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*** UPDATED x1 - Rauner react *** IHA wants temporary budget extension if gridlock continues

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* From the Illinois Hospital Association…

On behalf of the patients and communities they serve, Illinois hospitals are deeply concerned that payments from the State for services provided to Medicaid beneficiaries and State employees may stop if the State budget impasse is not resolved by July 1. Many hospitals – especially safety net, rural and critical access hospitals that serve vulnerable communities in all parts of the state – depend on State revenue to fulfill their mission of providing quality health care to their communities. A lengthy State shutdown could jeopardize access to health care for the children, seniors and families in these communities. A significant delay in payments from the State could jeopardize hospitals’ ability to meet their obligations – pay employees, vendors, and suppliers – and meet their operating expenses.

If a budget resolution does not appear likely by the end of the month, the adoption of a temporary one-month budget should be considered to preserve access to essential health services until a final budget agreement is reached.

Thoughts?

*** UPDATE *** From the governor’s office…

An unbalanced short-term budget with no real reforms is still a phony budget and unacceptable to the people of Illinois. If Speaker Madigan and the legislators he controls have any interest in real reform and compromise to grow the economy and end the era of wasteful spending and broken budgets, then there is no reason a deal can’t be reached prior to July 1.

posted by Rich Miller
Thursday, Jun 11, 15 @ 10:06 am

Comments

  1. It seems as though A.J. Wilhelmi read that RNUG and I suggested a CR. :)

    Comment by Team Sleep Thursday, Jun 11, 15 @ 10:15 am

  2. It is a reasonable enuf proposition, if you want to avoid imposing suffering. The IHA has not been listening to rauner–its his way or nothing, regardless of harm.

    Still, it is good for the IHA and others to warn of consequences and their timeline.

    Comment by Langhorne Thursday, Jun 11, 15 @ 10:17 am

  3. Well, where’s the leverage in that?

    Comment by Juice Thursday, Jun 11, 15 @ 10:18 am

  4. Juice is right. Extensions take the pressure off. This thing will need to blow up before it comes together.

    Comment by Anon Thursday, Jun 11, 15 @ 10:19 am

  5. They may want it, I totalky “get it”

    When Rauner stood outside the mansion, and said all he said, I think both Madigan and Cullerton would be “wise” (politically) to let Rauner twist in the wind with this.

    Rauner owns a budget. Governors always do. Let’s say Rauner wants a temporary one. Ok, what in the past 5 days makes anyone think the Leaders are looking to oblige?

    What an absolute shame this all is.

    Comment by Oswego Willy Thursday, Jun 11, 15 @ 10:21 am

  6. Take that exact same statement and swap hospital/health care for human services, education, vendors, and similar groups. Same effect, same hits.

    Comment by zatoichi Thursday, Jun 11, 15 @ 10:23 am

  7. We’re still paying our taxes, right? Money is coming in, right? Lots of money. Why wouldn’t the state pay the hospitals. This is more drama-rama, this time from IHA, right? And from the Comptroller, of course.

    Comment by Cassandra Thursday, Jun 11, 15 @ 10:23 am

  8. governor’s win June when there is overtime with no budget. they own the bully pulpit and they win the media war.. but, come July, governor’s own the State and the mess. I think both sides want to test this out..

    Comment by Not Rich Thursday, Jun 11, 15 @ 10:24 am

  9. Cass there is no legal authority for Comptroller to pay FY 16 bills

    Comment by Former Merit Comp Slave Thursday, Jun 11, 15 @ 10:26 am

  10. Meh, both sides proposed budgets recognize the need for billions in new revenue. They just haven’t gotten around to the budget because the governor has to put on a show for his donor network before he signs a tax increase.

    A budget deal could come together pretty quickly when he’s ready. He’s had months to conduct the Bad Wagner sturm und drang. I don’t see the point in enabling the governor to continue avoiding his responsibilities even longer.

    Comment by Wordslinger Thursday, Jun 11, 15 @ 10:27 am

  11. - Arizona Bob -,

    Your condescending notwithstanding;

    Was it not Rauner who complained about Quinn’s Lump Sum budget, it’s spending?

    Ever heard of the Edgar Pension Ramp?

    Governors own the processes of the government;

    Agencies, the policies, good or bad hires, and the budgets they sign to run the functions of government.

