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* Press release…
Bills for consultants and technology contracts for computer software have helped deplete a fund created for the relief of providers of health care services through Illinois’ financially stressed Medicaid program, State Comptroller Susana Mendoza announced Monday.
Doctors and other health care providers around Illinois are waiting six months to a year or more to get paid because the state has not had a balanced budget in more than two years. This fund, as its name suggests, is designed to send relief to health care providers, Comptroller Mendoza said.
“Where are this administration’s priorities?” Comptroller Mendoza said. “These funds are supposed to be for critical healthcare services. There is a time and a place for technology upgrades, but our state is in the midst of the biggest financial crisis in its history and we simply cannot put consultants and new computers ahead of vulnerable people.”
The state’s Medicaid backlog now sits at approximately $3.5 billion, a major component of the overall bill backlog that now approaches $13 billion. Because those bills are paid late, taxpayers also must pay an additional $2 million a month of late payment interest penalties.
In just over two years, Governor Bruce Rauner’s administration has spent an estimated $112 million in Healthcare Provider Relief Funds on various consulting and management fees and contracts for computer software instead of direct payments to providers according to the reports filed with the Office of the Illinois Comptroller.
A single consulting firm – Deloitte Consulting LLP – has received $27.6 million in consulting fees from the Healthcare Provider Relief Fund between January 2015 and March 2017. The fees are associated with technology initiatives at the Department of Healthcare and Family Services and are part of over $350 million spent by DHFS overall on consulting and software costs since Governor Rauner took office. Whether those initiatives had successful outcomes has not yet been fully established.
The new report comes on the heels of findings indicating the Rauner Administration has budgeted nearly $100 million in additional funding for its Enterprise Resource Planning (ERP) program, an initiative overseen by the Governor’s newly created Department of Innovation Technology, which is directed to receive $1.3 billion in funding in FY2018 according to budget documents.
Comptroller Mendoza has put the brakes on $27 million in a fund being used for ERP spending pending answers from the administration on the program’s costs, progress and results to date.
Comptroller Mendoza announced the findings of her staff’s research at a speech at the City Club of Chicago. She noted her commitment to upgrading technology in government, citing her performance as City Clerk of Chicago, where she shifted more than 1.3 million Chicago City Vehicle Sticker customers from a seasonal sales program to year-round sales, bringing in more revenue for the city at lower cost to taxpayers and eliminating long lines for drivers.
“I didn’t get a blank check for technology upgrades from the City Council,” Comptroller Mendoza said. “I needed to provide transparency, accountability, and results and so should the Governor. The days of the Comptroller’s office handing out blank checks for the Governor’s pet projects are over. I am going to be the check and balance the Constitution designed this office to be.”
Mendoza also claimed at the City Club today that “days before I took office, my predecessor transferred $71 million from the General Revenue Fund… into funds used to pay, in part, the ERP.”
*** UPDATE 1 *** From the governor’s office…
Comptroller Mendoza will do anything to distract from the fact that she used taxpayer dollars to buy herself an SUV while cutting funding to human services.
*** UPDATE 2 *** Oof…
Susana Mendoza coins new term: "Rauneritis, or the inability to accept responsibility for any problems created"
— Paris Schutz (@paschutz) March 20, 2017
posted by Rich Miller
Monday, Mar 20, 17 @ 12:49 pm
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==Comptroller Mendoza has put the brakes on $27 million in a fund being used for ERP spending pending answers from the administration on the program’s costs, progress and results to date.==
== The days of the Comptroller’s office handing out blank checks==
I wish someone would show me where a Comptroller has the power to do such a thing. Mendoza needs to point to the law that authorizes her to do this.
If there is an appropriation for something and the costs being submitted are appropriate to be paid from the appropriation then the Comptroller cannot deny an expenditure because she may not like it. We are heading for dangerous territory if we are going to allow a Comptroller to do this.
Comment by Demoralized Monday, Mar 20, 17 @ 12:54 pm
Thats a lot of money for Deloitte. Are any of the governor’s IT managers former Deloitte people?
