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* Democratic Party of Illinois e-mail blast to party members…
Illinois is on the verge of making history by supporting hard-working people and their families with an increased minimum wage of $15 an hour.
Governor Pritzker is determined to pass this critical legislation by the end of the month. It’s an aggressive but achievable goal with your help. Please reach out to your legislators and ask them to support SB1, sponsored by Senate Majority Leader Kimberly A. Lightford and State Representative Will Guzzardi.
I know you agree that Illinoisans deserve a raise. Supporting higher wages means building a stronger Illinois with better-paying jobs, increased consumer spending and a growing economy.
Consider these facts from the Illinois Economic Policy Institute*:
* Studies find that minimum wage hikes boost worker earnings while having little to no negative impact on employment. In addition, there is evidence that worker turnover falls following a minimum wage hike, reducing employer costs.
* A $15 minimum wage could mean a $6,000 raise for more than 1.4 million Illinois workers, lifting more than 200,000 workers out of poverty and generating $380 million annually in state income and sales taxes.
* A $15 minimum wage would have the largest impacts on communities outside of the Chicago area. While a $15 minimum wage would boost earnings by about $5,000 for directly affected workers in the Chicago area, it would raise annual incomes for low-wage workers by more than $8,000 in the Springfield area, more than $7,000 in the Rockford area, and more than $6,000 in the St. Louis area.
Despite strong support across all regions of the state, Illinois has not increased the minimum wage since July 2010. Now is the time to stand up for working men and women in Illinois.
Join the effort to increase the minimum wage at Raise the Wage. Together we can fight for Illinois families and build a stronger future for Illinois.
With kindest personal regards, I remain
Sincerely yours,
Michael J. Madigan
Chairman
The “Raise the Wage” link takes you to DPI’s website.
* This pitch is pretty rich in irony for more than one reason. Tribune editorial…
Mind you, Democrats could have passed and gotten signed into law a statewide minimum wage hike years ago. It has been stuck at $8.25 since 2010. Former Gov. Pat Quinn, with a Democrat-led legislature from 2009 to 2014, begged lawmakers to send him a bill.
The Senate tried to send him a minimum wage hike, but Speaker Madigan wouldn’t forward anything to the governor’s desk.
* Also, Madigan said this earlier in the week…
“This is a governor’s initiative. This is a request by the governor. It’s Gov. Pritzker that wants to raise the minimum wage.”
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* You will recall that Gov. Pritzker and Attorney General Raoul announced a meeting between the Illinois EPA, the US EPA and Sterigenics yesterday.
I followed up today to see what happened. From the governor’s office…
While there were several issues discussed Thursday with representatives from the U.S. EPA, Sterigenics and the Illinois EPA, this administration must see more immediate, concrete steps taken to secure residents’ health and safety. In the absence of concrete steps, we will work with the Office of the Attorney General to exercise all available legal authority to protect the community.
Sounds like nothing much happened.
*** UPDATE *** From the AG’s office…
Representatives from the Attorney General’s Office participated in a meeting yesterday with representatives from the Illinois EPA, the U.S. EPA and Sterigenics. We continue to urge the U.S. EPA to act immediately and decisively to protect the health and safety of families living near the Willowbrook facility, and we will work with Governor Pritzker’s administration to exercise all available legal authority if necessary. Due to the urgency of this situation, the Attorney General’s Office, along with DuPage County State’s Attorney Robert Berlin’s Office, will file a brief this afternoon urging the federal court to remand the ongoing lawsuit back to state court as quickly as possible.
Not sure what that’ll do, but OK.
* Related…
* Local Elected Officials Call on EPA to Shut Down Willowbrook Sterigenics: Congressman Dan Lipinski and Illinois House Minority Leader Jim Durkin, along with other elected officials, are calling on the Environmental Protection Agency to “immediately shut down Sterigenics in Willowbrook.” Joining Willowbrook Mayor Frank Trilla and other elected leaders, the group plans to host a press conference outside the EPA Region 5 building in downtown Chicago.
* Burr Ridge Calls For Immediate Shutdown Of Sterigenics
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Question of the day
Friday, Feb 8, 2019 - Posted by Rich Miller
* From the governor’s transition report…
Pensions and debt management
Illinois must take significant steps to make substantial progress in confronting its unfunded pension liabilities. Concentrating on one area will not be sufficient. Instead, a portfolio of initiatives across different levers will likely be required.
Increase funding to the pension system
Opportunities exist to find unique and new ways to increase funding. The state could apply a direct revenue stream to help pay down the pension debt. These revenue streams could have provisions to ensure they are only used for payment of pension debt and benefits. Asset transfers could also be used as a means to add value to pension systems. For example, if the state were to move an asset to a pension fund, it could be used to reduce the unfunded liabilities for the pension system and increase the funding ratio, leading to potentially reduced interest costs on pension debt.
Improve the investment engine
The returns that Illinois currently achieves on its pension funds could also be increased by improving the investment engine. To generate higher returns and with the added benefit of enhanced efficiency, Illinois could work with local constituencies to consolidate pension funds for similar systems within verticals (e.g., fire, public safety). This move would help smaller funds not only achieve higher returns but also reduce the cost of fund administration and give managers greater visibility into investment decisions and trade-offs.
Re-shape the pension payment curve
To put the pension funds on a more sustainable path, the committee discussed whether the state could consider re-shaping the pension payment curve. For instance, the state could create a sustainable amortization schedule combined with other changes to improve the system which could meet short term budget needs while improving the funded ratio in the long term. The goal here is to find a rational payment plan that increases the funded ratio each year while still meeting the cost of paying benefits to current and future retirees. Such action would need to be taken in conjunction with changes that increase funding, improve investments, and/or increase stability such that debt markets see that Illinois is serious about comprehensively solving the pension funding deficiency.
Modernize Bonded Debt Provisions
Illinois should also explore ways to improve its existing bonded indebtedness provisions to provide government officials with more flexibility in managing debt. The state should consider changes including but not limited to: maturity limitations, current statutory refunding and/or restructuring requirements within constitutional limitations, and available security. This could help the state create innovative financial vehicles to manage all of its debt including the pension debt while also strengthening Illinois’ creditworthiness.
* The Question: What do you think about the highlighted idea of moving state assets into the pension funds?
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Step brothers
Friday, Feb 8, 2019 - Posted by Advertising Department
[The following is a paid advertisement.]
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* Greg Hinz…
Chicago and Illinois may be getting back into the race to attract Amazon’s prized HQ2—at least the half that was supposed to go to New York City.
A source close to Gov. J.B. Pritzker says he already has been on the phone to the company in light of a story earlier today in the Washington Post that the company is reconsidering locating half of its second headquarters in New York City, where a proposed location in the Long Island City section of Queens has drawn intense local opposition.
