* From the Community Behavioral Healthcare Association of Illinois’ Marvin Lindsey…
The launch of a new state computer system designed to create a “more efficient system” of registering Medicaid recipients to receive mental health care and addiction treatment services has had the opposite effect, according to advocates.
The Illinois Department of Human Services (DHS) new “Integrated Eligibility System” has failed to function as intended and has disrupted care for “thousands” of individuals with mental illness. The glitch has also stalled payment to providers as processing patient registration has ballooned to a 90-day delay in many cases, leading to “chaos and delay”, says the Community Behavioral Healthcare Association of Illinois (CBHA), a statewide advocacy group.
“Since DHS’ new computer system went live in October 2017, we have been telling DHS that a computer glitch has unleashed chaos and delays for individuals in need of behavioral health services,” said CBHA CEO Marvin Lindsey. “Now we’re in January 2018, and the problem remains unresolved and thousands are being affected as a result.”
DHS’ top official, Secretary James Dimas, acknowledged in a December 18, 2017 letter to the advocacy group that his agency’s new computer system has been hit by delays.
“As with any new technology system this large and complex, as we adjust to this new system IDHS has experienced some delays in the assignment and processing of Recipient Identification Numbers (RINs) which are required for billing and receiving payment for rendered services,” Dimas wrote. “[…] At the current time the backlog is between 10 and 12 days …”
CBHA’s Lindsey fired back in his own letter hotly disputing Dimas’ 10 to 12-day backlog claim after hearing an uproar from his member agencies, saying it’s closer to 60 days and in other cases more than 90.
“I would like to make a correction to your statement that the current time the backlog is between 10 and 12 days,” Lindsey wrote. “We have members who are still waiting on e-RINs to be processed from as far back as September. Most of our members are reporting delays from 30-60 days.”
Lindsey also warned Dimas that DHS’ computer system dysfunction was blocking access to care for those with “behavioral health illness.”
“Some of our members are reporting up to 350 people awaiting e-RINs, which, again, means there are 350 people who could not access treatment,” Lindsey said in his letter. “While the 350 clients are on the high end and cover delays of about 60 days, many of our members are reporting delays from 30-45 days, but, more importantly, consumers seeking help for their behavioral health illness are not able to access treatment.”
Lindsey said that his group has been working with the state agency but the problem remains unresolved.
“The seriousness of the problem has yet to break through to the department officials,” Lindsey said. “We need a fix. And we need it last week.”
The breakdown of DHS’ behavioral health patient registration system is the latest debacle linked to the state’s new computer system. In December, more than 40,000 Illinois families lost their food stamp benefits because of a glitch in the state’s new technology platform.
Helping individuals access mental health services in the community is a top priority for IDHS and our staff work tirelessly to ensure that we are facilitating the process of receiving those services. We are aware that the processing of Recipient Identification Numbers (RINs), which are required for billing and receiving payment for services, is behind. We believe this issue to be related to a series of retirements in this unit which reduced staff by more than half. We have implemented a temporary staffing plan that will more than quadruple the current staff dedicated to this issue and would eliminate the backlog in 2-3 months.
Contrary to Mr. Lindsey’s note to the press, department officials take this issue very seriously. We have been working collaboratively with the Illinois Association of Behavioral Health to explore different options to expedite the process. We welcome CBHA to engage with us in a similar discussion.
COMPTROLLER MENDOZA CALLS FOR REVIEW OF RAUNER ADMINISTRATION’S $100,000-A-DAY TOLLWAY DEAL
Deloitte Consulting to receive additional $9 million for 90 days of ‘emergency’ help on costly statewide tech overhaul
Illinois Comptroller Susana A. Mendoza on Tuesday called for further review by independent procurement officials of an $8.9 million, 90-day ‘emergency’ contract between the Illinois Toll Highway Authority and Deloitte Consulting for the ‘continuation of implementation services’ for the State’s Enterprise Resource Program (ERP), a state Information Technology upgrade project that has ballooned in cost under the Rauner Administration.
In a document published online on Jan. 11, Tollway officials said the additional dollars are needed because the funds assigned to the project through the State’s Department of Innovation Technology (DOIT) are depleted.
“Failing to properly estimate cost and overspending is not an emergency - it’s poor project management. This is part of a pattern of cost overruns, missed deadlines and contract mismanagement by Governor Bruce Rauner and, once again, taxpayers are footing the bill,” Comptroller Mendoza said.
State procurement practices by the Illinois Department of Healthcare & Family Services were the topic of a series of recent hearings hosted by lawmakers. In December, the State’s Chief Procurement Officer determined the Rauner Administration had misapplied an exemption to award a $12 million consulting contract to McKinsey & Company. In an unprecedented step by the Chief Procurement Officer, the McKinsey contract with the Illinois Department of Healthcare & Family Services (HFS) was invalidated.
Mendoza pointed to a $67.5 million sole source contract with the state’s Department of Human Services (DHS) for additional work on another Deloitte project to provide food stamps and other benefits to Illinoisans as another recent example of contract mismanagement by the Rauner Administration. The cost of the Deloitte benefits contract has skyrocketed to $288 million—more than double the original $143 million budget approved in 2012.
The ‘emergency’ Tollway deal is not subject to competitive bidding or a public hearing. Unlike a sole source contract, there is no waiting period for it to take effect. It is not subject to review by the State’s independent Chief Procurement Officer or the State’s Procurement Policy Board. A contract bulletin posted last week provides no details as to how the $9 million will be spent.
Comptroller Mendoza has criticized the Rauner Administration for failing to publicly disclose information regarding ERP program goals, deadlines and costs. For nearly a year, DOIT has failed to answer basic questions from the Office of the Comptroller and lawmakers regarding the status of the ERP, program staffing and funding levels. Pending a response to repeated inquiries, the Office of the Comptroller has placed a hold on payment of certain ERP contracts, representing just two percent of the FY2017 DOIT budget.
