GOPUSA ILLINOIS Daily Clips - October 7, 2010

Articles of interest to Illinois Republicans recently posted by ABC7, NBC5, CBS2, Chicago Tribune, Chicago Sun-Times, Crain's Chicago Business, Daily Herald, Suburban Chicago News, Suburban Life, Pioneer Local, Southtown Star, Rockford Register Star, Bloomington Pantagraph, Peoria Journal Star, Springfield State Journal Register, Belleville News Democrat, Southern Illinoisan, Illinois Review, Public Affairs, Champion News, Illinois Family Institute, Americans For Truth, Chicago Daily Observer, Tom Roeser, Capitol Fax, etc. Since January 1, 2005, GOPUSA ILLINOIS has brought 74, 478 such articles and information on many upcoming events to its subscribers' attention each morning, free of charge, and without any advertising. To view the October 7, 2010 GOPUSA ILLINOIS Daily Clips, please visit www.gopillinois.com or www.gopusa.com/state-news/IL/. Thanks

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Public wants officials to act on budget crises

By Jamey Dunn

A study of five states facing dire budget and economic problems found that most residents would tolerate a tax increase to fund certain services, but in many cases, their expectations and understanding of states' budgets were unrealistic.

The Pew Center on the States and the Public Policy Institute of California asked residents in Arizona, California, Florida, Illinois and New York about their states’ budgets. Each state had at least 1,000 respondents to the survey. The margin of error was plus or minus 4 percent.

The study found some common themes across all states. People are beginning to feel a sense of urgency and would like to see their state governments change they way they craft budgets — Illinois more so than any other state. Eighty-six percent of Illinois respondents felt change is needed immediately.

From the report: “Majorities in all locations believe major changes are needed in their state’s budget process — and they overwhelmingly think their elected leaders should take action now, rather than wait until the economy improves.” Respondents were more concerned with the effectiveness and efficiency of government than its size.

While taxes were not the preferred means to close budget gaps, the majority of those surveyed said they would tolerate a tax increase to protect K-12 education, health care and human services from cuts. However, they would prefer targeted tax increases instead of an across-the-board income tax hike. People favored increased taxes on cigarettes, alcohol, gambling, corporations and the incomes of the wealthy.

Participants in all five states were averse to borrowing, seeing it as pushing problems further into the future. They also expressed distrust in government and a desire to see a better return on their tax dollars.

Some of the results were contradictory: “By hefty margins, respondents across the five states say they are very or somewhat concerned about the effects of state spending reductions on government services. Yet they also name spending cuts as their first choice to balance state budgets. Solid majorities believe that a good portion of their state’s budget squeeze can be solved relatively painlessly by reducing waste and inefficiency in government without affecting services.”

Those who said "relatively painless" cuts could be made believed they could amount to 10 to 20 percent reductions in overall spending.

However the authors of the study said states may not be able to bear such cuts without services taking a hit:

“It is a strikingly consistent view, but experts who work closely with state budgets say it may not be realistic, especially given the steep spending reductions many states already have made since the recession started — both fiscal years 2009 and 2010—the first decline in general fund spending for two consecutive years on record. Forty states decreased their general fund expenditures in fiscal year 2010.” The study sites a 6.8 percent decrease in state spending nationwide during fiscal years 2009 and 2010.

According to the study, such contradictions are evident in Illinois: “One of the difficulties for Illinois lawmakers who want to follow public sentiment — such as avoiding debt — is that the public sends mixed signals.

Almost 90 percent of Illinoisans who participated in the survey are concerned about the effect cuts could have on state services. Yet more than 70 percent said their first choice for balancing the budget would be cuts. Almost 20 percent would raise taxes and fees, while only 6 percent would borrow.

However, 70 percent said they would support a tax increase to avoid cuts in K-12 and higher education. Nearly 60 percent would support a tax increase for health care and human services.

More than 60 percent of Illinoisans would support an increase in alcohol, cigarette taxes and corporate taxes, and more than 50 percent would support gambling expansions. Only 26 percent — the highest numbers out of all five states surveyed — said they would support an income tax increase.

