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* Many kudos to the Illinois Information Service for live-streaming Gov. Quinn’s 11:30 am joint announcement today with his Taxpayer Action Board’s chairman about the board’s budget reform recommendations. You can listen live by clicking here.
Then, at about 1:30 this afternoon, the governor will hold a press availability following his meeting with the legislative leaders. That, too, will be live-streamed. Click here to listen.
If you can live-blog the events in comments, you’d be a big help to others. Thanks.
*** UPDATE - 11:44 am *** You can read the Taxpayer Action Board report by clicking here.
* There are some harsh comments in the “Minority Report” section, which begins on page 107. This is from TAB member Dory Rand…
In the same “Medicaid Spending” section, the report states that “Medicaid is now the largest single state expense in Illinois, accounting for over 40% of general fund appropriations.” This statement of the expenditure level does not account for the large role of federal funds. It is astonishing that this report does not isolate the state funds spending in Medicaid as its sole focus. The TAB was created to deal with state spending. This report deliberately hides the state spending aspect of Medicaid. The dimensions of this error and its potential to mislead the discussion are substantial. In fiscal year 2006, for example, the state money devoted to Medicaid was 19.4% of state general revenue spending and 18.6% of state funds spent in the entire budget (compared to the 40% that the report uses by including the huge federal portion of the program in its sole statement of Medicaid’s part of the budget).
* And this one was written by frequent blog commenter and former budget director Steve Schnorf, with co-signors Woods Bowman, Dory Rand and Richard Sewell…
In three instances at least, I believe you are being directed toward fixing things that probably aren’t really very broken, and that might not be a best use of your time and energy.
Schnorf makes a whole lot of very good points, particularly about Medicaid. His remarks start at page 121. Go read them.
* This is a very interesting recommendation from the majority report…
To dramatically reduce the prison population by reviewing the prisoners’ records to identify inmates that may no longer represent a significant risk to society, and to allow those individuals to re-enter society under state supervision.
* More from the report…
While across-the-board operating cuts are often criticized as a sledgehammer approach, which can miss large opportunities for cost reductions and penalize disproportionately those programs that are already
operating efficiently, a cut of 2-3% in all budget lines from the FY09 appropriation level would save considerable costs and is an option the State should review.
That would actually be a tiny percentage of what the governor’s office is looking at now. In other words, a vast improvement over the current plan.
* Schnorf’s conclusion in his minority report…
You can, and I believe you will, get some savings from the suggestions in this report. It probably won’t equal billions and it certainly won’t all happen over 12-18 months. Good luck.
*** UPDATE - 12:53 pm *** From the AP…
The board says the state could save $95 million by managing the care of Medicaid patients more effectively and as much as $65 million by releasing some nonviolent offenders from state prisons.
The Senate GOP has claimed that managed care would save $3 billion, and the Tribune editorial page has fully bought into the notion.
…Adding… Here’s what the report claims, with a footnote explaining it…
Promote cost-effective care management strategies that focus on the health of the person, promote prevention and wellness, and provide a medical home. (2) [$95 million savings in FY 10]
(2) Estimates reflect cost savings created by a decrease in the projected growth rate of Medicaid expenditures, not a spending cut from the current budget level.
*** UPDATE - 3:13 pm *** The live presser never happened, but the governor did talk to reporters and there is a downloadable audio file. Listen here.
posted by Rich Miller
Thursday, Jun 4, 09 @ 11:08 am
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Let’s say this committee did great work, worked around the clock and came up with some excellent recommendations that will really save the state money and could be implemented immediately … who set their calendar?
Comment by Scooby Thursday, Jun 4, 09 @ 11:17 am
Time to get under the big blanket for some political cover.
Comment by Obamas' Puppy Thursday, Jun 4, 09 @ 11:24 am
I’m am not too optimistic about the leaders meeting if he plans on being out of there at 1:30.
Comment by Been There Thursday, Jun 4, 09 @ 11:26 am
Please Governor, let’s not hear any threats today, OK? Start showing citizens what will happen with the situation as it now stands. A dose of reality is better than theoretical threats.
Imagine you are the CEO of GM and announcing how you will start closing doors. No need to threaten. Just start announcing. That should get things moving along.
Be the adult!
Comment by VanillaMan Thursday, Jun 4, 09 @ 11:34 am
Is the plan from the TAB available online?
Comment by Macbeth Thursday, Jun 4, 09 @ 11:40 am
Not yet. At least not that i can find.
Comment by Rich Miller Thursday, Jun 4, 09 @ 11:42 am
Oops. Yes, it is. Hold a sec
Comment by Rich Miller Thursday, Jun 4, 09 @ 11:42 am
http://budget.illinois.gov/documents/TABreport.pdf
Here.