“Gov. Pritzker immediately called Amazon earlier this morning to make a full-throated pitch to attract these good-paying jobs to Illinois and assure them that they would have a strong partner in the governor’s office,” said a high-ranking administration source, speaking on background.
Thoughts?
*** UPDATE *** Press release…
Mayoral candidate Toni Preckwinkle supports Governor JB Pritzker’s efforts encouraging Amazon to reconsider Chicago including South Side locations for its HQ2 site.
“Chicago was initially considered for Amazon’s new headquarters and the economic opportunity is certainly welcome here,” said Toni, who was a part of the original Amazon pitch team last year. “Structured in the right way, this type of development would bring tens of thousands of good-paying jobs to the South Side and provide an influx of new economic activity into some of Chicago’s most disinvested neighborhoods.”
The HQ2 would bring an estimated 25,000 jobs to the City. Recently, Toni has pushed her plan to implement a $15 minimum wage in Chicago by 2021, which attracts the workforce needed for this kind of high-paying employer.
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Rep. Guzzardi rips Ald. Moreno for mailer
Friday, Feb 8, 2019 - Posted by Rich Miller
* Ald. Moreno mailer…
* Rep. Will Guzzardi (D-Chicago)…
Alderman Joe Moreno recently sent campaign literature that included my name and likeness. The alderman did not receive, nor did he request, my consent to appear in this mailer. And while the statement made in the piece is factually correct — he did support my campaign in 2014 — I believe the mailer makes a misleading implication. I have not endorsed Alderman Moreno’s re-election campaign. I have been increasingly troubled in recent years by both his personal and his professional conduct. I urge voters in the First Ward not to confuse my appearance in Moreno’s literature with my support for his candidacy.
Moreno, of course, has a few other problems to deal with.
…Adding… Press release…
Today, in response to State Representative Will Guzzardi’s statement indicating Joe Moreno had not received his endorsement for reelection or even permission to use his likeness in a mailer sent to 1st Ward voters, 1st Ward Aldermanic candidate Daniel La Spata, released the following statement:
“Joe Moreno continues to make news this week for all the wrong reasons. It’s shameful that he’s trying to mislead 1st Ward voters and distract from his record of selling out our ward by engaging in the machine-style politics that have held this city back. But he’s not fooling anyone.
“1st Ward voters see right through his misdirection and excuses. They know Moreno’s failed record and they’ve seen his character, especially over the last week. That’s why in 18 days they’re going to throw him out of office and support my campaign. Our ward needs an alderman focused on making housing affordable and improving our schools, not one constantly distracted by personal problems and controversies.”
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Unclear on the concept
Friday, Feb 8, 2019 - Posted by Rich Miller
* Will County Patch…
The Will County Sheriff’s Office continues to step up its efforts to eradicate marijuana from Will County. Last week, 25-year-old Princeton resident Zachary Sterling and 27-year-old Spring Valley resident William Wightman were taken away in handcuffs. Both have been charged at the Will County Courthouse with a Class 3 felony, unlawful possession of marijuana.
The complaint states that their arrests occurred during the early morning hours of Saturday, Jan. 26. The two out of town co-defendants “knowingly and unlawfully possessed more than 500 grams of any substance containing marijuana.” […]
Wightman’s bail was set at $40,000. Sterling’s bail was set at $50,000. Both men posted the necessary 10 percent to bond out of jail several hours after their arrest. They did not stay overnight at the Will County Jail. Wightman’s mugshot is at the top of this article.
Anyway, if you figured the election of J.B. Pritzker as the new governor of Illinois would suddenly mean the end of the state’s criminal laws prohibiting marijuana use, that has yet to happen.
I can’t decide which is worse: The use of junk science and hysteria by opponents (including Sen. Dick Durbin) or the impatience and bizarre ignorance of some proponents.
Elections don’t decide issues in Illinois. The General Assembly does. That takes a bit of time.
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Minimum wage odds and ends
Friday, Feb 8, 2019 - Posted by Rich Miller
* I told subscribers about this earlier in the week…
Now the [minimum wage] bill is set to go to the House, where Speaker Michael Madigan told his caucus he will call and vote for it.
* Tribune…
Illinois’ minimum wage of $8.25 has stood since 2010, even as Chicago and Cook County have raised theirs. Now the bill to raise the statewide wage moves to the House, where Democrats led by Speaker Michael Madigan could change the proposal before it lands on Pritzker’s desk. But top Democrats including the new governor said Thursday that they do not believe changes are needed. […]
“I anticipate the speaker will support the bill,” Madigan spokesman Steve Brown said after the Senate vote.
This sure looks like a go.
* WSIL TV…
“I have a lot of people in small towns in my district that are worried that jobs are going to go to Missouri,” [Sen. Paul Schimpf, R-Waterloo] said.
The minimum wage in Missouri is currently higher than it is in Illinois, $8.60 vs. $8.25 per hour. If this current bill becomes law, Illinois’ minimum wage will rise to $9.25 an hour on January 1st of next year, but Missouri’s will rise to $9.35. Illinois, however, will surpass Missouri over the next 12 months, when this state’s minimum wage will rise by $1.75 an hour and Missouri’s will only go up by 75 cents.
* Capitol News Illinois…
Although no Republicans voted for the bill – and several spoke against it on the floor, citing concerns about businesses leaving the state, unforeseen costs on schools and universities and the potential for job loss for low-wage employees – Pritzker said conservative voices helped shape the legislation.
“I talked personally with several senators to make sure their ideas were incorporated. I talked with many of the interest groups that represent businesses, and Republican interests, to incorporate those into the bill,” Pritzker said during a news conference in his office at which no elected Republicans were present.
He did talk to a lot of legislators and business groups, but this is basically the same bill that passed in 2017, except for I think the gratuities credit, which was kept in place at the behest of the restaurants. They are essentially the fig leaf providing political cover here. Not saying that’s a bad or good thing, just saying what it is.
* Public Radio…
Republicans like state Sen. Dan McConchie from Hawthorn Woods argued there should be smaller increases downstate, where the cost of living is lower.
“A one size fits all approach is exactly the wrong solution for an aggressive measure of this sort,” McConchie said.
Sponsoring Sen. Kimberly Lightford, a Democrat from Maywood, said working class people across the state are struggling to exceed the poverty level.
“How do you tell your constituents that—that they don’t deserve to be paid fair wages because of the part of the state they live in?” she asked the Republican senators.
That’s basically the heart of the disagreement over regionalizing the wage.
* Pantagraph…
Illinois State University President Larry Dietz said Thursday that increasing the minimum wage from $8.25 to $9.25 an hour — the first-phase increase in the legislation — “would cost us about $600,000.”
