In light of the State of Illinois’ pension funding crisis, it has become more widely understood that the annual Cost of Living Adjustment, or COLA, plays a large role in the State’s overall pension costs. Just how large, however, has been difficult to pin down. As discussed here, detailed information on pension costs and projected savings due to proposed changes was hard to come by during the General Assembly session that ended on May 31, 2012. Governor Pat Quinn’s legislative working group on…
This article looks at the fiscal health of states around the country coming out of the recession. While many states are experiencing economic recovery, Illinois and California are still facing large budget gaps. The Civic Federation said Illinois will end FY2012 with over $8 billion in unpaid bills, even after the Illinois General Assembly closed a $2.7 billion gap in the State’s Medicaid program through a combination of program cuts, reimbursement rate reductions for healthcare providers and…
As part of the spring legislative session, the Illinois General Assembly approved a sweeping reform measure intended to add transparency, accountability and competition to the State’s Enterprise Zone Act. The final version of the measure, Senate Bill 3616, passed both chambers of the legislature unopposed on the final day of regular session, May 31, 2012. Earlier in the spring a series of community meetings and hearings were held to assess the effectiveness and need for the geographically based…
State of Illinois officials expect unpaid Medicaid bills to decline to $600 million by the end of the 2013 budget year, but that prediction depends on legislation that has not yet passed the Senate. As discussed here, unpaid Medicaid bills on hand were projected to reach nearly $1.9 billion by the end of the current fiscal year on June 30, 2012, due largely to significant underfunding of the program. The backlog of bills would have increased to roughly $4.5 billion by the end of FY2013 without…
This blog post was updated on June 4, 2012 to reflect corrected information. With just hours to go before a midnight adjournment deadline, the Illinois General Assembly has passed most components of a legislative package designed to eliminate a projected $2.7 billion gap in the Medicaid budget for FY2013. The bills, which are expected to be signed by Governor Pat Quinn, include Medicaid program reductions, reimbursement rate cuts for healthcare providers and a cigarette tax increase. Another…
This article discusses the State of Illinois’ mounting fiscal challenges which persist despite a major income tax increase enacted in January 2011. The Civic Federation warns that Illinois already has the worst credit rating of all 50 states and could face further downgrades without action to stabilize the State’s finances.
UPDATE: On May 24, 2012 the Illinois General Assembly approved legislation to permit Cook County’s public health system to obtain federal funding for medical services for low-income adults under the Medicaid program. The plan must still be approved by the federal government. House Bill 5007 passed the House by a vote of 62 to 55 and the Senate by a vote of 35 to 22. The Cook County plan required an amendment to a State law enacted in January 2011 that placed a two-year moratorium on…
The Illinois General Assembly passed legislation to end the Legislative Scholarship Program as of September 1, 2012—allowing lawmakers one more opportunity to award the controversial tuition waivers before they are eliminated. House Bill 3810, as amended by the Senate, was approved by the House on May 21, 2012 by a vote of 79 to 32. In addition to ending the legislative tuition waivers as of this fall, the bill also establishes a task force to review all tuition and fee waivers granted by the…
With two weeks left to go before the Illinois General Assembly is scheduled to adjourn, two budget plans for FY2013 are on the table: Governor Pat Quinn’s recommended budget and an alternative budget framework approved by the Illinois House. The General Assembly is scheduled to adjourn on May 31, 2012. Bills voted on after that date require three-fifths majority to pass, rather than a simple majority. As discussed here, the Governor presented his FY2013 budget on February 22, 2012. The $33.78…
This article discusses a bill in the Illinois General Assembly that would extend the life of special taxing districts, or enterprise zones, created to stimulate business growth in blighted areas throughout the State. The Civic Federation says the lack of transparency in tracking companies that benefit from the zones makes it difficult for the Legislature and general public to properly assess costs and benefits of the program.
