Capitol Fax.com - Your Illinois News Radar » The new state budget could be a tight squeeze
SUBSCRIBE to Capitol Fax      Advertise Here      About     Exclusive Subscriber Content     Updated Posts    Contact Rich Miller
CapitolFax.com
To subscribe to Capitol Fax, click here.
The new state budget could be a tight squeeze

Tuesday, May 30, 2023 - Posted by Rich Miller

* My weekly syndicated newspaper column

House and Senate Republicans claimed during budget-related floor debate last week that the super-majority Democrats had masked the true size of their plan by delaying the start of some spending until the second half of the upcoming fiscal year.

Yes and no.

Republicans pointed to the $317 million to increase Medicaid provider reimbursement rates, including for hospitals. But that new spending doesn’t begin until Jan. 1, the halfway point in the 2024 fiscal year, which begins July 1.

And so, basic arithmetic means the rate increase in Fiscal Year 2025 will be double FY24’s cost, because that 2025 spending will cover all 12 months, instead of just six. That means the state will start the following fiscal year with at least a $317 million hole.

Sometimes, it takes time to stand up new programs, so state spending can’t justifiably begin for a while. That’s the case here as well, according to the governor’s office, which says the higher reimbursement rates can’t start until the state applies for and receives permission from the federal government. And that can take a while.

Also, $317 million is only 0.6% of the $56.6 billion state spending plan. Not much in the grand scheme of things.

While that $317 million is small in context, just think about how much scrambling the Democrats had to do during the past couple of weeks of spring session to collect enough crumbs under the couch cushions to pull its appropriations bill together.

First, they blew well past their self-imposed May 19th adjournment deadline because they couldn’t agree on a spending package. And even then, it took 24 hours after the state’s top Democrats announced a budget agreement until an actual budget bill surfaced, because of even more scrambling. And the budget agreement announcement itself was delayed by about an hour because of even more scrambling over relatively small amounts of money.

The Democrats also only built a $100 million cash cushion into this plan, or about 0.2% of total spending. That doesn’t leave them any room if their revenue projections are too low by a tiny fraction, or if spending is higher than anticipated.

Some Republicans pointed to the $550 million in increased spending to cover the exploding health care costs for undocumented residents as the reason why Democrats had to get so creative elsewhere. Medicaid providers, they said, could’ve received more money if not for that.

That’s true, but only in the abstract. Yes, proponents (including legislators) and the Pritzker administration vastly underestimated what the health care program would cost and how many folks would enroll. And, yes, the governor waited until this spring to turn to the legislature for either statutory relief or the full, guaranteed legal authority via authorized emergency rules to rein in costs in a way that can survive a barrage of lawsuits. Mistakes, as they say, were made.

In the real world, you can’t just wish away problems. “If only” is a fine game for pundits and politicians. But it doesn’t do you much good when building an actual state budget, which, unlike federal spending plans, can’t rely on simply printing more dollars.

No matter how much some Democrats may have privately grumbled about those massively increased costs, they would not publicly trumpet any sort of solution that kicked thousands of people off health care coverage (“Health care is a right” is a longtime Democratic Party talking point, after all) and forced hospitals and other medical providers to go back to treating them without any reimbursements.

And even though there was definitely some resistance and bitterness about those unexpected costs, Black legislators have wisely not had an appetite to publicly inflame the current tensions in Chicago, where some local Black leaders and conservative whites are grabbing headlines by echoing angry Fox News talking points about the costs of caring for the influx of mostly Latino asylum seekers.

While some Democrats clung to the notion that Gov. J.B. Pritzker had the authority to rein in costs without their assistance, they also saw the almost daily and widespread court battles throughout the pandemic over the governor’s use of emergency rules and executive authority.

Determined lawyers on the other side tied the attorney general’s office up in knots throughout the pandemic and have so far succeeded at stymying the implementation of both the SAFE-T Act and the assault weapons ban.

Lawsuits over limiting enrollment and putting undocumented immigrants into managed care programs might still be filed, but the state will be on much firmer legal ground by specifically allowing the governor to file emergency rules.