Comptroller Mendoza said applying an emergency contract designation when it’s not merited sets an alarming precedent.
“Procurement rules should be a check on irresponsible spending. Those rules are being circumvented here and we would ask that the State’s independent procurement officials review the contract and determine if this is an appropriate use of an emergency contract. To me, the Tollway has failed to make a convincing case. This isn’t a broken water main that poses a danger to drivers on a state roadway. Before a cash-strapped state starts handing over $100,000 a day there should be vetting via an open and transparent process.” Comptroller Mendoza said.
By statute, the conditions under which emergency procurements can take place include a threat to public health or safety; protecting against further loss or damage to State property; preventing disruption in services that affect health, safety or the collection of substantial state revenues; or capitalizing on a discounted price to take advantage of cost savings.
…Adding… From the tollway…
Rich:
The Illinois Tollway followed the instructions of the independent Chief Procurement Office to use a 90-day emergency procurement to continue work necessary to ensure there is no disruption in our process of implementing the Enterprise Resource Program (ERP).
The procurement will fund work over the next 12 months to complete Phase 1 of the Tollway’s ERP, which is replacing an outdated, costly and obsolete system with a new platform that will streamline administrative operations, provide greater transparency and enhance automated reporting while reducing or preventing audit issues.
These improvements will enable the Tollway to operate more efficiently.
Thanks,
Dan Rozek
Sr. Manager of Communications
Illinois Tollway
Schools do better under current school funding formula than SB 444
Last year, Illinois lawmakers passed, and the Governor signed, historic school funding reform. Then, during the fall veto session, the General Assembly passed a trailer bill (Senate Bill 444) making two technical changes dealing with how Equalized Assessed Valuation (EAV) is calculated in the new school funding formula. The trailer bill advanced so the modeling done by the Illinois State Board of Education (ISBE) for the new formula matched up with the bill that was passed by the General Assembly and signed by the Governor.
This is unprecedented in terms of school funding; where typically lawmakers get a model of the bill as it was enacted, rather than changing the enacted bill to match the modeling. Unfortunately, ISBE pointed out the discrepancy too late. However, as it turns out, Illinois school districts fare much better under the state’s historic new funding reform law (passed last summer) than they would under SB 444. It is also worth noting ISBE has told staff that “implementation of the new funding law will occur regardless of SB 444” and they will “allocate tier funding based on the law as written.”
According to the Senate Republicans, Chicago Public Schools would receive $45.5 million more under the SB444 trailer bill, which was proposed by the ISBE.
The Tax Cuts and Jobs Act creates a new wrinkle for 529 college savings plans, which are tax advantaged. The bill would allow parents to use them for K-12 expenses, including private school choice, as well as postsecondary costs. The bill puts a $10,000 cap on the money people can set aside for K-12 in these plans.
U.S. Secretary of Education Betsy DeVos and others have applauded the move, although DeVos said Tuesday the move has limitations. But others argue it will mainly help wealthier parents who can afford to set money aside, and those already sending their children to private schools.
In a last-minute twist, the Senate parliamentarian on Tuesday ruled that the slice of this provision that allowed 529 plan dollars to be spent on home schooling violated the chamber’s rule. The Senate and then the House voted to approve the bill without this provision covering home schooling costs.
* But Treasurer Frerichs just sent out a warning…
Families that use their Bright Start or Bright Directions college savings accounts to pay for tuition, fees or other expenses at private or parochial schools, including Catholic schools, would violate Illinois’ tax code, Illinois State Treasurer Michael Frerichs cautioned today. Frerichs also emphasized that federal tax reform did not change any of the benefits for using Bright Start or Bright Directions to save or pay for higher education.
Illinois’ tax code specifically limits tax-free growth in Bright Start and Bright Directions accounts when used for qualified higher education expenses. As such, a distribution from a 529 plan for K-12 costs is not a qualified expense for Illinois tax purposes. Families who claim the deduction could face state tax penalties if caught by a state tax auditor.
“Our analysis concludes that families who use Bright Start or Bright Directions money on elementary or high school expenses and then cite those expenditures when seeking tax relief will be in conflict with state law and could incur tax penalties if audited by state authorities,” Frerichs said.
In Illinois, the 529 Bright Start and Bright Directions plans are managed by the state treasurer’s office. The recently passed federal tax package allows states to expand 529 programs to private and religious K‑12 tuition expenses in 2018 and beyond. The federal legislation took effect Jan. 1 and could affect tax filers in 2019.
Here is how the tax break works for Bright Start and Bright Directions college savers who are Illinois taxpayers: Contributions to the accounts reduce a taxpayer’s Illinois adjusted gross income up to $10,000 for individuals and $20,000 for married couples filing jointly. At the federal level, the earnings generated within Bright Start and Bright Directions are not subject to federal income taxes while they accumulate. Also, distributions from these plans are not subject to federal or state income taxes when used for qualified higher education costs such as tuition, mandatory fees, certain room and board, computers and required supplies.
When former Chicago City Council Inspector General Faisal Khan launched his not-for-profit anti-corruption group close to two years ago, he insisted it was independent and nonpartisan.
At the time, Khan refused to disclose who was funding the organization, which he called Project Six — a reference to the group of civic leaders who led the fight against Al Capone during Prohibition. […]
The most recent federal tax filing for the Illinois Policy Institute shows it gave $623,789 to Project Six in 2016 — 98 percent of the group’s first-year budget. The records don’t reveal — and Project Six officials haven’t said — where the rest of its money comes from.
The Illinois Policy Institute, in turn, has received extensive support from foundations tied to some of the country’s biggest Republican contributors, including the Koch, Mercer and Uihlein families, as well as Gov. Bruce Rauner and first lady Diana Rauner’s charitable foundation. […]
In the interviews, Khan offered shifting accounts of Project Six’s financial support. He initially denied the Illinois Policy Institute was among his group’s primary funding sources.
