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Harsh budget realities

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Illinois

* The Sun-Times deals with some harsh budget realities…

Making Medicaid more efficient is, without a doubt, a part of the answer to the state’s budget crisis.

But it’s time to be honest about how much we can actually expect to squeeze out of the program.

Republican gubernatorial front-runner Bill Brady and others have suggested that moving all or most of the state’s 2.4 million Medicaid recipients into HMO-style managed care networks could cut spending by $1 billion or more.

We find that hard to believe, considering that Illinois already spends less per Medicaid beneficiary than most states. Not to mention that the state’s existing managed care programs, while successful, haven’t generated nearly that much in savings.

Actually, Brady has said that the savings could be in the $1.2 billion to $1.8 billion range.

* As part of the deal that gave Gov. Pat Quinn an extra three weeks to present his new budget, state revenue and spending particulars will be posted online soon, and the Peoria Journal Star wants people to get involved…

Nobody should be shy about responding to the invitation. In a state of 13 million people, there might even be some who are actually informed in the ways of finance, public and private alike. If anybody can truly find a way to hack $13 billion out of discretionary spending without crippling the state, more power to ‘em. Minority Republicans need to get in the game, too. Even if Democrats freeze them out of budget talks again, it will give them ammunition with voters to say, “See, we tried. This is our plan, with specifics.”

The Pantagraph rails against giving the governor extra time…

Delaying the budget message causes harm to everyone in the state. It contributes to the chaos and uncertainty that is plaguing this state, causing it to stagnate — or worse.

The sooner Quinn puts his budget on the table, the sooner the state can craft a plan to get our state out of the huge crater we are in.

But Finke has it right when he takes on Republicans who have blasted the idea…

Do you really think it would make any difference if Quinn submitted his budget ideas Wednesday rather than in three weeks? Anybody going to get more money? Are cities and schools are going to be better off if (maybe) they learn three weeks earlier how much money they will get? Not that it matters since there’s no money to pay them anyway. Those extra three weeks will make lawmakers actually seriously deal with the budget meltdown instead of again looking for the easy way out?

Frankly, the Republicans came off sounding like their colleagues at the federal level — the Democratic leader wants something so we’ve got to oppose it. Just because.

It’ll be interesting to see if the GOP lawmakers think they are scoring points with the public and keep up that approach all year long. It will be a long session.

* The state is about to refinance about $1.4 billion of its general obligation debt in order to save a few bucks…

The fifth-most-populous state expects to save about $29 million in 2010, $27 million in 2011 and $100 million over the life of the securities with its refinancing, said Kelly Kraft, a budget spokeswoman for Governor Pat Quinn.

* A few thousand people are planning to descend on Springfield this week to protest impending budget cuts. Those rallies almost never work because the Statehouse has become pretty much completely desensitized by repeated organized shows of force by one group or another. But, I suppose, they gotta do something.

* Related…

* How you could get a say in fixing state budget: The Web site - www.budget.illinois.gov - will post on Feb. 24 the tax revenues for the current budget year and how they’ve been spent so far. Also posted will be projected revenues for the next budget year, which begins July 1, and all the projected program costs, debt payments, pension liabilities and other spending pressures.

* SJ-R Opinion: Madigan, Cross must find common ground

* State can’t afford to improve dental service for poor, official says

* State libraries may be the next victim of state’s financial woes

* Fiscal Sustainability: Our State and Its Flagship University

* [SIU] expects cuts next fiscal year

* Borrowing plan no solution: Desperate times produce desperate measures, and this request to borrow based on the unreliable promises from a near-bankrupt state has to be among the most desperate of all.

* Quinn approves budget delay bill

* Quinn budget speech now set for March

* Lawmakers allow Quinn to delay budget address

* Illinois to receive increase in specialty crop grant funds

* Lawmakers considering income limits on free rides for seniors

* Free transit rides in Illinois come under fire

* Senior perk cutback advances on free transit rides

posted by Rich Miller
Tuesday, Feb 16, 10 @ 9:40 am

Comments

*** A few thousand people are planning to descend on Springfield this week to protest impending budget cuts. Those rallies almost never work because the Statehouse has become pretty much completely desensitized by repeated organized shows of force by one group or another. But, I suppose, they gotta do something.**

Rich, they really should have you as one of the speakers at the rally to motivate the masses.