Comment by Anon Monday, Mar 20, 17 @ 12:54 pm
===If there is an appropriation===
Unclear if there is. Checking.
Comment by Rich Miller Monday, Mar 20, 17 @ 12:59 pm
If the governor thinks IT upgrades are important, he should negotiate a budget that appropriates funding for it.
Comment by Anonymous Monday, Mar 20, 17 @ 12:59 pm
Demoralized, where do we see an appropriations for a lot of things that were being done by the Rauner administration? We’re operating much of State government via court order. I’ve been amazed by the things we’ve seen done by Rauner that appears to go beyond an appropriations and court order. Rauner was covered by Munger by any games he may have played, but now he’s got an unfriendly watchdog. If Mendoza was clearly violating a law, Rauner would have no problems getting a legal ruling to that effect. Rauner games got a little harder and in my opinion this will make the impasse harder for Rauner to manage.
Comment by Norseman Monday, Mar 20, 17 @ 1:03 pm
“Whether those initiatives had successful outcomes has not yet been fully established.”
Ask how IES phase 2 is coming along…
Comment by Union proud Monday, Mar 20, 17 @ 1:04 pm
To the person who wrote this press release: the last paragraph, the one with the money quotes in it, should not have been the last paragraph.
Comment by The Captain Monday, Mar 20, 17 @ 1:12 pm
Rauner grabs millions from Health Care funds versus buying a used SUV? Really?
Comment by Hambone Monday, Mar 20, 17 @ 1:16 pm
== Mendoza needs to point to the law that authorizes her to do this ==
Well, there’s a judge in Cook County who seems poised to give the Comptroller that legal authority.
“Someone’s got to make these decisions.”
http://www.chicagotribune.com/news/local/politics/ct-illinois-lawmaker-pay-lawsuit-met-20170316-story.html
Comment by OH Monday, Mar 20, 17 @ 1:17 pm
== Comptroller Mendoza will do anything to distract from the fact that she used taxpayer dollars to buy herself an SUV while cutting funding to human services. ==
Weak. I predict another bad week.for Rauner and his PR team.
Comment by RNUG Monday, Mar 20, 17 @ 1:18 pm
I guess Illinois can’t be compassionate, if its ERP system isn’t competitive. /S
Comment by AC Monday, Mar 20, 17 @ 1:19 pm
So in BigBrain World at $32K used SUV is the same as a $100 million hand out to consultants — who do date have managed to create a system to give out biz licenses on line —– OMG —- what will their next achievement be? Fishin’ licenses?
Comment by Annonin' Monday, Mar 20, 17 @ 1:19 pm
go figure and SUV ..TRUMPS (good play on words) millions of privatized dollars funded to a special groups from taxpayers dollars…Rauner is gonna get this state roaring again yet…smh
Comment by pskila Monday, Mar 20, 17 @ 1:21 pm
The Comptroller and Guv each know where the other’s bodies are buried.
It’s like Mutually Assured Destruction.
Comment by Roman Monday, Mar 20, 17 @ 1:22 pm
—
Comptroller Mendoza will do anything to distract from the fact that she used taxpayer dollars to buy herself an SUV while cutting funding to human services.
—
That’s it? That’s the best Rauner can do?
Comment by Mr. K. Monday, Mar 20, 17 @ 1:22 pm
Wow!!! An SUV for $30,000 vs $71,000,000? Really??
Comment by Flynn's mom Monday, Mar 20, 17 @ 1:23 pm
What a totally childish and ridiculous response from the Governor’s office.
Comment by Saluki Monday, Mar 20, 17 @ 1:23 pm
what a weak rauner response. rauner didn’t DENY that these payments were made, all he did was deflect. So sad.
Comment by Anon Monday, Mar 20, 17 @ 1:23 pm
== Mendoza needs to point to the law that authorizes her to do this ==
Well, there’s a judge in Cook County who seems poised to give the Comptroller that legal authority.
“Someone’s got to make these decisions.”
