Subscribe to Capitol Fax      Advertise Here     Contact Rich Miller
To subscribe to Capitol Fax, click here. Subscriptions are $350 per year. To advertise on the Capitol Fax Blog, please click here.
Heads up *** TAB report now online *** UPDATED xSeveral ***

Thursday, Jun 4, 2009

* Many kudos to the Illinois Information Service for live-streaming Gov. Quinn’s 11:30 am joint announcement today with his Taxpayer Action Board’s chairman about the board’s budget reform recommendations. You can listen live by clicking here.

Then, at about 1:30 this afternoon, the governor will hold a press availability following his meeting with the legislative leaders. That, too, will be live-streamed. Click here to listen.

If you can live-blog the events in comments, you’d be a big help to others. Thanks.

*** UPDATE - 11:44 am *** You can read the Taxpayer Action Board report by clicking here.

* There are some harsh comments in the “Minority Report” section, which begins on page 107. This is from TAB member Dory Rand…

In the same “Medicaid Spending” section, the report states that “Medicaid is now the largest single state expense in Illinois, accounting for over 40% of general fund appropriations.” This statement of the expenditure level does not account for the large role of federal funds. It is astonishing that this report does not isolate the state funds spending in Medicaid as its sole focus. The TAB was created to deal with state spending. This report deliberately hides the state spending aspect of Medicaid. The dimensions of this error and its potential to mislead the discussion are substantial. In fiscal year 2006, for example, the state money devoted to Medicaid was 19.4% of state general revenue spending and 18.6% of state funds spent in the entire budget (compared to the 40% that the report uses by including the huge federal portion of the program in its sole statement of Medicaid’s part of the budget).

* And this one was written by frequent blog commenter and former budget director Steve Schnorf, with co-signors Woods Bowman, Dory Rand and Richard Sewell…

In three instances at least, I believe you are being directed toward fixing things that probably aren’t really very broken, and that might not be a best use of your time and energy.

Schnorf makes a whole lot of very good points, particularly about Medicaid. His remarks start at page 121. Go read them.

* This is a very interesting recommendation from the majority report…

To dramatically reduce the prison population by reviewing the prisoners’ records to identify inmates that may no longer represent a significant risk to society, and to allow those individuals to re-enter society under state supervision.

* More from the report…

While across-the-board operating cuts are often criticized as a sledgehammer approach, which can miss large opportunities for cost reductions and penalize disproportionately those programs that are already
operating efficiently, a cut of 2-3% in all budget lines from the FY09 appropriation level would save considerable costs and is an option the State should review.

That would actually be a tiny percentage of what the governor’s office is looking at now. In other words, a vast improvement over the current plan.

* Schnorf’s conclusion in his minority report…

You can, and I believe you will, get some savings from the suggestions in this report. It probably won’t equal billions and it certainly won’t all happen over 12-18 months. Good luck.

*** UPDATE - 12:53 pm *** From the AP

The board says the state could save $95 million by managing the care of Medicaid patients more effectively and as much as $65 million by releasing some nonviolent offenders from state prisons.

The Senate GOP has claimed that managed care would save $3 billion, and the Tribune editorial page has fully bought into the notion.

…Adding… Here’s what the report claims, with a footnote explaining it…

Promote cost-effective care management strategies that focus on the health of the person, promote prevention and wellness, and provide a medical home. (2) [$95 million savings in FY 10]

(2) Estimates reflect cost savings created by a decrease in the projected growth rate of Medicaid expenditures, not a spending cut from the current budget level.

*** UPDATE - 3:13 pm *** The live presser never happened, but the governor did talk to reporters and there is a downloadable audio file. Listen here.

- posted by Rich Miller


34 Comments
  1. - Scooby - Thursday, Jun 4, 09 @ 11:17 am:

    Let’s say this committee did great work, worked around the clock and came up with some excellent recommendations that will really save the state money and could be implemented immediately … who set their calendar?


