Thompson's budget cut #2 on May 11

By DIANE ROSS

THE FIRST budget cut came April 28, when Gov. James R. Thompson slashed $222 million from his $15 billion budget.

The second budget cut came May 11, when Thompson trimmed another $35 million.

Of the second round in cuts, $34 million was in jobs programs funded by the federal government, but administered by the Illinois Department of Commerce and Community Affairs (DCCA) under the federal Comprehensive Employment Training Act (CETA).

In Illinois, the 31 urban counties administer their own CETA jobs programs, but the remaining 71 rural counties have programs administered by DCCA.

Federal funding has been eliminated for two of the five CETA programs for rural counties. DCCA advised Thompson to eliminate those programs rather than replace the federal funds with state funds. DCCA had hoped to use the $34 million to place 5,000 chronically unemployed persons in public sector jobs in fiscal 1982.

The other $1 million in the second round of Thompson cuts was in rural housing and urban development programs, also funded by federal grants and administered by DCCA.

Thompson threatened a third budget cut May 29 — $200 million in education funds if the General Assembly does not roll back business sales tax relief by June 30. And Thompson had announced earlier that he may be forced to cut even more — possibly $200 million — to keep a balance on the books.

8/July 1981/Illinois Issues