    Always have. Always will.

    Comment by Oswego Willy Thursday, Jun 11, 15 @ 10:28 am

  12. Comptroller out makin’ political speeches so don’t bother her.
    Bettin hospital go to court and get paid and TeamBungle loss a pressure point.
    Opps

    Comment by Anonin' Thursday, Jun 11, 15 @ 10:28 am

  13. “No legal authority” can be changed, I imagine.

    Comment by Cassandra Thursday, Jun 11, 15 @ 10:29 am

  14. IHA should administer CPR on the 2016 budget. Please send all nurses to the capitol ASAP.

    Comment by Mama Thursday, Jun 11, 15 @ 10:30 am

  15. The Gov loves a crisis. No extension for you. Besides, IHA is on the Gov’s enemies list.

    Comment by Norseman Thursday, Jun 11, 15 @ 10:33 am

  16. A one month appropriation to cover July was passed during the 2007 budget standoff. During June of that year the GA wasn’t in every day, just a day or so per week. It was only in July that Blago’s daily special sessions began.

    Comment by muon Thursday, Jun 11, 15 @ 10:34 am

  17. There will be no extensions The governor and his wife will sit in the mansion and enjoy the chaos.

    Is that mean? That’s what it will be.

    Rich people watching the poor suffer.

    Comment by Macbeth Thursday, Jun 11, 15 @ 10:35 am

  18. https://youtu.be/VVN8zGEacio

    Comment by Gus Thursday, Jun 11, 15 @ 10:36 am

  19. “its his way or nothing, regardless of harm.”

    Applies at least as much to Madigan and Cullerton as to Rauner. The leaders of their respective bodies have sanctioned spending more money than the State takes in for a long time. It’s a childish tantrum to claim the new guy in the mix gets blamed for everything.

    Comment by plutocrat03 Thursday, Jun 11, 15 @ 10:44 am

  20. = “No legal authority” can be changed, I imagine. =

    If the Governor signs a budget into law, then there is legal authority. Otherwise, no.

    Comment by cover Thursday, Jun 11, 15 @ 10:45 am

  21. ==Take that exact same statement and swap hospital/health care for human services, education, vendors, and similar groups. Same effect, same hits. ==
    Yup! But some hospitals are quite large and profitable; if someone has to wait, they can wait longer than some smaller human services non-profits. Sad that it likely will come to this, good organizations fighting over scraps.

    Comment by Robert the Bruce Thursday, Jun 11, 15 @ 10:47 am

  22. Cover-

    You can if muon, above, is correct. Somehow, they seem to have arranged legal authority in that instance.

    But, this is really all posturing at this point.
    The cliffhanging part will come at the end of June at the earliest. It’s only June 11-they have eons yet to make the deal that raises our taxes again.

    Comment by Cassandra Thursday, Jun 11, 15 @ 10:53 am

  23. The Governor doesn’t have a budget to “own” as long as the Legislature never sends him one. I’m somewhat surprised he’s not beating them over the head with this right now. Besides that, I don’t why anyone thinks an agreement can be made on a one-month budget when they can’t agree on a 12-month budget. The Governor could be all for this, but, in the end, he’ll require cuts Madigan and Cullerton aren’t willing to make. So, we’re right back where we started - at a stalemate. IHA has to CYA. But unless they agree to something less than frozen spending levels, there will be no agreement. Wake me when someone starts to get serious.

    Comment by Amuzing Myself Thursday, Jun 11, 15 @ 10:53 am

  24. Given the timing and source, I would think this signals the chances of having a budget deal by June 30 are incredibly narrow.

    Comment by Dirty Red Thursday, Jun 11, 15 @ 10:54 am

  25. Anonin’ - Look at the whole board and the PLAYERS.

    = The IHA has not been listening to rauner =

    I don’t believe that for a second. They built one of the strongest lines of communication with the Governor’s Office after he threw them under the bus this spring.

    Comment by Dirty Red Thursday, Jun 11, 15 @ 11:03 am

  26. @plutocrat03 =Applies at least as much to Madigan and Cullerton as Rauner.=

    Applies more to Rauner. Yes, all the politicians did borrow from the pension payments to pay for other things. This “borrowing” allowed the state income tax rate to be lower then the real cost of running the state.

