Illinois Medicaid Budget Cuts Would Hurt Illinois Economy, Study Says

(Springfield, IL) – Two health-care advocacy groups are predicting thousands of job losses and billions of dollars in economic damage to Illinois, if Gov. Pat Quinn’s plan to conjure $2.7 billion in savings from the Medicaid program is implemented.

Quinn’s plan would jeopardize 25,615 jobs and cost the state’s economy $3.2 billion, according to a report released Wednesday by the Illinois Hospital Association, which lobbies for Illinois hospitals, and the Campaign for Better Health Care, an organization that advocates for health-care access

“Drastic Medicaid cuts hurt everyone, not just the Medicaid patients. Hospitals will be forced to reduce jobs. Local businesses will be impacted,” Illinois Hospital Association President Maryjane Wurth said.

“And hospitals will be forced to cut or eliminate medical services that everyone uses — there is not a separate set of staff, equipment and facilities just for Medicaid patients.”

Quinn’s proposal reduces the amount Medicaid providers get paid by $675 million, accounting for 25 percent of the $2.7 billion in savings.

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Tax Money Flowing into Illinois Treasury Surges 13% in August

(Springfield, IL) — Taxpayers gave Illinois a $1.2-billion shot of cash in August, or $464 million more than last August.

Personal income tax revenue jumped by 68 percent for last month when compared with the same time in 2010, almost mirroring the personal income tax increase of 67 percent approved in January, according to a report issued by the Legislature’s Commission on Government Accountability and Forecasting, or COGFA, this week.

Overall, the state’s revenue jumped from $1.9 billion in August 2010 to $2.2 billion last month, an increase of 13 percent.

However, focusing on the month-to-month numbers won’t give an accurate picture of the state’s fiscal health, said Jim Muschinske, COGFA’s revenue manager and author of the August revenue report that outlines Illinois’ finances.

“I’ve been doing this for more than 20 years, and I don’t get excited over one month. There is just too much that happens on a month-by-month basis,” Muschinske said.

For example, income tax receipts from July through December, or the first half of fiscal 2012, might show big gains compared to last year. But those increases are only because of the income tax increase, and not because the state’s workforce or economy is doing better, according to the COGFA report.

The state also got a one-time shot of $73 million relating to the selling of a permit for and opening of the state’s 10th riverboat casino this summer in Des Plaines.

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Illinois Senate, House Lack Agreement on Illinois Budget Revenue Estimates

Springfield, IL) — March 31, 2011. A budgetary battle could be brewing in the state Capitol, but not necessarily between Republicans and Democrats.

House Speaker Michael Madigan (D-Chicago) and House Republican Leader Tom Cross (R-Oswego) appeared together Wednesday morning to deliver a joint message of fiscal discipline.

Madigan and Cross’ relationship has been cold in the past. It appeared Wednesday, however, that the two have teamed up to start pushing pieces of legislation that could end up being parts of the state’s budget.

The united front in the Illinois House could mean that this year’s budget could pit senators against state representatives, instead of the traditional Democrat vs. Republican.

A recently passed law requires that the Legislature lay out how much money it will have to spend before deciding who gets what. Governor Pat Quinn’s office, the House and the state Senate have all come up with different revenue projections.

Reconciling those, and therefore the different chamber’s budget bills, could be troublesome.

Madigan laid out one possibility Wednesday during the Elementary and Secondary Education Appropriations Committee. When the Senate and the House can’t come to some kind of agreement on a specific bill, five members from each chamber meet and try to hammer out the details in a conference committee.

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