“We’re not getting the money from IPI,” he said. “We get money from all sorts of donors, but we don’t release their names because they fear reprisal from the city of Chicago.”
Gov. Bruce Rauner says there is potential for “superstar” talent to join the University of Illinois Board of Trustees.
The Republican governor is tasked with filling the seats for three trustee terms that expired this month. Rauner said he is interviewing a number of high-caliber candidates.
“If we could land one or two of the individuals we are talking with, it would be national or international headlines,” Rauner said while on a visit to Champaign’s Franklin Middle School on Wednesday. He indicated the candidates care about the UI and already have connections to the school.
As the board prepares to elect new officers Thursday in Chicago, Gov. Bruce Rauner has yet to choose an appointee for the ninth statewide seat vacated last January.
“Our administration is still in the process of considering candidates for this vacancy,” Rauner spokeswoman Rachel Bold said Tuesday.
Last January, three members’ terms expired: Democrats Patricia Brown-Holmes and Ricardo Estrada and Republican Karen Hasara. At the time, the governor said he hoped to fill those vacancies with “superstar” talent.
“If we could land one or two of the individuals we are talking with,” he said 11 months ago, “it would be national or international headlines.”
Bold did not respond to questions about whether those individuals were still in the mix.
It’s hard to dismiss the suspicion that Gov. Bruce Rauner has forgotten that he needs to make one more appointment to the University of Illinois Board of Trustees.
Rauner, obviously, has a lot on his mind these days.
His office is preparing a budget for the new fiscal year that begins July 1. He’s preparing for legislators to return to Springfield while running for re-election. So he’s clearly busy.
Nonetheless, it’s past time for him to fill the only vacancy on the nine-member University of Illinois Board of Trustees.
Amazon today announced that it has picked 20 metro areas “to move to the next phase of the process” as it looks for a home for a second headquarters. The 20 areas in alphabetical order:
Atlanta
Austin, Texas
Boston
Chicago
Columbus, Ohio
Dallas
Denver
Indianapolis
Los Angeles
Miami
Montgomery County, Md.
Nashville, Tenn.
Newark, N.J.
New York City
Northern Virginia
Philadelphia
Pittsburgh
Raleigh, N.C.
Toronto
Washington D.C.
The list is a broad mix of cities big and small, ranging from Columbus, Ohio, and Indianapolis to Los Angeles and New York. It includes many of the early favorites, including Austin, Denver, Boston, Toronto and Washington, D.C. Three of the 20 finalists are near the nation’s capital, where Amazon has 2,500 employees.
Chicago was seen as a likely contender, based on Amazon’s criteria of wanting to be in an urban area with more than 1 million people within 45 minutes of an international airport and preferably have direct access to mass transit.
“Today we are announcing the communities that will proceed to the next step in the HQ2 process. Getting from 238 to 20 was very tough — all the proposals showed tremendous enthusiasm and creativity,” Amazon tweeted.
On its website, Amazon said, “In the coming months, Amazon will work with each of the candidate locations to dive deeper into their proposals, request additional information as necessary, and evaluate the feasibility of a future partnership that can accommodate our hiring plans as well as benefit our employees and the local community. We expect to make a decision in 2018.”
Illinois, Chicago and Cook County teamed up to offer more than $2 billion in incentives to Amazon, and offered 10 proposed sites. They are Lincoln Yards, a development along the Chicago River near Lincoln Park and Bucktown; the Downtown Gateway District, which includes space in Willis Tower and redevelopment of the old main post office and Union Station; City Center Campus, a proposed redevelopment of the state-owned Thompson Center in the Loop; the River District, a 37-acre development along the river and Halsted Street; the Burnham Lakefront, a Bronzeville development that includes the Michael Reese Hospital site; the 78, a development planned on 62 acres along the river between the South Loop and Chinatown; Fulton Market district properties controlled by multiple owners; Illinois Medical District redevelopment; the soon-to-be-vacated, 145-acre McDonald’s campus in Oak Brook, which the company will leave for Fulton Market; and more than 260 acres available for development on the longtime Motorola Solutions campus in Schaumburg, where Zurich North America recently built a new headquarters.
…Adding… Mayor Emanuel’s office…
Today’s news makes clear that Amazon recognizes Chicago’s great strengths - access to talent, transportation, higher education, affordability and quality of life, which are the keys to growth and prosperity.
As companies including GE Healthcare, ConAgra and McDonalds have concluded, Chicago offers unparalleled opportunities, and we are going to continue to work as a region to make the case to Amazon that Chicago is the ideal location for HQ2. We are prepared to compete at the next level and the next level after that.
Today, Citizens for Rauner is launching an extended television ad featuring all 11 minutes of the FBI wiretap between JB Pritzker and disgraced former governor Rod Blagojevich. It will air in every major media market in Illinois on Saturday, January 20 and Sunday, January 21.
It is in response to JB Pritzker’s claim that last week’s ad featuring his conversation with Blagojevich, in which his insider dealings were exposed, was “selectively edited.” That ad highlighted 60 unedited seconds taken straight from the Chicago Tribune reporting of the FBI wiretaps.
JB Pritzker cannot simply dismiss his conversations with a convicted former governor in which he lobbied for his own appointment to statewide political office and encouraged him to engage in a quid pro quo — especially in light of their well-documented, decades-long, cozy political friendship. JB Pritzker is part of the corruption and cronyism that has plagued Illinois for decades. The people of Illinois deserve better.
As far as the Blagojevich tape making Pritzker unelectable, the evidence would indicate even Rauner doesn’t necessarily believe so.
If he did, why would he be trying so hard to blow up Pritzker’s candidacy at this early stage before Pritzker is even the Democratic nominee?
At the very least, though, the recording is a significant problem for Pritzker, one that he keeps trying to shrug off in the affable style that is nearly as responsible for his popularity with Democratic insiders as his very deep pockets.