“The cost would be $7.5 million once the concept is fully implemented,” he said, referring to the $15 rate that would take effect in 2025.
* There was also talk yesterday during debate about the cost to Southern Illinois University Carbondale. So, I reached out to the campus spokesperson for the annual breakdown…
Hi Rich. The annual cost grows as the rate increases, culminating in $6.96 million annually in 2025. Increases are tied to the dates in the proposed legislation. Rounded, it looks like this:
Jan 1. 2020: $664,000
July 1, 2020: $585,000 (cumulative $1.25 million)
Jan 1: 2021: $817,000 ($2.07 million)
Jan 1, 2022: $912,000 ($2.98 million)
Jan. 1, 2023: $1.05 million ($4.03 million)
Jan. 1, 2024: $1.31 million ($5.35 million)
Jan. 1, 2025: $1.61 million ($6.96 million)
* SJ-R…
Before the Senate vote, Pritzker met with Senate Democrats for nearly 30 minutes to solidify support for the bill. Lightford said Democrats were given “reassurance from the governor that we will continue to work on budget concerns.”
Those concerns stem from schools, human services organizations and others who rely on state financing, but also must comply with the higher minimum wage.
“My administration will propose a balanced budget taking into account the effect of the new minimum wage,” Pritzker said. “Human services and social service organizations are going to have the resources they need to pay workers more.”
Where he gets that money is anyone’s guess.
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It’s just a bill
Friday, Feb 8, 2019 - Posted by Rich Miller
* “Unlikely to pass” is correct. This bill has zero co-sponsors even though it was introduced two weeks ago. It really is just a bill…
A Democratic state lawmaker has filed a bill to legalize recreational marijuana in Illinois that likely goes further than other legislators prefer, but it has officially started the debate over complex legislation that will need to serve many interests.
The bill, introduced Jan. 25 by Rep. Carol Ammons of Urbana, would allow licensed businesses to grow and sell pot, and residents to grow up to 24 plants at home.
The measure is unlikely to pass because lawmakers are expected to act on a more restrictive proposal that’s been in the works for more than a year.
* Another one…
A proposal to automatically admit students to any public college or university in Illinois if they meet certain standards is running into opposition, primarily from the University of Illinois system.
Rep. André Thapedi (D-Chicago), who was unsuccessful in pushing through similar legislation in 2018, is sponsoring a revised proposal this year to guarantee that any student who graduates from an accredited high school in Illinois and who meets certain academic standards would be guaranteed admission to any of the state’s public higher education institutions.
Thapedi told a House committee Thursday that the primary aim of the bill is “to keep our best and our brightest students here in Illinois,” many of whom, he said, leave Illinois to attend college elsewhere.
But he also said it’s intended as a form of affirmative action for minority students and other under-represented groups on Illinois college campuses. He specifically pointed to U of I’s Urbana-Champaign campus as a source of concern because of its small proportion of minority student enrollment — 5.2 percent African-American and 9.3 percent Hispanic.
* And one more…
Illinois lawmakers are once again want to require the state’s public schools to teach students about the contributions of lesbian, gay, bisexual, and transgender people in the history of the nation and the state of Illinois.
The thinking on the LGBT history requirement for Illinois public schools goes like this: Illinois kids already learn about the contributions of African Americans, Hispanic Americans, and Native Americans. Adding LGBT Americans to that list is no big deal. Or so says Democratic state Rep. Anna Moeller.
“Humans, especially young people, need to feel belonged and valued,” Moeller said. “By deliberately excluding or even inadvertently leaving out the history of LGBT contributions, our schools and our teachers send the message that LGBT students don’t belong and aren’t valued.”
Moeller said it is important for LGBT students to know that they are valued.
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* The Chicago Teachers Union is supporting 13th Ward Ald. Marty Quinn. The union sent out this letter the other day about his opponent…
Dear 13th Ward Resident:
My name is Jan Muir. I am a middle school teacher, a member of the Chicago Teachers Union, and a victim of cyberstalking and cyberbullying by Aldermanic candidate David Krupa. Despite my desire to put this incident behind me, I’m writing today to share my story to inform others of his behavior.
Mr. Krupa harassed and bullied me through breaching a school computer system and posting disturbing language and images that shocked me and my students. In order to protect my students’ privacy, I will not share any additional information about the incident.
My sense of personal safety and security were violated, and this letter is part of my effort to hold him accountable for his behavior.
Through his actions, Mr. Krupa demonstrates complete disregard for women and a pattern of judgment that disqualifies him from holding public office. I respectfully request that you do not vote for Mr. Krupa in the upcoming municipal election.
I also hope that you will join me in speaking out about the dangers of cyberstalking and speak with your children about how to spot and prevent cyberbullying. More information is available at: https://www.stopbullying.gov/cyberbullying/prevention/index.html.
Thank you for reading my story and sharing it with your family and neighbors.
Best regards,
Jan Muir
Krupa has previously been accused by another woman of abuse. That, too, was denied.
* Response…
“It’s a baseless, slanderous, scurrilous hit piece,” said attorney Tony Peraica. “David denies it, denies knowing this person, denies doing anything of the kind. He was never investigated, interviewed or charged.” Peraica added that he would seek legal action against the teacher and CTU, which did not respond to a request for comment.
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Digging out
Friday, Feb 8, 2019 - Posted by Rich Miller
* More from the Pritzker administration’s new financial report…
Furthermore, as this new administration continues to unearth the true costs taxpayers now face, another clear finding is that the previous administration failed to perform other strikingly basic tasks of government, including:
• Allowing massive project delays and cost overruns for IT systems that still fail to function properly, putting vulnerable citizens at risk for losing healthcare services;
• Permitting staffing levels to atrophy at critical executive branch agencies, including reducing the numbers of State Troopers and understaffing caseworkers at human services field offices;
• Ignoring audit findings, leading to costly consent decrees;
• Failing to process revenue receipts in a timely way;
• Defaulting on rent payments – for instance, on the administration’s federal office in Washington DC;
• Failing to follow federal OSHA and Illinois Department of Labor staffing enforcement plans. This
lack of adequate staffing put state, local and private sector workers at greater risk of on-the-job injuries. Failure to comply also resulted in the loss of nearly $3.2 million in federal funding – almost 50 percent of federal OSHA funding in FY17 and FY18.
The governor’s chief of staff was in DC to visit the office and was told by the landlord that the state was something like a year behind in rent.