The authors of the study point out that those revenue options may not be enough to maintain the services respondents say they value. “These are not major sources of revenue for the state, so even if they were increased, they would not bridge the gap. And there are other obstacles to these options: For instance, increasing income taxes on businesses is complicated.”

Part of the issue may be that respondents did not fully understand the major sources of revenue and spending in the budget. Nearly one fifth of those surveyed thought that transportation makes up the largest area of spending in the state budget, when in reality the three areas they most want to protect — education, health care and human services — are by far the biggest demands on the general revenue fund.

Transportation was the category respondents were least inclined to protect from cuts, perhaps mistakenly believing cuts to that area could lead to large general revenue fund savings.

Mark Baldassare, president and chief executive officer of the Public Policy Institute of California, said respondents might be too quick to discount borrowing because it is a valuable tool for states when economic conditions take an unexpected turn. “Borrowing is a very common part of the way state and local governments operate,” he said. He added that states need to take care not to rack up so much debt during the current crisis that debt service payments eat up large portions of future budgets. Baldassare cited Illinois’ $9.4 billion in borrowing for fiscal year 2010.

The public opposition to borrowing my be due, in part, to participants from all five states wanting to see their elected officials take action and respond to the economic crisis. “[They are saying:] ‘We shouldn’t be waiting for the economy to get better. We should be taking action now,’” Baldassare said.

He added that respondents seem open to being part of the solution when it comes to budget shortfalls. “I think it also shows that people are willing to do their part. … The public would rather not have tax increases, but for the right thing — in this case, education and human services — they are willing to pay and out of their own pockets.”

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GOPUSA ILLINOIS Daily Clips - October 6, 2010

Articles of interest to Illinois Republicans recently posted by ABC7, NBC5, CBS2, Chicago Tribune, Chicago Sun-Times, Crain's Chicago Business, Daily Herald, Suburban Chicago News, Suburban Life, Pioneer Local, Southtown Star, Rockford Register Star, Bloomington Pantagraph, Peoria Journal Star, Springfield State Journal Register, Belleville News Democrat, Southern Illinoisan, Illinois Review, Public Affairs, Champion News, Illinois Family Institute, Americans For Truth, Chicago Daily Observer, Tom Roeser, Capitol Fax, etc. Since January 1, 2005, GOPUSA ILLINOIS has brought 74, 400 such articles and information on many upcoming events to its subscribers' attention each morning, free of charge, and without any advertising. To view the October 6, 2010 GOPUSA ILLINOIS Daily Clips, please visit www.gopillinois.com or www.gopusa.com/state-news/IL/. Thanks

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New Jersey governor stumps for Brady

By Jamey Dunn

New Jersey and Illinois have a lot in common: massively under-funded pension systems, widespread teacher layoffs and gaping budget holes.

New Jersey Gov. Chris Christie seems to be a role model of sorts for state Sen. Bill Brady, the Republican gubernatorial candidate who mentions Christie often when pressured on how he will make his budget plans a reality. Christie came to Illinois today to stump for Brady on a statewide tour, and he talked about the harsh similarities the two states share.

“With New Jersey facing many of the same challenges that Illinois is facing — unemployment high taxes and overspending — Gov. Christie has proven that you can balance the budget without raising taxes,” Brady said as he introduced the governor.

Christie, who took office facing an $11 billion deficit, defended the lack of specifics in Brady’s budget plan, saying he did not detail specific cuts “as if I’m a CPA putting together a ledger” when he was running for office. He said people want more general information.

“The same things were being hurled at me a year ago right now. Democrats, some members of the press, were saying I wasn’t being specific enough,” Christie said. “What the people of Illinois need to know is what direction is the governor going to take them in. … Telling people that you’re going to cut the size of government, cut taxes, and I know he’s laid out specifically which ones he wants to cut — I think that’s a pretty good idea for voters to make a decision on.”

Christie added that if he had made specific statements, he would have gone back on them once he got into office and discovered the full scope of the state’s budget problems.