Comment by Macbeth Thursday, Jun 4, 09 @ 11:43 am
Tom Johnson identifies “opportunities” for greater gov’t efficiency.
“Who does IL serve?” State gov’t is primarily a funder, not a provider, of services. The challenge facing the state is how to acquire those services in the most economical way. Johnson identifies significant opportunities to more efficiently serve people.
Comment by Reformer Thursday, Jun 4, 09 @ 11:44 am
Tom Johnson says some of the opportunities identified can impact FY 2010, but not without a lot of pain. Most recommendations are to be implemented in the future.
Comment by GA Watcher Thursday, Jun 4, 09 @ 11:56 am
Recommendations:
* Less reliance upon institutional care and more reliance upon community-based care
* Less reliance upon incarceration for short-term sentences
* More reliance upon less expensive sentencing alternatives to reduce the cost of our criminal justice system
* Reduce growth of Medicaid costs from 7% to 3% a year via various strategies
Comment by Reformer Thursday, Jun 4, 09 @ 11:57 am
Long story short, they have outline $839 million - $1.03 billion potential cuts for FY10.
Most of that ($420 - $510 million) is freezing spending at FY09 levels and then doing 2-3% across the board cuts on top of that.
I don’t know how much of that is duplicated in Quinn’s original or existing cut plan.
But, excluding those across-the-board cuts, it looks like they only “found” $419 - $520 million in cuts.
Comment by George Thursday, Jun 4, 09 @ 12:15 pm
George is right. All of this hoo-ha for them to say, “cutting across the board would cost less.” And the other $4-500m George notes they “found” is largely from cutting Medicaid and releasing inmates. Um, OK.
Comment by Reality Check Thursday, Jun 4, 09 @ 12:26 pm
Several things worth noting:
These cuts add up to a maximum of $796 million, and one of them — across the board spending cuts ($270M) has been implemented and then some. That means that a bipartisan task force headed by the Taxpayers Federation can only identify $526 Million in cuts.
– Medicaid managed care - The GOP Silver Bullet for balancing the budget, was among the reforms listed, but would only save $90 Million, not the $1 Billion figure Republicans have been throwing around.
– “The HMO’s Will Save Us” Mantra is further damaged by this passage from the minority report (pg 115):
according to the nonpartisan Kaiser Commission on Medicaid and the Uninsured, Illinois ranks 2nd among states in per beneficiary expenditures Illinois is at $4,129 per beneficiary; the national average is $4,575). In fact, the three states mentioned in the report as having significant success in implementing a broad-based capitated managed care program all have higher per beneficiary expenditures than Illinois (North Carolina $4,943, Pennsylvania $4,832 and Wisconsin $4,440) according to the nonpartisan Kaiser Commission on Medicaid and the Uninsured. This data supports HFS’ contention that its management of the fee for service program results in lower costs to the state than if the program relied more heavily on a capitated managed care model.
– And of course, the best for last comes from Steve Schnorf, who the Governor should be quoting profusely to the press and in budget meetings over the next few days. Heck, If I were Gov, I would have replaced Filan with Schnorf already:
“My best personal estimate is that you will be able to save very little, if any, money in FY10. If I were working on the budget, I would be hrilled if there were $200 million in actual, achievable FY10 savings.”
Comment by Yellow Dog Democrat Thursday, Jun 4, 09 @ 12:32 pm
Nice to see the grownups at work. Well done, Schnorf, Woody, et al.
Comment by wordslinger Thursday, Jun 4, 09 @ 1:27 pm
is the audio link for the gov’s press availability correct? I have heard someone beating on a drum.
Comment by Speaking at Will Thursday, Jun 4, 09 @ 2:00 pm
Shhh… I don’t think they know they’re talking into a live mic. lol
Comment by Rich Miller Thursday, Jun 4, 09 @ 2:02 pm
What in the world is this audio you have? Why are they talking about light stands and taking stuff on the road and setting up? Is Governor Quinn in a band?
Comment by Political Panther Thursday, Jun 4, 09 @ 2:05 pm
They’re getting ready for the presser. Patience.
Comment by Rich Miller Thursday, Jun 4, 09 @ 2:06 pm
Well why did Governor Quinn say he would be on at 1:30 then have us listen to over 30 minutes of guys talking? Now I hear them conversing about women being preganent
Comment by Political Panther Thursday, Jun 4, 09 @ 2:09 pm
In short, we need to trade Ostro and Filan for Schnorf.
Comment by Ghost Thursday, Jun 4, 09 @ 2:30 pm
If you want to save money. make it a flat double sawbuck for each doctor’s visit and a non emergency. emergency room visit.
