Thompson's no-tax budget cuts

Gov. James R. Thompson promised in mid-June to slash state spending for fiscal 1988 to $10.4 billion. Lawmakers said the state could afford to spend more. Comptroller Roland W. Burris said the governor's cuts were too deep. On July 20 Thompson made good his pledge and slashed $363 million from state spending. The first $9 million came easily. It was money scheduled to complete projects already completed since the March budget was prepared. The next $46 million to go had been added by lawmakers: Gone was $9.3 million to continue work on a computerized accounting system in the comptroller's office, $6.6 million to reimburse local governments for tax increment financing districts and $625,000 for job training grants in the Prairie State 2000 Authority.

Then Thompson reduced spending in the agencies by $252 million. He said the action would require 629 layoffs and elimination of another 60 jobs by attrition in state departments and agencies. Public schools were hit hard, taking a $113 million cut. Of that $62 million came from a 3.4 percent cut in general state aid; $31 million resulted from a 6.8 percent cut in mandated categorical programs; $3 million came from a 3 percent cut in the education reform package. Higher education saw a $53 million (3.97 percent) cut that Thompson said would eliminate 1,100 positions and force midyear tuition increases. Community college grants were cut $8 million, or 4 percent. Other cuts included eliminating 14 veterans' assistance offices, closing three Corrections Department work camps and four community correctional centers, and halving legal assistance for farmers.

The final cut by Thompson was $56.8 million (14 percent) from retirement system contributions. Deputy Gov. James Reilly said that with the cut the unfunded liability would not increase and without it deeper cuts would be needed in state operations.

Thompson insisted when he made the cuts that he was not trying to punish lawmakers or provoke a tax increase. He said he would not criticize the General Assembly: "I respect their right not to pass a tax increase. And I respect the right of the people of Illinois, a majority probably, not to want a tax increase. They in turn must respect the bottom line. You can't spend money you don't have, and essential services for the people of this state can't be purchased with nonexistent dollars."

Lawmakers will return for the fall veto session in October. By then the state will have three months' experience with revenues and spending. The General Assembly gets its chance to override Thompson's vetoes, if they are convinced he went too far.

Michael D. Klemens