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House moves forward with more cuts, some restorations and a big payment delay

Thursday, May 12, 2011 - Posted by Rich Miller

* Yesterday’s hearing of the House Human Services Appropriations Committee was far from a pleasant event as members overwhelmingly approved several spending cuts

A lengthy list of witnesses registered with the committee Wednesday, all of them opposed to the proposal.

“We were given the absolutely breathtaking, stunning task to reduce the budget by $1.2 billion,” committee chairman Rep. Sara Feigenholtz, D-Chicago, said. “It was a hideous task.”

* Some details

The Republican spokesperson on the committee, Rep. Rosemary Mulligan, R-Park Ridge, was the only “no” vote on the appropriations, saying that she appreciated the work of the committee in rewriting the budget but that “I don’t agree with it.”

The human service agencies took major cuts, with most travel and telecommunications line items reduced by 50 percent, and most personnel lines frozen at this year’s levels. Contractual services were for the most part cut as well. Perhaps the biggest reduction was an 18.4 percent cut in funding for state-operated developmental centers and mental health facilities. Lawmakers said they wanted to make greater use of community-based facilities. In fact, grant payments to some local programs for the developmentally disabled increase under the House budget. […]

Overall, the House committee plan — which could be voted on by the full House as soon as today or Friday — contains more than a billion dollars in cuts for the Department of Healthcare and Family Services and about $650 million for the Department of Human Services.

* Some funding was spared, however

State Rep. Sara Feigenholtz, D-Chicago, said she heard plenty of people say they wanted more from the state. In response, she restored 27 different pieces of the human services budget that Quinn zeroed out in the final draft she helped craft.

“He chose to take pharmaceuticals away from senior citizens; we put it back. He chose to take relief away through the Circuit Breaker (program); we put it back,” Feigenholtz said. “We want services and dollars and assistance to get to the people who have earned it, paid for it and worked for it their whole lives.”

Specifically lawmakers added $1.98 million for funeral and burial services for low-income families; the governor had scratched that program from his budget. Quinn also zeroed out money for the Children’s Place, a museum, and crisis nurseries that provide emergency shelter for women with babies and young children, across the state. Lawmakers added $487,500 and 100,000 respectively.

The numbers are included in budgets from the Illinois House. State senators have their own plan, both of which have yet to be voted on.

Feigenholtz said compromise is likely, but she expects a final spending plan to be close to her numbers. She said too many people worked too hard to produce what she hopes will be a “fair” budget.

* And there was a big “cut” which isn’t technically a cut

The budget would extend the payment cycle for Medicaid bills from 24 to 45 days, a $500 million saving.

* Meanwhile, over in higher education, some MAP grants were cut to preserve other funding

This draft for next year’s budget seeks to prevent the state’s Monetary Award Program, or MAP, from awarding grants to students attending for-profit schools.

For-profit schools operate as a business and receive public funds, according to Education.com. Among the for-profit schools is The School of the Art Institute and DeVry University in Chicago. The House’s proposed higher education budget, which aims to reach its $2.1 billion spending goal, also seeks to cut 1 percent in funding to universities. State Rep. Kenneth Dunkin, D-Chicago, who heads the budget committee on higher education, has said his committee found it easier to make cuts to for-profit schools, rather than deeper cuts to nonprofit schools.

Funding for community colleges, however, will not be cut and may, in fact, receive a financial bump from this proposal.

“The state of Illinois is broke,” said State Rep. Chapin Rose, R-Charleston. “I think the taxpayers would think it’s outrageous that their taxpayer money is going … basically into the pockets of private, for-profit owners of some of these colleges.”

* And in K-12, some cuts the governor proposed were restored

Quinn made headlines and raised eyebrows in February when he suggested that the state stop paying for regional school superintendents, which totaled $12.6 million this year. The governor zeroed out that portion of the budget for next year, but lawmakers returned $11.3 million in their draft.

State Rep. Will Davis, D-Homewood, who helped craft the education budget, said lawmakers feared that doing away with regional superintendents would cost the state more than the governor’s cut would save. […]

Lawmakers also returned millions of dollars that Quinn wanted trimmed from schools’ transportation budgets. The governor wanted to spend $175 million on school buses, but lawmakers increased that to slightly less than $295 million.

