NIU Payroll at Risk?

Observations and comments about state government by State Representative Robert W. Pritchard.

March 8, 2010

Topics this week:
·        Ag Fees to Increase
·        General Assembly May Cut Scholarships
·        Medicaid Managed Care Plan Explained
·        Exercise Gives Brain Power
·        Youth Council Studies Government
·        Remembering our Troops
·        NIU Speaks Frankly About Funding
·        Budget Address Begins Process

Ag Fee Increases To Keep the Lights On

Budget cuts and fund sweeps over the past three years have left the Department of Agriculture unable to conduct its regulatory and inspection functions.  To keep many businesses operating, user fees were increased by legislation that passed out of the House last week.

An estimated $2 million will be raised by increasing such fees as pesticide registration, applicator license, diagnostic tests, certificates, permits and inspection.  Most of the fees will be paid by farmers and agribusinesses but a few could be passed through to consumers.

The Illinois Department of Ag has broad responsibilities ranging from farm input inspection to marketing of ag products, conservation and the environment, animal welfare, and weights & measures.  Over the past few years, annual budget cuts of 5-15 percent combined with raids on fee-generated funds have led to staff cuts and service delays.

General Assembly May Cut Scholarships

The Illinois House voted last week to discontinue awarding the General Assembly College Scholarships effective June 1.  The move was in response to some ethical problems in awarding scholarships and the unfunded nature of the program.

Members of the Illinois General Assembly have been able to offer up to eight one-year scholarships to public universities valued at nearly $50,000.  In total, the program cost universities about $12.5 million each year in uncompensated tuition and fees.

What killed the program was the discovery that at least 140 scholarships between 2003 and 2008 were given for political favors.  The cost of the scholarships was never directly funded so universities had to absorb the cost, something they are finding harder to do since the state isn’t paying what was budgeted for higher education.

Medicaid Managed Care Plan Explained

The Governor’s staff explained a plan for managing Medicaid costs for legislators last week that could save up to $500 million, well below what others have suggested.  The plan begins by involving 40,000 of the most vulnerable clients in northeast Illinois—those who are aged, blind and disabled.  They make up 18 percent of the Medicaid population but require 50 percent of the spending.

The plan begins with a request for proposal (RFP) from managed care companies to set up an integrated delivery system.  A team of providers will organize care, encourage regular checkups and offer prompt care before more critical conditions develop.  Providers are paid a set fee and for office visits plus keep all records electronically so the team can monitor the client’s condition.

The plan will be introduced in phases over the next year beginning with non-long term care services including mental health and alcohol and substance abuse services.

Exercise Gives Brain Power

Members of the Illinois Association for Health, Physical Education, Recreation and Dance descended on the Capitol this past week with loads of new data on the benefits of exercise.  They are strong proponents for a new type of PE class in school that promotes daily physical activity to increase personal performance and control obesity.

According to leading researchers, cutting gym class and allowing more time for math, science and reading did not improve test scores as expected.  A better method to improve learning and reduce childhood obesity is with exercise according to research studies.

Youth Council Studies Government

Each year I gather representatives from each high school in the district to discuss laws affecting youth and careers in government service.  The program concluded last week with a trip to Springfield, visits with elected officials and tours of historic sites.

Shown visiting with Governor Quinn are (L-R) District Director Jess Sheehan, and Youth Council members Emily Burke-Franz (Earlville), Seth Miller (Waterman), Shannon Smith (Stillman Valley), Alec Hafeman (DeKalb), Ashley Gunderson (Leland), Brian Pierson (Byron), Linda Zack (Rockford), Michael Kula (Hinckley), Peter Irving (DeKalb), and Isaac Noll (Hinckley), and Representative Pritchard.

Remembering Our Troops

This past week the House paused to recognize the service of our soldiers who are defending freedom around the world.  I had just received an e-mail from Shaun Penn, Malta, so I shared some of his comments.

Shaun, who is normally a Sycamore Firefighter, is on his second tour of duty in Afghanistan with the Army’s 909th Forward Surgical Team.  While Shaun speaks of the difficulty many Afghans have with grasping the concepts of democracy and personal freedoms, he tells of countless encounters with locals who aspire to live in the United States.

The firefighter—soldier stressed how fortunate he felt to live in Illinois, even with all our budget and ethical problems.  It struck me that sometimes we may be too close to the problem to realize how fortunate we are.

NIU Speaks Frankly About Funding

Top administrators from Northern Illinois University (NIU) were in Springfield last week to discuss their FY2011 budget request with the House Higher Education Committee.  President Peters was very blunt that the delay in current year state payments to the university is creating significant operational difficulties.  He said NIU is struggling to pay bills since the state is 60 percent behind in paying the university.

As a result NIU may not be able to pay employees in May.

NIU is requesting a flat budget next year, unlike other universities who have asked for increased funding.  Peters is realistic about the state’s fiscal condition and said the university will delay hiring needed faculty, defer maintenance and equipment purchases, and again not give any salary increases.

Peters said the U.S. is the only industrialized country that is not funding higher education to be competitive.  State funding cuts will force universities to raise student tuitions and thus limit who can attend college.

Budget Address Begins Process

Governor Quinn’s budget address will be given at noon on Wednesday but his staff has already indicated some of his priorities and spending cuts.  The only good news is that state general revenue, which has fallen about $4 billion since 2008, is expected to stabilize next year.

Since the Governor has been balancing the budget this year by not paying bills, the mountain of unpaid bills has gotten significantly higher.  He will need to significantly reduce budgeted expenditures next year to pay what schools, universities, health providers and other service providers have already spent.

I will be watching to see if the governor is prioritizing his spending as citizens are suggesting or just continuing to entice providers to loan money to the state.  One of the big questions will be if the Governor proposes serious Medicaid and pension reforms.  And will he accept suggestions from my colleagues for quick action to keep businesses and jobs in Illinois and lower the cost of government operations.

Bob

District Office 815-748-3494 or E-Mail to bob@pritchardstaterep.com