Illinois Medicaid Spending to Increase 41% in 5 Years, Civic Federation Report Says

(Springfield, IL) – A new report released Monday from the Civic Federation, a Chicago-based nonpartisan policy group that focuses on state spending, predicts Illinois’ Medicaid costs will skyrocket over the next five years.

Laurence Msall, federation president, said lawmakers and governors have spent Illinois into a deep hole by expanding Medicaid, which provides health-care coverage to low-income families.

“What is most frightening is that even after the income tax, the state was not able to pass a budget to fully fund Medicaid,” Msall said, referring to a 67 percent personal income tax increase and a 48 percent corporate income tax increase in January 2011.

But even with that additional revenue, Illinois lawmakers still had to pay more than $1 billion in 2011 Medicaid bills.

The Civic Federation report paints a grim picture for Medicaid spending:


Advocates Hail Quinn Signature on Meth Disruption Law, But Warn against Budget Cuts to Drug Prevention, Treatment Funding

Illinois Alcoholism and Drug Dependence Associaiton CEO Sara Moscato Howe

(Springfield, IL) ­– January 20, 2012. Illinois’ leading drug prevention and treatment advocacy group today welcomed Governor Pat Quinn’s signature on legislation that helps to disrupt Illinois meth production, but also warned the governor that the state’s efforts to combat drug abuse will falter if the already shrunken funding for prevention and treatment is reduced further in next year’s Illinois budget.

The new law signed by Quinn makes permanent a pilot program initially created to electronically track pseudoephedrine purchases that could be used in the manufacturing of methamphetamine.

“This program is a valuable tool that helps us prevent meth from getting into our communities by stopping production,” said Quinn. “Tracking the sales of items commonly used to manufacture meth has enabled us to nip production in the bud, and it is important to continue this program.”

The Methamphetamine Precursor Tracking Act took effect in 2009 and required pharmacies to track and block excessive purchases of ephedrine and pseudoephedrine. Since its implementation, the program has blocked more than 103,319 boxes – or 230,330 grams – of pseudoephedrine from being used for methamphetamine production in communities throughout Illinois, according to Quinn.

“Because this is an important tool to disrupt meth production, we welcome Governor Quinn’s signature on this law,” said Illinois Alcoholism and Drug Dependence Association CEO Sara Moscato Howe.

“However, the principal line of defense against drug abuse in Illinois is drug prevention and treatment, for which state funding has been cut 30% since 2007,” said Howe. “To protect communities, we need Governor Quinn to shield the Illinois prevention and treatment budget from further cuts next year.”

Illinois’ non-Medicaid funding for prevention and treatment has fallen from $118 million in 2007 to $83 million this year, reducing the number of Illinois residents in treatment from 84,167 to 45,149, according to the most recent data.

“Unfortunately, meth production is starting to increase again across the state,” Attorney General Lisa Madigan said.

“Attorney General Madigan’s warning about rising meth production underscores the consequence of Illinois’ prevention and treatment budget cuts,” said Howe. “That’s why we need Governor Quinn to preserve Illinois addiction prevention and treatment funds.”

Quinn is scheduled to unveil his fiscal year 2013 Illinois budget proposal on February 22.

Illinois Pension Costs Squeeze Illinois Budget, Gov. Pat Quinn Says

(Springfield, IL) – The arithmetic behind Gov. Pat Quinn’s first budget proposal of the new year is grim.

Illinois will be facing an $800 million deficit within three years, despite tax revenue projected to grow by more than $1 billion a year.

Illinois’ fiscal reality is bleak, said Kelly Kraft, the governor’s budget spokeswoman.

“These projections clearly demonstrate that action must be taken to control not only Medicaid costs but also (pension) costs or all other areas of government will continue to be squeezed,” Kraft said in a statement.

Quinn on Tuesday released his three-year budget projection in which Illinois in fiscal 2013 is expected to spend $33.7 billion, about $1.5 billion more than this year. By fiscal 2015, Illinois’ expenditures will reach $34.2 billion, or $2 billion more than the current budget.

The governor’s fiscal outline is part of the state’s Budgeting for Results initiative. Lawmakers created this process in 2011 to force the governor to craft a realistic budget within the financial means of the state.

The majority of the additional spending will be on public employee pensions.

Quinn’s own numbers project an $818 million deficit by 2015, even after holding spending flat on Medicaid, elementary and high school funding, and state government services.