“If there is an appropriation for something and the costs being submitted are appropriate to be paid from the appropriation then the Comptroller cannot deny an expenditure because she may not like it. We are heading for dangerous territory if we are going to allow a Comptroller to do this.”
Dangerous, dangerous precedents.
Comment by Sideline Watcher Monday, Mar 20, 17 @ 1:25 pm
Is the Rauner PR team hitting the sauce a little early today? Between this response and the odd response to AFCME… I’m lost.
Comment by Centenial Monday, Mar 20, 17 @ 1:26 pm
$100M for pinstripe patronage consultants when you’re reneging on contracts to Carholic Charities, Lutheran
Social Services, and Illinois small business vendors reveals priorities.
Perhaps the spin doctors at the chamber would like to explain to their members owed money by the state why
Deloitte gets rush payment while they get oogats?
Hang in there? If only our guy
Dunk was here?
Comment by wordslinger Monday, Mar 20, 17 @ 1:29 pm
== Dangerous, dangerous precedents. ==
Agreed.
Comment by OH Monday, Mar 20, 17 @ 1:29 pm
I really hate the “modernization” that Munger did to the Comptroller website. It used to be much easier to see which funds were appropriated and spent.
Hopefully after things settle down, Mendoza will bring back clarity to the Comptroller site.
It seems like Munger was making the waters pretty muddy if you wanted to track state spending.
Comment by A Jack Monday, Mar 20, 17 @ 1:33 pm
Rauner’s crew is recycling their ammo already. Yeah they are in for a long week.
Comment by P. Monday, Mar 20, 17 @ 1:39 pm
A $32,000 SUV purchase in the last 90 days is not why our healthcare and Medicaid claims are so far behind in payment. But $100+ million in payment to upgrade our technology probably is.
Comment by Thoughts Matter Monday, Mar 20, 17 @ 1:39 pm
I don’t know if this is what they are using but in Article 79 of PA 99-524 CMS has the authority to spend $900M under the following lump sum:
For the administration and program
expenses of the Bureau of
Communication and Computer Services
It would seem that ERP would fit into that lump sum.
Again, I don’t know if that’s what they are using but it’s all I could find for FY17.
Comment by Demoralized Monday, Mar 20, 17 @ 1:40 pm
I certainly don’t see a GRF appropriation in the amounts that were quoted. Perhaps the Rauner administration could provide the appropriation number that they think authorizes these expenditures. After all, didn’t he say he was going to bring transparency to the office? You can’t get much more transparent then giving the actual appropriation. The appropriation can then be checked to see if it is expired.
Comment by A Jack Monday, Mar 20, 17 @ 1:44 pm
As an aside, if the Comptroller’s office is no longer on board with ERP then the project needs to stop anyway. ERP does no good if it’s not fully integrated. The Comptroller’s office is a big piece of that integration. If she’s not interested then the project needs to stop and this entire discussion is moot.
Comment by Demoralized Monday, Mar 20, 17 @ 1:49 pm
And the sniping continues and the expense of all those suffering from no budget. Win the message, kids! That’s all that’s important.
Comment by Anon Monday, Mar 20, 17 @ 1:54 pm
To Update 1:
$27,000 : $27,000,000
Hmmmm
Comment by Steve Polite Monday, Mar 20, 17 @ 1:56 pm
Healthcare Provider Relief is on page 288 of the FY 17 appropriation and has two lines for a total of about $56 million.
Comment by A Jack Monday, Mar 20, 17 @ 1:59 pm
I would love for the media or Mendoza’s office to report on how many of these workers are here on H-1B Visas taking Illinois jobs. There was a big 60 Minutes special about this in the news just the other day. Deloitte is one of the biggest out-sourcing firms that use H-1B Visas all over the United States.
Comment by OpenYourEyes Monday, Mar 20, 17 @ 2:10 pm
==how many of these workers are here on H-1B Visas taking Illinois jobs==
Oh for crying out loud.
