Senate Week in Review: June 27-July 1

The bulk of the “cuts” Gov. Pat Quinn made to the state budget June 30 will not reduce the state budget, but instead push the state deeper into debt, by further delaying payments on state Medicaid obligations.

Earlier in the week, a jury convicted former Gov. Rod Blagojevich on 17 of 20 counts of corruption, and a workers’ compensation reform measure was signed into law.

Though the Governor is touting $276 million in cuts to the state’s Medicaid reimbursements to hospitals, because the Medicaid reimbursement rate has not been changed, the Governor’s action will simply extend the payment cycle to providers. The budget plan sent to Quinn had already relied on pushing off payments of almost $1.1 billion Medicaid bills into the next fiscal year, so the Governor’s “cut” will increase that amount to nearly $1.4 billion.

Quinn’s second largest cut was to the state’s transportation reimbursement for schools. The reduction targets both suburban and rural school districts, which both rely heavily on buses to transport students safely; however, rural school districts would be most impacted by the $89 million reduction, because they have the largest transportation costs. The cut seemingly flies in the face of the Governor’s earlier efforts to encourage school consolidation, which often increases the distance students’ travel to school.

The Governor’s third $11.3 million cut was made to funding for regional superintendents. The Governor targeted regional superintendents in his original February budget proposal, but that suggestion was rejected by lawmakers. Quinn’s signing statement asserts the compensation is being removed because regional superintendents “can be funded from other state funds,” but he did not specify what funds or how that funding would occur.

In late May, Senate Republicans voted against the budget recently signed by Quinn, arguing that the fiscal proposal once again increases spending over available revenues. While the budget spends less than both the Governor and Senate Democrats had initially wanted, it still allows a far higher spending rate than is fiscally prudent.  During the spring session, Senate GOP lawmakers made public budget figures that indicated that unless at least $5 billion in spending reductions are made in Illinois, the “temporary” tax increase passed by Democrats in January will never expire.

On June 28, after months of negotiations, the Governor signed workers’ compensation reform that proponents say will lower costs for Illinois’ employers and improve the state’s jobs climate.

While many agree that the legislation is not perfect, proponents say House Bill 1698 will address the more obvious flaws and flagrant abuses of Illinois’ workers’ compensation system.

Still, Senate Republican proponents and opponents say the new law should be viewed as only a first step and that more changes need to be made. Recently, Attorney General Lisa Madigan, whose office must defend the state against excessive workers' compensation claims, told a downstate newspaper that she too believes the new law does not go far enough.

In April, a stronger reform bill – Senate Bill 1349 – was voted on in the Illinois Senate. In a telling moment of truth, the bill failed to pass when virtually all Senate Democrats voted their yellow "present" buttons. Their fear of voting either for or against the major reforms effectively killed the bill, but allowed them to claim they really supported reform.

Negotiations between major stakeholders continued, and House Bill 1698 was advanced as a compromise bill, that included more modest reforms. Moving forward, Republican lawmakers stressed that state officials must monitor the workers’ compensation system to make sure that House Bill 1698 performs as it is intended, while continuing to push for further reforms that will have an even greater impact on Illinois’ workers’ compensation system.

In other news, on June 27, a federal jury found Rod Blagojevich guilty on corruptions charges, including charges that he attempted to sell the U.S. Senate seat formerly held by President Barack Obama.

Senate Republicans stressed that Monday’s verdict should just be the beginning of cleaning up state government. Moving forward, legislators must make every effort to restore the public trust by pursuing honesty, integrity and ethical behavior in state government.

It will take years for Illinois to recover from the consequences of Rod Blagojevich’s time in office. The full impact of his mismanagement may never be known, and state leaders agree that elected officials must work to show the Illinois public a government that functions with integrity and transparency.

Bills signed into law this week include:

Brucellosis Testing (HB 1170):  Allows cattle to be sent to market without a Brucellosis test, but requires a test before slaughter. Allows pigs to be sent to market without a Brucellosis test if they originated from a validated Brucellosis-free herd or area.