Comment by Montrose Tuesday, Feb 16, 10 @ 9:52 am
This is all OK - let the wrangling begin.
We are in a deep economic crisis, we have to prioritize. Get used to this. 2010 will not be better than 2009.

Taxpayers have been spending less. It is time for their governments to start reflecting this new reality.

The status quo is going to be very unhappy about this. It threatens them. They’ve got it all rolling right into their gullets, and don’t want to share or lose one penny. So be prepared for the status quo to trot out a long line of spokespeople and special interest groups claiming that they will absolutely die if their pots aren’t filled with our money.

The writing has been on the wall for eight years. I suspect that voters are ready to hear some wailing and turn a deaf ear towards it. That is how it goes in the real world.

Get on with it, and let’s get ugly so that we can save the important stuff we absolutely need. That is what the folks in the General Assembly and Governor’s Mansion were voted into office to do. It is time they do it.

I already know that this will cost me more than I have - but, I need to know where the fires will be in order to move my belongings.

Get going!

Comment by VanillaMan Tuesday, Feb 16, 10 @ 9:53 am
=Get on with it, and let’s get ugly so that we can save the important stuff we absolutely need.=

What is that exactly? You can find ardent defenders of every budgetary boondoggle stamped in Springfield.

I’ll propose one line of reform. No elected officials qualify for a pension. If you want a pension you save for yourself or you seek private employment.

Whatever it takes to engineer some sort of term limit will be good for our finances.

Comment by Brennan Tuesday, Feb 16, 10 @ 10:17 am
Looking to the west:

Like us Missouri has a constitutional requirement of a balanced budget. Like all the states, revenue projections haven’t matched revenue collections. In the past several months the Missouri governor, after conferring with legislators has cut the state budget THREE TIMES.

I know, I know, Missouri’s budget numbers, problems, population, etc. are not nearly as large or bad as Illinois are. However, wouldn’t it be nice if this approach was taken before the inevitable tax increase comes along?

By the way, Missouri’s current governor is a democrat.

Comment by Leave a Light on George Tuesday, Feb 16, 10 @ 10:37 am
–Get on with it, and let’s get ugly so that we can save the important stuff we absolutely need.–

Careful what you wish for, dude.

The next few months will be very interesting in the arena of public finance. Defaults are very much possible in Europe, with Greece and Spain leading the way. Iceland has a referendum on tap to walk away from its debts.

Once that ball starts rolling, the pressure on governments in the states to do the same will be enormous.

And then we have real mess.

Comment by wordslinger Tuesday, Feb 16, 10 @ 11:04 am
Wordslinger:

Illinois gubment would figure out a way to borrow on default. There is a way to madness and we have found it.

Comment by vole Tuesday, Feb 16, 10 @ 12:08 pm
Actually, Rachel Maddow askd Aaron Schock if he would give back the money on Meet the Press last Sunday. He said that his constituents have just as much right to federal pork as any other. He gotten beaten up pretty badly on that show. Like a little boy.

Comment by anon Tuesday, Feb 16, 10 @ 1:07 pm
===Actually, Rachel Maddow askd Aaron Schock if he would give back the money on Meet the Press last Sunday. ===

From the tape I saw, she didn’t do that. Maybe I missed it, though.

Comment by Rich Miller Tuesday, Feb 16, 10 @ 1:09 pm
Rich:
It appears the layoffs for higher education are beginning. Illinois Eastern Community Colleges (Wabash, Frontier, Olney Central and Lincoln Trail) have notified 25 Faculty that they will be riffed. There is some concern that union members and leaders have been singled out. Here is a letter form Roger Eddy 109th Rep to the Board questioning whether these cuts need to be made now or ever.
February 16, 2010