Comment by Demoralized Monday, Mar 20, 17 @ 2:20 pm
@OpenYourEyes
Agreed! Deport the First Lady, pronto! /s
Comment by Ducky LaMoore Monday, Mar 20, 17 @ 2:24 pm
ERP doesn’t work. The Comptroller needs to have a serious sit down, not with the Directors, but with the staff who have attempted to use this system. It is not set up for government. Most of the components are being ignored altogether, and many agencies are going back to the way they were doing things before simply because it’s more efficient. ERP is a giant waste of money and staff time.
Comment by Momonomous Monday, Mar 20, 17 @ 2:25 pm
I applaud Comptroller Mendoza for fearlessly using her elected position to expose widespread corruption and fraud just like she did while serving as Chicago City Clerk…
Never mind.
Comment by Herbie Pulgar's Vehicle Sticker Monday, Mar 20, 17 @ 2:33 pm
Healthcare Provider Relief is on page 227 for FY16 and has $53 million appropriation. So 53 + 56 for FY17 equals $109 million and Rauner has already spent $112 million from that fund? Someone needs help balancing their check book. And certainly I don’t think that fund was meant to be for ERP from the title of it.
Comment by A Jack Monday, Mar 20, 17 @ 2:41 pm
“ERP is a giant waste of money and staff time.”
WVS was a large waste of money and staff time.
IES was a large waste of money and staff time.
Child Care (the computer application) was a large waste of money and staff time.
…and the list goes on for Deloitte, a company that demands a high rate of return on investments (Political Contributions).
Comment by Rufus Monday, Mar 20, 17 @ 2:42 pm
Questions regarding the Comptroller’s authority to stop payment of warrants? See IL Statutes; 15 ILCS 405, entitled the “State Comptroller Act”.
The law is pretty specific. See section 9.d.
Comment by (un)Happy Monday, Mar 20, 17 @ 2:57 pm
If I’m not mistaken, the head of the erp is a deloitte guy i think his name is hardik bhatt. i think his deputy is also a deloitte guy named prasad. were they telling munger who to pay?
Comment by Anon Monday, Mar 20, 17 @ 3:03 pm
Anyone know what happened with the article about the ILSC denying Rauners appeal? The link disappeared from this site.
Comment by Ok Monday, Mar 20, 17 @ 3:04 pm
Whoops, it looks like Hardik and Prasad were Oracle guys, not Deloitte guys but it looks like the Oracle guys are Deloitte guys. lots of stories like this about the cozy relationship between deloitte and oracle. http://www.prnewswire.com/news-releases/deloitte-named-cloud-transformation-global-partner-of-the-year-in-2015-oracle-excellence-award-program-300183495.html
Comment by Anon Monday, Mar 20, 17 @ 3:08 pm
This is also interesting. https://twitter.com/deloittenz/status/771442652596342784
Comment by Anon Monday, Mar 20, 17 @ 3:11 pm
>Susana Mendoza coins new term: “Rauneritis,…
If the Illinois Democratic Party had put 10% as much into their messaging over the past few years I think they could have achieved a budget with Rauner by now.
Comment by Earnest Monday, Mar 20, 17 @ 3:11 pm
==The law is pretty specific. See section 9.d.==
If we are going to interpret that to mean that the Comptroller can now require programmatic justifications for expenditures then we have entered a door I don’t think we should be entering. In my opinion what she is doing is an abuse of power.
Comment by Demoralized Monday, Mar 20, 17 @ 3:13 pm
== Article 79 of PA 99-524 CMS has the authority to spend $900M under the following lump sum:
For the administration and program
expenses of the Bureau of
Communication and Computer Services
It would seem that ERP would fit into that lump sum. ==
Is that for the Statistical Services Revolving Fund (SSRF) that is used to pay for all personnel, hardware and software for all of CMS and provide centralized computer services to all State agencies?
If it is, you will find there are whole bunch of other bills that are supposed to be paid out of that fund. There usually isn’t much, if any, excess funds in SSRF.