* More…
In addition to the financial damage done to the state over the last four years and its resulting impact on Illinois’ most vulnerable residents, one of the most tragic events came in the form of the Rauner administration’s handling of the Legionnaires’ disease outbreak at the Quincy Veterans’ Home. By September 2015, 54 people from the home tested positive for Legionnaire’s disease, 12 of whom died due to the illness. Following this event, Legionnaire’s has been found in surrounding areas; further highlighting the critical need for meaningful infrastructure investment by the state. Rebuilding the Quincy Veterans’ Home is estimated to cost the state in excess of $100 million along with a larger match from the federal government.
Other state-run facilities continue to struggle to provide adequate care. Insufficient medical care for inmates at the state’s correctional facilities led to the Lippert consent decree in December 2018, as the state is still grappling with the costs associated with meeting the requirements under the Rasho settlement for mental health treatment from 2016. In FY20 alone, this will lead to cost increases for medical and other care at Correctional facilities in the tens of millions of dollars range and implementation of an electronic medical records system that will cost millions of dollars.
Other continuing financial pressures that will require State investment going forward include:
• Increasing funding for the Illinois State Police to help rebuild their ranks after the suspension of cadet classes in FY16 and FY17 led to a decline in state troopers. It will cost Illinoisans over $8 million in FY20 for two cadet classes to help build their ranks.
• Requirements for Illinois Department of Children and Family Services (DCFS) to put into place a federally compliant child welfare information system.
• Reversing the damage done when a new Integrated Eligibility System (IES) failed to achieve its desired outcome. The IES was intended to make the Long-Term Care application process more efficient but actually did the opposite, resulting in increased delays in processing applications and admissions under the previous administration.
Oy.
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* Press release…
In a report detailing the toll that former Gov. Bruce Rauner’s ideological warfare inflicted on Illinois, the Pritzker administration released a new report today detailing a budget gap for the upcoming fiscal year of $3.2 billion, 16 percent more than the Rauner administration estimated in November.
Digging Out: The Rauner Wreckage Report builds on and extends the work of the Illinois Comptroller’s Office, identifying even worse damage than previously known – particularly the true magnitude of the budget deficit and the backlog of bills – triple the amount of when Governor Rauner’s impasse began. Late payment interest penalties related to Rauner’s impasse have exceeded $1.25 billion, and interest on the refinancing of Rauner’s bill backlog will surpass $2 billion.
“Illinois will need years to dig out of the fiscal mess this administration inherited, and the road to recovery will begin with Governor Pritzker,” said report author Deputy Governor Dan Hynes, who oversees budget and economic issues for the administration. “The Pritzker administration will be honest and transparent about the challenges we face and put forward long-term plans and investments that will get our state on firm financial footing. Despite these challenges, we will propose a balanced budget that invests in education and human services that were decimated under the previous administration.”
The report goes on to detail the human and fiscal consequences of the historic budget crisis, a failed and prolonged dispute with AFSCME, the continued backsliding on pensions and chronic mismanagement of state government. With new revelations of failure coming nearly every week, the report also details previously unreported failures, such as failing to pay the rent for the Governor’s Washington, D.C. office and forfeiting millions in federal reimbursements for OSHA.
Among the countless missed opportunities in the report, the state’s late payment penalties have crowded out other investments. Namely:
* Last year alone, the State paid out more than $700 million in late payment penalties – about what the state spends on the Department of Children and Family Services, or enough to hire at least 7,000 new teachers across the state.
* Illinois’ general obligation bond ratings are the lowest among the states, costing more than $75 million a year in additional interest costs on bonds issued since 2017. That is the equivalent of an additional 25,000 MAP recipients per year since 2017 – or enough for MAP grants for every undergraduate student at SIU-Carbondale and Illinois State every year.
While a generation of future Illinoisans will be forced to deal with Gov. Rauner’s fiscal wreckage, the new administration will use its first budget to light a multi-year path forward to fiscal stability and a new prosperity for Illinois.
Additional details are available in the report.
* From the report…
1. If left unaddressed, the State of Illinois’ general funds budget deficit for FY20 would be approximately $3.2 billion, roughly 16 percent higher than the Rauner administration officially estimated just three months ago.
2. The state’s debt associated with unpaid bills is nearly $15 billion: $7.9 billion in unpaid bills, $5.5 billion in backlog borrowing, $650 million in interfund borrowing and $500 million in estimated backpay for state workers. This is almost triple the amount outstanding before Governor Rauner’s impasse began.
3. Rauner’s failed and prolonged dispute with AFSCME over step increase wages has resulted in a court finding that he improperly withheld wages from state employees. The cost of his anti- union battle may total more than $500 million with the impact of compounded interest penalties.
4. The State’s projected unpaid bill backlog at the end of FY19 is likely to be $500 million more than previously stated, creating longer delays in vendor payment cycles and additional pressure on the provider community – and, most critically, the vulnerable Illinoisans they serve.
5. Interest alone on additional general obligation bonds attributable to the refinancing of Rauner’s bill backlog will exceed $2 billion.
6. Late Payment Interest Penalties that built up during the impasse exceeded $1.25 billion. Continued interest payments will likely exceed $60 million in FY19 in part because this year’s budget maintains a structural deficit that went unaddressed during Rauner’s term.
7. The State’s management and administrative infrastructure has deteriorated significantly, with major fiscal, legal and other critical positions unfilled for years. Reductions in staffing have affected public safety and social service programs.
8. The mismanagement of state contracts has allowed increased costs and lengthy project delays, resulting in, for example, information technology systems that don’t function effectively. This mismanagement severely impacts the administration and delivery of vital services, including healthcare. In some cases, it threatens the flow of federal reimbursement funds. The mismanagement extends to basic government functions like processing revenues and paying rent.
9. Tens of millions of dollars have been and will continue to be allocated to comply with court orders and consent decrees due to management failures to address the state’s most serious challenges.
…Adding… Good point…
Link is here.
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Because… Chicago!
Friday, Feb 8, 2019 - Posted by Rich Miller
* From GOP Reps. Brad Halbrook, Chris Miller and Darren Bailey…
Urges the United States Congress to declare the City of Chicago the 51st state of the United States of America and separate it from the rest of Illinois.
The most hilarious part of this proposal is that these southerners think the suburbs will give them a better deal without Chicago in the picture. That seems doubtful. Downstate hoovers up tax money that the suburbanites pay. Chicago is basically tax neutral. Without the city fighting for social programs and state education spending, Downstate would be in a far worse situation.
* They even completely ignore the suburban region in the resolution. From the beginning…
WHEREAS, The State of Illinois is often regarded as having two distinct regions, the City of Chicago and downstate Illinois
C’mon, people. Grow up.
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* Amanda Vinicky…
Gov. J.B. Pritzker wasted little time after his Nov. 6 election (when he was still the state’s governor-elect) to start getting down to business.