Yeh, I know I.m heartless, but the people can usually be sighted with a pack o’cigarettes in their hand
Comment by Truthful James Thursday, Jun 4, 09 @ 3:22 pm
It would be nice if the folks with ideas on how to cut or “better manage” the Medicaid program actually had some understanding of the Medicaid program, or is that too much too expect? Bravo to Schnorf!
Comment by Anonymous Thursday, Jun 4, 09 @ 3:32 pm
Now Schnorf just needs to run for Treasurer and help put the GOP back in the game
Comment by Ghost Thursday, Jun 4, 09 @ 3:40 pm
Finally…the TAB report supports the downsizing and closure of state institutions for people with developmental disabilities. I have been howling in the wind for that for 47 years down here but maybe…just maybe…we will begin to move in that direction!
Comment by Gathers No Thursday, Jun 4, 09 @ 3:49 pm
I still can’t understand why everyone is so obsessed with revamping Medicaid when it appears that some version of universal health care is likely to be passed in Congress by the end of the year. There will still be a version of Medicaid, I’m sure, but the rules and the funding could change substantially. Anyway, why not wait and see what the changes are before we spend time and money revamping a program which many very well undergo significant change.
Comment by Cassandra Thursday, Jun 4, 09 @ 3:52 pm
I’m glad that Quinn thinks a budget by 1 July is possible. That’s nice to hear — even if it probably won’t happen.
But a couple things that ran through my mind during the audio of Quinn:
a) The talk about more layoffs is absurd. It’s almost as absurd as the constant, “Look, let’s just cut 3% across the board.” Didn’t we elect these guys to implement real change?
b) If the budget goes into overtime — again — and Blagojevich is nowhere to be found, then clearly there are other problems still in government. I’m coming to realization that Madigan might be the *real* problem. No, he’s not like Blagojevich — but he’s a different kind of problem.
Comment by Macbeth Thursday, Jun 4, 09 @ 4:00 pm
Did you ever notice how Governor Quinn resorts to quoting famous figures, the Bible, the Constitution and other platitudes when he doesn’t know what to say?
Comment by GA Watcher Thursday, Jun 4, 09 @ 4:18 pm
Am I the only one who wonders why Quinn has turned to conservative business-oriented organizations like the Civic Federation and the Taxpayer’s Federation for advice on how to manage government?
If you read the list of members of his Taxpayers Advisory Board, the report is a foregone conclusion: reduce spending from this year’s levels, cut state employee pay and benefits, slam Medicaid clients, sell off state assets …
Business leaders have been showered with bonuses, benefits, buyouts and golden parachutes over the past decade while cutting rank-and-file workers’ pay and benefits to the point where the gap between them and their corporate overloards is greater than any time in the last 50 years. And they continue to demand that government follow the same morally reprehensible path, where budgets are met by breaking union contracts, perhaps violating the state constitution and hurting those who need help the most.
In this pack of thieves, Schnorf — whom I do admire — comes off sounding like a humanist. And Quinn and Madigan (God help me, I’m channeling Blago) come off like Republicans.
Comment by All Alone? Thursday, Jun 4, 09 @ 4:35 pm
Hush, now, All Alone? How dare you upbraid your social betters with such language? Don’t you know we live in a society where a bankrupt media empire sees fit to lecture us on how we should manage our finances? Its smug editorialists content to dispense pay and benefit cuts for the lowly, unworthy “food, janitorial, and tehnology workers” the state is paying oh so generously. Chicago Tribune? No. Chicago Chutzpah!
Comment by Willie Stark Thursday, Jun 4, 09 @ 4:50 pm
With all this talk of Managed Health Care, Universal Health Care, cutting healthcare costs etc. I’m just scared to death I’m going to get sick. Then I’ll really be in trouble!
Comment by A Citizen Thursday, Jun 4, 09 @ 5:01 pm
=== If the budget goes into overtime — again — and Blagojevich is nowhere to be found, then clearly there are other problems still in government. ===
The problem is, we’re broke.
If it makes you feel any better, Illinois isn’t alone in being broke or not having passed a budget.
Comment by Yellow Dog Democrat Thursday, Jun 4, 09 @ 5:40 pm
I sort of skimmed TAB at work today while we were down. I enjoyed reading it; it was thoughtfully written and the suggestions were realistic and practical. The privatization of real estate management was one of the recommendations.
Comment by Emily Booth Thursday, Jun 4, 09 @ 6:14 pm
I agree whole-heartedly with the concept of the TAB, but the competency of consulting group was certainly suspect at best. As the “minority” opinions clearly illustrate (Dory Rand and Schnorff nailed it pretty good) the “opportunities” often aren’t realistic or even desired. The biggest flaw with the report is it sets mostly unachievable expectations. In some cases, the savings is achieved only thru changes to federal law…so why even mention these things as opportunities?
Comment by Budget Watcher Thursday, Jun 4, 09 @ 6:22 pm