Seeking to bring fiscal discipline back to state government, Senate Republican lawmakers unveiled a report detailing more than $21 billion in potential cost-savings during the next five years.

Senator Dillard said the proposals could cut waste and overspending in the state budget that might yield $3.4 billion in the first year alone. (Read Full Report; Read Executive Summary.)

For several weeks, lawmakers serving on the Senate Committee on Deficit Reduction heard testimony from budget experts who discussed measures that could save billions of dollars a year. The Republican fiscal report discloses many of those proposals, including cost-savings within state government, Medicaid and pension reforms, and limiting education mandates.

The Senate Republican members of the committee set out to answer three basic questions during the course of testimony:  How did Illinois get here? How do we get Illinois out of this mess? How do we avoid Illinois ever being in this situation again?

Senate Republicans strongly believe fiscal reform is key to getting Illinois out of its current budget crisis, noting that Illinois didn't get into its current financial position because taxpayers were taxed too little. They said that the state is facing a multi-billion dollar deficit because Rod Blagojevich and his legislative allies spent and borrowed too much.

Although the changes will take some time, if implemented the fiscal reform proposals could save taxpayers billions of dollars a year and bring us closer to a balanced budget.

The Republican lawmakers’ savings and reform report is in contrast to recent Democrat budget proposals, which hinge on more than $4 billion in tax hikes on personal income and the Illinois economy, which already ranks 46th in the nation in terms of job growth.

The Republican fiscal report identifies at least $21 billion in savings during a five-year period. It includes:

• Medicaid global waiver ($435 million in one year, $2.9 billion over five years)
• Medicaid acute care ($130 million in one year, $865 million over five years)
• Medicaid rebalancing long-term care ($110 million in one year, $730 million over five years)
• Medicaid pharmacy cost containment ($110 million in one year, $730 million over five years)
• Developmental disabilities shared living ($75 million in one year, $500 million over five years)
• Medicaid determination of eligibility ($120 million in one year, $800 million over five years)
• Improved vendor management techniques ($300 million in one year, $2 billion over five years)
• State Employee Group Insurance retiree healthcare changes ($1.1 billion in one year, $6.7 billion over five years)
• Purchasing and contracting reforms to greater utilize information technology and improve vendor management ($400 million in one year, $2.2 billion over five years)
• Higher contributions from State? pension members ($350 million in one year, $1.9 billion over five years)
• Reduce/cap funds to local governments ($250 million in one year, $1.25 billion over five years)
  

The report also identified other areas that could also result in cost-savings, though dollar amounts are unspecified:

• Limiting new mandates and repealing obsolete mandates on local school districts
• Managed care reforms
• Medicaid eligibility changes
• Pension benefit reforms for new hires
• Implement a statewide employment and promotion freeze
• Higher education reforms
• Supreme Court budget reforms
• Consolidation and elimination of unnecessary, redundant state programs
• Capital contracting and procurement reforms