Dan Cox, superintendent of the Jasper County School District, said that with gas around $4 per gallon and a fleet of aging buses, he will need every dollar he can get.

* Budget roundup…

* ADDED: Could state’s bus funding plan hurt suburbs?

* VIDEO: Rep. Davis on education spending

* 4-H, Extension back in budget cross hairs: One version projects a cut worth $13 million, which could force layoffs and office closings throughout the state. The latest proposal comes a year after the Cooperative Extension received $7 million less in state funding, resulting in a statewide reorganization that included combining some counties into single operating units.

* Mayors tell Illinois to keep hands off tax dollars: The mayors scheduled a news conference Thursday at the Thompson Center in Chicago to discuss what they call a “hijack” of money designated for local governments. A confidential memo from Gov. Pat Quinn’s office last month mentioned keeping about $1 billion from local governments’ portion of state income tax revenue.

* Local educators, service providers, sites brace for reductions

* State revenue plan irks Tinley Park

* Budget proposals could cost area - Change in tax distributions could result in six-digit shortfalls for area municipalities

* The Labor Battle At SIU

       

32 Comments
  1. - Bob S - Thursday, May 12, 11 @ 10:47 am:

    I am completely unclear on the proposal to delay Medicaid payments from “24 to 45 days, a savings of $500 million”

    I have no idea what this means as nobody is getting paid in either 24 days or 45 days,,,, try 180 days.

    What am I missing here? If we were getting paid in 45 days on Medicaid payments, we would all be able to live with that. If it means no payments on top of the minimal and lagging payments now are extended for an additional 3 weeks, good luck finding any Medicaid survice providers to take care of our poor and elderly.

    What am I missing here?


  2. - RWR - Thursday, May 12, 11 @ 10:54 am:

    Rich,
    Is there any news about when the new map might come out? Or will they wait till this budget deal is done?


  3. - Rich Miller - Thursday, May 12, 11 @ 11:01 am:

    ===Is there any news about when the new map might come out? Or will they wait till this budget deal is done? ===

    Subscribe.


  4. - so... - Thursday, May 12, 11 @ 11:08 am:

    Bob S.

    Correct me if I’m wrong here, but I believe Medicaid providers are currently being paid within 30 days in order to capture additional federal matching funds.

    However, the enhanced federal match expires at the end of June, so we’re free to make Medicaid providers float the state for a little longer at that point.

    It should be emphasized, and Rich has done a good job on this, that this change saves the state NOTHING. All it does is kick the can into the next fiscal year.


  5. - wordslinger - Thursday, May 12, 11 @ 11:17 am:

    –“The state of Illinois is broke,” said State Rep. Chapin Rose, R-Charleston. “I think the taxpayers would think it’s outrageous that their taxpayer money is going … basically into the pockets of private, for-profit owners of some of these colleges.”–

    Others thought it outrageous that millions of state dollars, over many years, were put in the pocket of a prominent Charleston private, for-profit group-home operator, despite dozens of reports of abuse and two homicides.


  6. - Anonymous - Thursday, May 12, 11 @ 11:23 am:

    Both Rep. Rose’s comment about for-profits getting MAP, and Wordslinger’s sarcastic retort, are “on the money.” That Rep. Rose has not addressed the abuses at the group home in his district is an egregious omission on his part. That omission does not negate his argument about the MAP grants being eliminated for the proprietary institutions.


  7. - Fed up - Thursday, May 12, 11 @ 11:38 am:

    Wordslinger

    I agree their is no reason that Lisa madigan did not put a stop to that much sooner.


  8. - steve schnorf - Thursday, May 12, 11 @ 11:47 am:

    word, Rep Rose wasn’t the problem with what happened at that group home; he wasn’t even part of the problem. Look at the Dept, not Rose.


  9. - PublicServant - Thursday, May 12, 11 @ 12:26 pm:

    Rich, any news on SB0512 and pensions…Is it moving out of committee anytime soon?


  10. - Yellow Dog Democrat - Thursday, May 12, 11 @ 12:48 pm:

    I thought part of the whole Budget Reform package adopted along with the tax hike was that we we’re no longer going to cook the books to produce phantom savings?


  11. - Bob S - Thursday, May 12, 11 @ 12:50 pm:

    How in the heck are vendors who are already handing to the last strands of the rope supposed to give the State another 21 days of what what used to be my capital base?