In an otherwise strong presentation to the Sun-Times’ Editorial Board, Pritzker stuck to his usual talking points when asked about his relationship with Blagojevich.
“Gov. Blagojevich broke the trust with the people of the state of Illinois, and he’s in prison where he belongs,” Pritzker said. “Sadly, we have a government and once again a governor that’s focused on themselves and not on doing what’s right for the people of the state of Illinois. I’m proud about doing public service. Any conversations I had were about doing public service, and any suggestion by Gov. Blagojevich of any contribution I rebuffed.” […]
My own take is that it’s less damning in its entirety than portrayed, though hardly reassuring.
Today, Daniel Biss announced the endorsement of former United States Senator Adlai Stevenson III.
“Daniel is the only Democratic candidate for governor with legislative experience, having served with distinction in both the House and Senate,” said Adlai Stevenson. “He knows state government—its structure, its processes, and how to pass the policies he believes in. He’s a reformer and a unifier with unparalleled intelligence and integrity. He’s not a billionaire—but the people of Illinois want elections, not auctions. After years of following Daniel’s career, I know he’s the leader we need to get Illinois back on track, and that’s why I’m proud to endorse him today.”
“It’s an honor to receive Adlai’s endorsement,” said Daniel Biss. “A dedicated public servant, long-standing advocate of good government reforms, and expert on all things Illinois politics, Adlai is a trusted friend and advisor. I look forward to having him on our team and to drawing on his experience and ideas as we fight for our shared values in this election cycle and beyond.”
In endorsing Daniel Biss, Adlai Stevenson III joins other progressive leaders and organizations including U.S. Congresswoman Robin Kelly, former Lieutenant Governor Sheila Simon, State Representatives Kelly Cassidy, Carol Ammons and Will Guzzardi, and many more.
The November election race for Illinois governor cost $28 million just for the last three months of 2017.
Campaign finance disclosure reports filed this week show that $9 of every $10 was spent by two candidates — Republican Gov. Bruce Rauner and Democratic challenger J.B. Pritzker.
* The Question: Do you support public financing of campaigns? Why or why not?
Gov. Bruce Rauner says the spending plan he will present during his budget address next month will be balanced, but would include spending cuts.
Rauner, who spoke with reporters after meeting with small business owners at the Edwardsville Public Safety Building, said he would not give specifics about possible cuts in the 2018-19 budget. […]
The state House is scheduled to go back into session Jan. 23 and the state Senate on Jan. 30. Rauner’s State Of The State Address is scheduled for Jan. 31, and his budget address is scheduled for Feb. 14.
“I have proposed a balanced budget every year I’ve been governor,” Rauner said.
“Today we present you with a balanced budget that shows what is possible if we all come together on a comprehensive approach to state finances and job creation” the governor told lawmakers.
Yet, the budget book produced by the governor’s office of management and budget suggests the budget is balanced by “working together on a grand bargain.” A so-called grand bargain budget compromise, though, has not been achieved or enacted.
Illinois government finance experts agree Rauner’s proposal is not balanced.
In the heated primary for attorney general, Democrats tried to raise money quick after incumbent Lisa Madigan’s surprise decision not to seek re-election. State Sen. Kwame Raoul, D-Chicago, reported $781,825, spent about $109,000 and has $1.079 million on hand. He received $5,000 from Sen. Heather Steans, D-Chicago, and smaller contributions from other fellow Democratic lawmakers. And he took in $10,000 each from Top Tobacco, Top Tubes and Republic Tobacco, all contributions that have been criticized by some of his opponents.
Former Gov. Pat Quinn received about $79,000 in contributions for his bid for attorney general, including a $55,400 transfer from the Chicago Regional Council of Carpenters PAC. He spent $32,496.08 and has $278,714.04 on hand.
Former Civilian Office of Police Accountability chief Sharon Fairley received more than $195,000 in contributions, and reported a $300,000 loan from herself. She has $387,840 on hand. Former federal prosecutor Renato Mariotti took in $345,000 in contributions and spent about $146,000. He has a bit more than $198,000.
State Rep. Scott Drury, D-Highwood, took in $506,000 in contributions and spent about $72,100. He has $731,187.94 on hand.
Highland Park Mayor Nancy Rotering took in more than $452,000 in contributions and $178,000 in loans. She spent $146,000 and had $574,383 on hand.
Chicago Park Board President Jesse Ruiz took in about $449,000 in contributions and loaned himself $100,000. He spent $194,000 and had $355,147 on hand.
Attorney Aaron Goldstein reported nearly $18,000 in contributions and loaned himself $185,000. He spent nearly $30,000 and has $206,959 on hand.
Erika Harold opposed legalizing marijuana back in 2014 when she ran for Congress — but on Tuesday, the Republican attorney general candidate said she believes Illinois should start “exploring” legalization.
She noted that there is a push in Illinois to legalize pot, and the state should be ready.
“I want Illinois to prepared for that because I think that’s ultimately where we’re going to be,” Harold said. “And I think we want to be prepared to deal with it in a way that makes sense and that protects people as much as possible.” […]
While Harold — who lost a bid for Congress in 2014 to U.S. Rep. Rodney Davis — criticized outgoing attorney general Lisa Madigan for over-politicizing her post in fighting President Donald Trump’s policies, the Harvard-educated lawyer and former Miss America on Tuesday also took issue with U.S. Attorney General Jeff Sessions’ memo that rescinded a policy that discouraged federal prosecutors in most marijuana cases from bringing charges wherever the drug is legal under state laws. It essentially allows federal prosecutors to more aggressively prosecute marijuana laws.
Then there’s state Rep. Scott Drury of suburban Highwood. He’s the real black sheep of this august group, the bete noir of a party establishment led by Democratic state party chairman and all-powerful House Speaker Michael Madigan.
Madigan not only doesn’t want Drury to win the Democratic Party’s nomination to run for his daughter’s current job, he also doesn’t — make that didn’t — want Drury in the race at all.