Comment by RNUG Monday, Mar 20, 17 @ 3:22 pm
“I wish someone would show me where a Comptroller has the power to do such a thing. Mendoza needs to point to the law that authorizes her to do this.
If there is an appropriation for something and the costs being submitted are appropriate to be paid from the appropriation then the Comptroller cannot deny an expenditure because she may not like it. We are heading for dangerous territory if we are going to allow a Comptroller to do this. ”
AMEN, the truth it is
Comment by sharkette Monday, Mar 20, 17 @ 3:26 pm
RNUG:
Yes. I’m aware of what the costs would normally be. I was just trying to find a place that they might be using for ERP costs.
Comment by Demoralized Monday, Mar 20, 17 @ 3:27 pm
As the raging inferno engulfed the City of Chicago, Mrs. O’Leary’s cow, when asked by reporters what was her level of responsibility was, responded, “Mayor Mason smokes unfiltered cigarettes!”
Comment by VanillaMan Monday, Mar 20, 17 @ 3:31 pm
=== In my opinion what she is doing is an abuse of power===
If you’re right, then I’m sure the gov’s office will be back in court in 3… 2…
Comment by Rich Miller Monday, Mar 20, 17 @ 3:32 pm
Why not. The Courts seem to be the only functioning branch of government we have right now.
Seriously, though, I might consider going to court if I were him. The downside is you don’t know what the court will say. If they agree with her then you’ve exponentially increased the power of the Comptroller.
Comment by Demoralized Monday, Mar 20, 17 @ 3:39 pm
https://www2.illinois.gov/sites/doit/About/Leadership/Pages/default.aspx
Comment by Just Because Monday, Mar 20, 17 @ 3:49 pm
==Why not. The Courts seem to be the only functioning branch of government we have right now.==
Except the courts can’t seem to pick a lane. A St. Clair County court says the comptroller should cut checks without an approp (employee pay case.) A Cook County court says she can’t cut checks without an approp (social service contractor case.) Now a different judge in Cook seems poised to rule the comptroller can do whatever the heck she wants, whenever she wants (legislator pay case.)
We need the Supremes to settle this, but they want no part of it…at least not yet.
Comment by Roman Monday, Mar 20, 17 @ 4:05 pm
Rauneritis ? That’s rich coming from Mendoza. She really has a short memory. She’s been around a lot longer than Rauner.
Comment by Mockingjay Monday, Mar 20, 17 @ 4:07 pm
Not to excuse DeLoitte’s crappy work, but there is an appropriation in the healthcare provider relief fund specifically for these payments. Harris’ House appropriation committee moved it there from GRF. Mendoza might to check back with her legislative colleagues before issuing these press releases. Since the state is operating on court orders, the amount of bills stacking up tells how much revenue is needed if no cuts are made. We are in so deep now that borrowing to pay a big chunk of the backlog is necessary even with a tax increase.
Comment by LTSW Monday, Mar 20, 17 @ 4:09 pm
Deloitte has played a big part in the hot mess that is the new MyBenefits Marketplace for state employees & retirees health insurance/benefits. Can’t wait to see how much money has been thrown at Canadian-based Morneu Shapell, the company that administers the website and staffs the call center. Way to keep those jobs in Illinois Governor!
Comment by about time Monday, Mar 20, 17 @ 4:12 pm
It is easy to complain about the cost of the systems, but ERP systems are notoriously difficult to implement and the State/Deloitte team have done well. This especially true considering that antiquity of the legacy systems that must be converted. I believe Deloitte should be paid in the same order as everyone else is these days, with the Prompt Payment Act rules followed.
Comment by Mod Dem Monday, Mar 20, 17 @ 4:14 pm
Roman, the same judge in Cook County heard the legislator pay case and the social services provider contracts case.
Comment by pawn Monday, Mar 20, 17 @ 4:15 pm
They didn’t even buy the government version of ERP!!! They bought the suite that businesses use! I kid you not; ERP has failed in other states.
