Illinois is bracing for federal spending cuts set to begin Friday that could result in millions of dollars less for everything from airport operations to education.
But while Washington might be cutting back on funding, it is supplying plenty of uncertainty, forcing government officials in Illinois to scramble for ways to cope with the expected loss of money.
Over the weekend, the White House issued talking points on programs that would be threatened if Democrats and Republicans do not reach a deal to head off the automatic cuts known as sequestration. But in many cases it will be up to local-level officials to figure out what gets funded and what does not.
Some think a deal is still possible before Friday, while others welcome the cuts as a necessary brake on spending. Still others are downplaying the overall impact.
But some experts believe the situation is particularly dangerous for states like Illinois, which is on such shaky financial footing that it cannot afford to lose any dollars, whether from direct cuts in spending or the ripple effect that could lead to a decrease in tax revenue because of nervous consumers uninspired to spend.
“States are just now really recovering from the recession,” said Anne Stauffer, project director at the Pew Charitable Trusts, an independent, nonprofit public policy research group. “They don’t have a lot of flexibility to absorb these cuts in revenues, but also the potential economic impact as well.”
The anticipated cuts could result in longer delays at busy airports like O’Hare; fewer dollars for Naval Station Great Lakes, the Navy’s only boot camp; unpaid furloughs for federal workers; and less money for national historic sites such as Abraham Lincoln’s home in Springfield.
“Cuts of this magnitude will inevitably have significant impact in Illinois and every other state, no matter how they are applied,” said Abdon Pallasch, budget spokesman for Gov. Pat Quinn.
The planned spending reductions in Illinois are part of a larger package of $85 billion in automatic spending cuts that were designed to be so bad they would force Congress to compromise on a deficit reduction package. But a deal has failed to materialize. Democrats warn that the cuts could send fragile state budgets into a tailspin while many Republicans argue that the decrease in spending will ultimately be good for the country.
In Illinois, some of the largest cuts would come in education. The State Board of Education estimates it would lose about $33 million, much of which is used to support schools that serve low-income students, provide services for students with disabilities and pay for job training programs.
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The cuts would be particularly painful because the state has slashed funding for schools by $861 million during the last five years, said board spokeswoman Mary Fergus.
Meanwhile, research universities across Illinois are poised to lose millions of dollars in funding from the National Institutes of Health and other federal agencies. College officials said Monday it was yet unclear how much contributions might be scaled back but that any reduction could be damaging.
“What that translates into is lost discovery,” said Jon Pyatt, director of federal relations for the University of Illinois. “It’s going to set us back scientifically.”
Pyatt said the university fears losing bright students and star faculty, “potentially to other countries that are doubling down” on scientific research instead of putting it on the chopping block. At the same time, nearly 3,300 Illinois college students could see federal tuition grants dry up.
The Federal Aviation Administration would have to cut $600 million from its budget, which could lead to 90-minute delays during peak hours at busy airports such as O’Hare, officials said. Under the agency’s cutback plan, some local airport towers might end overnight monitoring, including those at Midway and two smaller airports, DuPage in West Chicago and Peoria International.
The closing of five Illinois airport towers also would be considered. DuPage is on that list, as are Central Illinois Regional Airport at Bloomington-Normal, Decatur Airport, Southern Illinois Airport in Murphysboro and Marion County Regional in Marion.
Chicago Mayor Rahm Emanuel, at an unrelated appearance Monday, expressed his frustration with sequestration.
“These are, in my view, foolish cuts,” said Emanuel, who put the onus on Republicans to work with President Barack Obama to find a solution. “We are a transportation, distribution, logistics center of the country. … (Cuts at) O’Hare, Midway would (have) a tremendous impact on the economic health of our city, as well as the job capacity of our city.”
City budget officials were hesitant to offer specifics of cuts that might not in fact occur, but they offered up one example if sequestration takes effect. About $4.5 million in federal Build America Bonds funding for projects at the city and sister agencies like the CTA and Chicago Public Schools could be in jeopardy, they said.
Funding for military operations in the state also would be curtailed. Army bases in Illinois stand to lose $19 million in funding, while the Air Force would see a $7 million cut. Another $2 million in projects at Naval Station Great Lakes in North Chicago could be canceled, according to the Obama administration.
“We’re extremely concerned about the effects on readiness,” Pentagon spokeswoman Elizabeth Robbins said.
There’s also a direct economic impact to the communities surrounding military outposts, including fewer dollars spent on supplies ranging from light bulbs to fuel.
Another 14,000 civilian employees of the U.S. Defense Department in Illinois may face unpaid days off. Workers would be forced to take off one day a week, which amounts to a 20 percent pay cut and $80 million fewer dollars in take-home pay.
The jobless would also feel the impact. Emergency unemployment benefits for people who have been unemployed for 25 weeks or more would be cut by about 10 percent.
Communities that rely on tourism from parks and historic sites also may suffer as the National Park Service prepares for potential cuts. About $140,000 will be cut from the $2.7 million budget for the Lincoln Home National Historic Site in Springfield, which could result in as many as 117,000 visitors being turned away as tours are cut back, according to officials.
About $450,000 would be cut from the budget for the Indiana Dunes National Lakeshore, a 15-mile stretch along the southern end of Lake Michigan used by many Chicagoans. Park Superintendent Costa Dillon said some campsites would be closed and hiring would be suspended.
“Certainly, people will notice,” Dillon said. “Some things won’t be open. Restrooms won’t be cleaned as often. There won’t be rangers around to answer questions.”
The federal district courts in Chicago and Rockford may ultimately be forced to shut down on Wednesdays, officials said. Already, the Chicago court has frozen hiring, slowed equipment maintenance and delayed purchases in order to avoid having to close an extra day per week, according to Thomas Bruton, clerk of the court.
Acting U.S. Treasury Secretary Neal Wolin, an Evanston Township High School graduate who spoke Monday to the Chicago Council on Global Affairs, said sequestration is “arbitrary” and instead should be replaced with “sensible changes to entitlement programs and tax reform that gets rid of loopholes and deductions.”
Tribune reporters Gregory Karp, Gail MarksJarvis, Annie Sweeney, John Byrne and Hal Dardick contributed.
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