That’s why powerful Democrats tried — and failed — to knock Drury off the ballot with a clever ploy to challenge the legality of his candidate filing.
Was Madigan behind the effort?
He’s too clever to leave his fingerprints behind. But Madigan’s chief of staff, Tim Mapes, obtained copies of Drury’s petitions, and Drury was the only candidate whose petitions were challenged by party regulars.
As I told subscribers weeks ago, Mapes pulled petitions for just about every candidate in just about every race throughout the state.
* Candidates for Illinois Attorney General discuss women’s issues, Trump: Chicago resident Milton Davis said he was impressed with the candidates’ qualifications and answers. Still, Davis said it was hard for a specific candidate to stand out in a crowded field with similar progressive views. “There was not any one,” Davis said. “I saw some of the same answers come from different people.”
Recent questions over Gov. Bruce Rauner’s Medicaid managed care overhaul have mostly focused on the program’s rising costs and secretive contracting processes. Much less attention has been paid to the potential human impact of the program, which will force more than 500,000 people to change their insurance plans, and touch roughly one quarter of all Illinois residents. While the goal of the program is to improve health and reduce costs, there will, in fact, be plenty of people harmed by the transition.
Among the most at-risk are children with chronic, severe medical conditions, also known as children who are medically fragile. For children who are medically fragile, managed care will be devastating. Cutting services and benefits is the only way for managed care organizations to reduce costs for this population.
Until her death in 2014, my daughter Karuna participated in a program called the Medically Fragile, Technology Dependent Medicaid Waiver, which allows children requiring ventilators, tracheostomies or central intravenous lines to live at home, thanks to home nursing provided by Illinois Medicaid. Traditionally, states have recognized that children like Karuna aren’t a good fit for managed care, because their needs are too specialized and extraordinary. Unfortunately, the Rauner administration chose to ignore this precedent, and plans on moving these children into managed care starting in July.
The few states that have moved individuals who are medically fragile into managed care have experienced unanticipated negative outcomes, including loss of home nursing care; elimination of therapy services, medication and service denials; hospitalizations; emergency visits; and even deaths. In Illinois, the situation would likely be even worse, since managed care organization contracts have no provisions that would ensure children who are medically fragile maintain access to their medical equipment suppliers, home nurses and pediatric subspecialists. These omissions will put the lives of children like Karuna at risk, and will also inevitably cost taxpayers, who will be forced to pay for hospitalizations when children can’t get the care they need at home.
* Related…
* Health Insurer Centene Is Sued Over Lack of Medical Coverage: People signed up for insurance and they “ discovered there were no doctors,” said Seth Lesser, a partner at the law firm of Klafter Olsen & Lesser who is representing some of the policyholders.
In a rare break of the usual tradition of House incumbents either backing each other or staying neutral in a primary, Illinois Democratic Reps. Jan Schakowsky and Luis Gutierrez on Wednesday are endorsing challenger Marie Newman over Rep. Dan Lipinski.
Newman winning the backing of Schakowsky and Gutierrez dramatizes the intra-party Democratic divide that is animating this contest for the third congressional district seat.
Lipinski is one of the most conservative Democrats in Congress. Newman’s views are allied with Schakowsky and Gutierrez, prominent members of the Democratic progressive wing.
Informing Newman’s bid: In the March 2016 presidential primary, in the third district, Sen. Bernie Sanders, the Vermont Independent, beat former Secretary of State Hillary Clinton. Clinton went on to defeat President Donald Trump in the district.
Governor Bruce Rauner reiterated yesterday that an ad, featuring embattled Governor Eric Greitens, was only taken down because of scheduling. Rauner said the campaign decision to take down the ad was “not related” to news that Greitens has been accused of blackmailing his mistress, or that Greitens is facing calls for his own resignation. Nope, Rauner was not making any grand statement with his decision.
Rauner’s put at least $1.3 million behind an ad featuring Governor Greitens, which has been running on and off since Rauner announced for reelection. When news broke last week that Greitens was accused of blackmailing his mistress, Rauner did not renounce Greitens’ endorsement and his campaign told reporters the ad was simply being shifted out of rotation. Rauner’s campaign even left up a Facebook post with the ad.
Yesterday, Rauner was asked if the ad came down because of accusations against Greitens – Rauner said that was not the case (watch here):
“Question: In regard to your past political support for Governor Greitens, maybe you can tell us why the ‘Thank You, Mike Madigan’ ad was pulled and do you think Governor Greitens should resign?
“Rauner: Ah, well, the charges that have been made, the allegations in that situation are very serious. There is an investigation underway. And I do hope they get to the truth in that situation very quickly.
“Question: So, you have not made any decision on whether he should resign?
“Rauner: I think the investigation is underway.
“Question: Why was the ad pulled, the ‘Thank You, Mike Madigan’ ad?
“Rauner: Ah, I don’t think those were related. I think there’s a plan in place that’s been going on for a while about messaging and that’s a separate issue.”
Back at home, members of his own party are calling for Greitens to step aside. But not Bruce Rauner, who has not ruled out running the ad again.
“Bruce Rauner is sticking by his political allies rather than doing what is right,” said DGA Illinois Communications Director Sam Salustro. “It’s time for Rauner to cut ties with Governor Greitens, stop playing his video on social media, and promise never to run the ad again. Rauner has failed to show any moral leadership this week and giving political support to an accused blackmailer is sending the wrong message.”
* Rauner campaign…
Last week, in response to a new Citizens for Rauner TV ad, JB Pritzker claimed that “nobody knew” the FBI was investigating now-imprisoned ex-governor Rod Blagojevich at the time he was caught on FBI wiretap negotiating with him for his own appointment to statewide political office.
But his own words on FBI tapes about cutting an insider deal with Blagojevich, combined with prominent media reports publicly showing how the investigation into corruption in the Blagojevich administration unfolded, clearly show that JB Pritzker wasn’t telling the truth.