Comment by The Best Part Monday, Mar 20, 17 @ 4:15 pm
A lot of the comments here beg the question. The state has a backlog of bills, as of today, of more than $12.9B.
Why did Deloitte rate such tender-loving attention from former Comptroller Munger and now Gov. Rauner?
Are those cats going to miss some Meals on Wheels if they don’t get paid first?
Comment by wordslinger Monday, Mar 20, 17 @ 4:20 pm
===there is an appropriation in the healthcare provider relief fund===
An appropriation is like a check. And just because you have checks in your book doesn’t mean you have money to pay the debt in your account.
Comment by Rich Miller Monday, Mar 20, 17 @ 4:24 pm
Yes, the millions of dollars Mendoza mentions are a mere distraction. The real story is that $20,000 SUV.
Comment by Twirling Towards Freedom Monday, Mar 20, 17 @ 4:32 pm
To paraphrase:
Abdon; “Gov. Rauner has raided Millions from IL social service providers while stuffing the pockets of his consultant friends.”
Gov’s Press: “NO YOU”
Comment by Politix Monday, Mar 20, 17 @ 4:48 pm
Demoralized is right: ===As an aside, if the Comptroller’s office is no longer on board with ERP then the project needs to stop anyway. ERP does no good if it’s not fully integrated. The Comptroller’s office is a big piece of that integration. If she’s not interested then the project needs to stop and this entire discussion is moot.===
It’s also sad that the state’s chief fiscal officer i.e., the Comptroller, sees no value in accounting, internal controls and all those fiscally things.
Comment by justacitizen Monday, Mar 20, 17 @ 8:36 pm
–It’s also sad that the state’s chief fiscal officer i.e., the Comptroller, sees no value in accounting, internal controls and all those fiscally things.–
Please expand on those accusations. What do you mean, specifically?
You could get a gold star on financial reporting and it doesn’t magically pay $12.9 billion in overdue bills with a $500 million balance.
Comment by wordslinger Monday, Mar 20, 17 @ 8:42 pm
Hard to understand funding the ERP program during the collapse of the social service network in Illinois. You need both - but what do you choose when it’s one or the other?
Comment by Lincoln Lad Monday, Mar 20, 17 @ 9:10 pm
Deloitte has a long history of failed projects with the state. IES and ERP are just the latest (and biggest) projects heading for disaster.
Comment by Anonymous Monday, Mar 20, 17 @ 9:25 pm
Paying Deloitte to manage an IT project is just throwing money away. Gigantic IT “one size fits all” solutions rarely produce good results. Money is much better spent on smaller modular IT systems that fit into a greater whole.
Comment by Anonymous Monday, Mar 20, 17 @ 9:38 pm
More and more Rauner and his people’s responses remind me of my mother’s butchering of Pee Wee Herman:
I know I am but what are you?
Comment by HangingOn Monday, Mar 20, 17 @ 10:10 pm
Dim superstar response, you must be de lighted or burned out
Comment by Rabid Tuesday, Mar 21, 17 @ 10:34 am
Exploring the comptroller office priceless, one deputy equals four suvs
Comment by Rabid Tuesday, Mar 21, 17 @ 10:55 am
To the Post,
What Mendoza and her Crew seems to be doing, that is either being ridiculously ignored or purposely being inept at bh others, is squarely making Rauner accountable in both the governmental and political spheres.
The SUV “thing” is just going to continue to be easy fodder for Rauner’s Crew, but where Abdon and Mendoza herself can really score points is by doing things like “this” and be pointed and deliberate with ownership on Rauner and using the platform of Comptroller to highlight and put forth an ownership that can at least start to resonate.
Comment by Oswego Willy Tuesday, Mar 21, 17 @ 11:37 am
Apparently Rauner hires a foreign corporation to do consulting work?
You mean to tell me there isn’t another US based firm to bid on $27 million? Oh…. he didn’t obtain bids, just chose a company by impulse?
Seems there are a number of things Bruce does this way.
Comment by Anonymous Wednesday, Mar 22, 17 @ 7:06 am