Brady has suggested that one way to save money in local school districts without layoffs would be to ask teachers to forgo raises that are built into their pay scales. He has mentioned New Jersey as a model for such a plan. However, Christie said negotiations with teacher’s unions in his state fell through and resulted in layoffs.

“It’s a pretty sad example of a public sector union who simply doesn’t get it,” Christie said. “I would hope, after watching what’s happened in New Jersey, the teachers union in Illinois would step up to the plate and say, ‘Hey we’re going to be part of the shared sacrifice.’”

Christie also said that reducing pension benefits for current state employees should be on the table in Illinois. Most observers agree that any changes to current employee benefits would require a constitutional amendment.

Gov. Pat Quinn’s campaign fired back at Brady's and Christie’s claims that Brady is proposing the right things to address the deficit in his state.

“If you want to get a picture of Bill Brady’s Illinois, you need look no further than New Jersey. Chris Christie laid off nearly 10 percent of the state’s teachers, eliminated property tax relief for the middle class, cut public transit funding and skipped $3.1 billion in pension payments — hurting working families and costing taxpayers billions in the long term to pay for his own budget shortcuts. At the same time, he granted billions in tax breaks to corporations,” Mica Matsoff, a Quinn campaign spokesperson, said in a written statement.

Christie said Brady can live up to his claim of balancing the budget in a year if he is willing to make difficult decisions.

“We cut every department of state budget — every one of them. … Real spending was cut 9 percent year over year. This is serious medicine that has to be given when you want to close that kind of hole.”

Brady also brushed aside several recent polls that say Quinn has narrowed Brady’s lead to single digits. “We’re confident in our strategy and the fact the we are building momentum. We care deeply about one poll, and that’s the poll on November 2,” he said.

Brady said internal campaign polls show his support is growing. “I will tell you that we’d just as soon our supporters thought this was a dead heat and make sure that we get our supporters out. And make sure the voters get out, so we don’t take anything for granted.”

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Delving into budget cuts: Part 4

By Jamey Dunn

The Illinois Department of Healthcare and Family Services — which administers Medicaid, one of the biggest demands on the state funds — is trimming $216 million according to Gov. Quinn’s budget plan.

According to Quinn’s proposal, the department will be able to maintain the federal requirements for the state to get matching funds for the program. The following is a breakdown of Quinn’s proposals for the agency. (Italics are pulled directly from Quinn’s budget.)

Unified budgeting allows state agencies to work together to meet the long-term care needs of Illinois residents on Medicaid in the most appropriate, community-integrated setting and maximize federal matching funds.

Unified budgeting involves a multi-agency approach to long-term care, instead of each agency trying to tackle the issue independently. “The goal of this unified budgeting approach is to allow a more systemic view of available resources and planned expenditures, specifically as they relate to supporting the transition of individuals currently residing in nursing facilities or other institutional settings to the community.

The budget supports a pilot managed care program that will save the state $200 million over five years by providing 40,000 older adults and people with disabilities in Medicaid with care from integrated delivery systems.

The department chose managed care groups Aetna and Centene-IlliniCare to begin providing services in 2011 for seniors and people with disabilities in Cook, DuPage, Kane, Kankakee, Lake and Will counties. Participants sign on for the program, and some services will be phased in over several years.

Critics of the managed care pilot program have voiced concerns about making cost savings the priority over the care of two vulnerable populations. However, DHFS officials say improved communication among patients’ various health care providers will lead to better care. “The system will link primary, specialty and institutional services and will improve care for Illinois’ most vulnerable residents while saving taxpayer dollars,” Stacey Solano, a spokesperson for DHFS said in a written statement.

The budget allows implementation of recently passed, landmark reforms to ensure the safety of every nursing home resident in the state.

DHFS is working to determine appropriate reimbursement rates, so the money the state gives nursing homes for services would ensure that they provide adequate care and meet new staffing requirements.

The department is strengthening documentation requirements to ensure that only eligible individuals receive Medicaid benefits.

Solano said the department is doing a “full top-to-bottom review of eligibility and enrollment procedures.” The process is still in a preliminary stage, and no cost saving projections have been made.

