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* The governor sidestepped questions yesterday on “refinancing” part of the state’s gigantic bill backlog to avoid paying what the comptroller says is $2 million a day in interest…
At an unrelated news conference at the Thompson Center, Rauner said the borrowing plan was “not an optimal answer” and suggested he’s looking to work on new plans. Democrats who control the General Assembly, though, might not be interested in renegotiating a budget they approved to break the stalemate last month.
“We will be working with the General Assembly on proposals to actually have an appropriation to pay down debt and have a plan to reduce it and also to have reforms so we don’t stay in this position — where we actually have truly balanced budgets today and going forward,” Rauner said.
* The governor also said this…
“I would also encourage the Comptroller to take advantage of the fact that under her control, there is over half a billion dollars in cash that is available to pay down debt and if she chose to actually pay down some of the medical bills we could actually leverage that 2-for-1 with other dollars. That action has not been taken yet by the comptroller. I’d certainly encourage her to do that.”
He’s talking about the federal Medicaid match.
* The comptroller’s office pointed to this July 26th press release…
The Office of Illinois Comptroller Susana Mendoza released a total of $740 million in Medicaid payments this week. In part, these payments help satisfy a June court order requiring the state to pay at least $586 million in Medicaid vouchers in the month of July.
This action was made possible under new provisions in the budget that allow existing Drug Rebate Funds to be leveraged for federal matching dollars for payments to Managed Care organizations (MCOs). The payments were made in cooperation with the Illinois Department of Healthcare and Family Services.
A total of $740 million was issued to eleven MCOs throughout Illinois, and the Comptroller is hopeful that frontline providers will see relief for the Medicaid services already provided on behalf of the state. “The enactment of a state budget, with the support of courageous legislators from both parties who overrode the Governor’s veto, allows my office to begin to address critical payments to the healthcare networks serving some of the state’s most vulnerable residents,” Mendoza said.
Overall, these payments lower the backlog of medical related bills pending at the Comptroller’s Office by 18 percent, to $3.5 billion.
The ability to access existing revenues held in special funds is an important tool to begin to pay down some of the state’s nearly $15 billion Rauner Bill Backlog. But the Comptroller also urges the Governor to follow through on the legislatively authorized borrowing plan of up to $6 billion in order to address other outstanding medical payments, including a staggering $4.9 billion in state group health insurance bills. All of these bills continue to accrue high interest penalties as they await payment. Until a borrowing plan is implemented to more aggressively tackle the Rauner Bill Backlog, the Comptroller’s office estimates the state is incurring roughly $2 million in interest penalty payments each day.
posted by Rich Miller
Tuesday, Aug 8, 17 @ 9:39 am
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Focus, Superstars, Focus. Get your facts right before you write the code and upload it to program the Governor for the day.
Comment by Keyrock Tuesday, Aug 8, 17 @ 9:43 am
Wait, Gov Gaslight lied about something? Color me shocked. Again
Comment by Joe Bidenopolous Tuesday, Aug 8, 17 @ 9:48 am
The governor might not be up to speed on governing. Maybe Rauner doesn’t understand the process of doing these moves.
In short…
“That’s all I’m saying. It’s a process question, it’s not a political question.” - Pearson
Exactly right.
Comment by Oswego Willy Tuesday, Aug 8, 17 @ 9:51 am
Well, these are the same folks that talked about an upcoming event 9 hours after it happened, so maybe it’s just BTIA lag.
Comment by Skeptic Tuesday, Aug 8, 17 @ 9:53 am
The Governor’s office is procrastinating about the borrowing plan that would actually save the state money. He continues to intentionally increase our debt. Opposing the borrowing plan meshes with the idea that the Governor is looking at a bankruptcy option for Illinois.
Comment by The Dude Abides Tuesday, Aug 8, 17 @ 9:59 am
Thank You Comptroller Mendoza for coherent and logical information.
Comment by DeseDemDose Tuesday, Aug 8, 17 @ 10:02 am
Maybe Rauner is waiting for another bond rating downgrade or a Fed rate hike. Those of you commenters that are always crying about taxes take note. What Rauner is doing is only going to cost you more in taxes in the long run.
Refinancing Rauner’s bill backlog is the only responsible thing Rauner can do at this point. And that bill backlog was so pointless.
