Capitol Fax.com - Your Illinois News Radar » 2015 » August
SUBSCRIBE to Capitol Fax      Advertise Here      Mobile Version     Exclusive Subscriber Content     Updated Posts    Contact
CapitolFax.com
To subscribe to Capitol Fax, click here.
Attorneys: Providers still not being paid

Monday, Aug 31, 2015

[Comments now opened.]

* From Ed McManus…

Attorneys for Illinois residents with developmental disabilities told the federal court Monday afternoon that many provider agencies still have not been paid for the services they have provided. (See attached documents) They said the court needs to order a mechanism to ensure that complete and accurate information about payments is provided, so that compliance with the Ligas consent decree can be evaluated. “The state consistently has failed to provide all of the relevant information throughout this dispute.”

The lawyers said they “do not now advocate a finding of contempt. Our goal simply is to make sure that the payments required by the decree and this court’s orders are made in a timely manner.” The state should be ordered to bring to the court’s attention, in advance, any potential non-compliance to avoid “the type of inefficient and disruptive ‘fire drill’ that the court and the parties have been through over the past several weeks.”

The lawyers had asked Judge Sharon Johnson Coleman last week to consider finding state officials in contempt of court for failing to comply with Ligas, a decree issued in 2011 in which the state agreed to enhance the disability system.

Ed McManus, a Wilmette-based consultant representing many of the provider agencies, said: “It is good that the state has now made most of the payments, but these agencies had to wait two long months, and that was unconscionable. Many of them had exhausted their reserves and maxed out their lines of credit. What a shame that the state caused all this anxiety for these vulnerable people and their dedicated providers.”

The court filing said:

    –Some group home providers still remain unpaid for July and August services, and many intermediate care facilities have not been paid for all Fiscal 2015 services.

    –Contrary to the assertions of the comptroller’s attorney, the state did have funds available to make payments Aug. 21 as ordered by the court.

    –State statutory and state constitutional obligations do not have priority over the consent decree. The lawyers are not asking the court to require that Ligas payments take precedence. They are simply arguing that their payments should not automatically be put in line after these other payments. “The state put the payments required by this court and federal law behind many other payments.”

    –A south suburban provider, Family Assn. Plus, received a letter from the state Aug. 25 announcing that it was eliminating the expedited payment program, which provides money faster to agencies that need it. The attorneys said this announcement must be rescinded immediately. “Such a suspension would be devastating to the providers participating in this program.”

Another hearing before Judge Coleman is scheduled for Tuesday.

* Attachments…

* Ligas - Reply Memorandum

* Exhibit A

- Posted by Rich Miller   25 Comments      


Moody’s: Illinois ratings will be based on whether state can deal with revenue problems and show it can make required pension payments

Monday, Aug 31, 2015

[Comments now opened.]

* Summary…

Moody’s has issued a short report concerning the ongoing budget stalemate in Illinois (rated A3/negative outlook). Illinois has had budget delays before and the weak governance is already factored into the state’s rating. However, the nature of the eventual agreement will matter far more to the state’s fiscal situation than the long delay that has already occurred. The report’s highlights are:

    * Pension funding pressures are growing, and the state cannot reduce liabilities through benefit cuts. Costs of constitutionally protected pension benefits are rising and funding pressure will be compounded by retiree healthcare benefit costs, which are rising by about 6.5% a year.

    * Illinois still has options to address its current-year deficit. An approximately $5 billion projected deficit can be offset with a combination of spending cuts and revenue increases including reinstating higher income tax rates.

    * The current impasse underscores the state’s governance weaknesses. Illinois has had late budgets before. This time, the Republican governor’s struggles to reach agreement with the legislature’s strong Democrat majorities have not yet strained the state’s finances, but that will change if an accord is not reached soon.

The press release is below and the report is attached. If you have any questions or wish to speak to anyone at Moody’s, please contact me. Thanks

David Jacobson

AVP, Communications Strategist - Public Finance Group

Moody’s Investors Service

* Press release…

Moody’s: Illinois’ budget impasse secondary to intensifying pension and revenue problems

The State of Illinois’ (A3 negative) current budget stalemate underscores the weak governance already incorporated into its rating, and is symptomatic of the state’s severe fiscal challenges, Moody’s Investors Service says in “State of Illinois: Late Budget Matters Less than Solving Pension and Revenue Problems.”