Just two days later he and running mate Juliana Stratton traveled to Springfield to announce the first of what would eventually be 11 transition committees – working groups comprised of industry leaders who would serve as volunteer advisors on fields ranging from agriculture to education, criminal justice to the environment.
“Juliana and I have said throughout the campaign we wanted to hit the ground running,” Pritzker said at the Nov. 8 press conference.
The working groups’ input would serve as “guideposts” for his administration, Pritzker said, and he wanted that done at least in time for his Jan. 14 inauguration. And while the meetings wouldn’t be public, Pritzker promised the completed transition report would be.
Except the transition committee report has yet to be released. Amanda says we can expect it today, finally. I’ve been hearing the same thing.
For what it’s worth, Gov. Rauner released his transition report four years ago on January 9th.
*** UPDATE *** And it’s now out. Click here.
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*** UPDATED x1 *** Weirdest argument ever
Friday, Feb 8, 2019 - Posted by Rich Miller
* He was using this as an argument against raising the minimum wage. I kid you not…
Sen. Dale Righter, R-Mattoon, said the bigger paychecks earned by minimum wage employees will make them ineligible for certain benefit programs.
I like Righter. I’ve often attended Senate Executive Committee hearings just to watch him spar with former Chairman Don Harmon. I didn’t care what the bills were, I wanted to see the show.
But that floor speech was weird, man. And I agree with Sen. Kimberly Lightford’s response, which was basically I’ve never heard a Republican argue for keeping people on public assistance programs like TANF and foodstamps.
*** UPDATE *** Sen. Lightford’s response…
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* Tribune…
Ford Motor Company said Thursday that it will invest $1 billion in its Chicago-area manufacturing operations to expand production of its Ford Explorer and Lincoln Aviator sport utility vehicles.
The announcement, made at the Chicago Auto Show, will add 500 jobs to two manufacturing facilities, the assembly plant and stamping plant, said Joe Hinrichs, Ford’s president of global operations. The expansion will bring the total number of workers at its Chicago-area facilities to 5,800.
The overhaul of the plant is expected to begin in March and be completed in the spring.
Included will be a new body shop and paint shop at Chicago Assembly, and new stamping lines that will make the 2020 Ford Explorer, Police Interceptor Utility and Lincoln Aviator.
* CNBC…
It’s also spending $40 million to upgrade the facilities for employees, including new LED lighting and cafeteria updates, new break areas as well as parking lot security upgrades.
In addition to the Explorer and Aviator, the plants make Ford’s Police Interceptor, an SUV modeled on the Explorer.
Ford is undergoing an $11 billion restructuring that will shrink its salaried workforce of 70,000. It is also cutting thousands of jobs in Europe, where Ford has struggled to maintain solid footing.
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* This new lawsuit sounds interesting…
According to the Centers for Disease Control, construction workers have the highest rate of opioid-related overdoses compared to any other occupation in the country. The Chicago Regional Council of Carpenters lost two of its members in the last couple months. [Gary Perinar], who heads the union, said the problems are also costing their union health fund millions of dollars as more and more carpenters struggle with opioid addictions.
“It affects their ability to perform on a job site, it hurts our contractors with respect to productivity, it’s a downward spiral in moving forward in a carpentry career,” he said.
The carpenters union teamed up with the International Union of Operating Engineers Local 150 to file a groundbreaking lawsuit in hopes of holding drug manufacturers, distributors and doctors accountable. They are the first unions in Illinois to take legal action against several pharmaceutical companies, and others.
“The suit accuses the drug companies of fraud, unjust enrichment and conspiracy for the way they falsified research and misled people into believing their opioids were not addictive,” said Ari Scharg, attorney with Edelson PC.
Union attorneys said they are not looking for a settlement. They would rather have the case go to trial to force companies to release information about their drugs.
*** UPDATE *** The complaint is here.
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Question of the day
Thursday, Feb 7, 2019 - Posted by Rich Miller
* Should the House amend the Senate-approved minimum wage bill? If so, how?
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Illinois’ best political cartoons in your inbox
Thursday, Feb 7, 2019 - Posted by Advertising Department
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It’s just a bill
Thursday, Feb 7, 2019 - Posted by Rich Miller
* Press release…
Stand for Children Illinois, a non-partisan, equity-focused education advocacy non-profit, announced the filing of legislation with the intent of reversing Illinois’ brain drain and boosting opportunities for high school students. The legislation is the outgrowth of recommendations from the organization’s recent report, “STOP ILLINOIS BRAIN DRAIN: Building Pathways to Prosperity for High School Students.” Together, the bills aim to improve opportunities in the areas of course equity, career and technical education, freshman-on-track early warning systems, and other high school success budget priorities.
“Strengthening Illinois high schools and offering more avenues to college and career have been guiding principles for our work, especially in the wake of our Stop Illinois Brain Drain report. The bills we announced today go a long way to improving the opportunities available to high school students and stopping Illinois’ terrible brain drain problem,” said Mimi Rodman, Executive Director of Stand for Children Illinois. “Our state faces two kinds of brain drain: one, with our high school graduates leaving for out-of-state colleges, and the other by how our state badly under-taps the potential of the graduates who remain in Illinois.”
The bills announced today include:
* The Course Equity Act of 2019, SB 1212 (Lightford), would improve access to advanced coursework by making courses more affordable for low-income schools and students, allowing students to opt-in to courses that are recommended for college admission but not offered in their home district, and opening doors to dual credit and transitional math opportunities.
* HB 2093 (Crespo/Bertino-Tarrant) would align CTE courses with job trends. The bill requires the Illinois State Board of Education (ISBE) to rework its process for funding CTE courses to provide higher reimbursement rates for completion of high-demand, high-wage career area courses. It would also differentiate reimbursement rates by course sequence. Finally, the bill would establish a grants program to support local partnerships that can facilitate the creation of locally relevant pathway endorsements and programs of study.
* Freshman-on-Track Early Warning System Grants, SB 1303 (Manar). Students who are “on-track” to graduate after freshman year are three times more likely to graduate high school. Dedicated freshman-on-track grants will jumpstart systems in high schools with low rates to focus on intervention before freshmen fall behind. Grant funding could be used to hire dedicated staff to support freshman year students, provide professional development to current staff to integrate practices that boost freshman attendance, increase tutoring and other supports for ninth graders who are failing core courses, providing in-school mentoring opportunities to freshmen, and other practices likely to lead to improved success.
* Stand budget priorities include $450 million in new Evidence-Based Formula funding; a $100 million increase for Monetary Award Program (MAP) grants; $12.6 million increase for career and technical education, an allocation that has largely been flat since 2004; a new $5 million appropriation for freshman success grants; and, a new $1.2 million appropriation for CTE infrastructure that can go a long way to ensuring all regions have the support they need to create and maintain critical regional partnerships.
