|
So what is next?
1.
STATE REVENUE SHORTAGE CONTINUES - Unfortunately the state
revenue picture remains poor. Sales tax revenue is significantly down from
slow tourism, people simply not buying and the state creating expenses based
on “over projections” of revenue. May was $220M short of expenses. June
projections were hitting over $150M. The Illinois Economic & Fiscal
Commission is projecting the situation will take 12 to 18 months to resolve.
Watch for Gov Ryan to call a special Legislative session in early Fall to
re-address the Budget if the revenue remains low.
2.
A PAYMENT CRISIS WILL DEVELOP - At the last IARF meeting, many
member organizations were indicating that they were significantly short of
cash and any delays in payment could be catastrophic to their existence.
They are already borrowing money to meet payroll or are at their credit
limit. State payments are coming much slower. Projections estimate an
additional 90-120 days to the current payment cycle that is already off by
over 30 days. For some reason ECC has been receiving its money relatively on
time, but I do not think that will continue as it has. The state simply does
not have the cash to pay on time. The Prompt Payment Act requires that
interest be paid on any state bill that is over 60 days old in FY 2003. Not
likely to make a huge difference. I expect to see increased audits from DHS
to make sure services are being properly delivered with good outcomes. The
funding has been restored on paper, but agencies will have a hard time
actually getting it.
3.
STATE TO BORROW $1B – This money is to be an advance against
future tobacco money settlements. It is still a loan that must be
repaid with real cash. It is a temporary band-aid. Interest on $1B is $5.4M
per month for a 15 year loan. Even for the state that adds to major money.
4.
THE MEDICAID MATCH ELIGIBILITY IS NOT DEAD. We will likely be
asked to convert consumers who clearly meet the requirements. Remember
Medicaid matches $.50 for every $1.00 that Illinois spends so it is in
Illinois best interest to move to Medicaid conversion.
5.
COVERSION TASK FORCE – FY2003 is a transition year to
determine a reasonable method of increasing Medicaid eligibility but also
determining how to work with people who were found not to be eligible. This
was a huge issue for ECC. Across the state over 2,500 people were found to
be ineligible after some of the initial screenings. 1,000 of this group were
MI. The state had no contingency plan except to say these people were no
longer DHS’s responsibility. That concept was not acceptable with the
legislators. DHS expected agencies to continue serving these people for free
or through local fund raising such as United Way or bake sales. The task
force is supposed to address all of these issues.
6.
LINCOLN DEV CENTER CLOSURE – It is likely that more LDC
residents will will move to JDC. Mike Hurt is looking at the possibility of
having to re-open vacant floors of Bushnell. Both gubernatorial candidates
say they will reopen Lincoln. There are several legal efforts in place to
stop the LDC closure, but George Ryan is determined to close it. Flip a
coin.
7.
WHO FUNDS MI CONSUMERS CURRENTLY COVERED BY ODD – ODD wants
their money paying only for consumers diagnosed as DD or MI/DD. During the
Medicaid reviews, ODD refused to grant eligibility to anyone who was MI or
had any type of payment from an OMH funded program. OMH says it has no
additional funds to cover these consumers. ECC has had MI consumers funded
under DD program for years and so have many other agencies in Illinois. Both
prograns are part of the Department of Human Services.
8.
STATE WIDE ELECTIONS MEAN NEW LEADERSHIP – There will be a new
governor, new legislators, and many state Department heads will likrly be
replaced with other political appointees all within the next 6-8 months.
Depending on who is elected, we may face this entire issue again.
9.
EARLY STATE RETIREMENT – Projections are showing a very high
percentage of state workers who qualify for early retirement will take it.
Many of these people will be the long term, behind the scene workers who
know how the system works and have irreplaceable organizational memory. Some
dead wood will leave, but so will some very hard working staff who feel it
is the right time to leave. State workers will not be allowed to come back
as consultants for 1 year.
|
Illinois
