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Expecting significant budget shortfalls this year and in the years ahead, Bruce Rauner, Illinois’s new Republican governor, on Wednesday proposed more than $6 billion in cuts in state spending on universities, health care, local governments and other areas and called for sharply reducing pension benefits for state workers. ... the state would spend $400 million less on higher education, $600 million less on local governments, and $1.5 billion less on Medicaid, which handles health care costs for poor residents. University leaders and mayors said they were worried, and advocates for the poor said they feared medical needs would go unmet under deep cuts to Medicaid. (Davey, 2/18)

Mr. Rauner took over a state that has largely struggled since the recession and now faces the end of a temporary income-tax boost. The governor’s plan steered clear of tax increases, relying on cuts throughout state government in the next fiscal year of $4.2 billion, or nearly 12%, from current levels. The largest reductions would come from changes in pension benefits for government employees, including lowering cost-of-living increases, raising retirement ages and capping pension payouts. Mr. Rauner also proposed cuts in employee medical benefits,nearly $400 million less in spending on public universities, and reductions in mass-transit and health-care funding. (Peters, 2/18)

In addition to pension changes, Rauner said he would negotiate changes to state employee and university employee health care, including higher employee payments and reduced benefits, to save $655 million. Rauner also proposed stopping state subsidies for health care for retired suburban and Downstate teachers and community college staff to save $125 million. Another large target in Rauner’s budget is Medicaid, where he wants to trim $1.5 billion from the agency that oversees the health program for the indigent that’s funded jointly by the state and federal government. The agency will scrub eligibility rolls to kick off those deemed unqualified, reduce how much it pays hospitals and nursing homes, shift people to the Affordable Care Act, and reduce or end optional services for adults such as dental care and podiatry. (Pearson, Garcia and Long, 2/18)

Medicaid, the state and federally funded healthcare program for the poor and the biggest single cost item in Illinois' budget, would be cut by $1.5 billion, according to a budget briefing by Rauner's staff. Ironically, the Rauner administration considered opting out of the U.S. Affordable Care Act, despite Illinois' status as home state of the act's leading advocate, President Barack Obama. Rauner also plans to put $700 million in savings in worker healthcare coverage on the table during ongoing union contract negotiations. (Greising and Pierog, 2/18)

Illinois' new Republican governor called Wednesday for deep spending cuts to Medicaid, pensions and other programs to fix the state's budget mess without raising taxes — a pitch met with quick opposition from Democrats who control the Legislature. Delivering his first budget address since winning office last fall, Gov. Bruce Rauner said his plan would end "the irresponsible and reckless practices of the past." He said lawmakers must be willing to make politically unpopular decisions to close a more than $6 billion budget hole next year. (Burnett and Lester, 2/18)

[Conn.] Gov. Dannel Malloy on Wednesday proposed to address a state budget deficit by cutting spending and raising revenue by reducing and delaying some tax credits and exemptions. Business groups said the plan would damage companies, and hospitals and social service providers said it would hurt some of the state’s most vulnerable people. ... Mental-health-care providers, hospitals and higher education were among those who would see the deepest cuts under Mr. Malloy’s proposal. (De Avila, 2/18)

Gov. Dannel P. Malloy's proposed budget aims to save hundreds of millions of dollars through cuts to health care and social service programs, including reductions in Medicaid eligibility, payments to health care providers and grants for mental health and substance abuse treatment. (Levin Becker, 2/18)