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

September 7, 2010

In this issue:

·        Tax Amnesty for Delinquents

·        New Health Insurance Plan for Uninsured Begins

·        Audit Finds Prisoner Early Release Program Flawed

·        Inaction Leads to Longer Payment Cycles

·        A Plan for Reforming Government and Our Fiscal House

·        Telephone Assistance Helps You Stay Connected

·        Law Regulating Campaign Signs Effective Next Year
Tax Amnesty for Delinquents

Beginning October 1st and running through November 8th, individuals who have accumulated back taxes between June 30, 2002 and July 1, 2009 will be able to pay those taxes penalty free.  Tax delinquents who do not pay during the amnesty period will see all interest and penalties double.

Much like the legislation I proposed earlier this year, this legislation provides incentive for tax delinquents to pay overdue income and sales tax obligations in the hopes of providing the state with much-needed revenue.  Doing this not only gives tax delinquents incentive, but also saves the state time and money pursuing tax offenders.

Initial estimates for the tax amnesty program projected a return of about $350 million based on Illinois’ 2003 tax amnesty program.  However, recent reports from the Commission on Government Forecasting and Accountability and the Department of Revenue indicate savings will be more likely to return about $170 million.

New Health Insurance Plan for Uninsured Begins

Individuals with pre-existing medical conditions may now apply for transitional coverage available under newly enacted federal health law reforms.  Recipients of the transitional coverage will be provided with comprehensive health care benefits, including primary and specialty care, hospital care and prescription drugs.

Beginning this month, Illinois will provide transitional coverage for approximately 5,000 uninsured Illinoisans under the Illinois Pre-Existing Condition Insurance Plan (IPXP).  With a limited number of insurance policies available, however, I would encourage anyone interested to apply immediately.

The IPXP will offer a preferred provider organization (PPO) insurance product with a $2,000 annual deductible, 80/20 percent cost sharing, and a maximum major medical out-of-pocket annual cost of $2,350. For prescription benefits, the cost sharing will also be 80/20 and the maximum out-of-pocket cost will be $1,600 per year.

Residents can apply online at www.Insurance.Illinois.gov/IPXP or call 877-210-9167.

Audit Finds Prisoner Early Release Program Flawed

With considerable legislative prodding, the Governor’s office has finally released its inquiry into the scandal-ridden ‘Meritorious Good Time Push’ (MGT) program.  As you probably recall, the MGT Push program released hundreds of inmates, including violent offenders, before they had served very much time in prison in an effort to reduce state expenses.

Former Judge David Erickson, a retired criminal trial judge and Appellate Court Justice, was chosen to head a three-person panel to review all Department of Corrections’ Meritorious Good Time (MGT) programs and make recommendations on how the programs should be overhauled.

Judge Erickson and the review panel found that MGT Push failed to achieve objectives that constitute a good conduct credit program.  The review recommends three major areas of reform, and further advises that all meritorious credit programs remain suspended until crucial reforms are in place.  The Department Director has subsequently resigned.

Earned and Individualized Awards.  The Department of Corrections’ accelerated meritorious credit program discarded previous policy requiring inmates to spend at least 60 days in state custody before receiving any awards for meritorious conduct.  The MGT Push program also continued the Department’s longstanding practice of routinely awarding MGT credit to inmates who had done little to demonstrate good conduct.

The Legislature took action this spring to require inmates to earn credit awards over at least 60 days in Department custody by showing good behavior and taking part in rehabilitative programs.

Accountability and Transparency.  The report found that the Department of Corrections relied on unwritten rules and outdated technology and procedures in its inmate release programs, and further found that the record-keeping and policies related to release decisions varied widely throughout the system.

The report recommends a number of measures to enhance the accountability and transparency of both the program and individual meritorious credit awards.

Communication.  The report found that the Department failed to notify local authorities of pending prisoner releases in a uniform and timely manner.  The General Assembly passed legislation that now requires the Department of Corrections to notify local prosecutors at least 14 days before releasing an inmate with meritorious credit into mandatory supervision.

While waiting for the Administration to issue its report, legislators formed a special Illinois Joint Investigatory Panel on the early release program and held a hearing in Peoria.  Lawmakers and the public alike have been attempting to get answers on the MGT Push program since December 2009 with little cooperation from the Quinn Administration.