“Illinois high school students cannot wait any longer for more equitable access to opportunities for prosperity,” said Rodman. “We are proud to partner with Reps. Crespo and Batinick and Sens. Lightford, Bertino-Tarrant, and Weaver, and we urge all legislators to support these bills. Illinois students should be immersed in career possibilities and supported to understand how to achieve their career goals, and these bills help them do just that,” said Rodman.
* WTTW…
A Chicago-area legislator plans to introduce a bill this week that aims to help Illinois expand its capacity of wind and solar energy, with an eventual goal of procuring 100 percent of the state’s energy from renewable sources.
State Rep. Will Davis, D-Hazel Crest, announced Wednesday his intention to file the Path to 100 Act, which he says will expand the state’s share of renewable energy to 40 percent of total energy sources by 2030. Current requirements under Illinois’ Renewable Portfolio Standard, or RPS, established a requirement of 25 percent renewable energy sources by 2025.
Davis said the legislation would help Illinois build on progress made as a result of the 2016 Future Energy Jobs Act, which has been hailed as one of the most significant pieces of state energy legislation passed in the U.S. in decades.
* SJ-R…
Pharmacies in Illinois would have less time to report dispensing opioid medications and other controlled substances under a bill making its way through the General Assembly.
The House Human Services Committee on Wednesday advanced a bill that would require pharmacies to file those reports by the end of the business day on which controlled substances are dispensed. Current law gives them until the end of the following business day.
“It ensures that medical providers have a complete picture of what their patients are taking so that they’re not over-prescribing opioids to patients who misuse or, actually, frequently then sell the fraudulent medication,” Rep. Katie Stuart, D-Edwardsville, the bill’s sponsor, told the committee during testimony.
* Other bills…
* Rent Control Measures Move Forward In Uncertain Political Environment: The first bill, sponsored by state Rep. Will Guzzardi, a Chicago Democrat, is just one line of text that repeals the 1997 Rent Control Preemption Act, a law that bans municipalities from imposing restrictions on rental rates. It was first introduced a year ago and sent back to the rules committee, but he just reintroduced the measure, now known as House Bill 255, and is seeking co-sponsors.
* Jim Dey: Who signs bill? Legislative maneuver raises question: The Illinois Constitution requires that bills passed by the General Assembly be sent to the governor within 30 days of passing. The procedural hold — known formally as a motion to reconsider — is a mechanism designed to evade the 30-day mandate. But can it skip time constraints to the extent of jumping from one governor to the next? It’s happened before. In 2015, Rauner signed utility legislation that was passed by the previous General Assembly after legislative leaders put a hold on it until after former Gov. Pat Quinn left office.
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J.B. vs. JB
Thursday, Feb 7, 2019 - Posted by Rich Miller
* This isn’t a major story or anything, but I never noticed before that JB Pritzker changed the way he punctuated his name when he ran for governor. From Vince Gerasole…
When Pritzker introduced himself to voters ahead of the 2018 election, he invited them to call him by name. He even spelled it out in campaign materials, and on social media accounts, as JB; forget the Jay Robert, and the periods. […]
But check out the other worlds JB Pritzker inhabited before getting to know voters. From his venture capital firm to his charitable foundation, his was a presence where J.B. was punctuated by periods. […]
A spokesperson for the governor said they “don’t think there was any specific reason, it’s just easier” to spell JB without the punctuation.
There’s also historical precedent, such as presidents known as JFK and LBJ. […]
Illinois’ first lady also goes by her initials, M.K. Pritzker, periods included.
The Pritzker Group spelling is here, the family foundation is here, the governor’s state website is here.
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* Press release…
Yesterday, the Legislative Ethics Commission (LEC) held its monthly meeting and took the final steps to recommend the appointment of Judge Carol Pope to the position of Legislative Inspector General (LIG), effective March 1, 2019. Following the selection of Judge Pope in December, Acting Legislative Inspector General Porter, Judge Pope and the LEC agreed on an extension of current LIG Porter’s term by two months to allow time for her to complete open cases. This also allows for an important transition period.
Following the Commission’s meeting, Senate Joint Resolution 17 was filed. This resolution must be adopted by both chambers to appoint Judge Pope to the position. As members of the LEC, we look forward to working for the passage of this resolution to fill the position of LIG. Currently, LIG Porter retains the ability to hear complaints and launch any investigation she deems necessary.
That monthly meeting was scheduled in January, according to a spokesperson for Rep. Avery Bourne (R-Raymond). The Senate’s joint resolution couldn’t be filed until after the Ethics Commission took that final step yesterday.
* But that didn’t stop Denise Rotheimer from claiming credit for the timing. Here’s Hannah Meisel…
Even so, victims’ rights advocate Denise Rotheimer appeared in Springfield Wednesday, telling reporters at a Capitol press conference that she didn’t believe the new system was transparent enough.
“I would rather [the LIG] be chosen by the voice of the people of the state of Illinois,” she said. […]
Rotheimer told reporters that she couldn’t understand why a joint resolution to appoint Pope had not yet been filed. But when told that State Sen. Terry Link (D-Waukegan) had filed SJR 17 — the resolution to officially appoint Pope — on Wednesday, Rotheimer claimed credit.
“Well that’s because I’m here,” she said. “Isn’t that so ironic?”
Rotheimer told reporters that Wednesday would be her last time coming to Springfield, and presented her bill for expanding victims’ rights when a victim accuses a lawmaker of unethical behavior.
SJR17 was adopted by the Senate at about 11:30 this morning. It now goes to the House.
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* Pantagraph…
The Dwight Planning Commission will consider an annexation agreement later this month that could be the first step in bringing a federal detention center for illegal immigrants to the Livingston County village. […]
Immigration Centers of America, headquartered in Richmond, Va., has contacted village officials about an 88-acre parcel of land near Interstate 55 and Illinois 17 for a federal center to house 1,200 men awaiting immigration hearings.
The facility would be managed by U.S. Immigration and Customs Enforcement (ICE). […]
If the detention center is built, Anderson said, the estimated $20 million facility would employ about 280 people.
* I asked the governor’s press secretary Jordan Abudayyeh for a response…
Governor Pritzker strongly opposes any action that would allow President Trump to advance his anti-immigrant agenda. The administration will closely monitor and oppose this effort going forward.
