended in his Memorial Day budget proposal. The General Assembly also failed to include $220 million of the Governor’s proposed tax increases and revenue enhancements. In total, there is a budget shortfall of $500 million.
Also as part of the call, Governor Ryan announced his intent to veto House Bill 3714 that would prohibit the Department of Corrections from contracting with private vendors for food or commissary services. Privatization of those services could save the state as much as $30 million.
The $500 million shortfall is compounded by an already worsening budget picture. On June 3rd, it was reported that May tax receipts were down $224 million. Projections for June are that revenues will be off as much as $125 million as compared to June of Fiscal Year 2001.
“I’m pleased that the General Assembly passed a budget, but I am troubled by the over-reliance on borrowing and the continued revenue shortfalls,” Governor Ryan said. “That’s why I feel it is necessary for the General Assembly to review my reductions to the state budget before July 1 to fulfill our constitutional obligation for a balanced budget.”
Elements of the FY 03 budget package have already been signed into law by Governor Ryan. On June 6, the governor signed House Bill 539, increasing the state’s cigarette tax by 40 cents, generating $235 million. House Bill 539 also amends the Property Tax Code, by reallocating a portion of the Real Estate Transfer Tax, generating an additional $15 million for deposit into the General Revenue Fund.