    Any ideas on what I can tell my already nervous Bank?


  12. - Bob S - Thursday, May 12, 11 @ 12:54 pm:

    Rich:

    Am I missing something here about extending Medicaid vendors another 21 days to “lower” next year’s budget?


  13. - Generation X - Thursday, May 12, 11 @ 12:56 pm:

    Rep Rose if you are going to fund Map grants what difference does it make if it goes to a for profit school or not? Correct me if I’m wrong but the benefit is for the student. So we are penalizing business people who have created jobs, and developed an educational program not traditionally covered at most colleges? These for profit school provide a valuable education to students who would like to go a slightly different route. This sounds like shameless political pandering to me.


  14. - Rich Miller - Thursday, May 12, 11 @ 1:00 pm:

    ===Am I missing something here about extending Medicaid vendors another 21 days to “lower” next year’s budget? ===

    It moves FY 2012 expenditures to 2013.


  15. - Bob S - Thursday, May 12, 11 @ 1:15 pm:

    Rich: I get that but doesn’t have the same effect as extending vendors another 21 days?


  16. - Rich Miller - Thursday, May 12, 11 @ 1:17 pm:

    Bob, it’s not a bug, it’s a feature.


  17. - wordslinger - Thursday, May 12, 11 @ 2:10 pm:

    Scnorf, there’s plenty of blame to go around. But the abuse went on for a long time, there was a lot of state money flying around and they were constituents — the most vulnerable, as a matter of fact.


  18. - Bob S - Thursday, May 12, 11 @ 2:17 pm:

    Rich:

    I am trying to get a bit of clarity on what extending Medicaid vendors 21 days means. If a vendor is being dragged along at 160 days doesn’t another 21 days put the vendor >180 days.

    If I am confused about whether we are talking about incurring budgeted expenses rather than when current and fy 2012 expenses are PAID, please clarify if you can.

    I don’t know what you mean by its not a but, it’s a feature. I must be missing something otherwise there should be 500 comments by now.


  19. - Lee County - Thursday, May 12, 11 @ 2:34 pm:

    Just a correction on that MAP story. The School of the Art Institute is a non-profit, and has been part of, and actually the precursor of, the Art Institute of Chicago for over 100 years. The author must have meant the Illinois Institute of Art, which is a for-profit school of design and culinary arts. Especially in these days of the new culture wars, I wouldn’t want anybody trying to punish the school or the museum on these grounds.


  20. - Rich Miller - Thursday, May 12, 11 @ 2:38 pm:

    If you’re a Medicaid vendor, yes. This is only for Medicaid.


  21. - wordslinger - Thursday, May 12, 11 @ 4:51 pm:

    –I agree their is no reason that Lisa madigan did not put a stop to that much sooner. –

    Fed Up, I agree with you. She makes a living doing dog-and pony-shows on inspection tours, and there was plenty of smoke in Charleston for a long time — she should have been there. Talk the talk, walk the walk.

    I admit to having a bad temper on the subject of abuse of the developmentally disabled and seniors in their dotage, but it’s not partisan.

    One of the greatest public servants I ever knew was Pat Lavigne, God rest her soul, a GOP stalwart from DeKalb County.

    Serving in many capacities, she made the DeKalb County Nursing Home her life’s work and did an amazing job, along with her many GOP and Democratic friends, of making sure the folks there were taken care of lovingly and with respect.

    And as a Township Supervisor, she was available morning, noon and night, for years, to ensure that the lost souls at the end of their ropes that wandered into town could get a bath, a hot meal, some clean clothes, a kind word and a shred of dignity while she worked the phones to find a loved one who wanted them back.

    When it comes to the most vulnerable, there’s no partisanship. It’s simply justice.


  22. - way south of chicago - Thursday, May 12, 11 @ 4:52 pm:

    the time has passed for the extension service….years ago before the internet we had county extension advisors that could answer questions or guide you to the proper person at u of i….its no longer needed….havent had an extension advisor for years…the people running the extension offices now wouldnt know a gilt from a boar hog their only qualification is having a masters degree in something…our last one had a degree in psycology. if we want to know anything we get on the net and find the answer….4H is just a way for vendors that want the kids parents business to jack up the price of the livestock the kid is showing…in the whole scheme of things this isnt much money but doesnt help that many people either…


  23. - Cincinnatus - Thursday, May 12, 11 @ 4:54 pm:

    $500M + 21 days = $0 so we save $500M?

