* There’s something you need to keep in mind when reading this AP report about the problems that will be created by pushing off $1.2 billion in Medicaid payments until after next fiscal year ends…

Illinois is on the verge of approving a Medicaid budget that could mean doctors and hospitals wait months to be paid and poor people have a harder time finding care while state government falls deeper into a financial hole.

The budget passed by lawmakers last month promises doctors and hospitals the same pay they get now. The same number of poor Illinoisans will be entitled to virtually the same services. But the amount of money set aside for Medicaid falls about $1.2 billion short of covering all those costs. […]

The payment delays would mean financial pain for anyone who treats the poor, experts said. More doctors and dentists might choose not to see patients who depend on Medicaid. Hospitals and nursing homes would face pressure to cut staff or delay improvements.

Last month, hospitals and nursings homes actually requested the delayed payments in lieu of a rate cut…

Howard Peters, executive vice president of policy and advocacy for the Illinois Hospital Association, told the house budgeting committee that his members favored a delay in payments over a cut in rates. “We know that extending the payment cycle is not desirable. It’s not desirable for you. It’s not desirable for our members. But it is a far better solution. A far better solution than taking an inadequate Medicaid payment and making it even more inadequate,” Peters said. “Given the choices that you may have before you, we would encourage you to think extending the payment cycle rather than cutting the rates across the board. Much greater harm is done by cutting the rates.” […]

Putting off Medicaid payments would allow the state to cut costs out of the Fiscal Year 2012 budget by pushing them into FY 2013. However some lawmakers have warned that delaying the payments along with a loss in federal dollars could mean trouble on the horizon for Medicaid budget in FY 2013. Chicago Democratic Rep. Sarah Feigenholtz, who chairs the House Human Services Appropriations Committee, said the overall Medicaid budget — which is spread out over several state agencies — is slated to lose $765 million in federal stimulus funding in FY 2012.

“In FY 13, when we come look at our Medicaid numbers, we’re all going to faint. We’re all going to faint,” she said.

Can you say “Punt”?

* And here is something I warned subscribers about last week. Quinn could create a “crisis” next spring by spending cash like there were no cuts or payment delays…

It’s not guaranteed that Quinn will deal with the cuts by delaying payments. Spokeswoman Brie Callahan said the governor and aides are still studying the options. One of many possibilities under review would be to continue paying at the normal rate even if it means burning through all available money by March, she said. Then lawmakers might be forced to provide more money rather than see Medicaid services shudder to a halt.

Medicaid isn’t the only budget area that was underfunded. Schools took a $150 million cut even though the General State Aid formula was not changed. That’s just one of the things Senate President John Cullerton was referring to in his press release last week…

“There are still major structural deficiencies in the House budget that will become clear in the months ahead. I look forward to having the opportunity to address issues such as the underfunding of education and social service commitments.”

* Speaking of the budget, this is a pretty silly approach to editorializing by the Bloomington Pantagraph…

There are still plenty of places to cut the state budget. If you don’t believe us, ask the Illinois Policy Institute.

We don’t have enough information to unquestionably endorse all 10 actions outlined in the institute’s “Get Out the Veto Pen” report. We don’t know whether some of the suggested cuts would violate terms of contracts or create other problems.

How about picking up the phone and just, you know, asking around? Also, the IPI identified just $49 million in cuts, and the Pantagraph opposed the biggest one…

The biggest ticket on the Top 10 list is $23.8 million for tourism promotion.

Cutting out all spending on tourism promotion could do more harm than good. Tourism is a viable industry that brings in revenue and supports jobs in Illinois.

* Not included on the Policy Institute’s list is making alleged not-for-profits like the IPI pay taxes, even when they start up identically named political action committees at the same mailing address…

The head of the Illinois Policy Institute, which bills itself as a “nonpartisan research organization dedicated to supporting free market principles and liberty-based public policy initiatives,” is now running a political action committee.

Joining JOHN TILLMAN, CEO of the think tank, in the endeavor is DAN PROFT, listed as treasurer of the new Illinois Liberty PAC.

The address of the PAC on LaSalle Street in Chicago is the same as that of the policy institute, though Tillman said that’s just a convenience to get mail, and there will be a new address soon. […]

According to a 2009 report to the Internal Revenue Service, Tillman was paid more than $175,000 annually as CEO and chairman of the institute, which rails against what it considers wasteful government spending.

Those guys are just way too blatant. And, according to Bernie’s column, they still haven’t issued a retraction for the most bogus story of the year. The IPI claimed that Rep. Bob Rita was ineligible to serve in the House because he’d been convicted of a felony. Except, he was never convicted of a felony and felons who have completed their sentences are clearly not barred from serving in the General Assembly. They also more than implied that I was doing the bidding of the House Democrats because I pointed out their goofy errors. There’s been no public retraction on that one, either. They’ve asked for a private meeting, but I think I’ll wait for the apology first.