• $207.8 million decrease in Medicaid lines and Group Insurance. The department plans to enact various quality and efficiency initiatives.

Solano said medical programs and group health insurance will get less money from the revenue fund, but there are no plans to cut programs or eligibility.

A total of $70 million in savings comes from renegotiating a deal with AFSCME on health benefits for state workers.

The state is participating in federal Early Retirement Reinsurance Program, which is part of the health care reform package passed in March. Employers that continue to cover early retirees under their insurance programs will be eligible for subsidies, and Illinois businesses could get between $42 million and $112 million. Solano said the program would help cushion the blow of some of the state cuts.

The department is also emphasizing preventative care to help people avoid serious and costly health problems. “Healthier people, mean fewer re-hospitalizations and services needed, which translates into cost savings for the state,” Solano said.

• $8.0 million in operations reductions

DHFS plans to reduce travel spending by 13 percent, equipment spending by 23 percent and telecommunications costs by 7 percent. With respect to equipment purchases, Solano said, “Purchases will be limited to only replacing equipment necessary for purposes of life safety, client service and continued agency operations.” The agency is not planning any layoffs, but 71 positions that are currently open will not be filled.

Solano added that because Quinn was counting on Congress extending the elevated Medicaid match that was set to expire in December, enough money was set aside to keep up the 30-day payment cycle the federal government requires on certain services for more matching funds.

(For information on cuts to the Department of Children and Family Services, Department of Agriculture and the Department of Natural Resources, see the first, second and third installments of "Delving deeper into the budget cuts" in earlier blog items.)

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GOPUSA ILLINOIS Daily Clips - October 5, 2010

Articles of interest to Illinois Republicans recently posted by ABC7, NBC5, CBS2, Chicago Tribune, Chicago Sun-Times, Crain's Chicago Business, Daily Herald, Suburban Chicago News, Suburban Life, Pioneer Local, Southtown Star, Rockford Register Star, Bloomington Pantagraph, Peoria Journal Star, Springfield State Journal Register, Belleville News Democrat, Southern Illinoisan, Illinois Review, Public Affairs, Champion News, Illinois Family Institute, Americans For Truth, Chicago Daily Observer, Tom Roeser, Capitol Fax, etc. Since January 1, 2005, GOPUSA ILLINOIS has brought 74,327 such articles and information on many upcoming events to its subscribers' attention each morning, free of charge, and without any advertising. To view the October 5, 2010 GOPUSA ILLINOIS Daily Clips, please visit www.gopillinois.com or www.gopusa.com/state-news/IL/. Thanks

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Budget deficit could reach $15 billion

By Jamey Dunn

Illinois could be facing an even larger stack of unpaid bills next fiscal year, as well as a $15 billion deficit, according to the quarterly report on the state’s finances by Comptroller Dan Hynes.

The state rolled an unprecedented $6.4 billion in unpaid bills over from fiscal year 2010 to the new fiscal year, which started in July. Legislators extended the cut off for paying those bills from August to December, and Gov. Pat Quinn has vowed to have the backlog paid down by the new deadline.

According to Hynes, 23 percent of FY 2011 revenues will be needed to pay off obligations from last year. A short-term loan the state took out in July for $1.3 billion, which will come due next spring, already went toward payments to vendors and service providers.

Hynes said in order for Illinois to pay down the backlog by December, the estimated $1.2 billion would have to come in from the plan to sell bonds against money the state received in a tobacco settlement. The state would have to shift $1 billion from other funds into the general revenue fund, and the tax amnesty plan would have to successfully bring in revenues. While the report does not specify how much the state has to bring in during the tax amnesty period — which started on October 1 and ends November 8 — Hynes says the plan is not likely to bring in the original estimate of $200 million.

However, Kelly Kraft, a spokesperson for Quinn’s Office of Management and Budget, said an analysis by the legislature estimated the amnesty would bring in $250 million. She said in a written statement that it is too soon to predict the exact number, but added: “The hundreds of millions of dollars in expected revenue will be significant to help the state pay its bills and keep people employed.”

