CHICAGO (Reuters) - Illinois' large budget deficits are the top issue facing the state legislature, House Speaker Michael Madigan said on Wednesday.
The powerful Democrat, who was elected on Wednesday to a 16th term as speaker, said Illinois' cumulative general funds budget gap is projected to top $11 billion over the next two fiscal years, exacerbated by the partial expiration on Jan. 1 of a 2011 temporary hike in income tax rates.
On Dec. 31, former Governor Pat Quinn's budget office released projections showing the deficit in the current fiscal year, which ends on June 30, would be $180 million.
With the election of the state's first Republican governor in 12 years, Madigan said at the swearing in ceremony for the Illinois House in Springfield that the chamber's Republicans must step up on budgets, which in recent years were passed solely with Democrat votes.
"I and House Democrats want to welcome you back, back to the active participation in state government," he said.
Madigan also repeated his pledge to work professionally and cooperatively with new Governor Bruce Rauner.
In addition to a big structural deficit, Illinois has the worst-funded state retirement system and the lowest credit ratings among the 50 states.
A 2013 state law aimed at easing a $105 billion unfunded pension liability is before the Illinois Supreme Court, which will determine its constitutionality.
None of the leaders of the Democrat-controlled General Assembly, who were reelected on Wednesday, addressed the possibility of the court tossing out the law or what their solution might be to balance future budgets.
Rauner, who took office on Monday and who is scheduled to unveil his fiscal 2016 budget next month, has not revealed details of his plans to tackle Illinois' financial woes.
Christine Radogno, who was reelected Senate Republican leader, said Rauner's election dramatically changes the political dynamic in the state capitol.
"We had in the Senate some bipartisan successes," she said. "But the public is saying 'More of this please.'"