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Social service providers claim administration has “unchecked discretion” over paying off old contracts

Friday, Jul 22, 2016 - Posted by Rich Miller

* From Pay Now Illinois, the group of social service providers suing the state. All emphasis is in the original…

Hi Rich,

Attached, please find the latest amended complaint from Pay Now Illinois and the 98 plaintiffs, which continues to demand full and immediate payment for services rendered under FY 2016 contracts. The complaint seeks declaratory and permanent injunctive relief, noting that the stop-gap budget leaves uncertain when and how much social and human service agencies will get paid.

The complaint states: “The so called stop gap budget does not guarantee any meaningful payment at any level and thereby further violates the constitutional rights of plaintiffs to equal protection and due process of law and to be free of impairment of contracts.” The complaint goes on: “Public Act 99-524 largely gives unchecked discretion by the defendant Governor and agency heads to determine how much to pay and whom to pay - not for contracts to be entered in the future but for contractual services already rendered.”

The suit continues to seek full payment on all amounts due on FY 2016 contacts, and an order that the Comptroller “pay immediately all such vouchers more than 90 days overdue out of general revenue or specific funds, regardless of whether there is a specific legislative appropriation or not.”

The complaint also notes the increasingly dire situation of the plaintiffs.

The next hearing date is 10am on Monday.

* Documents…

* Third amended complaint

* Renewed motion for preliminary injunction

       

32 Comments
  1. - Huh? - Friday, Jul 22, 16 @ 1:44 pm:

    “… order that the Comptroller “pay immediately all such vouchers more than 90 days overdue out of general revenue or specific funds, …”

    The wingman will toss the bills onto the pile and shrug her shoulders, saying that the bills will be paid when money is available.


  2. - Oswego Willy - Friday, Jul 22, 16 @ 1:45 pm:

    This.

    All day. This.

    Is it possible the Rauner Administration is picking “winners and losers”?

    That’s the ball game. It’s one thing to purposely squeeze the beast, it’s quite another to, during the squeezing, actively choose winners and losers when all have signed contracts(?)

    … and people suffer… all the same.

    Diana Rauner?

    “Business Decision”

    How cold.


  3. - Oswego Willy - Friday, Jul 22, 16 @ 1:59 pm:

    I don’t read that Munger is involved, or actively involved in what the suit claims.

    It reads to me, at the agency level, alleged decisions may be occurring, and the role of Comptroller is just the formal statutory and constitutional role, nothing beyond that, period.

    I think that’s really important point to see.


  4. - Pawn - Friday, Jul 22, 16 @ 1:59 pm:

    Given this, I’m only surprised more organizations have not joined the lawsuit. Maybe they don’t realize how shaky the ground is under them?


  5. - Birdseed - Friday, Jul 22, 16 @ 2:03 pm:

    I have a brand new contract with the State sitting right in front of me.

    “Obligations of the STATE shall cease immediately without penalty or further payment being required if, in any fiscal year, the Illinois General Assembly or federal funding source fails to appropriate or otherwise make available funds for this CONTRACT.”


  6. - Honeybear - Friday, Jul 22, 16 @ 2:17 pm:

    –Given this, I’m only surprised more organizations have not joined the lawsuit. Maybe they don’t realize how shaky the ground is under them?–

    Pawn–Think about it for a sec….the others are already knocked out. Dead Agencies file no suits.

    Or that they are too small and too weak to join. It takes money to hire attorneys. I bet pro bono is also hard to find.


  7. - Rich Miller - Friday, Jul 22, 16 @ 2:18 pm:

    Honeybear, you’re missing the obvious here.

    Rauner has discretion to pay off those contracts. Sue him and maybe he uses that discretion.


  8. - Honeybear - Friday, Jul 22, 16 @ 2:18 pm:

    Loving God Birdseed, I’m so sorry. I’m freaking out at that.


  9. - Oswego Willy - Friday, Jul 22, 16 @ 2:20 pm:

    “Rauner has discretion to pay off those contracts. Sue hm and maybe he uses that discretion”

    It’s a Business Decision.

    Covers all the sins here.