Hynes estimates that $8 billion in overdue payments could carry over from the current fiscal year to FY 2012 because so much of this year’s money will be needed to pay down last year’s bills. A total of $3.5 billion in unpaid bills from this fiscal year have already piled up. From the report: “Absent any other changes, payment delays will be extended from the historic levels seen recently. This will lead to more providers facing financial hardship and further threaten both the level and quality of services provided to Illinois citizens.”

While income tax revenues saw a small increase, sales taxes where down. According to the report, Illinois cannot count on an economic rebound to bail out the budget in the near future.

Hynes’ report says all this bleak budget news — along with the loss of federal stimulus money and the state’s low credit rating leading to larger interest payments on borrowing — could culminate in deficit of at least $15 billion by the time lawmakers are hammering out a new budget early next year. If that happens, the state’s debt would represent more than half of the money currently in the general revenue fund.

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GOPUSA ILLINOIS Daily Clips - October 4, 2010

Articles of interest to Illinois Republicans recently posted by ABC7, NBC5, CBS2, Chicago Tribune, Chicago Sun-Times, Crain's Chicago Business, Daily Herald, Suburban Chicago News, Suburban Life, Pioneer Local, Southtown Star, Rockford Register Star, Bloomington Pantagraph, Peoria Journal Star, Springfield State Journal Register, Belleville News Democrat, Southern Illinoisan, Illinois Review, Public Affairs, Champion News, Illinois Family Institute, Americans For Truth, Chicago Daily Observer, Tom Roeser, Capitol Fax, etc. Since January 1, 2005, GOPUSA ILLINOIS has brought 74,285 such articles and information on many upcoming events to its subscribers' attention each morning, free of charge, and without any advertising. To view the October 4, 2010 GOPUSA ILLINOIS Daily Clips, please visit www.gopillinois.com or www.gopusa.com/state-news/IL/. Thanks

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GOPUSA ILLINOIS Daily Clips - October 3, 2010

Articles of interest to Illinois Republicans recently posted by ABC7, NBC5, CBS2, Chicago Tribune, Chicago Sun-Times, Crain's Chicago Business, Daily Herald, Suburban Chicago News, Suburban Life, Pioneer Local, Southtown Star, Rockford Register Star, Bloomington Pantagraph, Peoria Journal Star, Springfield State Journal Register, Belleville News Democrat, Southern Illinoisan, Illinois Review, Public Affairs, Champion News, Illinois Family Institute, Americans For Truth, Chicago Daily Observer, Tom Roeser, Capitol Fax, etc. Since January 1, 2005, GOPUSA ILLINOIS has brought 74,247 such articles and information on many upcoming events to its subscribers' attention each morning, free of charge, and without any advertising. To view the October 3, 2010 GOPUSA ILLINOIS Daily Clips, please visit www.gopillinois.com or www.gopusa.com/state-news/IL/. Thanks

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GOPUSA ILLINOIS Daily Clips - October 2, 2010

Articles of interest to Illinois Republicans recently posted by ABC7, NBC5, CBS2, Chicago Tribune, Chicago Sun-Times, Crain's Chicago Business, Daily Herald, Suburban Chicago News, Suburban Life, Pioneer Local, Southtown Star, Rockford Register Star, Bloomington Pantagraph, Peoria Journal Star, Springfield State Journal Register, Belleville News Democrat, Southern Illinoisan, Illinois Review, Public Affairs, Champion News, Illinois Family Institute, Americans For Truth, Chicago Daily Observer, Tom Roeser, Capitol Fax, etc. Since January 1, 2005, GOPUSA ILLINOIS has brought 74,193 such articles and information on many upcoming events to its subscribers' attention each morning, free of charge, and without any advertising. To view the October 2, 2010 GOPUSA ILLINOIS Daily Clips, please visit www.gopillinois.com or www.gopusa.com/state-news/IL/. Thanks

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New data on domestic violence in Illinois

By Jamey Dunn

An advocacy group for survivors of abuse released studies on the scope of domestic violence and the needs of victims today, as Gov. Pat Quinn declared October Domestic Violence Awareness Month.

