Half of that $586 million is reimbursed by the federal government, but it’s money the state doesn’t have and won’t have without a budget.
*** UPDATE 1 *** From Comptroller Susana Mendoza…
As if the Governor and legislators needed any more reason to compromise and settle on a comprehensive budget plan immediately, Friday’s ruling by the U.S. District Court takes the state’s finances from horrific to catastrophic. Payments to the state’s pension funds; state payroll including legislator pay; General State Aid to schools and payments to local governments – in some combination – will likely have to be cut. Payments to the state’s bond-holders will continue uninterrupted. A comprehensive budget plan must be passed immediately.
In the face of the State of Illinois’s ongoing budget impasse, a federal court today ordered the state to substantially increase monthly outlays to pay bills for healthcare provided under the Medicaid program. Under the court’s order, if the budget impasse continues, the state Comptroller is obliged to pay $586 million toward the state’s Medicaid obligations monthly, as opposed to the current payments of about $160 million. The state will be able to claim reimbursement for half of those expenditures from the federal government.
The court-ordered payment, which is the amount the state ordinarily pays in years when there is a budget in place, will prevent the $4 billion backlog of unpaid bills from growing larger. The court also ordered the state to pay $2 billion toward the backlog of unpaid bills over the next 12 months, with the goal of getting it down to the amount owed before the state budget impasse started.
In issuing the order, Judge Lefkow additionally emphasized that the State shall, “prioritize appropriate preference to ‘Safety Net Hospitals’ and other providers most crucial to affording the plaintiff class members’ access to federally mandated healthcare services.”
“The court’s order prevents the collapse of the healthcare system that serves children, families, seniors and people with disabilities across Illinois,” said David Chizewer, an attorney with the Chicago law firm Goldberg, Kohn, who is part of the team representing the healthcare beneficiaries. They are also represented by attorneys from the Sargent Shriver National Center on Poverty Law (Shriver Center) and Legal Council for Health Justice.
Although the court had previously ordered the state to make Medicaid payments during the budget impasse, for two years it has been paying only a small percentage of those bills. The growing backlog of unpaid bills precipitated the current crisis. “Without these payments, doctors, hospitals, clinics and other key healthcare providers would stop seeing Medicaid patients, or else simply go out of business altogether,” said Tom Yates, of Legal Council for Health Justice.
“It is important to note that the Illinois General Assembly met today, the last day of the fiscal year, to try finally to pass a full year fully funded budget,” said the Shriver Center’s John Bouman. “We urge them to get that work done and to be sure it includes a path to pay down the back bills. That is the only sure way through this thicket.”
dangerous to have adjourned before 5 p.m……regardless of ongoing meetings, have to hope S&P analysts also want to get out of office early https://t.co/3SWKDCxfhn
*** UPDATE *** Some folks have asked for an analysis of the House Democratic budget proposal. That proposal will undoubtedly be altered during talks with Republicans, but click here if you want to look at it.
While noting that the measure that passed was “only an amendment,” Rep. David McSweeney, R-Barrington Hills, said, “Obviously, things are heading in the wrong direction. Today, the Republicans in the General Assembly raised the white flag to a massive tax increase.”
McSweeney said Republicans who do vote for the tax increase that’s on the table – more than $5 billion – owe an apology to former Gov. Pat Quinn.
“Now they support a tax increase bigger than he did,” McSweeney said. “We’ve done nothing to reform government. Spending continues to increase. I am going to be fighting tooth and nail to stick to our core principals.” […]
Rep. Jeanne Ives criticized the House budget plan as bloated spending and requiring a tax increase that taxpayers can’t afford.
“This budget does not look out for small businessmen,” Ives said. “This budget does not look out for the ordinary taxpayer. This budget is gross overspending of people’s hard-earned income, going to a bloated system that we have failed to reform.”
She continued: “This budget is a disaster, and this budget is the death knell for Illinois. It tells every taxpayer who’s capable of moving from the state of Illinois it’s time to pick up stakes and leave. That’s what this budget does.”
* Kristen McQueary: Are Illinois taxpayers finally waking up?: You know the scene in the movie “Goodfellas” when Henry, actor Ray Liotta’s character, is worried about the pasta sauce, but drug enforcement helicopters are circling his house? That’s Illinois. The Too Late State.
* The House has just voted to approve an omnibus appropriations amendment 90-25.