  10. - walker - Friday, Jul 22, 16 @ 2:27 pm:

    Back when more money was generally flowing to social service agencies, and the state got way behind in past-due bills, our previous Comptroller was often praised for paying first those who could demonstrate that they were really in danger of going out of business without some immediate cash. She seemed to be fair with that discretion, and immune to political influence.

    Times, trust, and opinions have changed, since almost everybody’s in danger of going out.


  11. - Henry Francis - Friday, Jul 22, 16 @ 2:28 pm:

    Birdseed’s contract clause is nothing new. All state contracts have contained them (or should have contained them) before Rauner. It’s just never been at issue like it is now.


  12. - Birdseed - Friday, Jul 22, 16 @ 2:33 pm:

    That is correct, Henry.


  13. - Thoughts Matter - Friday, Jul 22, 16 @ 2:35 pm:

    Walker - this suit shows the flip side of that discretion. Rich, and others, brought this up a few days ago and said using discretion was going to cause a ruckus soon. Soon has arrived. In Illinois, with its history, you’ve got to go by service date- oldest to newest. Otherwise, there is the appearance of impropriety anywhere in the process- voucher in agency or Comptroller.


  14. - Doug Simpson - Friday, Jul 22, 16 @ 2:37 pm:

    Worst Governor ever.


  15. - Honeybear - Friday, Jul 22, 16 @ 2:39 pm:

    ahhhhhhhh….I wondered what that whistling noise was that went by my head. Thanks Rich


  16. - Winnin' - Friday, Jul 22, 16 @ 2:57 pm:

    I know this is about social service providers, but is the administration gaming its vendor payments so its political buddies who front cash can get some interest percentage “juice” ? There have got to be some ethics issues to delve into there.


  17. - Bulldog Drummond - Friday, Jul 22, 16 @ 3:08 pm:

    Oswego Willy-
    Diana Rauner spends her days leading an organization that helps some the truly neediest on our society. She and her husband have given millions to educational and other causes that provide hope and opportunity to others who need it.
    You spend your days here in anonymity offering tiresome comment after comment during those times when you aren’t being an online sycophant to everyone who has had their foot on the gas as Illinois has been driven in a ditch over the last 30 years.
    If by chance you and Diana Rauner were to arrive at the Pearly Gates at the same time, I imagine she walks right in with pat on the back for a job well done. You, on the other hand, will be asked why you didn’t spend your time on Earth in a more productive manner.
    Stop it with the “cold” stuff.


  18. - titan - Friday, Jul 22, 16 @ 3:11 pm:

    The explicit “prior appropriation” clause in the state contracts may not even be needed. Officers and agencies don’t have the power to financially obligate the state (or units of government) without a prior appropriation.
    There is case law to that effect going back 100+ years. I’ve seen court cases that void a local government contract on that basis, even after work was done, and the contractor got nothing.


  19. - Bigtwich - Friday, Jul 22, 16 @ 3:15 pm:

    BD

    “And why beholdest thou the mote that is in thy brother’s eye. . . “


  20. - Anon - Friday, Jul 22, 16 @ 3:17 pm:

    ===You spend your days here in anonymity===

    Says the guy with the nome de guerre of a fictional character.


  21. - Huh? - Friday, Jul 22, 16 @ 3:19 pm:

    OW - The point of my comment is that Munger can only pay bills as money is available. Her moving the legislative payroll to the back of the line is illustrative of her intentional picking winners and losers.

    Which leads to the question - Does a court order move bills to the head of the line?


  22. - Oswego Willy - Friday, Jul 22, 16 @ 3:20 pm:

    ===Says the guy with the nome de guerre of a fictional character.===

    LOL!

    - Anon -

    You win


  23. - sharkette - Friday, Jul 22, 16 @ 3:22 pm:

    Over 4000 vendors have not been paid. This is a massive waste of tax dollars. These companies signed a contract when they rendered services and could very well have just stopped services & found business/customers elsewhere- private sector.
    Also becuase they are now in a law suit they are also barred from doing business with the state under the contracts they signed when they “won” the bid. The Comprollers issues check in order of when the invoices were received- irregardless of need, nor certification, nor designation.
    Each one of these companies can request emergency payment and receive it once their invoices are vouched. All agencies are vouching invoices as of the stop gap. Remember, these are 1000000’s of invoices. It will take a while. People should stop being so dramatic and just let the process work.