“We must end the silence about the domestic violence. … We — all of us, men and women, young and old — have a duty to each other to help protect the victims of domestic violence,” Quinn said at a Chicago news conference.

According to the Illinois Coalition Against Domestic Violence, one in four women will experience domestic violence in their lifetime. There are approximately 115,000 to 125,000 domestic violence cases annually in Illinois, and 300,000 women and children will experience violent abuse — either as a victim or a witness — each year. Members of the coalition provide services to 44,000 survivors and 8,000 children each year.

The coalition tracked homicides related to domestic abuse from June 2009 to May 2010. The study found 59 acts of domestic violence that resulted in 76 homicides. The majority of the victims were women who were married to or had been married to their killers. However, the study also included children, friends and family of domestic violence victims who were also murdered. The group plans to track murders next year for comparison with this year’s data. The next study will have a stronger focus on prevention by looking at orders of protection mental state of perpetrators.

The group also surveyed more than 900 survivors as part of a three-year assessment of the needs of domestic violence victims in Illinois and recommended ways government and communities can help.

Respondents consistently cited four challenges that were the biggest obstacles to overcome while seeking independence from their abusers:

• Finding safe affordable housing. The coalition called on landlords to offer flexible leases, and payment plans for rental deposits. The report also suggested allowing those fleeing abuse to pay utilities as part of the price of rent, so there is less paperwork connecting them to their location.
• Becoming financially independent. The group asked job training programs, child care providers and credit counselors to partner with it to help victims get back on their feet.
• Negotiating the legal system. The study recommended increasing fines that are a part of the legal punishment for abuse because the money funds victims' services. It also called for requiring counseling for those convicted of domestic violence instead of offering it as an option in plea deals.
• Gaining access to health care, including mental health treatment. The association is calling for increased access to low-cost or free health care, as well as training health care professionals to handle the specific needs of abuse victims.
  

According to the report: “Some of those reasons are directly related to the dynamics of power and the control a batterer has over the victim. Other reasons are directly related to the gaps in services available to survivors in Illinois and barriers discovered when they ask for help.”

Vickie Smith, executive director of the Illinois Coalition Against Domestic Violence, said one of the biggest obstacles is changing people’s opinions on domestic violence and getting them to stop blaming victims for staying with their abusers.

“Illinois has some of the best laws in the country on the books. We don’t need more legislation. We need all of our communities to step up and stop putting all of our excuses on the backs of survivors,” she said.

The survey also included data from organizations that provide services to abuse victims. Smith says budget cuts in recent years have meant turning away women and children looking for help escaping violence in their homes. According to the group’s survey, service providers turned away more than 15,000 survivors and children seeking shelter in fiscal year 2009, which was a 24 percent increase over the last three years. Service providers reported multiple reasons for turning away those seeking help, the two most common being lack of staff and lack of available beds or money for alternatives, such as hotels.

The report says the economic downturn that has hit state revenues, causing cuts, has also increased the need for services relating to domestic violence. “The current economic crisis exacerbates factors that affect domestic violence — increasing unemployment and poverty. As a result, survivors are experiencing an increase in the frequency and severity of abuse due to the effects of these conditions.”

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GOPUSA ILLINOIS Daily Clips - October 1, 2010

Articles of interest to Illinois Republicans recently posted by ABC7, NBC5, CBS2, Chicago Tribune, Chicago Sun-Times, Crain's Chicago Business, Daily Herald, Suburban Chicago News, Suburban Life, Pioneer Local, Southtown Star, Rockford Register Star, Bloomington Pantagraph, Peoria Journal Star, Springfield State Journal Register, Belleville News Democrat, Southern Illinoisan, Illinois Review, Public Affairs, Champion News, Illinois Family Institute, Americans For Truth, Chicago Daily Observer, Tom Roeser, Capitol Fax, etc. Since January 1, 2005, GOPUSA ILLINOIS has brought 74,143 such articles and information on many upcoming events to its subscribers' attention each morning, free of charge, and without any advertising. To view the October 1, 2010 GOPUSA ILLINOIS Daily Clips, please visit www.gopillinois.com or www.gopusa.com/state-news/IL/. Thanks

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