Dear Mr. Bruce and Board Members of IECC,

First, let me apologize to you for not being at your Board Meeting in person. I would most certainly prefer to be present. However, I am in Springfield due to a scheduled legislative session and unable to attend in person. The fact that the recently proposed cuts to faculty at Illinois Eastern Community Colleges are being acted upon in a very short time frame was brought to my attention only days before your Board Meeting. That has complicated any attempt to make arrangements to be present at your meeting due to previous legislative commitments. In addition, after becoming aware of the proposal on Friday, February 12th, with that date being a State Holiday (Lincoln’s Birthday) and Monday, February 15th being a National Holiday (President’s Day), I have had very little time to respond to questions from constituents related to the proposed cuts. I have also had little time to do necessary research in order to respond in a responsible manner.
At first glance, these cuts, especially to the faculty at Lincoln Trail College, are significant and could be devastating to the mission of community colleges in my legislative district. As one of your representatives in Springfield, and as one who represents Lincoln Trail College and Wabash Valley College, I feel that I must request that more research be done before these devastating cuts are enacted. I am fully aware that timelines exist which require prompt action. My understanding though is that the Board has until March 13th to make these cuts. That seems to provide much needed time for input from those directly affected by the cuts. It would also provide time to get more precise estimates as to what revenue might be forthcoming from the State of Illinois in FY11.
To my understanding, massive cuts for next year have not as yet been officially forecast by the governor’s office of management and budget (GOMB) or the Community College Board. While there is no doubt that reimbursement of funding has been woefully late to education providers, especially community colleges, all payments have been vouchered and will arrive at some point in the future. I was told by an official at ICCB that this situation is more of a cash flow issue. Last year, I sponsored legislation that was signed into law which allows for K-12 education providers to secure short term loans from local banks without going through a bond process. Many K-12 providers will count on this new law to help with cash flow issues this year. This same type of legislation was introduced this year for community colleges. SB2615 is designed to allow community colleges additional flexibility regarding borrowing in order to deal with similar cash flow issues. I will sponsor that legislation in the House and am very confident about that proposal becoming law,
In short, I am very respectfully requesting that any action regarding these cuts be tabled until further research regarding this important issue can be undertaken. Based on statutory regulations, you do have time as March 13th is twenty-five days from now. Those twenty-five days could allow for important hearings in each of the communities in order to explore alternatives to these cuts and an opportunity to have more accurate and timely budget information from which to make decisions that could affect the mission of the community colleges that are served by your constituency. I will make every effort to attend the meetings if my schedule allows. In fact, I hope that my legislative schedule is considered if you see fit to take a little time and schedule some meetings to discuss the future of our community college system. I sincerely appreciate your consideration of this request.

Respectfully

Roger L. Eddy
State Representative
109th District

Comment by SIUPROF Tuesday, Feb 16, 10 @ 1:30 pm
===At first glance, these cuts, especially to the faculty at Lincoln Trail College, are significant and could be devastating to the mission of community colleges in my legislative district.===

And he is where on a tax hike?

I really hate to see this stuff happen. The pain of being out of work in a recession and with a young family is something I can speak of from experience. It’s pure devastation. I almost went nuts at the time. Actually, I probably did go off my rocker back then. I don’t like to think about those dark days.

But the stark reality is that until there is a real, bona fide threat to jobs and programs in members’ actual districts, nothing is gonna get done about saving this budget from the total wreckage of gargantuan cuts. And the same goes for pet programs/tax breaks beloved by the Tribune editorial board.

Nothing.Will.Get.Done. Bank on it.

Comment by Rich Miller Tuesday, Feb 16, 10 @ 1:38 pm
Does anyone else see the problem here?

Population of Illinois 13 mill.

People on Medicaid in Illinois 2.4 mill.

We have 20% of the population on the dole. Cut the people off of the dole. Quit trying to screw the providers of the service.

If you can’t fund the program properly then quit making empty promises!!

Comment by BIG R.PH. Tuesday, Feb 16, 10 @ 3:41 pm
Of the 2.4 million citizens receiving medical assistance, only 15% of that number, the elderly and/or disabled, account for 75% of the spending. Big R. Ph., are you proposing to stop covering medical services to our most vulnerable citizens? Serving Medicaid recipients is optional for pharmacies. If medical providers don’t like the state of Illinois as a customer, stop the business relationship.

Btw, Brady’s boasts about Medicaid savings are so silly that he essentially loses all crediblity regarding budget matters. He’s really clueless on some of the state’s biggest issues. After really screwing up the last 2 guberatorial elections, I’d hate to see Illinois make another mistake with Brady.

Comment by Budget Watcher Tuesday, Feb 16, 10 @ 6:02 pm
No one is seriously addressing revenue increases (tax hikes), and won’t until the election. Probably not then either. Cuts need to be made. Biggest cuts have to be made in medicaid eligibility (Blago’s wet dream).

People who claim that you can’t cut anything cuz’ it’s too mean have about six more months to object. Then reality sets in.

Comment by Park Tuesday, Feb 16, 10 @ 7:57 pm