So why did JB Pritzker lie to cover up his ties to Blagojevich? Because telling the truth would reveal decades of corrupt, insider dealing in the midst of his campaign for governor. The two were cozy political allies, engaged in endless favor-trading – until one of them ended up behind bars.
Here’s a timeline to illustrate their unseemly connection:
1996 – JB Pritzker makes his first appearance as a money man for Blagojevich’s political career, saying ‘I’m JB Pritzker; I help with fund-raising’ (Jorge Oclander, “In Mell’s World, It’s Politics as Usual,” Chicago Sun-Times, 3/23/1996)
1996 – JB Pritzker and his wife give $3,000 to Blagojevich’s congressional campaign
1998 – After JB Pritzker finished 3rd out of five candidates in the Democratic primary for U.S. Congress in Illinois’ 9th Congressional district, Blagojevich gushes praise on the failed candidate, saying, “Remember, Abraham Lincoln didn’t win his first election and Mario Cuomo lost several races before he got elected. For JB, this is only the beginning”
2002 – JB Pritzker gives $30,000 to Blagojevich’s first gubernatorial run (State Board of Elections)
2003 – As a reward for being a member of his infamous $25,000 Club, Blagojevich appoints JB Pritzker as chair of the Illinois Human Rights Commission
2006 – Pritzker gives $100,000 to Blagojevich’s reelection campaign (State Board of Elections)
2006 – As a reward for being his 5th biggest donor, Blagojevich authorizes $1 million state grant to Holocaust museum project for which JB Pritzker served as finance chief
2008 – FBI wiretaps reveal Pritzker encouraged Blagojevich to engage in a quid pro quo with Mike Madigan for President-elect Obama’s soon-to-be vacated U.S. Senate seat, while lobbying for a top state job for himself
2018 – JB Pritzker claims no one knew Blagojevich was being investigated
Democrats in Maryland’s state legislature on Tuesday rolled out three bills in response to the new tax overhaul that President Trump signed last month, including trying to protect state and local tax (SALT) deductions. […]
One of the bills is designed to mitigate the fact that the new tax law caps the SALT deduction at $10,000. Under the measure, Maryland residents would be able to make charitable contributions to a state fund and receive a credit against their state taxes. The donations could still be deductible from federal taxes.
The other two bills would decouple Maryland’s tax code from the federal tax code.
One would allow Maryland residents to still claim personal exemptions on their state taxes, even though personal exemptions are eliminated from the federal tax code. Lawmakers said that residents would see state tax increases absent this change.
The other would separate the Maryland and federal estate taxes. The new federal tax law increases the amount that’s exempt from the estate tax to about $11 million for an individual, and Maryland Democrats want to limit the state’s exemption about to about $5 million.
The federal tax bill would ultimately cost Marylanders about $1 billion, Busch and Senate President Thomas V. Mike Miller Jr. estimated, with “$680 million in exemptions taken away.”
The bills would lower state taxes for about 92 percent of Marylanders, they said.
Gov. Andrew Cuomo’s proposed conversion from an income tax to a payroll tax would be voluntary for some businesses, officials said Tuesday.
Cuomo, a Democrat, broke with expectation and did not include details of his planned changes to the state tax code when he unveiled a $168.2 billion spending plan. Instead, the governor said his tax commissioner will release a preliminary report on the potential change on Wednesday, as well as other proposals to help high-tax New York avoid the pinch of federal limits on the deductibility of state and local taxes.
That includes, as other states have proposed, setting up dedicated funds through which New Yorkers could donate to local governments and allowing businesses to substitute payroll taxes — which are fully deductible under the federal tax bill, H.R. 1 (115) — for income taxes, whose combined deductibility with property taxes is capped at $10,000. […]
The payroll tax switch has been described by business leaders as more complicated than the donation-credit ideas advancing in New Jersey and California, but its principal benefit is its application to a wider range of people — not simply those who elect to use it, as a donation would be.
The proposed California workaround, by Senate leader Kevin de Leon, is the first of what are expected to be several legislative efforts in high-tax states to mitigate the impact of the SALT deduction cap on their residents.
The average state and local tax deduction claimed by Californians is well above the cap, at $18,438, according to de Leon’s office.
To help ensure they can still deduct much or all of the state and local taxes they pay, de Leon has proposed letting residents make a charitable contribution to the state in exchange for a tax credit.
That way, the charitable contribution would be deductible on their federal return, since the new federal tax law doesn’t limit deductions for charitable gifts except in certain instances.
Amends the Illinois Income Tax Act. Creates an income tax credit in an amount equal to the contributions made by the taxpayer to the Illinois Excellence Fund during the taxable year. Amends the State Finance Act. Creates the Illinois Excellence Fund. Provides that moneys in the Fund shall be used for exclusively public purposes, as specified under Section 170 of the Internal Revenue Code relating to charitable contributions and gifts. Amends the Counties Code. Provides that the county board may establish a fund in the county treasury for the purpose of accepting contributions for exclusively public purposes, as specified under Section 170 of the Internal Revenue Code relating to charitable contributions and gifts and may provide for a credit against the taxpayer’s property tax liability in an amount equal to the amount of the contribution. Effective immediately.