The Illinois Department of Corrections was established in 1970 and today operates 27 adult correctional centers as well as various work camps, boot camps and eight adult transition centers.  IDOC’s budget totaled $1.135 billion for fiscal year 2011 and employs approximately 11,000 employees to manage 70,000 adult inmates and parolees.

Inaction Leads to Longer Payment Cycles

A recent report by Illinois Auditor General Bill Holland provides confidence that the state will pay all fiscal year 2010 bills by the end of this calendar year.  However, the state must rely on half of its FY2011 income to pay the old bills.  As a consequence the state will delay paying current bills for up to a year.

In addition, the Governor has not made the state’s pension payment forcing pension system managers to sell assets to pay retirees in a timely manner.  Estimates in 2009 calculated that the pension systems have less than $50 billion of assets with obligations to pay over $126 billion.

State leaders have refused to balance the budget and instead relied upon borrowing, delayed payments, and misappropriating money from special accounts to continue operations.  As a result, the state’s credit rating—a measure of its fiscal soundness and ability to repay loans– has dropped dramatically since 2000.

The Chicago Civic Committee issued a report in late August estimating the drop in bond ratings have added an additional $550 million to the cost of borrowing money.  Nevertheless the Governor is continuing to borrow to make payroll and pay overdue bills.  His most recent action was to borrow $1.3 billion in operating loans.  Citizens and taxpayers must bring a stop to this fiscal insanity.

A Plan for Reforming Government and Our Fiscal House

As I travel around the district and speak to groups this summer, I have been sharing ideas for solving our state’s fiscal problems.  They are ideas generated by legislative task forces, private organizations and citizens themselves.  They make sense and they are doable.

If you would like me to share the discussion with your group, call my office and schedule a time.  Citizens must be engaged in the solutions to our state’s fiscal problems and realize there are limits to government responsibility for services.

The solution to our fiscal crisis includes reforming government and opening the process to the sunlight of public scrutiny.  House Republicans issued a statement last week calling for correcting the “top down” system that is stifling legislative action and creativity.

We have proposed 8 new rules to govern the House of Representative’s legislative process.  The proposals offered are not a complete list and they are not a “cure all” for all of the ills facing Illinois state government.  However, all successful businesses and institutions have sound business practices and solid administrative foundations.

The Illinois House of Representatives needs to reform the way it operates.  Changing our procedures will go a long way toward changing our failed policies.  You can view the ideas about how Republicans would operate the House and my suggestions for creating jobs and stimulating economic growth on my web site: www.PritchardStateRep.com.

Telephone Assistance Helps You Stay Connected

If you or someone you know is having difficulty paying phone bills, help may be available.  The Illinois Commerce Commission is encouraging those who need phone service but can’t afford it to sign up for the federal Lifeline or state Link-Up telephone service assistance programs.

Under the federal Lifeline program, telephone customers who participate and are eligible for certain public assistance programs are entitled to receive a basic telephone service discount of up to $10 a month.  The federal Link-Up America program will pay one-half (up to $30) of the initial installation fee for traditional land-line telephone service or activation fee for wireless service for a primary residence.

The program also allows participants to pay the remaining amount owed on a deferred schedule, interest-free.  The state’s Link-Up program provides an additional benefit of up to $12 on installation charges for telephone service to eligible program participants in Illinois.

Lifeline Awareness Week is September 12-18.  Remind friends, family and others you meet who don’t have access to local telephone service that help is available.    All they have to do is contact their local telephone company to find out if they are eligible and sign up for the Lifeline or Link-Up programs.

For additional information on the Lifeline and Link-Up telephone assistance programs, check the ICC website at www.icc.illinois.gov/consumer/lifelineandlinkup.

Law Regulating Campaign Signs Effective Next Year

It won’t be long before campaign signs will be springing up like weeds in the garden.  It is a ritual of election season and one way for candidates to remind you of their name on the election ballot.  These signs are often regulated by municipalities and counties to control the clutter.

The U.S. Supreme Court ruled in 1994 that political signs are protected “free speech” under the U.S. Constitution’s First Amendment and cannot be regulated by local government.  Apparently news travels slowly in Illinois so that local laws in many places continued to regulate not only the size of signs but when they can be displayed.

The Governor recently signed a new law (HB 3785) that directs local municipalities not to limit the time periods for sign placement, but still allows them to regulate the size of political signs.  The new state law does not take effect until Jan. 1, so current ordinances remain in effect for the November election.  Local units of government should review their ordinances in the next few months to comply with the new state law.

Bob