    Rauner benefitted greatly for decades on paying a lower income tax on his billion dollar income.

    Rauner requested and received the income tax going down from 5%, which is now causing much of the shortfall. Now Rauner is trying to tie totally UNRELATED issues into the budget. This present budget debacle is ENTIRELY caused by Rauner’s deliberate actions. Rauner promised to balance the budget without the 5% income tax and now cannot do so. His “secret budget” turned out to be nothing but a fraud.

    Comment by DuPage Thursday, Jun 11, 15 @ 11:40 am

  27. ===If Speaker Madigan and the legislators he controls…===

    Ugh.

    No wonder IHA is asking for the temporary budget.

    Comment by Oswego Willy Thursday, Jun 11, 15 @ 11:52 am

  28. No matter how you look at it. This is a “hostage” situation.

    Comment by Anonymous Thursday, Jun 11, 15 @ 12:10 pm

  29. If Rauner honestly believes that spending $20 million will convince the public that rolling back prevailing wage is critical to our economy, there is no reason to hold the sick, disabled and children hostage.

    Well, only one reason: he’s happy to cut-off life-changing care for tens of thousands if it will save him $20 million.

    But that doesn’t sound like him.

    So, my guess is they don’t think their advertising blitz will actually work.

    Comment by Juvenal Thursday, Jun 11, 15 @ 12:14 pm

  30. “IHA is on the Gov’s enemies list.”

    And the thousands of patients in IHA-member hospitals? Are they enemies too?

    Comment by Nick Name Thursday, Jun 11, 15 @ 12:17 pm

  31. The longer this stalemate lasts, the more Rauner can dig in and hammer his message against the Madigan-Cullerton Democrats. I actually believe he’s enjoying this fight. The collateral damage to others won’t bother him at all.

    Comment by Wensicia Thursday, Jun 11, 15 @ 12:20 pm

  32. “This present budget debacle is ENTIRELY caused by Rauner’s deliberate actions”

    Wow, just wow.

    Comment by plutocrat03 Thursday, Jun 11, 15 @ 12:28 pm

  33. So DuPage, is it okay with you to continue taking $1000 for every $50K earned from people and hand it to the government?

    Do you think that has an impact on unemployment and the growth of the IL economy????

    Comment by anon Thursday, Jun 11, 15 @ 12:35 pm

  34. anon, Glad to see you are an ardent follower of the Wesley Snipes view of tax policy, but here in the real world, the Governor introduced a budget that relies on stiffing the pensions by over $2 billion (as well as many other things that aren’t possible, given that pesky reality) to keep taxes artificially low. If the Governor had decided to introduce a budget that was balanced and honest and could get by on a 3.75% individual income tax rate, then we could have an honest debate about spending priorities. But he proved that he cannot balance this budget without additional revenues, but he refuses to admit that, so we are where we are.

    Comment by Juice Thursday, Jun 11, 15 @ 12:50 pm

  35. = An unbalanced short-term budget with no real reforms is still a phony budget and unacceptable to the people of Illinois. =

    And here I was thinking Madigan might be the bigger holdup on this idea. So much for that.

    So will there now be side conversations about what constitutes a “BALANCED short-term budget” as they do in DC, or go for the whole ballgame?

    Comment by Dirty Red Thursday, Jun 11, 15 @ 12:57 pm

  36. So Juice, an increase to 5%-6% in the state income tax is the solution?

    Comment by anon Thursday, Jun 11, 15 @ 1:02 pm

  37. @anon
    So an increase to the welfare rolls and canceling indigent funerals is yours? Did you find Rauner’s time machine yet? What about the legislators that Rauner controls through his own money?

    Comment by Trey56 Thursday, Jun 11, 15 @ 1:13 pm

  38. ==Rauner requested and received the income tax going down from 5%==

    The tax increase functioned as designed. Mr Rauner and others opposed extending it, but the GA and Mr Quinn are the ones who established this tax rate in 2011. Blaming only Rauner is misguided.

