Capital Fax explains Pritzker’s request for 2021 budget with cuts

Pritzker wants “actionable scenario” from agencies on potential cuts, other reductions

Friday, Sep 13, 2019

* I told subscribers about this memo a few days ago. Here’s Illinois Public Radio…

State agencies are getting a warning from Illinois Gov. J.B. Pritzker’s budget office: Be prepared to make significant cuts next year.

A memo orders agencies to include a scenario in which 6.5 percent of current year funding would go away. They’re to find the savings through “operational efficiencies.”

The document was issued under the names of Deputy Gov. Dan Hynes and Budget Director Alexis Sturm, who say the current-year budget is still balanced. […]

“I understand the fiscal realities, but to be thinking about taking this backwards step when we’re still trying to get out of the danger zone is discouraging,” [the Illinois Collaboration on Youth’s Andrea Durbin] says. “And I hope the General Assembly and this administration are able to come together and find ways to avoid that.”

* Here’s the memo…

To: All Governor’s Cabinet Directors
From: Dan Hynes, Deputy Governor, Budget & Economy
Alexis Sturm, Director, Governor’s Office of Management and Budget
Subject: Fiscal Year 2021 Spending Efficiencies Proposals
Date: September 9, 2019

Although the spring legislative session produced a successful balanced budget for fiscal year 2020, Illinois continues to face significant financial challenges, and we must continue to be wise fiscal stewards of the limited resources of State government. The State’s backlog of unpaid general funds bills that were left behind by the previous administration remained in excess of $7 billion as of June 30, 2019, and the extensive bill payment delays continue to strain the State’s network of providers and translate into millions of dollars of unnecessary interest costs.

In that context, it remains essential that agency leadership continue to evaluate current operations and procedures and set parameters for operational expenses in all agencies. Directions regarding submissions of fiscal year 2021 budget requests will be forthcoming in a few weeks from GOMB; however, even now, agency directors – working in conjunction with their Deputy Governor and GOMB staff – should be prepared to:

1) Propose in your annual submission to GOMB an actionable scenario that includes operational efficiencies reflecting a 6.5% reduction from an estimated maintenance level of fiscal year 2021 operations funding across all appropriated funds (additional details will be forthcoming in GOMB’s budget submission request forms);

2) Conduct a review of boards and commissions within your agency’s purview and propose elimination of statutorily created boards and commissions that would lead to a 10% reduction of them;

3) Identify at least two significant efficiency and savings ideas for consideration in the fiscal year 2021 budget. Ideas could include (but are not limited to) items such as elimination or consolidation of duplicative programs, reduction in funding for underutilized or inefficient services, or improvements in service delivery that streamline costs. Reviews of agency audits from the last few years can provide ideas for cost savings for fiscal year 2021.

Your proposal will need to be submitted with your fiscal year 2021 budget request to GOMB. Agency directors should be prepared to implement any ideas submitted in the fiscal year 2021 budget requests. We and our staffs are available to discuss this memo and answer any questions you may have.

Above is from:  https://capitolfax.com/2019/09/13/pritzker-wants-actionable-scenario-from-agencies-on-potential-cuts-other-reductions/