Mendoza pushes for law requiring greater deposits in ‘rainy day’ fund
By NIKA SCHOONOVER
Capitol News Illinois
nschoonover@capitolnewsillinois.com
SPRINGFIELD – A bill that would trigger automatic payments into the state’s so-called “rainy day” fund is heading to the Illinois House for consideration after unanimous passage out of committee this week.
Under House Bill 2515, automatic deposits in the rainy day fund and pension stabilization fund would be triggered if the governor’s proposed general revenue estimate exceeds the prior year by at least 4 percent and the state has less than $3 billion in bills awaiting payment from the General Revenue Fund.
In that case, the law would require 1 percent of budgeted spending to be split between the “rainy day fund and added payments to the Pension Stabilization Fund.
The “rainy day” fund, officially known as the Budget Stabilization Fund, was created in 2000. It was to serve as a fund reserve to reduce the need for short-term borrowing and future tax increases when revenues slow. Having such a fund reserve would theoretically help the state maintain high credit ratings, address budgetary shortfalls and ensure bills are paid in a timely manner even in tough economic times.
But the fund remained woefully short of a meaningful balance throughout the first two decades of its existence.
Within Comptroller Susana Mendoza’s first year in office beginning in December 2016, the rainy day fund’s balance dropped to roughly $69,000 – which she often quipped wouldn’t keep state government running for more than 30 seconds. It was a drop from about $276 million in June 2016 as the funds were used to keep state government functional amid a two-year budget impasse between Democrats in the General Assembly and Republican Gov. Bruce Rauner.
Now Mendoza is the most vocal backer of the bill to require the annual payments to the fund when the state’s financial situation allows it.
“This is the right time to move this legislation forward because I just believe that history teaches us that not every governor believes that Illinois shouldn’t spend every penny that they bring in,” Mendoza said in an interview. “This has been an administration…who really understand the value of saving and preparing for both the rainy day but also saving money and pension obligations.”
The fund’s balance is scheduled to reach $1.9 billion by the end of this fiscal year, but Mendoza said it’s not enough when compared with the national average. According to the most recent data from the National Association of State Budget Officers, the average number of days that states currently have in their rainy-day reserves is about 54 days. Illinois’ rainy day fund represents roughly 11 days’ worth of funds.
Read more: ANALYSIS: Pritzker, Mendoza see record ‘rainy day fund’ balance as proof of fiscal achievement
“Now, with this legislation, we’re making the required payments like we should have,” Rep. Stephanie Kifowit, D-Oswego, a lead sponsor on the legislation, said in an interview. “For decades, [payments] didn’t happen. They didn’t happen in the right amount, they were always shorted.”
Current law only requires automatic deposits if the state’s general revenue estimates increases by 4 percent or more over the prior year. But that trigger has never been reached and Mendoza said the current system isn’t working.
“The language is unclear as to how, when and by whom this number is determined,” Mendoza said in committee. “Instead, past deposits into the rainy day fund were results of one-time actions by previous general assemblies.”
The legislation also calls for a six-month review from the Commission on Government Forecasting and Accountability. Mendoza said in committee this could trigger savings if growth exceeds 4 percent in the middle of the fiscal year.
Mendoza advocated for a similar bill last year proposed by then-representative and current state Sen. Michael Halpin, D-Rock Island, but it died in committee. This year, though, the bill has bipartisan support with Republican Minority Leader Rep. Tony McCombie, R-Savanna, acting as a chief co-sponsor on the bill.
Read more: Amid ‘unprecedented’ prolonged revenue boom, state finds budget breathing room
Capitol News Illinois is a nonprofit, nonpartisan news service covering state government. It is distributed to more than 400 newspapers statewide, as well as hundreds of radio and TV stations. It is funded primarily by the Illinois Press Foundation and the Robert R. McCormick Foundation.