“Illinois projects its income and other taxes to generate $32 billion this fiscal year, or $5.4 billion less than expenditures without cuts,” author of the report and Moody’s Vice President – Sr Credit Officer Ted Hampton says. “While the state still has options to address its current-year deficit, continued political gridlock and the inability to reach an agreement by late September will greatly increase the likelihood of the deficit moving from projected to actual.”

The state also faces intensifying pressure to fund retiree benefits, which account for roughly 24% of its current general fund expenditures. The pension funding situation is compounded by retiree healthcare benefits costs, which are growing at about 6.5% a year.

“The state’s ability to manage these pressures will be a primary determinant of future rating actions. Given the state’s ironclad protection of benefits for current workers and retirees, Illinois requires a long-term plan to ensure it can at least comply with statutory funding requirements,” Hampton says.

Moody’s says the state has been deficient for many years in meeting the standardized annual required contribution (ARC) requirements to its pensions, and has been legally blocked from reducing its accrued liabilities via pension benefit cuts.

In the absence of a budget, Illinois will eventually have insufficient revenues to fund likely expenses, even as the pace of spending has slowed from last year. Some expenses have been paid because they do not require appropriation, have been mandated by court orders, or are allowed under limited appropriation measures.

Like other states, Illinois has had budget delays before, most recently in FY 2010. Moody’s believes it is unlikely Illinois can significantly reduce expenses without having a full budget in place, especially with services like healthcare that continue to be provided.

* The full analysis (click here) includes a possible road map

Illinois has the economic capacity to absorb higher income tax rates. It is one of only eight states that levy a flat individual income tax. Among those states, Illinois’ current rate is comparatively low: the average among these states is 4.4%, compared with 3.75% in Illinois. Unlike excise taxes, income taxes can be implemented retroactively, although the political feasibility of applying higher income taxes retroactive to July 1 has diminished, given that a quarter of the state’s fiscal year likely will have elapsed before new policies can be implemented.

Raising the individual rate to 4.75% from 3.75% and the corporate rate to 6.75% from 5.25% for the second half of this fiscal year would generate approximately $2.4 billion of additional revenue, leaving about $2.2 billion of the deficit to be addressed by other measures. The state could probably impose $1.7 billion of expenditure cuts, less than half the $3.7 billion of savings in the governor’s proposed budget that were not related to employee benefit reductions. This would leave $500 million to be addressed by additional new revenue, or non-recurring measures.

As time has elapsed, the difficulty of realizing such savings has increased; imposing these spending cuts in a shortened period may prove politically challenging. The cuts would reduce monthly outflows by about 9%, twice the monthly reduction that would have been required if such cuts had been put in place for the full year.

- Posted by Rich Miller   21 Comments      


PREVIOUS POSTS »
* Reader comments closed until Tuesday
* Rauner complains it's "hard to overcome" the "biased" Illinois media
* Question of the day: Golden Horseshoe Awards
* Rate Pritzker's new digital ad
* Recent endorsements: Raoul, Biss, Newman, Villivalam
* Joe Berrios' new radio ad features Jesse White, more attacks on Kaegi
* A make-work program for property tax appeals lawyers?
* Rauner tax hike claim ruled "Mostly False"
* Lawsuits expose more problems at Quincy veterans' home
* Could a Moody's methodology change push Illinois into junk status?
* Republicans get into the "holiday spirit"
* Jesse White's GOP opponent: "I'm extremely ordinary"
* Friday open thread
* Yesterday's stories

Support CapitolFax.com
Visit our advertisers...

...............

...............

...............
<


Loading


* Morning Spin: Mendoza says Rauner can't take cr.....
* Miller: Rauner might never be in charge - Quad .....


* Metra to modify train schedules during holiday season
* Chicago-area teen accused of pointing replica gun at cars
* New Bitcoin-based security bounces in trading debut on CME
* The Latest: Electricity fully restored at Atlanta airport
* Chicago taking proposals for reuse of historic city bridge
* No more valedictorian, class ranks at Kankakee High School
* Police: Illinois man dies after crashing ATV in New Mexico
* 14 millionth book for U of I library is professor's work
* Iowa homeless shelter sees high demand for beds
* Police in Illinois will begin roadside drug tests

* State paying Medicaid bills before interest piles up
* Food stamps cut to tens of thousands in Illinois
* Statehouse Insider: Holiday cheer from Rauner to Madigan
* Lawmaker's daughter gets probation in political rival attack
* Gov. Rauner unveils Bicentennial Pepsi can
* Video gambling numbers level off in Springfield
* Judge: Video gambling profits must be split with operators
* Under the Dome Podcast: "Objection! (to nominating petitions), Pritzker endorsements
* Schoenburg: Jones leads fundraising in 13th Democratic primary
* Governor candidates want action on Legionnaire’s outbreak at veterans home

