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:

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As Illinois Deadbeat Status Persists, Topinka Says “No” to Senator Sullivan Plan to Pay State Bills

(Springfield, IL) — For the upcoming year, Illinois lawmakers are weighing whether to pay bills with borrowed money or not pay businesses and local government money the state owes them.

Democrats are pushing the plan to borrow $6.2 billion in order to pay some of Illinois’ $8.2 billion in past-due bills.

Republicans say lawmakers have to stop borrowing and start cutting spending if Illinois is ever going to pay its bills and live within its means.

Comptroller Judy Baar Topinka, who actually writes the checks for the state’s bills, said spending money now is not the solution.

“The basic restructuring has not been done; the cuts have not been made. The budget has not been brought back in line, which has to be basically flat,” said Topinka.

Topinka said Illinois is still spending more than it is taking in. She did not offer an amount to be cut from the budget, but she did say the $7 billion in revenue from the largest income tax increase in the state’s history, has been committed.

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