  2. - Obamas' Puppy - Thursday, Jun 4, 09 @ 11:24 am:

    Time to get under the big blanket for some political cover.


  3. - Been There - Thursday, Jun 4, 09 @ 11:26 am:

    I’m am not too optimistic about the leaders meeting if he plans on being out of there at 1:30.


  4. - VanillaMan - Thursday, Jun 4, 09 @ 11:34 am:

    Please Governor, let’s not hear any threats today, OK? Start showing citizens what will happen with the situation as it now stands. A dose of reality is better than theoretical threats.

    Imagine you are the CEO of GM and announcing how you will start closing doors. No need to threaten. Just start announcing. That should get things moving along.

    Be the adult!


  5. - Macbeth - Thursday, Jun 4, 09 @ 11:40 am:

    Is the plan from the TAB available online?


  6. - Rich Miller - Thursday, Jun 4, 09 @ 11:42 am:

    Not yet. At least not that i can find.


  7. - Rich Miller - Thursday, Jun 4, 09 @ 11:42 am:

    Oops. Yes, it is. Hold a sec


  8. - Macbeth - Thursday, Jun 4, 09 @ 11:43 am:

    http://budget.illinois.gov/documents/TABreport.pdf

    Here.


  9. - Reformer - Thursday, Jun 4, 09 @ 11:44 am:

    Tom Johnson identifies “opportunities” for greater gov’t efficiency.

    “Who does IL serve?” State gov’t is primarily a funder, not a provider, of services. The challenge facing the state is how to acquire those services in the most economical way. Johnson identifies significant opportunities to more efficiently serve people.


  10. - GA Watcher - Thursday, Jun 4, 09 @ 11:56 am:

    Tom Johnson says some of the opportunities identified can impact FY 2010, but not without a lot of pain. Most recommendations are to be implemented in the future.


  11. - Reformer - Thursday, Jun 4, 09 @ 11:57 am:

    Recommendations:
    * Less reliance upon institutional care and more reliance upon community-based care
    * Less reliance upon incarceration for short-term sentences
    * More reliance upon less expensive sentencing alternatives to reduce the cost of our criminal justice system
    * Reduce growth of Medicaid costs from 7% to 3% a year via various strategies


  12. - George - Thursday, Jun 4, 09 @ 12:15 pm:

    Long story short, they have outline $839 million - $1.03 billion potential cuts for FY10.

    Most of that ($420 - $510 million) is freezing spending at FY09 levels and then doing 2-3% across the board cuts on top of that.

    I don’t know how much of that is duplicated in Quinn’s original or existing cut plan.

    But, excluding those across-the-board cuts, it looks like they only “found” $419 - $520 million in cuts.


  13. - Reality Check - Thursday, Jun 4, 09 @ 12:26 pm:

    George is right. All of this hoo-ha for them to say, “cutting across the board would cost less.” And the other $4-500m George notes they “found” is largely from cutting Medicaid and releasing inmates. Um, OK.


  14. - Yellow Dog Democrat - Thursday, Jun 4, 09 @ 12:32 pm:

    Several things worth noting:

    These cuts add up to a maximum of $796 million, and one of them — across the board spending cuts ($270M) has been implemented and then some. That means that a bipartisan task force headed by the Taxpayers Federation can only identify $526 Million in cuts.

    – Medicaid managed care - The GOP Silver Bullet for balancing the budget, was among the reforms listed, but would only save $90 Million, not the $1 Billion figure Republicans have been throwing around.

    – “The HMO’s Will Save Us” Mantra is further damaged by this passage from the minority report (pg 115):

    according to the nonpartisan Kaiser Commission on Medicaid and the Uninsured, Illinois ranks 2nd among states in per beneficiary expenditures Illinois is at $4,129 per beneficiary; the national average is $4,575). In fact, the three states mentioned in the report as having significant success in implementing a broad-based capitated managed care program all have higher per beneficiary expenditures than Illinois (North Carolina $4,943, Pennsylvania $4,832 and Wisconsin $4,440) according to the nonpartisan Kaiser Commission on Medicaid and the Uninsured. This data supports HFS’ contention that its management of the fee for service program results in lower costs to the state than if the program relied more heavily on a capitated managed care model.