* The Chicago Sun-Times is broadcasting its editorial board meeting with the Democratic gubernatorial candidates on YouTube. Watch it…
*** UPDATE 1 *** Rauner campaign…
Following the Chicago Sun-Times Editorial Board meeting with Democratic candidates for Illinois governor, Citizens for Rauner Communications Director Will Allison released the following statement:
“One thing was clear from today’s forum: no matter who wins the Democratic primary, he’ll be running on an agenda of more tax hikes on Illinois families and businesses. For JB Pritzker, he claims he has detailed plans, but when will he specify the rates on his progressive income tax proposal?” - Will Allison, Communications Director for Citizens for Rauner
* RGA…
“Today’s Chicago Sun-Times editorial board meeting was a train-wreck for Illinois Democrats, with candidates arguing amongst themselves over who is most beholden to the special interests and crooked politics that have dominated Illinois for so long. The reality is that they all have deep ties to disgraced politicians like Mike Madigan or Rod Blagojevich, and that the general election will be a stark contrast between their politics as usual and the reform agenda of Governor Bruce Rauner.” – Republican Governors Association Spokesman Steven Yaffe
*** UPDATE 2 *** Pritzker campaign…
Today, JB Pritzker demonstrated why he is the best candidate to take on Bruce Rauner and get Illinois back on track at the Chicago Sun-Times editorial board interview. JB highlighted his record of getting big things done for Illinois’ working families and standing up for progressive values while consistently holding Bruce Rauner accountable for his failed leadership. JB laid out his plans to reverse Rauner’s systemic disinvestment in Illinois communities and grow the economy statewide, demonstrating he is the candidate with the vision and leadership to move Illinois forward.
“JB is the only candidate in this race ready to take on Bruce Rauner and he made that clear at the Sun-Times today,” said Pritzker campaign manager Anne Caprara. “With his record of standing up for progressive values and his plans to grow the Illinois economy and create jobs statewide, it is clear that JB has the vision and leadership to move Illinois forward. JB was proud to hold that record up to Bruce Rauner’s record of failed leadership and will continue to make that message clear throughout this campaign.”
Republican Gov. Bruce Rauner’s campaign on Tuesday clarified the governor believes former Ku Klux Klan leader David Duke is a racist, amid Democratic criticism that Rauner failed to take such a stand a day earlier.
After fumbling the answer to a question about whether a former Ku Klux Klan leader is a racist, the campaign of Republican Bruce Rauner on Tuesday clarified the governor’s opinion of David Duke.
During a radio interview on Martin Luther King Jr.’s birthday, Rauner was asked if President Donald Trump was racist following reports he used vulgar language to refer to African nations. Trump allegedly also questioned why America would want to accept more immigrants from Haiti. Rauner repeatedly declined to directly answer, saying “that language has no place in our political conversation.”
When WVON-AM host Charles Thomas on Monday asked if Duke is a racist, Rauner would only respond “we have racism in our society.”
“We have got to come together to change our system,” Rauner said.
It’s not the first time Rauner has been criticized for attempting to brush aside questions about racism. Last summer, he resisted denouncing a political cartoon amid complaints that its message was racist. He also was slow to label a deadly incident in Charlottesville, Va. involving white supremacists as domestic terrorism.
Whether it’s because he’s being cautious or isn’t prepared for such questions, Rauner’s responses sometimes end up making the issues bigger than they otherwise might have been. Facing a primary challenge from his right flank and looking ahead to a potentially tough general election, Rauner’s political calculation has been to avoid further alienating his conservative base, even if that means allowing a narrative to emerge that calls into question his willingness to denounce the fringe elements from his party.
It’s been a tough road for Gov. Rauner, who can hardly go a day, it seems, without putting out a fire, tamping down a crisis or making an unforced error.
It happened again this week when Rauner joined WVON hosts on the Martin Luther King holiday. That’s when Charles Thomas (former ABC political reporter) and Maze Jackson asked Rauner about Donald Trump’s recent immigration comments and whether the president was racist. Rauner danced around it, as he does with just about every Trump question. Thomas pushed Rauner: “is David Duke racist? … I mean, what about Donald Trump?” […]
Duke, the former KKK leader, wrote of Rauner on his web site: “deep down in his soul, deep down something’s happened inside of him, and he knows that I’m not really a racist.”
Nah man, Rauner definitely thinks you’re a racist. Rauner’s problem is that he ties himself into a pretzel to avoid talking about Trump. Now he’s paying the price.
But a source from the Kennedy campaign tells POLITICO that Kennedy later this week is expected to give himself a “significant boost” by once again digging into his own pockets. Kennedy so far has donated $500,000 to his own campaign fund. He’s up against billionaire J.B. Pritzker who has plowed $42 million into his bid. However, lesser known candidate, state Sen. Daniel Biss, waited to start ads until after the new year and has burned through less cash, giving him more money to play with before Election Day.
Kennedy has actually contributed $750,000 to his campaign so far. Those contributions, in $250,000 increments, have mostly been made at the end of the quarters. He can’t wait until the end of this quarter, which would fall after primary day. So, he’s planning to kick in his usual $250K later this week, I’m told.
Obviously, he needs a whole lot more cash than that. And there are those on the campaign pushing him to dig much deeper into his bank account. But Kennedy doesn’t have Pritzker or Rauner money. A longtime friend of his told me not long ago that he believed Kennedy was worth about $10 million. So, by that measure, after this next $250K check, Kennedy will have kicked in ten percent of his net worth. Pritzker would need to spend $340 million before reaching that same point.
Spending on advertising ramped up significantly this quarter, with candidates reporting a total of $15 million in advertising-related costs. This compares to just $6.2 million spent on ads in the 3rd quarter, and $7.5 million spent in the 2nd quarter. J.B. Pritzker led the pack in ad spending with $8.4 million. Governor Rauner followed close behind with $6.7 million in reported ad spending in the 4th quarter. Senator Biss reporting $85,000 in ad-related costs, while candidates Kennedy and Ives both reported about $11,000 each in ad spending. Kennedy reported an additional $32,000 in printing costs, which could include some print advertising.
Personnel was the next most costly expenditure reported by gubernatorial candidates, with a total of $3.1 million spent on staffing-related items. J.B. Pritzker reported $2 million in personnel costs, while Rauner reported just under $400,000. Chris Kennedy spent an amount close to Rauner, with $381,000, and Senator Biss reported about $300,000 in personnel costs. Total payroll costs slightly exceeded the third quarter, in which candidates reported spending a total of $2.35 million.