*** UPDATE *** From Fred Tsao at the Illinois Coalition for Immigrant and Refugee Rights…
The for-profit immigration prison being proposed in Dwight has already been rejected throughout northern Illinois and Indiana, from Crete, Joliet, and Hopkins Park in Illinois to Hobart, Gary, Roselawn, and Elkhart County in Indiana. Several of these communities could use an economic boost. Yet the people and elected leaders in these communities recognized that these prisons are wrong on so many levels, including economically and morally. They realize that private prisons leave a trail of devastation as the promises of economic benefit do not materialize. They realize that private prison companies are only interested in making profits, and are all too eager to cut corners to do so, even if it hurts their host community. And they realize that the facility would be used for jailing people torn from their families, workplaces, and communities, people who have no business being locked away, especially for someone else’s profit. We hope that the leaders of Dwight will come to the same realization and reject this proposal.
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Sterigenics meeting today
Thursday, Feb 7, 2019 - Posted by Rich Miller
* Press release…
Governor JB Pritzker and Attorney General Kwame Raoul issued the following joint statement about ongoing efforts to address the Sterigenics facility in Willowbrook, Illinois.
“Recent media reports of alleged improper handling of dangerous chemicals at the Sterigenics facility in Willowbrook and reports of elevated EtO levels within the Willowbrook community are deeply disturbing, and we urge the U.S. EPA to take swift and effective action to protect the health and safety of families living near the facility. The Illinois EPA will meet with the U.S. EPA and Sterigenics today. After this meeting, we will evaluate any outcomes and exercise all available legal authority to protect the community from this exposure.”
An opinion I’m hearing more and more is that the state ought to just shut the place down and let the courts sort it out.
Your own thoughts?
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Pro-biz groups split on state budget
Thursday, Feb 7, 2019 - Posted by Rich Miller
* And neither one of them is in favor with the governing party…
Two policy groups are putting forth solutions to solve the state’s money woes ahead of Gov. Pritzker’s first budget address.
Pritzker is due to present his budget on Feb. 20. He faces a $2.8 billion budget deficit, nearly $8 billion in backlogged bills and upward of $130 billion in underfunded pension and health care costs.
With more than a quarter of the state’s budget going to pension costs, the Illinois Policy Institute and the Civic Committee of the Commercial Club of Chicago’s proposals would address that burden in different ways.
In the policy institute’s proposal, state lawmakers would set in motion a change to the state constitution to allow for a restructuring of future pensions of current workers, consolidate school districts, switch out automatic pay raises for state workers with merit-based pay hikes, and other pro-growth reforms.
State workers would still be some of the best paid in the country after the proposed changes, IPI Research Director Adam Schuster said.
“Government worker health insurance and pension benefits are growing far faster than everything else in the budget,” he said. “Those are the cost drivers, so we should let the math speak for itself and tell us where we need to look for savings.”
In previous budget solution proposals, the Illinois Policy Institute has advocated for a reduction in the Local Government Distributive Fund. The measure was criticized for potentially pushing property taxes higher. Illinois has among the highest property taxes in the nation. Schuster said the new proposal doesn’t include that shift, but does include a proposed shift of future pension obligations to the local governments, something that was supported by former Gov. Bruce Rauner and House Speaker Michael Madigan alike.
In all, the policy institute predicts that its proposal would lead to a $2 billion budget surplus in five years. Schuster said that could either be invested in a rainy-day fund or given back to taxpayers in the form of a tax cut.
In contrast, the Civic Committee’s “2+2” pension funding proposal cuts $2 billion in costs and then raises personal and corporate income taxes to 6 percent and 8 percent, respectively. It also calls for taxing retirement income and expanding the sales tax to include some services. The Civic Committee predicts those changes would raise $6 billion.
“Illinois possesses great assets, including a diversified economy, an educated workforce, outstanding educational and research institutions, natural resources, and a great transportation infrastructure, but the uncertainty surrounding the fiscal health of our State has held Illinois back for too long,” said Kelly Welsh, president of the Civic Committee. “We are confident that implementation of the framework will build a foundation for growth and job creation.”
Taxing retirement income is seen as somewhat of a third rail of state taxation because retirees make up a large portion of the voting bloc. Even talk of treating pension and retirement dividends as income has resulted in resolutions opposing it.
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*** UPDATED x4 *** Minimum wage roundup
Thursday, Feb 7, 2019 - Posted by Rich Miller
*** UPDATE 1 *** Gov. Pritzker met with the Senate Democrats earlier today and I’m hearing it went well. The Senate Democrats’ spokesman just told reporters he believes the minimum wge bill, SB1, will be run on the floor shortly. Looks like the holdouts weren’t able to stop a roll call. Click here for an analysis of the bill.
…Adding… The bill, as amended in committee yesterday, is now up for debate. Click here to watch.
*** UPDATE 2 *** The bill passed with 39 votes. For some odd reason, the Senate President did not vote.
…Adding… I’m told President Cullerton was “watching the roll call” and didn’t vote. Oops. He’s filing a letter now to reflect his intention to vote “Yes.”
*** UPDATE 3 *** IRMA…
“We are disappointed the Senate did not take the time to address ways to lessen the impact of an unprecedented wage hike, particularly on suburban and downstate employers. We will continue to seek a compromise in the House, and we urge legislators to not rush this issue as they consider the implications this will have on employers and employees in their communities,” said Rob Karr, president & CEO, Illinois Retail Merchants Association.
*** UPDATE 4 *** ILGOP…
Did Governor Pritzker have any intention to return to the ‘agreed-bill’ process? On his first major legislative initiative, that answer is a hard no. This is the same failed form of governing that put Illinois in the poor fiscal condition it’s in. Pritzker is ignoring the concerns of Republican lawmakers and business leaders as he attempts to ram through legislation that would nearly double the state’s minimum wage just so he can chalk up a ‘win’ before his budget address, but at what cost?
Pritzker’s minimum wage hike will crush small businesses and will cost taxpayers at least a billion dollars a year once the plan is fully implemented, and that’s not even a complete estimate. Pritzker’s administration has not disclosed the full amount of increased spending his wage hike would require. Pritzker’s reckless budgeting will cost taxpayers and small businesses dearly. It is yet another Pritzker proposal that will bankrupt Illinois.
[ *** End Of Updates *** ]
* Last night on Illinois Public Radio…
llinois lawmakers may be slowing the process to increase the minimum wage to $15 an hour by 2025. The proposal was expected to be called for a vote and passed out of the Senate as soon as Thursday.
State Sen. Kim Lightford (D-Maywood), sponsor of the plan, said Gov. J.B. Pritzker wanted the bill approved in time for his budget address on Feb. 20. […]
For that to happen, the Senate would need to approve the plan before they leave Springfield this week. With ongoing negotiations, Lightford is not sure that will happen.
“I think anything can still happen around here,” said Lightford. “I think there is some conversations that are definitely going to happen this evening. I don’t know if they’ll yield returns enough for me to move this bill forward tomorrow.”