Speaker Madigan rose after the vote to thank Leader Durkin and the Republicans who voted for the amendment.
I think it’s a good step forward. A step that we can build upon. There’s much work yet to be done. Therefore the House will be in session tomorrow.
Momentarily I will send a message to the bond rating agencies asking them to defer credit ratings on the state of Illinois until we have sufficient time (to work things out)
Next I will be convening a meeting of the leaders today (to talk about budget and non-budget issues)… and I will convene a meeting of interested parties on the revenue bill…
Let’s keep up the good work and we’ll get the job done.
Today’s House debate was remarkable for its bipartisan nature, which isn’t often seen in that chamber. GOP Rep. Steve Andersson received thunderous applause for his remarks, with Rep. Greg Harris saying it was the finest speech he’d ever heard delivered in the chamber.
* From Speaker Madigan’s office…
“The work of the governor and General Assembly is clearly not done. As a result, the House will remain in session. While we’ve made progress on solving the governor’s budget crisis, we are not done. We will remain in session to continue our progress toward passing a balanced budget. In light of this ongoing progress, I would ask that bond rating agencies temporarily withhold judgment and allow legislators time to negotiate a bipartisan, balanced budget.”
*** UPDATE *** As I noted earlier today in our live coverage post, this amendment vote was Speaker Madigan’s idea. He wanted the budget amendment adopted as a sign of good faith and then he’d restart negotiations on the non-budget issues and revenues. The budget itself is still not agreed.
So, a “top Republican source” described today’s floor action as more of a “procedural vote” than a sign of support for the underlying bill. There’s still a lot of work to do.
* Meanwhile…
Here's a letter Madigan sent to bond houses asking to delay cutting credit rating to junk status. Calls it the "governor's budget crisis." pic.twitter.com/qGkObVQ1tl
*** UPDATE 1 *** I was moving so fast I posted the wrong ad. Sorry! I accidentally posted the first ad, which is already on the air. Here’s the Do Your Job, Inc. spot which is online right now, but will be put on TV if today ends without an agreement…
*** UPDATE 2 *** Do Your Job, Inc. had scheduled a press conference for today at 1:30, but they just canceled it.
When I asked why, I was told “good faith.”
The ad’s still up, however.
*** UPDATE 3 *** Latest ad buy report from Comcast…
*** UPDATE 4 *** I asked the group’s spokesman what the group plans to do tomorrow and was told “We’ll see.” The spokesman said the buy extension was done to “coincide with the special session.”
State Sen. Bill Brady was elected by a unanimous vote of his Republican colleagues to serve as new Illinois Senate Republican Leader for the remainder of the 100th General Assembly on Friday.
“It is an honor to be chosen to lead the Senate Republican Caucus,” Sen. Brady said. “I thank them for their faith in me. I also appreciate my constituents in the 44th District for giving me the privilege to represent them in the State Capitol and the opportunity to serve as Leader,” Brady said.
The Bloomington Republican was nominated by Sen. Dale Righter (R-Mattoon) and Sen. Karen McConnaughay (R-St. Charles.)
“The issues facing Illinois are daunting, but our caucus remains committed to working together to face those challenges,” Brady said.
Brady has served in the State Senate since 2002. He previously served as state representative from 1993 until 2001. He currently serves as Assistant Republican Leader.
The official vote will come by a vote of the full Senate as soon as possible.
Governor Bruce Rauner issued the following statement on Sen. Bill Brady’s election as the new Senate Republican Leader:
“It’s an honor to congratulate Sen. Bill Brady as the new Senate Republican Leader. He is a champion for Illinois families – understanding the changes our state needs to create jobs, lower property taxes, strengthen schools, and reform our political system. I look forward to working with all of the outstanding leaders in the Senate Republican Caucus as we work to fix Illinois by creating a more responsive and responsible state government.”
Mike Madigan may be about to take Illinois to a new low.
16 years without a balanced budget and 26 credit downgrades on his watch have destroyed our state.
But Mike Madigan doesn’t care. As long as his power is maintained and his special interests are flush with taxpayer cash, Madigan is content to turn Illinois into junk.
Today, the ILGOP is releasing ads calling out Madigan’s meltdown.