* Meanwhile, from the Latino Caucus…

Illinois Legislative Latino Caucus members released the following statement following the passage of the Fiscal Year 2024 state budget:

“We are pleased to report our progress in passing a state budget that focuses on the people. There are historic investments in early childhood education and more resources than ever to support students from working and middle class families on their path to receive a more affordable college education with the help of MAP grants, among other accomplishments that invest in our people and the future of our state.

“Illinois will continue to be a beacon of hope for those seeking a better life. In the coming year, we will devote $25 million to Welcoming Centers, which assist in integrating immigrant and refugee communities into our state, another $38 million will be devoted to Immigrant Integration programs that help immigrants on their pathways to citizenship and over $40 million to respond to the arrival of asylum seekers. We are committed to making Illinois one of the most welcoming states to immigrants.

“We are proud of the work to make Illinois the first state in the nation to offer Medicaid-like benefits to non-citizens. Thanks to this initiative, 50,000 more people, 42+ years old, receive preventive care, contributing to healthier communities, reducing the pressure over hospital emergency rooms, and saving taxpayers money. Lives have been saved because of this program.

“The need for the healthcare coverage we fight for is because of the real people and their real needs in the communities we represent. These are communities that contribute to our state often with nothing in return. While we were not able to expand coverage this year, the Illinois Legislative Latino Caucus has not given up, and we will not give up pursuing closing the age gap of coverage.

“Latino lawmakers are here in Springfield to represent the interest of the communities we represent, both in our districts and all Latino/x community members throughout the state; communities that have been historically disenfranchised and underserved, all while being taxpayers and contributing to our state in numerous ways. Our job as legislators is to fight for the resources our communities need and deserve, and to change the vicious trend of using Latino/x and immigrant communities as political pawns. We will continue to be their voice in Illinois and fight on their behalf, because that is what our communities need and deserve.”

       

19 Comments
  1. - RNUG - Tuesday, May 30, 23 @ 9:22 am:

    Overall, it’s actually a pretty decent compromise budget. Just hope it doesn’t get derailed through unexpected expenses later in the year.

    Of course IPI doesn’t think it’s a good budget. Already received their email falsely claiming it’s $4B out of balance because it doesn’t make the actuarial pension payments, just the scheduled ramp payments … with no mention of the ramp. They’ve got other gripes about the budget also, but that was their lead item.


  2. - Jerry - Tuesday, May 30, 23 @ 9:28 am:

    Looks like there is no room for Welfare for the Bears!


  3. - Demoralized - Tuesday, May 30, 23 @ 9:50 am:

    IPI are a one-hit wonder when it comes to pension. It doesn’t matter what the story is about they are always going to bring it back to pensions and then state that we need to take pensions away from people. Why anyone would ever take that organization seriously is beyond me. They are on an anti-pension crusade.


  4. - DuPage Dad - Tuesday, May 30, 23 @ 9:56 am:

    If Illinois made the largest possible pension payment, IPI would then complain that we are grossly overspending on pensions and ignoring other areas of the budget. No satisfying them so don’t try and satisfy them.


  5. - Mr. Middleground - Tuesday, May 30, 23 @ 9:57 am:

    I gave full credit to the Pritzker admin and the leaders in the legislature. This was a good, disciplined budget.


  6. - Steve - Tuesday, May 30, 23 @ 10:14 am:

    - the first state in the nation to offer Medicaid-like benefits-

    I wonder if this is legal. But, I know that will take a long time to make it through the courts. Anyway, it is expensive. But, that’s what Illinois voters want. I hope the Illinois economy stays strong because it’s going to need all the revenue it can get.


  7. - City Zen - Tuesday, May 30, 23 @ 10:47 am:

    ==$317 million is only 0.6% of the $56.6 billion state spending plan. Not much in the grand scheme of things.==

    And Invest in Kids cost only a third of that.


  8. - Demoralized - Tuesday, May 30, 23 @ 10:49 am:

    ==And Invest in Kids cost only a third of that.==

    That’s a policy decision. Doesn’t matter whether we could afford it or not. The decision was made to not fund private education.


  9. - Oswego Willy - Tuesday, May 30, 23 @ 10:58 am:

    ===And Invest in Kids cost only a third of that.===

    “Again”, a budget is the monetary and truthful weight and measure of policy.