Finally, candidates spent heavily on consulting services. Chris Kennedy spent a considerable amount in this category, totaling about $912,000 – just over half of his $1.6 million in spending for the quarter. Over $681,000 of his consultant spending was labeled as “media consulting.” Pritzker spent the most on consulting with $1.6 million, and Rauner and Biss trailed with $376,000 and $112,000 respectively.
Man, that Pritzker and his spending. Whew. $2 million on staff? In three months?
And the way I read Kennedy’s D-2, most of Kennedy’s “media consulting” expenditures were actually for producing and broadcasting his TV ad. So, I don’t think ICPR got that one right.
A Democratic candidate for Illinois governor accused another on Tuesday of not playing by the rules when it comes to affordable housing.
State Sen. Daniel Biss said one of his opponents, Chris Kennedy, is pushing people out of their neighborhood with the Wolf Point development on Chicago’s Near North Side.
One luxury high-rise is already up and another is on its way in the Wolf Point development, owned by the Kennedy family, along with three others.
But Biss claimed Tuesday that Kennedy should have considered how to provide affordable housing in the building - an issue that may have never surfaced had Kennedy not first criticized Mayor Rahm Emanuel of a similar offense. […]
“When Chris Kennedy skirts the rules by using his connections to powerful attorneys to avoid affordable housing requirements, that doesn’t just make him richer, that pushes people out of a neighborhood and makes working families struggle more,” Biss said Tuesday.
However, Kennedy fired back and claimed Biss is misinformed.
“There was no law broken, there was no law skirted, there was no payoff,” Kennedy said, arguing that the land was zoned back in 1973, and therefore the city rules on affordable housing do not apply.
I’m not clear about how the Wolf Point development is “pushing people out of their neighborhood.” Seems overly dramatic.
On Tuesday, Biss used a luxury high-rise development being constructed by one of his opponents, Chris Kennedy, as the backdrop to make his case for repealing the state’s rent control ban.
Biss and his lieutenant governor running mate, Rep. Litesa Wallace, were joined at the press conference by Rep. Will Guzzardi, who is the main sponsor of the repeal legislation, and Ald. Roberto Maldonado (26th), who said he wants the city to enact rent control. […]
But he’s found surprising company on the rent control issue from Pritzker, who also has staked a claim to it as he tries to burnish his own progressive credentials and fight back against Biss’ portrayal of him as just another out-of-touch billionaire.
In an interview last week, Pritzker told me he also favors removing the state “moratorium” so that local communities could “choose to have rent control.”
“That’s one example of how we might be able to begin to fight gentrification,” he said.
Pritzker also pointedly noted: “That’s not something that Chris Kennedy has advocated.”
A Kennedy spokeswoman confirmed his opposition to rent control and accused Biss of “political pandering.”
“Chris supports affordable housing and the need to put an end to strategic gentrification. Rent control is not a solution solving either of those issues. In fact, studies show that rent control worsens income inequality in gentrifying cities,” she said.
But with Pritzker believed to be well ahead in the polls—though short of 50 percent—the only way to catch him may be for either Biss or Kennedy to effectively implode or otherwise be made irrelevant, leaving the survivor with a better shot.
Biss’ pivot to attacking Kennedy is “a smart move,” said Democratic consultant Tom Bowen, who is not working for a candidate for governor this winter. “The battle for the No. 2 position is the only way to block Pritzker. Fracturing the vote won’t work.”
Put a different way, with Pritzker having consolidated support from labor, committeemen and much of the rest of the party establishment, the question is whether Kennedy or Biss will be able to do so among progressives.
Said a close Kennedy ally, “Biss has no choice” but to go negative on Kennedy. “He has to find a way to step over Chris to have a shot against Pritzker.”
Pritzker doesn’t need 50 percent in a multi-candidate primary, but the rest of this is right. Biss has to somehow leapfrog Kennedy.
But this fight for second place can’t last too long. The object is to win, not come in second. Kennedy’s famous last name keeps him in the race. Biss has a few million bucks to play with, but that’s not enough to overcome Kennedy’s inherent advantage.
Empower Illinois understands and appreciates the effort to resolve the recognition issue facing many private K-12 schools in Illinois. All quality private schools deserve access to the Tax Credit Scholarship Program provided by the Invest in Kids Act.
After the passage of SB1947, many private schools found themselves investigating how to participate in the tax credit program.
While many were registered with the Illinois State Board of Education, a significant number had not pursued recognition, a voluntary process many deemed unnecessary in the private school marketplace.
While Governor Rauner’s amendatory veto of SB444 aimed to allow these schools to participate this year, it went too far, decreasing the standard schools need to meet in order to participate, and imperiling the positive funding opportunities of SB444.
Empower Illinois believes that a compromise can be reached, which will increase the number of schools that can participate in the program without decreasing their quality, instead improving the standards that allow participation in the program. The compromise, if signed by the Governor, will also allow SB444 to become law.
EI urges legislators to refile SB444, with the following amendment added:
“Qualified school” means a non-public school located in Illinois and recognized by the Board pursuant to Section 2-3.25o of the School Code or accredited by an accrediting agency approved by the Board. A non-public school shall become a qualified school immediately upon being recognized by the Board or immediately upon having their accreditation status approved by the Board.
Accreditation, like recognition, is a detailed review process, but it goes further — it not only looks at the health and safety at non-public schools, but also a school’s academic quality.
Further, it is our position that if a school is recognized or accredited in the 2017-2018 school year, IDOR should allow SGOs to list these schools for donors to donate to, and for students to receive scholarships. Of course, SGOs would not be able to submit payment to these schools until they officially become recognized or upon adoption of the suggested amendment, accredited too.
This amendment would not unnecessarily hold up critical public-school funding in Illinois while also increasing the number, and quality of non-public schools that can participate in the first year of the tax credit scholarship program.
It’s a win-win for all; especially the children for whom are our priority.