* Capital News Illinois…
Gov. J.B. Pritzker has said he would like the minimum wage bill, his first major policy push, approved by the time he gives his budget address on Feb. 20. But Senate Majority Leader Kimberly Lightford, a Maywood Democrat and the bill’s lead sponsor, exhibited a more cautious tone after a near two-hour private caucus of Senate Democrats which preceded the Executive Committee hearing.
“If we move the needle (in negotiations) tonight and it’s something that we can take back to the caucus and have a conversation and caucus is comfortable with it, then possibly (it could be voted on Thursday),” Lightford said. […]
The Illinois Restaurant Association, which represents 27,000 restaurants employing 577,000 people across the state according to its president Sam Toia, testified as a proponent of the bill while noting it’s a “tough pill to swallow.”
Toia said the inclusion of a tip credit, which requires employers to pay only 60 percent of the minimum wage to tipped workers, allowed the IRA to support the wage increase.
Subscribers know more.
* IRMA…
“[Yesterday’s Senate Executive Committee] vote was carried out without the concerns of the business community in mind, particularly retailers in downstate and suburban communities who are less able to absorb such a dramatic increase in labor costs compared to their counterparts in the city of Chicago. As we try to strike a balance that will benefit workers and employers across the state, the business community has proposed a regional plan to increase the state’s minimum wage based on the economic realities in different parts of the state. We urge lawmakers to pause and think about the local employers in their districts while working toward a solution that will benefit everyone,” said Rob Karr, president & CEO, Illinois Retail Merchants Association.
* IMA…
“Increasing the minimum wage for Illinois businesses by 82 percent will have a detrimental impact on employers across the state,” said Mark Denzler, president and CEO of the Illinois Manufacturers’ Association. “The IMA and the business community have offered real alternatives to help mitigate the negative impact on job creators in Illinois. This includes a minimum wage based on geography, because the cost of living in downstate Illinois is significantly less than it is in the city of Chicago. We’ve also asked for a longer implementation of the minimum wage increase and more robust tax credits for small employers. Lawmakers should give serious consideration to these ideas instead of rushing through legislation that makes it harder for manufacturers to operate.”
* One Illinois…
A statewide hike in the minimum wage to $15 an hour would have the greatest impact on earnings outside Chicago, according to a new study released Tuesday.
In some ways, that’s not surprising, as Chicago has already moved to raise its minimum wage to $13 over a five-year span set to be completed this summer. But according to “The Regional Impacts of a $15 Minimum Wage in Illinois,” released Tuesday by the Illinois Economic Policy Institute, a $15 minimum wage would still raise annual earnings by $5,000 for low-income workers in the Chicago area, and would have an even greater impact on other metropolitan areas including central Illinois, Rockford, and the so-called Metro East area near St. Louis.
The study projects that a $15 minimum wage would hike annual earnings $8,000 in central Illinois around Springfield, and $7,000 in east-central Illinois including Champaign-Urbana and around Rockford. Wages would rise $6,000 in Metro East.
The study suggests: “These higher incomes … would boost consumer spending at local retail stores, restaurants, and small businesses — offsetting any initial drop in employment or hours.”
It cites how four states have already adopted a $15-an-hour minimum wage, including New Jersey just last week, while 19 states overall moved to increase their minimum wages in some way with the new year. Illinois residents already voted in a 2014 advisory referendum to support a hike in the minimum wage, with 83 of the state’s 102 counties voting in favor.
“Working-class families in Illinois are falling behind their peers in other states,” said study co-author and ILEPI Policy Director Frank Manzo IV. “A $15 minimum wage would boost earnings for more than 1.4 million adult workers across Illinois.
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Mendoza turns sights on MCOs
Thursday, Feb 7, 2019 - Posted by Rich Miller
* Pantagraph…
Illinois Comptroller Susana Mendoza is backing legislation that would require insurance companies that manage much of the state’s Medicaid program to publish more information about how promptly they are reimbursing claims.
The insurance companies, known as managed care organizations, or MCOs, contract with the state to manage the care of individuals enrolled in Medicaid. Among other things, that involves working with patients to make sure they receive routine exams and preventive care, and coordinating services provided by their primary physicians and other specialists.
The goal of a managed care system is to reduce costs and improve health outcomes by preventing the need for many emergency room visits and the complications that can result when patients don’t receive follow-up care.
Last year, Illinois greatly expanded the managed care system to make it available in all counties. But in a statement Wednesday, Mendoza said it is difficult for her office to know what happens to the roughly $63 billion a year the state now spends on managed care after the money is handed over to the MCOs.
…Adding… The article is in error. That $63 billion is the total number from the procurement. The annual spending is far lower.
…Adding… The comptroller’s office says current fiscal year is roughly $14 billion all funds for MCOs.
* From Mendoza’s press release…
“South Shore Hospital has been devastated by delayed and denied payments from the MCOs, and it threatens our ability to keep the doors open,” South Shore Hospital Chief Executive Officer Tim Caveney said. “South Shore cares for the state’s most vulnerable patients. MCOs, as for-profit companies, deny and delay payments to maximize their profits. Today, we are still owed millions by the MCOs and seeing more than 20 percent of our cases denied by the MCOs, for no legitimate reasons. This cannot continue.”
Caveney said he commends Comptroller Mendoza and the sponsors of this legislation for working to bring transparency to the process. “It is only through the good work of Comptroller Mendoza and other policymakers that we can advocate for Illinois’ most vulnerable residents and protect the fragile health care safety net that is the only option for so many,” he said.
House Bill 2117 /Senate Bill 1238 would require MCOs to publish provider payment information on their websites every quarter. The information posted would include:
* Total number of claims received by the MCO for that quarter
* The number and amounts paid to providers
* When the payments were made
* When the claims for those payments were received
* When the service the payment is for was rendered
“The Medicaid program represents a massive area of state spending. This basic level of transparency is needed to protect taxpayer dollars and to ensure MCOs are paying what is owed to providers who serve Medicaid patients,” Representative McSweeney, R-Barrington Hills, said.
“Providers offering care to sick children and others in need are struggling because of payment delays, and they have no reliable way of knowing when their next payment is coming.” Senator Fine, D-Glenview, said. “As more and more state dollars are filtering through MCOs, it just makes sense to require transparency and give some predictability to our health care providers.”
The MCO Transparency Act is a natural outgrowth of Comptroller Mendoza’s Debt Transparency Act that opened the windows on unpaid bills held by state agencies and her other transparency reforms that shed light on the off-shoring of the Governor’s staff; the Vendor Payment Program and the state’s obligations to pay Late Payment Interest Penalties.
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