Comment by A Jack Tuesday, Aug 8, 17 @ 10:04 am
More nonsense by the Governor…….you don’t need an appropriation to pay down these old bills. The bills had an appropriation, whether enacted or court ordered, when they were sent to Mendoza. A new approp is for new spending, not bills that have already been sent to the Comptroller for payment. It’s time someone forced him to acknowledge that the only way to pay down the backlog is to slow down the flow of money going out (cuts) or to increase the money coming in (taxes or borrowing). If he has problems with the budget, as the state’s Executive he can direct his agencies to make cuts. Has anyone asked him for a list of actions he’s taking to reduce spending?
Further, I think it’s time someone in the media investigated just who these folks are who are profiting handsomely from the State’s vendor assistance program. The governor’s refusal to address the State’s backlog is starting to pique my curiosity surrounding this program.
Comment by Get a Job!! Tuesday, Aug 8, 17 @ 10:05 am
“Millions and Billions are too confusing. Here’s a number for you: how about 11,893 days of ‘But Madigan’.” Governor Junk
Comment by don the legend Tuesday, Aug 8, 17 @ 10:06 am
Communication by news headline is so much better than a phone call, meeting, or actually talking to the person being discussed. Face to face time takes too much effort and might lead to some sort of mutual agreement. Governing by edict avoids all that icky personal stuff.
Comment by zatoichi Tuesday, Aug 8, 17 @ 10:08 am
The governor is too busy hiring people from Illinois Policy to keep up on facts related to governin’.
Comment by Aldyth Tuesday, Aug 8, 17 @ 10:11 am
== A new approp is for new spending, not bills that have already been sent to the Comptroller for payment. ==
Not all those bills had a valid appropriation or court order, making their payment questionable.
One example is the back pay some employees are still waiting on. Courts said there had to be an approp for it.
Comment by RNUG Tuesday, Aug 8, 17 @ 10:15 am
Zat- Pretty sure the stories yesterday said there have been communications and a meeting and the Governor isn’t budging. Then yesterday he said he doesn’t wanna. Seems pretty clear he doesn’t want to do it.
Comment by Sonny Tuesday, Aug 8, 17 @ 10:20 am
the “governor” could immediately reduce the state’s debt and long-term ensure that fewer dollars go to that debt and debt service by issuing the bonds.
He is making a deliberate choice to exacerbate the situation. If anyone out there needed further proof that his only goal is the destruction of state services, we certainly have it. And before anyone defends him, please tell me how it is fiscally conservative to continue racking up additional millions in debt with each passing day when there is at least a partial solution
Comment by Joe Bidenopolous Tuesday, Aug 8, 17 @ 10:42 am
Rauner: “..working on proposals that actually have an appropriation to pay down the debt..”
AA: “Governor, where is the appropriation to pay the $730 million in late payment penalties the State will pay out if no bonds are issued?”
Rauner: ” Fair.”
Comment by Arthur Andersen Tuesday, Aug 8, 17 @ 11:03 am
I guess the $700 million per year in unnecessary interest payments is part of the Governor’s turnaround agenda for the state. I thought he was a fiscal conservative. Clearly, I was mistaken.
Comment by PragmaticR Tuesday, Aug 8, 17 @ 11:19 am
Is it me or does the gov seem to be gaffing more with his new “support” staff.
Comment by Ghost Tuesday, Aug 8, 17 @ 11:48 am
..That action has not been taken yet by the comptroller. I’d certainly encourage her to do that.”.
This is what we call alternate facts.
Comment by Enviro Tuesday, Aug 8, 17 @ 12:08 pm
My opinion of Governor Rauner’s former Chief of Staff and many of his senior staff members is growing in esteem every day.
By contrast they were clearly doing a better job with what they had to work with than I thought.
Comment by Anon Tuesday, Aug 8, 17 @ 1:25 pm
I’m wondering if Rauner sees this as potential leverage (i.e., “I’ll do the bond sale if you give me X, Y, and Z”). He doesn’t appear to view the bill backlog as a problem to be solved.
On the other hand, this could just be Rauner saying “You’re not the boss of me” to Mendoza.
Comment by tobias846 Tuesday, Aug 8, 17 @ 4:47 pm