Gov. Pat Quinn’s latest pitch for the state to borrow money to pay its old bills – including for state employee group health insurance — isn’t gaining support among a key group, the General Assembly’s Republicans. […]
Senate Republican spokeswoman Patty Schuh said the state still hasn’t adopted an overall financial plan that includes significant budget cuts. Senate Republicans last week outlined $6.7 billion in possible cuts and savings, proposals Quinn dismissed as “goofy.” […]
House Republican spokeswoman Sara Wojcicki said only that the House would consider the idea.
The federal stimulus law, passed during the height of the recession in 2009, provided states with about $80 billion in 2009 and 2010 by increasing the federal government’s Medicaid match rate to nursing homes and hospitals, with the caveat that those providers be paid within 30 days. Illinois is being matched at 59 percent until March 31. Afterward, the rate will drop to 57 percent, and ultimately end at its regular match rate of 50 percent on July 1.
House budget expert Rep. Frank Mautino, D-Spring Valley, said the new emphasis on borrowing for health care is stimulated by the looming deadline to maximize payments. He estimates that the state will earn about $170 million to $175 million net from federally matched funds if payments are made before June 30.
It would appear as if the Senate Republicans are standing their ground and pointing everyone towards the budget cuts they outlined, which were endorsed by another editorial board today…
The governor dismissed them, calling them “apostles of Draconian cuts,” adding, “I’m not listening to them.” This after Quinn challenged Republicans last month to craft their own budget plan if they rejected his.
Republicans are absolutely right to lay out major budget cuts. Despite major personal and corporate income tax increases in January, significant and painful budget cuts still are needed in Illinois.
Still, by making $5 billion out of a possible $6.7 billion in cuts over the next fiscal year, by 2015 Illinois could be in a position to get rid of its entire tax increase, [State Sen. Matt] Murphy says.
“If we don’t take the medicine on the front end, we continue to languish where we’ve been. … We’re saying spending cuts have to be part of this solution.”
The plan was praised by former State Budget Director Steve Schnorf, but met with some initial skepticism from leading Democrats.
“Their efforts must go beyond more than news releases and photo ops. Releasing a list of possible cuts shouldn’t be the end of their participation in the budget process,” Senate President John Cullerton quipped in a statement late last week. But Cullerton’s office said the Chicago Democrat is reviewing the GOP budget proposal.
Subscribers will recall Schnorf’s thoughts of this year’s budget.
* Meanwhile, the Tribune editorial board wants to see Sen. Dick Durbin’s proposal for an expanded online sales tax to go through Congress…
Look-alike federal legislation went nowhere in 2010, and similar efforts fizzled in the years before that. If Durbin’s bill likewise flops, states will be on their own. That will complicate efforts to spread the sales tax burden more widely and fairly.
* Insurance director: Health law helping consumers: “There is some disruption and definitely some discomfort among insurers, but consumers are definitely better protected than they were a year ago,” McRaith said in a phone call with reporters to mark the anniversary of the Affordable Care Act. President Barack Obama signed the law March 23, 2010.
If mother Tribune is going to campaign for a tax increase, let’s take away the graphic arts sales tax exemption as well as a few others that are enjoyed the Trib…..
- Time Keeps on Ticking, Ticking - Thursday, Mar 24, 11 @ 4:06 pm:
When GOP reps are face to face with proivders, employees, and constituents, they often make more reasonable and honest comments, before falling back on their talking points.
How much have the Repubs shifted, really. Have any of them said it’s ok to borrow without cuts? That seems to be what Governor Pat wants to do, but so far I thought the Repubs were holding out for cuts, with their recent list being the first offer, so to speak. Maybe Governor Pat’s dismissal of their list is his first offer–or maybe he really does plan to put through that $9 billion dollar loan–the one we taxpayers would be paying off long after he leaves office–and not cut anything. We’ll see.