Chicago Police and Fire (HB 1719):  Changes the funding formula that starts in 2015 from payments now based on reaching a 90% funding ratio in 2040, to a new 80% ratio in 2065 (an additional 25 years). Beginning in 2015 this will lower city payments by about $200 million annually.

Child Abuse Prevention Plans (HB 91):  Changes the annual submission of child abuse and neglect prevention plans to on or before the first Friday in October. 

Child Passenger Safety (HB 1222):  Requires that after satisfactory completion of a child passenger safety instructional course the technician who conducted the course must issue a letter of completion on a form that has been verified by the Illinois Department of Transportation. This will help the judges more easily identify the letter’s purpose.

Conservation Cases Funding (SB 1703):  Removes conservation cases from the current additional assessment that goes to the State Police Operations Assistance Fund, and directs fees for conservation cases to the Conservation Police Operations Assistance Fund.

Developmentally Disabled Facilities (SB 1894):  Eliminates references to the developmentally disabled population that were missed when the licensure of developmentally disabled facilities was split from the Nursing Home Care Act in 2009.

DPH Reporting (SB 1805):  Requires the Department of Public Health’s yearly report containing information about certain Multidrug Resistant Organism infections to be substantially similar to the Centers for Disease Control and Prevention’s surveillance system, which is more specific and thus more helpful and informative than the current reporting system.

Emergency Lights (SB 956):  Allows a blue oscillating, rotating, or flashing light to be used when parked or stationary at the scene of a fire, rescue call, ambulance call, or motor vehicle accident.

Firefighters Beneficiaries Trust (SB 1278):  Provides that an individual who is a dependent beneficiary of a downstate firefighter may receive their benefit through a trust established for that purpose.  Setting up a trust is beneficial to the member when ensuring a benefit for a dependent who cannot manage his or her own finances, such as a developmentally disabled child.

Fluoride Levels (SB 1379):  Requires the Illinois Department of Health and Human Services to incorporate the recommendations on optimal fluoride levels in community water that were accepted by the U.S. Department of Health and Human Services. U.S. currently recommends .7 milligrams per liter; Illinois requires a fluoride range of .9 to 1.2 milligrams per liter.

HFS/Medical Efficiencies (SB 1784):  Amends the Illinois Administrative Procedure Act, the State Finance Act, the Nursing Home Care Act and the Public Aid Code to create efficiencies and cut costs within the Illinois Department of Healthcare and Family Services and medical assistance programs by eliminating duplicative services, streamlining healthcare payment processes, ensuring federal law compliance, and promoting administrative efficiencies through technical and other changes. 

Human Rights Procedures (HB 178):  States that when reviewing human rights cases (other than those involving real estate transactions) a fact finding conference must occur unless 1.) the Director rules with a year of the charge being filed that there is no substantial evidence of a civil rights violation; 2.) the charge is dismissed for lack of jurisdiction; or 3.) the parties voluntarily agree to waive a fact finding conference. This is a “cost-cutting” measure advanced by the Department of Human Rights.

IDOT Master Plan (HB 1761):  Requires the Illinois Department of Transportation to publish and deliver its master plan for highway, waterway, aeronautic, mass transportation, and railroad systems to the Governor and General Assembly by Dec. 31, 2012 and every five years after. The master plan must include a comprehensive freight mobility plan that analyzes commodity flows, assesses the freight transportation network, identifies significant freight system trends, needs, and economic opportunities, and recommends improvements in the operation, efficiency, funding, safety and management of the freight system and projects that will eliminate inefficiencies in the State's freight network.

Jury Selection (HB 2066):  Includes claimants for unemployment insurance in the lists used to create jury selection pools.

Liquor Sales (HB 1852):  Allows liquor to be sold where food is served at Illinois State University-owned golf courses. (SB 1835):  Allows alcoholic liquors to be sold or dispensed on the replica canal boat owned and operated by the Canal Corridor Association on the I&M Canal at or near LaSalle, Illinois. Allows alcoholic liquors to be delivered to and sold at the College of DuPage, Illinois Community College District No. 502.