    – And of course, the best for last comes from Steve Schnorf, who the Governor should be quoting profusely to the press and in budget meetings over the next few days. Heck, If I were Gov, I would have replaced Filan with Schnorf already:

    “My best personal estimate is that you will be able to save very little, if any, money in FY10. If I were working on the budget, I would be hrilled if there were $200 million in actual, achievable FY10 savings.”


  15. - wordslinger - Thursday, Jun 4, 09 @ 1:27 pm:

    Nice to see the grownups at work. Well done, Schnorf, Woody, et al.


  16. - Speaking at Will - Thursday, Jun 4, 09 @ 2:00 pm:

    is the audio link for the gov’s press availability correct? I have heard someone beating on a drum.


  17. - Rich Miller - Thursday, Jun 4, 09 @ 2:02 pm:

    Shhh… I don’t think they know they’re talking into a live mic. lol


  18. - Political Panther - Thursday, Jun 4, 09 @ 2:05 pm:

    What in the world is this audio you have? Why are they talking about light stands and taking stuff on the road and setting up? Is Governor Quinn in a band?


  19. - Rich Miller - Thursday, Jun 4, 09 @ 2:06 pm:

    They’re getting ready for the presser. Patience.


  20. - Political Panther - Thursday, Jun 4, 09 @ 2:09 pm:

    Well why did Governor Quinn say he would be on at 1:30 then have us listen to over 30 minutes of guys talking? Now I hear them conversing about women being preganent


  21. - Ghost - Thursday, Jun 4, 09 @ 2:30 pm:

    In short, we need to trade Ostro and Filan for Schnorf.


  22. - Truthful James - Thursday, Jun 4, 09 @ 3:22 pm:

    If you want to save money. make it a flat double sawbuck for each doctor’s visit and a non emergency. emergency room visit.

    Yeh, I know I.m heartless, but the people can usually be sighted with a pack o’cigarettes in their hand


  23. - Anonymous - Thursday, Jun 4, 09 @ 3:32 pm:

    It would be nice if the folks with ideas on how to cut or “better manage” the Medicaid program actually had some understanding of the Medicaid program, or is that too much too expect? Bravo to Schnorf!


  24. - Ghost - Thursday, Jun 4, 09 @ 3:40 pm:

    Now Schnorf just needs to run for Treasurer and help put the GOP back in the game :)


  25. - Gathers No - Thursday, Jun 4, 09 @ 3:49 pm:

    Finally…the TAB report supports the downsizing and closure of state institutions for people with developmental disabilities. I have been howling in the wind for that for 47 years down here but maybe…just maybe…we will begin to move in that direction!


  26. - Cassandra - Thursday, Jun 4, 09 @ 3:52 pm:

    I still can’t understand why everyone is so obsessed with revamping Medicaid when it appears that some version of universal health care is likely to be passed in Congress by the end of the year. There will still be a version of Medicaid, I’m sure, but the rules and the funding could change substantially. Anyway, why not wait and see what the changes are before we spend time and money revamping a program which many very well undergo significant change.


  27. - Macbeth - Thursday, Jun 4, 09 @ 4:00 pm:

    I’m glad that Quinn thinks a budget by 1 July is possible. That’s nice to hear — even if it probably won’t happen.

    But a couple things that ran through my mind during the audio of Quinn:

    a) The talk about more layoffs is absurd. It’s almost as absurd as the constant, “Look, let’s just cut 3% across the board.” Didn’t we elect these guys to implement real change?

    b) If the budget goes into overtime — again — and Blagojevich is nowhere to be found, then clearly there are other problems still in government. I’m coming to realization that Madigan might be the *real* problem. No, he’s not like Blagojevich — but he’s a different kind of problem.