* Like our roundup? Share it around.
* Chicago lawyers: not a diverse lot
* A legal setback for Jimmy John's in wage-theft case
* A health setback for Hunter Harrison punishes CSX stock


* Holiday travel chaos ahead after Atlanta airport outage
* Owl, hawk vs squirrel, 87th St. slip memories: Notes, Chicago outdoors
* Mario Batali gives holiday recipe in same email as misconduct apology
* Doug Jones: Trump shouldn’t resign over misconduct allegations
* Man’s buttocks bruised when bullet hits wallet in East Garfield Park
* Man shot during attempted robbery in South Shore
* 2 men wounded in Humboldt Park drive-by shooting
* Armed home invaders near O’Hare get gun wrestled away, 1 possibly shot
* Man wounded in Washington Park shooting
* Georgia Nicols horoscopes for Dec. 18, 2017


* Morning Spin: Mendoza says Rauner can't take criticism 'from a 5-foot-3 woman from Chicago'
* LINDA C. BLACK HOROSCOPES for 12/18/17
* Man wrestles gun away from attacker, possibly shoots him in home invasion on Northwest Side
* Carolina Panthers owner Jerry Richardson to sell team amid workplace misconduct investigation
* Power fully restored at Atlanta airport after outage grounded more than 1,000 flights
* Homeless man beaten to death at site of his former home, friend says
* Putin called Trump to thank him for CIA tip that helped thwart bombings in Russia
* Trump says he won't fire Mueller as campaign to discredit Russia probe heats up
* Film session: O-line had rough day and Bears can’t win when they can’t run
* LeBron wears 1 black shoe, 1 white shoe, speaks about Trump


» Is It Too Soon To Pass Sexual Harassment Policies? Some Legislators Think So
» Chicago High Schools Compete Against Each Other — For Students
» State Week: Why Are People Still Dying From Legionnaires At Illinois Veterans Home?
» Top Three Challenges For Homegrown Star Taking Over Chicago Schools
» Illinois Women Tell Their #Metoo Stories
» Illinois Issues: A Personal Story
» Key Question For Democrats: To Billionaire, Or Not To Billionaire?
» Pritzker To Be First On Primary Ballot
» 3 Years, 13 Legionnaires’ Deaths At Illinois Veterans’ Home
» Protesters Disrupt Meeting, Call For Palos Trustee To Quit Over ‘Racist’ Comments


* George Will: Whirlpool has Washington in a spin cycle
* State paying Medicaid bills before interest piles up
* Andy Shaw: Is Illinois ready to attack bureaucratic bloat and save money?
* UIS Perspectives: Educating leaders in education
* Food stamps cut to tens of thousands in Illinois
* Our View: City should enlist public input in cuts
* Statehouse Insider: Holiday cheer from Rauner to Madigan
* Schoenburg: Bernie-backing Gronemeyer vs. Clinton delegate Mazzotti for Dem post
* Lawmaker's daughter gets probation in political rival attack
* Scott Reeder: Assaults should never be swept under the rug


* Rick's Six: Fog early, road work, shooting, controlled burns and new contest clue
* Ameren picks route options for north expansion
* Europe topic of ISU spring seminar series
* Start the Week Off Right: Maintain a healthy lifestyle during the holidays
* Holiday gift (and selfie) hunt
* One hospitalized after single-car crash that knocked down power lines in Belleville
* One hospitalized after single car crash in Belleville
* East Moline police investigate shooting
* Competition challenges gamers to create a model Modern Woodmen Park
* Longtime state representative officially steps down


* Cowboys edge Raiders 20-17 by slimmest of margins
* Giordano, Bennett lead Flames to 6-1 win over Canucks
* Dawn Patrol: Teen accused of pointing toy rifle at traffic is detained
* Power fully restored at Atlanta's international airport
* Haula's go-ahead goal in 3rd leads Vegas past Panthers

* This RSS feed URL is deprecated
* High school football: Randy Hultgren lauds...
* Suburban Democrats line up to challenge Ro...
* Kendall GOP chief to challenge Kinzinger i...
* Strong early filing for Illinois attorney ...
* Letter to the editor: Hultgren should oppo...
* Tax cuts for Scrooge McDuck? Dispelling my...
* Letter: Protect our internet from fascism ...
* Efforts continue to have Warrenville Post ...
* Editorial: Roskam gets gun vote right, Hul...