“We’re approaching a third fiscal year without a budget and our bond rating is about to go to junk, but Illinoisans can find Bruce Rauner sitting at his desk waiting for someone else to do his job,” said Pritzker campaign spokeswoman Jordan Abudayyeh. “Governor Junk has driven this state to the edge of a fiscal cliff and he is about to slam his foot on the gas.”
*** UPDATE 2 *** Text from a top Republican…
Hey - Think it is worth noting that the party has pulled down the digital ad they released last night following the floor action this morning
* It’s gonna be a busy day, campers. It’s the last day of the fiscal year, the House and Senate convene at 9 o’clock, with the House taking up its budget bill. The Senate Republicans will meet today to vote on Senate GOP Leader Christine Radogno’s replacement. As always, watch it happen in real time with ScribbleLive…
In a stunning development amid ongoing negotiations to end the budget crisis in Springfield, Senate Republican Leader Christine Radogno has announced she is stepping down July 1.
Radogno’s announcement came after a private meeting with GOP Senate colleagues, on the heels of a meeting of the four top state lawmakers at the Illinois State Capitol.
“I have really tried hard and it’s time for someone else to take the reins,” Radogno said at a news conference, adding she wants to travel with her husband and spend time with her five grandchildren.
She told reporters that the end of the fiscal year is a “natural break” to leave her position, despite the fact that leaders in the House and Senate have still failed to reach a budget deal. She said she would continue to work on a resolution through Friday.
Radogno began her third term as leader in 2013. She has served in the Illinois Senate since 1997 and represents the 41st District in DuPage, Will and Cook counties.
In discussing her departure, she also became teary-eyed while discussing the sudden death of Lisa Radogno, her daughter, in 2014. Lisa Radogno, 31, was an executive assistant for Sen. Mark Kirk, R-Ill.; she died from a blood clot in her lung about a month after she was injured in a hit-and-run accident.
“It doubled down my interest in it [politics], but it did give me the perspective that nothing is forever,” Radogno said. “And I don’t want to squander my life with my husband and my grandkids and my other daughters. We only all have a certain amount of time and that experience told me, that’s for sure.”
Sen. Kwame Raoul, D-Chicago, praised Radogno, saying she “demonstrated true willingness to negotiate in good faith,” and that she showed the “humanity” that’s needed within the next few days to end the budget impasse.
* Illinois Senate Republican leader Radogno steps down: Even before her announcement, behind-the-scenes efforts to replace Radogno were being made by state Sen. Bill Brady of Bloomington, who served as her top deputy in the Senate GOP caucus, and by state Sen. Karen McConnaughay, the former Kane County Board chairwoman from St. Charles, legislative sources said. Talk of Radogno’s decision had begun spreading privately during the closing days of June in the aftermath of months of contentiousness with a Democratic legislative majority and a demanding Republican governor who has extensively used his personal wealth to command loyalty among GOP lawmakers. Radogno found her members’ loyalty to Rauner sometimes created problems with loyalty to her leadership, some GOP lawmakers said privately. That surfaced in attempts with Democrat Cullerton to negotiate an end to the state’s historic budget impasse known as the “grand bargain.”
* Christine Radogno resigns from Illinois Senate: She said she was not leaving out of frustration with a lack of support from the governor. “I feel strongly the governor has the right agenda, but it’s not that easy getting there. We need fundamental change in this building, but we need to compromise in order to get there,” she said.
* Radogno sends shockwave with sudden resignation from Senate: Radogno said she isn’t resigning because of the lack of budget progress. “I can expel that unequivocally,” Radgono said. “I was disappointed … that it didn’t happen. If that was my motivation, I would have been gone then. I really wanted to continue to try to deal with the hand we’ve been dealt and try to get to a place where we have the agreement.”
* Senate Republican Leader Christine Radogno to resign: In the past few weeks, Radogno has maintained a relatively low profile at the Capitol. When Senate Republicans have scheduled news conferences or other public events to present their views, Sen. Bill Brady of Bloomington and Sen. Karen McConnaughay of St. Charles have often led the discussion. Radogno, who has served in the Senate since 1997, did not mention a successor to her role as Senate Republican leader. In her statement, she said it was time for a new leader.
* Batinick: Timing of Radogno’s resignation ‘brings uncertainty’: “I’m not surprised that she resigned; I am surprised that she is doing it so soon,” Batinick told the Will County Gazette. “I knew her very well and respected her very much. I wish her the best in the future. Her replacement has big shoes to fill.”