  28. - GA Watcher - Thursday, Jun 4, 09 @ 4:18 pm:

    Did you ever notice how Governor Quinn resorts to quoting famous figures, the Bible, the Constitution and other platitudes when he doesn’t know what to say?


  29. - All Alone? - Thursday, Jun 4, 09 @ 4:35 pm:

    Am I the only one who wonders why Quinn has turned to conservative business-oriented organizations like the Civic Federation and the Taxpayer’s Federation for advice on how to manage government?

    If you read the list of members of his Taxpayers Advisory Board, the report is a foregone conclusion: reduce spending from this year’s levels, cut state employee pay and benefits, slam Medicaid clients, sell off state assets …

    Business leaders have been showered with bonuses, benefits, buyouts and golden parachutes over the past decade while cutting rank-and-file workers’ pay and benefits to the point where the gap between them and their corporate overloards is greater than any time in the last 50 years. And they continue to demand that government follow the same morally reprehensible path, where budgets are met by breaking union contracts, perhaps violating the state constitution and hurting those who need help the most.

    In this pack of thieves, Schnorf — whom I do admire — comes off sounding like a humanist. And Quinn and Madigan (God help me, I’m channeling Blago) come off like Republicans.


  30. - Willie Stark - Thursday, Jun 4, 09 @ 4:50 pm:

    Hush, now, All Alone? How dare you upbraid your social betters with such language? Don’t you know we live in a society where a bankrupt media empire sees fit to lecture us on how we should manage our finances? Its smug editorialists content to dispense pay and benefit cuts for the lowly, unworthy “food, janitorial, and tehnology workers” the state is paying oh so generously. Chicago Tribune? No. Chicago Chutzpah!


  31. - A Citizen - Thursday, Jun 4, 09 @ 5:01 pm:

    With all this talk of Managed Health Care, Universal Health Care, cutting healthcare costs etc. I’m just scared to death I’m going to get sick. Then I’ll really be in trouble!


  32. - Yellow Dog Democrat - Thursday, Jun 4, 09 @ 5:40 pm:

    === If the budget goes into overtime — again — and Blagojevich is nowhere to be found, then clearly there are other problems still in government. ===

    The problem is, we’re broke.

    If it makes you feel any better, Illinois isn’t alone in being broke or not having passed a budget.


  33. - Emily Booth - Thursday, Jun 4, 09 @ 6:14 pm:

    I sort of skimmed TAB at work today while we were down. I enjoyed reading it; it was thoughtfully written and the suggestions were realistic and practical. The privatization of real estate management was one of the recommendations.


  34. - Budget Watcher - Thursday, Jun 4, 09 @ 6:22 pm:

    I agree whole-heartedly with the concept of the TAB, but the competency of consulting group was certainly suspect at best. As the “minority” opinions clearly illustrate (Dory Rand and Schnorff nailed it pretty good) the “opportunities” often aren’t realistic or even desired. The biggest flaw with the report is it sets mostly unachievable expectations. In some cases, the savings is achieved only thru changes to federal law…so why even mention these things as opportunities?


Sorry, comments for this post are now closed.


ON THE BLOG TODAY...
* SUBSCRIBERS ONLY - Behind the blunt bills, and a "wrap-up"
* Morning Shorts
* Kirk goes up with first TV ad of the season
* SUBSCRIBERS ONLY - Today's edition of Capitol Fax (use all CAPS in password)
** Yesterday's blog posts

Support The Capitol Fax Blog
Visit our advertisers...

Search This Blog...