* This RSS feed URL is deprecated...

* This RSS feed URL is deprecated...

* Investigation: Emanuel's Chicago Infrastructure Trust has cost taxpayers $5 million but has contributed little, and other news
* Let’s not presume that Trump and his political ilk are beaten quite yet
* Bling for the budget- and design-conscious
* Standing on the shoulders of ancestors.
* Sketchbook.
* Whenever the fight for democracy reaches a crossroads, look south.
* Sunday, Sunday.
* Rahm on Colbert.
* Sketchbook.
* A Black friend and a Jew lawyer.


* Illinois Awarded Funds to Offer Advanced Training on Detecting Impaired Driving
* Illinois EPA Announces Upcoming Household Hazardous Waste Collection Events
* IEMA Highlights Emergency Preparedness for People with Access and Functional Needs in May - Ready Illinois website offers preparedness tips for people, caregivers
* First Lady Launches Illinois Family Connects
* Governor and Lt. Governor Unveil 2016 Journal of Local Government Shared Service Best Practices

  
* Bloomberg report lends further credence to Samsung Galaxy S9 February announcement
* There’s still time to bring the Oculus Rift home for the holidays at a discounted price
* Purported Sony H8216 specs could foreshadow Xperia XZ1 sequel with Snapdragon 845
* Samsung Market Share Slipping and the Post Net Neutrality World | #PNWeekly 283
* HQ Smashed Its All-Time Player Record Tonight as iPhone Trivia Show Continues to Surge in Popularity
* Play the best strategy game in the world — now 50% off
* BlackBerry nixes security support for the PRIV after two years

* Lull in Manny Machado rumors, but plates shift underneath
* Sporcle Saturday: The richest free agent deals in White Sox history
* Former White Sox players return to rep team
* White Sox news that doesn’t involve Manny Machado
* Former White Sox players return to rep team
* The cracks in the White Sox-Manny Machado rumors
* Hahn mum on any White Sox-Machado talks


Main Menu
Home
Illinois
YouTube
Pundit rankings
Obama
Subscriber Content
Durbin
Burris
Blagojevich Trial
Advertising
Updated Posts
Polls

Archives
December 2017
November 2017
October 2017
September 2017
August 2017
July 2017
June 2017
May 2017
April 2017
March 2017
February 2017
January 2017
December 2016
November 2016
October 2016
September 2016
August 2016
July 2016
June 2016
May 2016
April 2016
March 2016
February 2016
January 2016
December 2015
November 2015
October 2015
September 2015
August 2015
July 2015
June 2015
May 2015
April 2015
March 2015
February 2015
January 2015
December 2014
November 2014
October 2014
September 2014
August 2014
July 2014
June 2014
May 2014
April 2014
March 2014
February 2014
January 2014
December 2013
November 2013
October 2013
September 2013
August 2013
July 2013
June 2013
May 2013
April 2013
March 2013
February 2013
January 2013
December 2012
November 2012
October 2012
September 2012
August 2012
July 2012
June 2012
May 2012
April 2012
March 2012
February 2012
January 2012
December 2011
November 2011
October 2011
September 2011
August 2011
July 2011
June 2011
May 2011
April 2011
March 2011
February 2011
January 2011
December 2010
November 2010
October 2010
September 2010
August 2010
July 2010
June 2010
May 2010
April 2010
March 2010
February 2010
January 2010
December 2009
November 2009
October 2009
September 2009
August 2009
July 2009
June 2009
May 2009
April 2009
March 2009
February 2009
January 2009
December 2008
November 2008
October 2008
September 2008
August 2008
July 2008
June 2008
May 2008
April 2008
March 2008
February 2008
January 2008
December 2007
November 2007
October 2007
September 2007
August 2007
July 2007
June 2007
May 2007
April 2007
March 2007
February 2007
January 2007
December 2006
November 2006
October 2006
September 2006
August 2006
July 2006
June 2006
May 2006
April 2006
March 2006
February 2006
January 2006
December 2005
April 2005
March 2005
February 2005
January 2005
December 2004
November 2004
October 2004

Blog*Spot Archives
November 2005
October 2005
September 2005
August 2005
July 2005
June 2005
May 2005

Syndication

RSS Feed 2.0
Comments RSS 2.0
WordPress




Hosted by MCS SUBSCRIBE to Capitol Fax Advertise Here Mobile Version Contact Rich Miller