    ==5% of the taxpayer’s net income for the period prior to January 1, 2015, as calculated under Section 202.5, and
    (ii) 3.75% of the taxpayer’s net income for the period after December 31, 2014, as calculated under Section 202.5==

    Comment by Formerly Known As... Thursday, Jun 11, 15 @ 1:19 pm

  39. So now I can include tret56—–is the solution a 5-6% state income tax with no other reforms?

    Comment by anon Thursday, Jun 11, 15 @ 1:20 pm

  40. So MM and the dems keep running the corvette over the cliff and they want Bruce to keep buying new ones. Yet, they won’t reduce the speed from 105mph to 70, won’t stay on the road and refuse to learn how to drive.

    Got ya!

    Comment by anon Thursday, Jun 11, 15 @ 1:32 pm

  41. Phony! There it is!

    Comment by Skeptic Thursday, Jun 11, 15 @ 1:35 pm

  42. His phony “secret budget” turned out to be nothing but a sham. Gotta use the right buzzwords.

    Comment by Skeptic Thursday, Jun 11, 15 @ 1:40 pm

  43. Governor Scrooge believes that anyone depending upon functioning hospitals should stop depending upon them.

    Its all about his political agenda, not your little girl’s tears and pain of a broken arm during recess.

    The only thing this governor is shaking up is the public’s desire to see Republicans in charge.

    Comment by VanillaMan Thursday, Jun 11, 15 @ 1:49 pm

  44. But arent paying hospitals to care for people the vary wasteful spending Rauner wants to get rid of? Each time he says wasteful spending tou have to looke at his targets…. Healthcare and support for those in need…. The waste our govenor sees in our society….

    Comment by Ghost Thursday, Jun 11, 15 @ 3:28 pm

  45. FKA:

    It is worth repeating: good luck convincing voters that Democrats were responsible for lowering the tax rate.

    I recommend looking in a mirror, accusing Democrats of lowering taxes as fiercely as you can, so you can enjoy how that seems to other people.

    Comment by Juvenal Thursday, Jun 11, 15 @ 4:05 pm

  46. Closing a state park temporarily is a crisis if you talk to the right guy. There will be dozens of these kind of letters coming forward the closer we get to July 1. Most of this stuff is important. All the more reason to get together on this.

    Comment by A guy Thursday, Jun 11, 15 @ 4:06 pm

  47. anon, What reforms are you talking about that actually impact the budget? Term limits don’t impact the budget, redistricting doesn’t impact the budget. Making local collective bargaining agreements subject to some awkward plebiscite doesn’t impact the budget. But the Governor’s own budget is short $3 billion in revenue, meaning he would have to raise the income tax to 4.5% without digging us into a bigger hole. And that assumes you stop with the indigent burials, close hospitals, cut local revenue sharing by 50%, cut universities by $400 million and raise transit fares on people just trying to get to work. But if you just want to keep saying “reform reform reform” because it gives you a nice tingly feeling and ignore reality, that’s is your prerogative.

    Comment by Juice Thursday, Jun 11, 15 @ 4:18 pm

  48. Neither side wants to run a short budget. But history shows that the courts will step in and force some maintenance of effort in critical programs and federal pass through programs.

    Comment by relocated Thursday, Jun 11, 15 @ 5:52 pm

  49. Rainer original statewide ’twas phony in itself. He was trying to fill the hole w 2.2 B from pension savings. Even if it was constitutional and passed it would be caught up in court battles. No way he could get 2.2 B for fy16. Quit playing games and meet in the middle

    Comment by Anon Thursday, Jun 11, 15 @ 10:09 pm

  50. == An unbalanced short-term budget with no real reforms is still a phony budget and unacceptable to the people of Illinois. ==

    I’m beginning to think I was an optimist when I said October for a final budget.

    Comment by RNUG Thursday, Jun 11, 15 @ 10:26 pm

  51. RNUG, the governor — any governor — who presides over schools not opening on time will take a beating from the public like this state has never seen.

    Any rationalizing babbling about “Turnaround Agenda,” “shake ‘em up,” or “Madigan” would be drowned out by the screams of “open the schools.”

    It would be a historic failure of executive leadership by the one and only chief executive the state has. Hopefully, before that happens, Rauner will realize he’s the governor of the state and not some partisan super-legislator with a fat wallet.

    Comment by Wordslinger Thursday, Jun 11, 15 @ 10:46 pm

  52. -word-

    I hear you but you and I are thinking somewhat rationally. I’m not sure every player is.

    Comment by RNUG Friday, Jun 12, 15 @ 12:34 am

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