Search the 96th General Assembly By Bill Number
(example: HB0001)

Search the 96th General Assembly By Keyword

Quick Links


Main Menu
Home
Illinois
YouTube
Pundit rankings
Obama
Subscriber Content
Durbin
Burris
Polls

Archives
March 2010
February 2010
January 2010
December 2009
November 2009
October 2009
September 2009
August 2009
July 2009
June 2009
May 2009
April 2009
March 2009
February 2009
January 2009
December 2008
November 2008
October 2008
September 2008
August 2008
July 2008
June 2008
May 2008
April 2008
March 2008
February 2008
January 2008
December 2007
November 2007
October 2007
September 2007
August 2007
July 2007
June 2007
May 2007
April 2007
March 2007
February 2007
January 2007
December 2006
November 2006
October 2006
September 2006
August 2006
July 2006
June 2006
May 2006
April 2006
March 2006
February 2006
January 2006
December 2005
April 2005
March 2005
February 2005
January 2005
December 2004
November 2004
October 2004

Blog*Spot Archives
November 2005
October 2005
September 2005
August 2005
July 2005
June 2005
May 2005

Syndication

RSS Feed 2.0
Comments RSS 2.0
WordPress
 

  
  » TaskPaper for iPhone
  » OS 5 Update For The BlackBerry Tour Coming In 2-3 Weeks… Get Push-To-Talk For Extra $5 Per Month
  » Review: Pocket Chef for iPhone
  » Review: Motorola Devour smartphone
  » Improve Readability of Small Sites on the iPhone

  » OCZ Onyx SSD Costs Less Than $100
  » FCC Wants To Know How Much Your Internet Sucks
  » Have No Pockets? Strap Your iPhone To Your Chest
  » Boost Mobile Launches Sanyo Incognito SCP6760, Offers No-Contract $50 Unlimited Plan
  » Wind Up Socket – Every Outlet’s A Separate Timer

» Danks gets first blemish on spring work
» In the Zone: Sox eye better defense
» De Aza's RBI triple caps White Sox rally
» A battle of disappointment
» Cubs, White Sox have eyes on bigger prize

 
     


  » Treasure Hunters Roadshow facing lawsuit - Registe....
  » Key Lawmakers Receptive to DJJ-DCFS Merger - Chica....
  » Who will cut the grass? Spring renews attention on....
  » State's guardian of public access helps guide new ....
  » Madigan given PTA honor in Naperville - Batavia Su....
  » State attorneys general vie for stronger consumer ....
  » GOP's Brady Kicks off Chicago Area Campaign for Go....
  » Voice of The Southern: Illinois has politics, lack....
  » Put new spending plans on sideline - News-Gazette..
  » Playing pretend in Springfield - Chicago Sun-Times..


  » ESPN's Erin Andrews' stalker to get sentence in LA
  » Body scanner debuts at O'Hare
  » ACORN branches rename, rebrand after video scandal
  » Arguments set in Ill. abortion notification case
  » Settlement reached in lawsuit over mentally ill
  » Gov. Quinn looks for someone to lend Illinois $4.7 billion
  » Archer Daniels Midland tender offer totals $555M
  » Baxter reports flu vaccine results in clinical trial
  » CF Industries seals $4.7 billion deal for Terra
  » Blagojevich's attorneys ask to postpone trial

  » Ditka confident of success for Rush, revamped Arena Football League
  » Bears ties on both indoor football teams
  » Motorola CEOs Brown, Jha saw pay drop in 2009
  » Jewel parent Supervalu sees stock jump on takeover rumors
  » Gov. Quinn looks for someone to lend Illinois $4.7 billion


  » Settlement: State must help residents out of mental institutions
  » Man critical after S. Shore bludgeoning, lake rescue
  » Man dies after SUV crashes, bursts into flames
  » Man Tased in Macy's racks up 64th arrest: cops
  » Body scanner debuts at O'Hare
  » Deal near to start moving state's mentally ill out of large facilities
  » Cab driver shot multiple times still in intensive care
  » Fire out at West Town restaurant: police
  » Motorist charaged in fatal Near West Side wreck
  » 4 local teens earn trip S. Africa to perform Diski


  » Fire destroys long-running dance studio
  » No parade pinches S. Side business
  » Cabdriver, shot 5 times, holds suspect for Zion police
  » Did Medill's Innocence Project set up 'Law & Order' episode?
  » U. of I. removes dorm phones, adds amenities and fees
  » Edens Spur resurfacing to create a bottleneck
  » Republican Brady nods to moderates and independents in governor race
  » State deficit casts a shadow that leaves educators in the dark
  » Doctor's gift for the dying? Time.
  » Wind turbines stir ill will