Marriage Dissolution (SB 1753):  Provides that professional personnel who are consulted by the court regarding custody and visitation cases are subject to subpoena relating to the case. The court will allocate the costs and fees of the consultants between the parties based upon the financial ability of each party and other relevant criteria.

Medicaid Payment (SB 1633):  Allows for the payment of $1.3 billion in Medicaid bills by June 30, which will garner an extra $70 - $75 million in enhanced federal match dollars. The bill specifically requires the transfer of $365 million from GRF to the Healthcare Provider Relief Fund to pay Medicaid bills. Also permits the use of $200 million that is in the Budget Stabilization Fund to pay Medicaid bills.

Muskrat Trapping (HB 6):  Allows the Department of Natural Resources to extend muskrat trapping season through the spring.

Nursing Homes (SB 145):  States the recently enacted nursing home assessment must pass specific statistical tests to meet federal guidelines regarding the assessments and payment back to nursing homes. Concerns have been raised that the current assessment plan fails one of these statistical tests because five Institutions for Mental Disease (IMDs) facilities would be held harmless under the current tax. By removing those IMDs from the definition of a nursing home, and creating a new licensing structure for the IMDs with a $1.00 reduced rate, the statistical ratio is changed by a small percentage that improves the chance of meeting the federal requirement

Oath Administration (SB 62):  Allows any person allowed to administer oaths and affirmations to do so statewide, as opposed to only in their respective districts, circuits, counties or jurisdiction.

Parcel Sales (HB 1291):  Allows the Illinois Department of Transportation to convey described parcels of land in Grundy, Henderson, Kankakee, Madison, LaSalle, Montgomery, Rock Island, and St. Clair Counties.

Parolee Notification (SB 1828): Allows Illinois Department of Corrections officials to serve inmates on parole or mandatory supervised release with short form notice of orders of protection. Requires the person receiving the order of protection to comply with the terms of the order, and requires that person to immediately report to the Department of Corrections with the information that they have been served with notice of an order of protection, a civil no contact order, or a stalking no contact.

Petro Resources Board (SB 1241):  Changes the expiration of the Illinois Petro Resources Board from 2016 to 2018 in order to match the “repealer date” of the Act.

Police Property Donation (HB 1553):  Allows a sheriff, chief of police, or other law enforcement official to clear out their inventories of unclaimed property by donating items worth less than $100 to a charitable organization with the approval of the appropriate authority. 

Public Aid Fraud (HB 1077):  Extends the amount of time Department of Healthcare and Family Services has to report to the General Assembly on the number of fraud cases identified and pursued under the medical assistance program, and the fines assessed and collected.

Radon Reporting (HB 141):  Requires landlords to provide tenants with notice of radon tests that indicated a radon hazard.

River Otter Hunting (HB 1724):  Allows for the hunting and trapping of river otters during open season.   

Rental Car Traffic Citations (HB 1593):  Allows for a rental car company to provide the name of a previous renter to the SoS to ensure the renter of a car, not the rental company, receives any citation issued to them as the result of an automated traffic camera.

Tennessee Valley Authority Payment Act (HB 2500):  Removes language that limits Tennessee Valley Authority payments to counties that receive direct payments.

Unfit for Trial (SB 74):  Reduces from 21 days to 14 days the time the court has to conduct a first hearing for a defendant’s fitness for trial after receiving the defendant’s treatment report, unless there is good reason the hearing cannot be held in that time frame.

Used Vehicles (SB 1336):  States that the Illinois Department of Central Management Services must be given the opportunity to receive used Illinois Department of Transportation vehicles through inter-agency transfer. If the vehicle is not taken by a state agency, the Illinois Department of Central Management Services must notify local governments that the vehicle is available for purchase.

Water Well Pump and Installation Contractor’s License Act (HB 1125): Extends the Water Well and Pump Installation Contractor’s License Act to Jan. 1, 2022.