    Maybe we could add 21 days to $8B and balance the budget!


  24. - wordslinger - Thursday, May 12, 11 @ 5:23 pm:

    Way South, are you sure? It seems to me there’s a lot of specific, local knowledge in the extension service that you just can’t count on “the Internet” for.

    Heck, I’m on the Internet, and what do I know? (loud, symphonic, agreement sound here).

    The land and farming is our bread-and-butter. Do we want to shut down the brains on it? Jeez, I think we should have more brains, be the best in the world. Why not, the world counts on us to feed them.

    I have a lot more cuts before I want to cut the dissemination of local agriculture knowledge. A lot more.


  25. - Cincinnatus - Thursday, May 12, 11 @ 5:30 pm:

    Wordslinger,

    I’d like to see some of the extension work go 21st century. Live chatting with a video option might work, and some graduate students could earn a few bucks manning the thing.


  26. - Yellow Dog Democrat - Thursday, May 12, 11 @ 5:52 pm:

    === I have a lot more cuts before I want to cut the dissemination of local agriculture knowledge. A lot more. ===

    Sounds like one Blogger could cover the entire state.


  27. - Anonymous - Thursday, May 12, 11 @ 5:57 pm:

    …Correct me if I’m wrong here, but I believe Medicaid providers are currently being paid within 30 days in order to capture additional federal matching funds…

    Actually, that is incorrect. Some medical providers such as pharmacies were never part of the 30 day requirement for enhanced federal match, and as a result they’re already much longer than 30 pay cycles.

    Most people don’t understand how crazy the decision to push an additional $500 million of Medicaid into FY13 really is. That means Illinois will have to come up with $500 million MORE in FY13 than in FY12 just to stay at 45 days. It’s like one of us deciding to pay only 11 monthly mortgage payments in FY12…You’d need to come up with 12 payments in FY13, 1 more than the previous year, just to stay a month behind.


  28. - dave - Thursday, May 12, 11 @ 9:22 pm:

    **Rich: I get that but doesn’t have the same effect as extending vendors another 21 days?**

    No… first, as others have pointed out, this is referring to Medicaid providers, not all providers. Most Medicaid providers (i.e. hospitals, nursing homes, docs, etc) have been on a 30 day (or less) payment cycle since the stimulus was enacted.

    Second, the payment cycle is actually just an accounting trick. For those that are already 180 days behind in payments, extending the payment cycle for those folks (or, in other words, delaying liability) would have zero impact on the providers payments.


  29. - dave - Thursday, May 12, 11 @ 9:23 pm:

    **Most people don’t understand how crazy the decision to push an additional $500 million of Medicaid into FY13 really is.**

    It isn’t that crazy… its been done for years, and the only reason it hasn’t been done in last two years is because of the ARRA (stimulus) dollars.


  30. - Pot calling kettle - Friday, May 13, 11 @ 12:13 am:

    @way south and cincy:

    4H is probably one of the best investments of state money in downstate education. The social interaction, the leadership opportunities, and the wide variety of topical subjects are a resource of great value to rural kids.

    The extension educators I know are, for the most part, highly qualified, work more hours than they are paid, and are very familiar with modern technology and a variety of things people need to succeed.

    While the internet can answer any question, it does not follow that the answers are useful or correct. (Content farms are not the way to learn much of anything.)


  31. - Anonymous - Friday, May 13, 11 @ 7:31 am:

    Yes, increasing cycles has been done before and it’s always a bad management decision…always. Cycle extensions are very short-sighted and virtually no one understands that you have to pay the bill the very next year. And no, it’s not an accounting trick…it’s borrowing against healthcare providers’ cashflow. It’s borrowing pure and simple.


  32. - Cincinnatus - Friday, May 13, 11 @ 8:51 am:

    Pot,

    I don’t want to eliminate the extensions, just make them more accessible to the public. I believe that the extensions are a necessity of a land grant college, and are beneficial to state agriculture. I was only thinking out loud about how I could dig up a weed in the back yard, log on and show it to someone in the Ag department at Illinois and get an email reply.


Sorry, comments for this post are now closed.


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