  » From Newsroom To Frontline
  » Key Lawmakers Receptive to DJJ-DCFS Merger
  » Charter Schools Feel Budget Heat
  » Quinn One Step Closer to Finding Running Mate
  » Illini Basketball Fans Relieved After Win over Wisconsin
  » Reputed Chicago Mobster Pleads Not Guilty
  » Quinn Supports Plan to Move Primary Election
  » South Side Irish Celebration Continues as Family Fest
  » Pastrick Ordered To Pay $108 million
  » $16 Million Goes to Ex-Offender Program

» New laws open up access to government information
» Blagojevich to appear on 'Celebrity Apprentice' premiere today
» Quinn's budget plan requires legislative help
» Concealed carry laws: Plenty of data to back up both sides
» Press release: Gov's weekend schedule


  » Shots fired on Jackson Street
  » Almost $10,000 in jewelry, electronics taken
  » Copper pipe, electrical wire, extension cords stolen
  » Arguments set in Illinois abortion notification case
  » Body scanner debuts at O'Hare
  » Progress reported on freedom of info issues
  » Local villages feel impact of state budget crisis
  » Illinois teen held on bond in baseball bat attack
  » Maywood fire damage estimated at $1 million
  » Chicago police to straighten up rule book


  » Compliance on smoking ban mixed
  » Program lets students teach safe driving
  » Author reflects on SIUC protests
  » Center may see city funds
  » Red Devils return


» ACORN branches rename, rebrand after video scandal
» 3 with U.S. consul ties killed in Mexico drug war
» Full-body scanners debut at O'Hare Airport
» Westmont man to be sentenced for staking ESPN's Erin Andrews
» Lawyer rebuts doubts about runaway Prius driver


  » GOPUSA ILLINOIS Daily Clips - March 15, 2010
  » GOPUSA ILLINOIS Daily Clips - March 14, 2010
  » GOPUSA ILLINOIS Daily Clips - March 13, 2010
  » Legislative scholarship reforms head to governor
  » GOPUSA ILLINOIS Daily Clips - March 12, 2010

» Dems target Kirk's House seat - Chicago Sun-T..
» Health Care Undecideds - Jamie Dupree - WOKV ..
» How did convicted mob bookie get liquor licen..
» GUEST EDITORIAL: Ten Questions, Not Even Ten ..
» The Angst and Ordeals of Immigration Law in t..
» Northwest suburban briefs - Chicago Daily Her..
» Daily Caller High, Vol. VIII - Daily Caller
» Health-Care Fight Targets Waverers - Wall Str..
» Abortion Language Likely to Remain Unchanged ..
» Regulators: Loan Drop's Justifiable - US Bank..

» Final Push For Passing Health Care Reform Thi.....
» 'Climactic week' for health care reform set t.....
» Senate Rejects Equal Sentences for Crack and .....
» Your decision this week: will America still b.....
» Editorial: Reducing the disparity - Press-Reg.....

» Senator Sanders Advises President on Board of.....
» Senators want Obama to 'reshape' Fed - The Hi.....
» Black Lawmakers Hoping for More From Ally in .....
» Committee Advances Bill To Address Crack/Powd.....
» Chamber sponsoring legislative luncheon - MyW.....

    » Open Thread (3/15/2010)
    » Chicago Probes Huge No-Bid Health Contract
    » Brady Claims Dems Have "Turned Their Backs On The Needs Of Minorities"
    » Mentally Ill Nurisng Home Patients Receive Choice
    » The Impossible Dream Part 2: History of Third Party Candidates - Gubernatorial Races
    » IL Constitution: Right to Life, Except for Babies?
    » SportsMonday: March Sadness
    » 24 Hours With The DIY Network
    » The Moral Underground
    » Like A Cloud


Header Photos...
Wayne Bretl & UIS


Hosted by MCS