  24. - Oswego Willy - Friday, Jul 22, 16 @ 3:23 pm:

    ===If by chance you and Diana Rauner were to arrive at the Pearly Gates at the same time, I imagine she walks right in with pat on the back for a job well done.===

    Hmm.

    ===You, on the other hand, will be asked why you didn’t spend your time on Earth in a more productive manner.
    Stop it with the “cold” stuff.===

    Matthew, 6:3

    ===She and her husband have given millions to educational and other causes that provide hope and opportunity to others who need it.===

    Matthew, 6, 1-2

    Oswego Willy


  25. - Anon221 - Friday, Jul 22, 16 @ 3:24 pm:

    “If we work together, Illinois can be great again.”
    “I’m ready to get to work for you. I’m ready to fight for you.” Bruce Rauner, 2015 Inaugural Address
    https://www.scribd.com/document/252413494/Bruce-Rauner-Inaugural-Speech

    Dr. Diana Rauner supports her husband in this. The heads of the Agencies named in the complaint support Rauner in this. Comptroller Munger supports Rauner in this. But instead from all of them, we get shrugs, demurrals, sighs (I’m frustrated mantra), and delays. Rauner got his K-12 funding for the year. All the rest is not a concern for him, therefore why would his Agency heads stick their necks out??? As long as they can hide behind Rauner, they will do so, or they will depart ala Lingle. I hope that the court rules to hold the people named accountable.

    “Man’s greatness consists in his ability to do and the proper application of his powers to things needed to be done.” Frederick Douglass


  26. - Oswego Willy - Friday, Jul 22, 16 @ 3:26 pm:

    ===online sycophant to everyone who has had their foot on the gas as Illinois has been driven in a ditch over the last 30 years.===

    “Because… Madigan”

    Got it.


  27. - Oswego Willy - Friday, Jul 22, 16 @ 3:42 pm:

    - Huh? -

    It’s all good, as your point is taken, all I am saying is Munger, here, isn’t targeted by the lawsuit as an alleged decision-maker.

    It’s Rauner’s agencies, under the leadership of Governor Bruce Rauner.

    With respect, as always.


  28. - Honeybear - Friday, Jul 22, 16 @ 3:44 pm:

    Wow Bulldog Drummond you got some stones boy. I wouldn’t be too worried about OW’s soul. I think, in my professional clergy opinion that he’d be just fine. You however, seem to be a fan of Mammon. I will add to OW’s scriptural reference for you and add Matthew 6:24.

    As Dolly Parton once reminded us “Only God sits on the seat of judgement.”


  29. - Paul - Friday, Jul 22, 16 @ 3:45 pm:

    Rich people give money because their accountant tells them to. They then pat themselves on the back as if they are truly doing something. No, I don’t think Diana Rauner will saunter into heaven because she wrote a check. The good Lord says to give all to help the poor; does she really need nine houses? The poor people that are being brutalized by this Governor and his wife will be walking into heaven before her. The teachers, the social workers, the people who truly care to help people to the extent they are willing to give their last dime will go to heaven before her. Wealth is not the ticket into heaven!!


  30. - Rich Miller - Friday, Jul 22, 16 @ 3:48 pm:

    Bulldog? Won’t see him no more.


  31. - Oswego Willy - Friday, Jul 22, 16 @ 3:50 pm:

    A very humbled thank you to you - Honeybear -

    Your addition in verse 24 is rounds off the edges. Well done

    OW


  32. - Arthur Andersen - Friday, Jul 22, 16 @ 3:52 pm:

    Winnin’ please give the conspiracy theories a rest, okay? The vendor services programs have zero to do with the plaintiffs in this lawsuit.

    To the Post, I’m tired and it’s Friday afternoon, but I’m stumbling over the Plaintiffs’ request that they want a court to order contracts to be paid in full regardless of the availability of funds. That just seems to me like asking one branch of the government to get a little to far in the business of the two others. I well could be completely off base here, but I would love to hear what any budgeteers or attorneys think.


Sorry, comments for this post are now closed.


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