The real question is who do you want the state to be borrowing from: do you want the providers and vendors of the state to continue getting the shaft or do you want the state to borrow from the bank instead of providers and vendors. That is the real choice here. It’s really pretty simple. You have to cut whether you borrow or not. They are mutually exclusive of each other. The old bills have to be paid sometime.
- time keeps on ticking ticking - Thursday, Mar 24, 11 @ 6:59 pm:
The Republicans indicated Thursday morning that they would consider supporting a plan to borrow money to pay the state Medicaid bills if it means qualifying for additional federal funding and saving the money the state money in the long run.”
Hopefully the gop senate will help people and stop playing politics.
- Old Milwaukee - Thursday, Mar 24, 11 @ 11:32 pm:
The real choice, Demoralized, is whether you want to pay the bills with cash derived from making spending cuts now, or with borrowed money that will cost us billions in interest over the next couple of decades.
Republicans and Democrats want to pay the bills. The debate is about how to do it.
- time keeps on ticking ticking - Thursday, Mar 24, 11 @ 11:41 pm:
They have waited too long, and know that some of the cuts (the biggest) are unrealistic. If they want to fight the unions in court, I am all for it…but they have to win the election first. Until then stop the games and move on.
- wordslinger - Thursday, Mar 24, 11 @ 2:08 pm:
The Senate GOP is in a good spot to bargain, and helped themselves immensely by putting some budget cuts down on paper.
- Time Keeps on Ticking, Ticking - Thursday, Mar 24, 11 @ 2:09 pm:
I am starting to see more and more House Republicans open to borrowing. I suspect many Senate Republicans quitely feel the same.
- Barton Lorimor - Thursday, Mar 24, 11 @ 3:34 pm:
Interesting that the HGOP would open up to borrowing after new revenue goes through. Thoughts?
- Plutocrat03 - Thursday, Mar 24, 11 @ 4:03 pm:
If mother Tribune is going to campaign for a tax increase, let’s take away the graphic arts sales tax exemption as well as a few others that are enjoyed the Trib…..
- Time Keeps on Ticking, Ticking - Thursday, Mar 24, 11 @ 4:06 pm:
When GOP reps are face to face with proivders, employees, and constituents, they often make more reasonable and honest comments, before falling back on their talking points.
- cassandra - Thursday, Mar 24, 11 @ 4:28 pm:
How much have the Repubs shifted, really. Have any of them said it’s ok to borrow without cuts? That seems to be what Governor Pat wants to do, but so far I thought the Repubs were holding out for cuts, with their recent list being the first offer, so to speak. Maybe Governor Pat’s dismissal of their list is his first offer–or maybe he really does plan to put through that $9 billion dollar loan–the one we taxpayers would be paying off long after he leaves office–and not cut anything. We’ll see.
- Demoralized - Thursday, Mar 24, 11 @ 4:48 pm:
The real question is who do you want the state to be borrowing from: do you want the providers and vendors of the state to continue getting the shaft or do you want the state to borrow from the bank instead of providers and vendors. That is the real choice here. It’s really pretty simple. You have to cut whether you borrow or not. They are mutually exclusive of each other. The old bills have to be paid sometime.
- time keeps on ticking ticking - Thursday, Mar 24, 11 @ 6:59 pm:
The Republicans indicated Thursday morning that they would consider supporting a plan to borrow money to pay the state Medicaid bills if it means qualifying for additional federal funding and saving the money the state money in the long run.”
Hopefully the gop senate will help people and stop playing politics.
http://abclocal.go.com/wls/story?section=news/politics&id=8032852
- Old Milwaukee - Thursday, Mar 24, 11 @ 11:32 pm:
The real choice, Demoralized, is whether you want to pay the bills with cash derived from making spending cuts now, or with borrowed money that will cost us billions in interest over the next couple of decades.
Republicans and Democrats want to pay the bills. The debate is about how to do it.
- time keeps on ticking ticking - Thursday, Mar 24, 11 @ 11:41 pm:
They have waited too long, and know that some of the cuts (the biggest) are unrealistic. If they want to fight the unions in court, I am all for it…but they have to win the election first. Until then stop the games and move on.