    You can talk about policy, but funding (or not funding) programs is the truth to backing policy

    The rest is rhetoric


  10. - Mason Born - Tuesday, May 30, 23 @ 11:02 am:

    The tight squeeze seems ominous with State Employee contracts still to be negotiated. With the high inflation of the last two years those folks have a legitimate demand for some higher raises to catch up to inflation. They’re also not likely to love the idea of backloading the raises to make this budget look better.


  11. - Rich Miller - Tuesday, May 30, 23 @ 11:06 am:

    ===State Employee contracts still to be negotiated===

    They keep saying they put money in there for that. I suppose we’ll see.


  12. - Demoralized - Tuesday, May 30, 23 @ 11:28 am:

    ==They keep saying they put money in there for that.==

    They did. We’ll see if they put enough.


  13. - Mason Born - Tuesday, May 30, 23 @ 12:13 pm:

    –They keep saying they put money in there for that. I suppose we’ll see.–

    Here’s hoping those were Rational assumptions.


  14. - Demoralized - Tuesday, May 30, 23 @ 12:16 pm:

    ==Here’s hoping those were Rational assumptions==

    Depends on who you ask. Lol. I’m quite certain the union wouldn’t agree.


  15. - Mason Born - Tuesday, May 30, 23 @ 12:19 pm:

    –Depends on who you ask. Lol. I’m quite certain the union wouldn’t agree.–

    In this case I’d hope the assumptions lean more towards the Unions side. A little extra set aside seems better then not enough set aside.


  16. - JoeMaddon - Tuesday, May 30, 23 @ 1:13 pm:

    **- the first state in the nation to offer Medicaid-like benefits- I wonder if this is legal.**

    Yes, it is legal.


  17. - levivotedforjudy - Tuesday, May 30, 23 @ 4:05 pm:

    I hope some cool heads prevail and prevent what could be a growing fight and potential war between the Black & Hispanic Caucus’ in the General Assembly and the City Council.


  18. - RNUG - Tuesday, May 30, 23 @ 5:25 pm:

    == prevent what could be a growing fight and potential war between the Black & Hispanic Caucus … ==

    That’s going to happen one way or the other. The Hispanic Caucus is looking to gain power and the Black Caucus is trying to avoid surrendering power, ie, seats.

    The only questions are whether the fight is going to be overt or covert, and how bad the infighting will be to maintain representation.

    In one word, politics


  19. - Rich Miller - Wednesday, May 31, 23 @ 7:22 am:

    ===The only questions are whether the fight===

    You’re forgetting partisanship. It binds.


Sorry, comments for this post are now closed.


* Isabel’s afternoon roundup
* Pritzker says he 'remains skeptical' about Bears proposal: 'I'm not sure that this is among the highest priorities for taxpayers' (Updated)
* It’s just a bill
* It sure looks like lawmakers were right to be worried
* Flashback: Candidate Johnson opposed Bears stadium subsidies (Updated x2)
* $117.7B Economic Impact: More Than Healthcare Providers, Hospitals Are Economic Engines
* Open thread
* Isabel’s morning briefing
* SUBSCRIBERS ONLY - Today's edition of Capitol Fax (use all CAPS in password)
* Live coverage
* Yesterday's stories

Support CapitolFax.com
Visit our advertisers...

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

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

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

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

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


Loading


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

Archives
April 2024
March 2024
February 2024
January 2024
December 2023
November 2023
October 2023
September 2023
August 2023
July 2023
June 2023
May 2023
April 2023
March 2023
February 2023
January 2023
December 2022
November 2022
October 2022
September 2022
August 2022
July 2022
June 2022
May 2022
April 2022
March 2022
February 2022
January 2022
December 2021
November 2021
October 2021
September 2021
August 2021
July 2021
June 2021
May 2021
April 2021
March 2021
February 2021
January 2021
December 2020
November 2020
October 2020
September 2020
August 2020
July 2020
June 2020
May 2020
April 2020
March 2020
February 2020
January 2020
December 2019
November 2019
October 2019
September 2019
August 2019
July 2019
June 2019
May 2019
April 2019
March 2019
February 2019
January 2019
December 2018
November 2018
October 2018
September 2018
August 2018
July 2018
June 2018
May 2018
April 2018
March 2018
February 2018
January 2018
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




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