A NEW DECADE DAWNS ON STATE SPENDING Comments by State Comptroller DAWN CLARK NETSCH

I am proud to have broken down a barrier of inequality with my election as Comptroller. It is an honor to be the first woman elected to state constitutional office in Illinois. But as I embark on this mission I hope that, over time, I will be remembered for my work as the state's fiscal watchdog, not just as the first woman to achieve this high office.

The reason is simple. Illinois' financial situation is in its most precarious position since the recession years of a decade ago.

The problem is evident in the state's General Funds balance, which for the past several months has been consistently below the traditional $200-millon "warning zone" level. The longer our balance of funds lurks below this level, the more unstable our financial footing becomes and the closer we are to running a deficit that could severely impact state programs and services.

As the state's chief financial officer, I will use my extensive background as an educator and an expert in state finances to provide Gov. Jim Edgar and the people of Illinois with the crucial information they need to make the difficult decisions necessary to restore our General Funds. My 18 years in the Senate and 25 years as a professor at Northwestern University's School of Law have prepared me for this mission.

While Illinois' fiscal crunch is not as bad as some states', there is no cause for fiscal complacency. The states that in the 1980s neglected to anticipate the rising costs of government programs and the flattening of tax revenues — such as many New England states — are now undertaking deep cuts in programs aimed at reducing huge state deficits.

Perhaps there's some small silver lining amid all this fiscal unease. The growing attention paid to the rising costs of programs and tax issues puts financial officials in an excellent position to educate people about state spending. People need to know that the bulk of state spending pays for public aid, local education, transportation and higher education, and that these agencies and programs are, for the most part, more than 50 percent more costly to deliver now than they were 10 years ago.

Much of our work networks us with the fiscal activities of the more than 6, 000 units of local government across the state. These entities are in no way immune from the fiscal challenges facing the state as a whole. Government bodies big and small face the same quandary: How to provide more and better services without increasing costs and taxes?

The Comptroller's Office helps local governments by doing more than merely auditing their financial affairs. Each year we update and publish booklets designed to help local government leaders manage and invest their monies more effectively.

At all levels, we need to examine closely our state programs and expenditures. We must ascertain whether these programs are necessary and are functioning efficiently. The Comptroller's Office, with a new sense of vigor and purpose, will perform its watchdog role, tracking programs costs over time. But our findings will have little impact unless citizens, legislators and other state officials study them and use them as the basis for action.

We are making a special effort to insure that our financial reports are more accessible and comprehensible to people who possess even a passing interest in state finance and government. Our goal is to get people to have the same interest and concern for the state's checkbook as they have for their own.

Better communication and information alone will not absolve citizens of the responsibility to challenge themselves to understand the complexities of state programs, taxes and spending procedures. We want citizens to know what the state's General Funds are, and what "lapse period spending" means, and why they are significant in determining the state's fiscal standing.

Our democracy is based on informed people making sound decisions. We will do our part by providing the most comprehensive, meaningful information we can on state finances. We look forward to helping you to do your part. •

Page 12 / Illinois Municipal Review / March 1991