Local News
Saint Xavier men’s volleyball finishes historic season in nation’s top 4
Spread the loveBy Jeff Vorva Correspondent The Saint Xavier men’s volleyball team made history by advancing to the semifinals of the NAIA Men’s Volleyball National Championship. But the Cougars fell to eventual national champion Georgetown (Kentucky), 25-21, 25-23, 22-25, 21-25, 15-10, on May 3 at Alliant Energy PowerHouse in Cedar Rapids, Iowa. Although there was…
St. Francis first baseman Nate Maliska earns conference POW honors
Spread the loveBy Mike Walsh Correspondent The University of St. Francis sophomore first baseman Nate Maliska was chosen the Chicagoland Collegiate Athletic Conference’s Player of the Week in baseball for April 7. In helping the Saints to four wins that week, Maliska went 9-for-15 (.600) with eight RBI and seven runs scored. The St. Laurence…
Baseball | Marist claws way back to .500
Spread the loveBy Xavier Sanchez Correspondent This season has thus far not been what Marist had expected, but the RedHawks came into this week at .500. Marist was 2-8 after 10 games this season, with three of those first eight losses coming via shutout. But the RedHawks turned things around with a stretch of eight…
Red Stars fall to Spirit for third loss in past four matches
Spread the loveBy Jeff Vorva Correspondent After enjoying one of their best starts in franchise history, the Chicago Red Stars have slid to the middle of the NWSL standings, with the latest setback being a 4-2 loss to Washington at SeatGeek Stadium. The Stars (3-3-1) entered this week having dropped three of their past four…
Red Stars take aim at NWSL attendance record with Wrigley game
Spread the loveBy Jeff Vorva Correspondent The Chicago Red Stars are thinking big when it comes to their upcoming game at Wrigley Field. The team is taking aim at the NWSL record for single-game attendance when it hosts Bay FC at the historic home of the Chicago Cubs on June 8. The record is held…
IHSA announces boys volleyball postseason assignments
Spread the loveBy Jeff Vorva Correspondent Last year, the area sent a pair of boys volleyball teams to state as Lyons finished runner-up to champion Glenbard South and Brother Rice lost in the quarterfinals. This year, both could face each other in the sectional finals. The Lions picked up the second seed and the Crusaders…
Badminton players from Reavis and Lyons going to state
Spread the loveBy Jeff Vorva Correspondent Reavis singles player Dania Amjad finished third in the Bolingbrook Sectional on May 2 to qualify for the IHSA state tournament. The Lyons doubles team of Simone Brown and Mia Graziano finished fourth in the York Sectional to qualify for state. The state finals are May 10-11 at DeKalb…
Brother Rice, Sandburg sending boats to bass fishing state tourney
Spread the loveBy Jeff Vorva Correspondent Brother Rice is sending two boats to the IHSA state bass fishing tournament. The Crusaders had first- and third-place finishes at the Des Plaines River Big Basin Marina Sectional on May 2. Sandwiched in between the Brother Rice boats was a group from Sandburg in second place. The Crusaders’…
Lions Club District 1A Helen Keller race draws big field
Spread the loveBy Kelly White The damp weather from overnight rain did not deter more than 100 people on Sunday morning from getting some exercise. The 14th annual District 1A Helen Keller 5k Fun Run/Walk proudly took place along at Harold L. Richard’s High School, 10601 Central Ave., Oak Lawn. “This is a really great…
Neighbors
Justice swears in new police officer
Spread the loveBy Carol McGowan The Justice Village Board approved the recommendation of the Justice Fire and Police Commission to hire Police Officer Kady Sassenger at its January 10 meeting. Her move from the Coal City Police Department to Justice is considered a lateral move, which means the officer transfers from one department to another…
Medeisis promoted to fire battalion chief in Bridgeview
Spread the loveBy Steve Metsch The Bridgeview Fire Department has a new battalion chief. Michael Medeisis, 55, was promoted from the rank of lieutenant at the Jan. 5 meeting of the Bridgeview Village Board. “Hey, hot diggity dog, we’ve got a great guy (promoted),” village Trustee Michael Pticek said. Trustee James Cecott said the promotion…
Retired village employee appointed to Lyons ZBA
Spread the loveBy Steve Metsch The Karasek family has a long history of working for the village of Lyons dating back decades. And that history is getting a new chapter. Steven Karasek, 60, who two years ago retired after 36 years in the public works department, has been appointed by Mayor Christopher Getty to serve…
Walker teacher Eva Manzke honored by farm bureau
Spread the loveBy Carol McGowan School District 104 teacher Eva Manzke was recently honored by the Cook County Farm Bureau for her work with teaching students about agriculture. Students at Walker Elementary in Bedford Park, and Manzke herself were surprised when Principal Amanda Venegonia said they were gathered to honor Manzke, as she had been…
Moraine Valley’s Tom Diaz earns All-Conference honors
Spread the loveBy Carol McGowan Tom Diaz is a freshman at Moraine Valley Community College, and is making big strides with their cross country team. Diaz is also a 2021 graduate of Argo Community High School, and is the first Argonaut to earn All Region honors while pursuing his cross country career. MVCC’s Men’s an&…
Summit native marks decade with the Harlem Globetrotters
Spread the loveBy Carol McGowan Saul White Jr., better known as Flip White to basketball fans, has been with the famed Harlem Globetrotters for just over 10 years, and has no intention of stopping the entertainment he provides for his fans. White, who grew up in Summit, attended Wharton School and Graves Junior High (now…
A heavenly sound
Spread the love In what is arguably the most ornate and beautiful house of worship on the Southwest Side—St. Joseph Church in Back of the Yards–the Polonijna Orkiestra Chicago played liturgical music selections last Sunday. Founded in 2011, the orchestra is designed to teach young musicians Polish music and culture. St. Joseph parishioner Konrad Pawelek…
Crime images spark outrage in Gage Park
Spread the loveRobbed at gunpoint in his own garage By Tim Hadac Home-security camera images of a 48-year-old Gage Park man being robbed at gunpoint in his own garage outraged a number of Southwest Siders this week. Images showed the man driving his car down the alley in the 5500 block of South Richmond at…
Here’s the skinny: Trimmed-down Lawrence helps Oak Lawn top Evergreen
Spread the loveBy Jeff Vorva Staff Writer Oak Lawn senior basketball player Davion Lawrence is 45 pounds lighter than he was last season, but insists his eating habits are the same. He has, however, changed up his training habits. Heading into football last fall, Lawrence and a few fellow seniors wanted to get in the…
College Report: McAuley grad Swiatek plays hero for St. Francis
Spread the loveBy Jeff Vorva Staff Writer Hannah Swiatek comes off the bench for the University of St. Francis and is averaging 3.1 points per game. But when called on for the biggest shot of her college career, the 5-foot-8 junior guard from Oak Lawn delivered. Swiatek scored the winning basket in a wild 99-97…