Grading the States introduction THE GOVERNMENT PERFORMANCE PROJECT Report Card: Illinois GOVERNOR George Ryan (Republican, elected 1998) LEGISLATURE House — 62 Democrats, 56 Republicans Senate — 32 Republicans, 27 Democrats FINANCIAL MANAGEMENT: B+ Illinois’ financial management has been steadily improving. The state is still burdened with a $15 billion unfunded pension liability, a leftover from the bad old days of the 1980s. But the percentage of unfunded liability has dropped from a high of 47 percent to 25 percent now. And for the first time, the rainy day fund actually has cash in it — a $225 million deposit of tobacco settlement money. For a state this size, it’s still a marginal amount, but it’s a start. Equally significant, Illinois budgeters seem to have kicked their longstanding habit of delaying payment of bills and pushing expenditures into the future to make the numbers look better. Now the state uses what it calls a “modified accrual budgeting test,” which precludes cooking the books in this fashion. Largely as a result of these and other changes, Fitch has upgraded the state’s bond rating from AA to AA+, and Standard & Poor’s has changed its official outlook on the state’s AA rating from “stable” to “positive.” Illinois has good oversight of its contracting commitments. But a new state procurement code written in 1998 may have gone a bit too far by requiring vendors to disclose financial interests and conflicts of interest. “Many vendors feel that the disclosures are...cumbersome and have declined to do business with the state as a result,” one official reports. CAPITAL MANAGEMENT: B A couple of years ago, the state established the Illinois FIRST (Fund for Infrastructure, Roads, Schools and Transit) Task Force of 15 professionals and citizens to study infrastructure needs. The panel chose to think big: It proposed a massive new investment in the repair, renovation and construction of Illinois’ schools, transportation network and water and sewer systems. The task force presented its recommendations to the governor in the spring of 1999, and the result was passage of a $12 billion, five-year program. Financing is being arranged through state bonds, federal matching funds and increased vehicle fees and alcohol taxes (although there’s some resistance among voters to the latter two). Up to now, Illinois has lacked a statewide capital plan. But with enactment of the new construction program, it needs one more than ever, and this year the state is implementing a centralized long-term planning process, one that will include an assessment program aimed at defining the statewide maintenance backlog. HUMAN RESOURCES: B Illinois runs its human resource management particularly well given the rigid civil service environment in which it operates. The state has been pushing forward with work-force planning, which has helped it target recruitment efforts. Public administration and information services internship programs have helped bring new blood into government and given agencies hiring flexibility that is somewhat limited otherwise. The “Upward Mobility” program is a stand-out training program that gives union members a chance to get promotions after they’ve received state-funded training. On the other hand, the state is plagued by hiring delays, a result of stringent rules. In addition, Illinois retains a heavy reliance on job testing, and a limited number of testing centers makes it difficult for job seekers in some areas. “A large portion of the population can’t get access to state jobs because of where they’re at,” says one official. MANAGING FOR RESULTS: B- Governor Ryan signaled his interest in MFR at the start of his administration, setting up an Office of Statewide Performance Review and an Office of Strategic Planning. State agencies had done strategic planning in the past, but there was no formal entity-wide plan. Now, the first statewide plan is nearing completion. Meanwhile, agencies have been thrown into the world of performance measures. In fact, the executive branch has indicated that it will not consider any requests for new agency funding, without performance measurements attached. But while there’s no question the Ryan administration is sincere, these efforts are still in early stages. Says one official, “By and large agencies have been excited. The problem that exists is trying to get them to understand their own data, the limitations, and the need to monitor the integrity of that data over time.” Another big question mark remains on the legislative side. As in many other states, the legislature here jealously guards its right to budget by line item; that makes it difficult to utilize program-oriented measures effectively. INFORMATION TECHNOLOGY: C+ Illinois was long a technological backwater. Only a couple of years ago, it didn’t have any kind of central IT office at all. Now there’s a powerful one, whose CIO reports to the governor. Its first strategic plan will likely be released early this year. Meanwhile, the office has been hard at work at developing standards for the state. There is also the Illinois Century Network, a telecommunications backbone to provide high-speed access to data, video and audio communications in schools, libraries, colleges, universities, museums and municipal government, as well as traditional state agencies. The plan is to spend some $343 million by 2005. Of course, translating these efforts into demonstrable results won’t happen overnight. Entity-wide IT systems need improvement, and the state is examining alternatives. Multiple e-mail systems used by different agencies cause difficulty in communications, and a process is under way to create a standardized environment. Justification and review of IT investments are also at a relatively early stage of progress. AVERAGE GRADE: B Copyright © 2001, Congressional Quarterly, Inc. Reproduction in any form without the written permission of the publisher is prohibited. Governing, City & State and Governing.com are trademarks of Congressional Quarterly, Inc.