Senate Republican Leader Christine Radogno sat down on May 17 with Terry Martin, Executive Director at the Illinois Channel, to talk about Medicaid, pension reform and Illinois' budget outlook. Tune in to watch the interview for an in-depth look at the state's most pressing issues.
With less than two weeks left before the scheduled 2012 spring session, lawmakers have been busy approving legislation to be sent to Gov. Pat Quinn for consideration, while behind the scenes negotiations continue on the state’s most pressing issues: the budget, Medicaid and state pension reform.
On the critical issue of Medicaid reform, at week's end it appeared significant progress was being made toward closing a $2.7 billion gap in the program. Senate Republican Leader Christine Radogno said a key objective of Senate Republicans is to enact reforms that will force the state to "cut up its Medicaid credit card" by reforming the controversial "Section 25" provisions in state law. Reforming this provision is critical to assuring that savings approved by the legislature actually materialize, by limiting the administration's ability to push off costs.
Under "Section 25" the state digs itself into a deep budget hole each year by buying more Medicaid services than it can pay for and then pushing the bills off into the next year. The Civic Federation earlier this year estimated that Illinois' Medicaid debt would consume most of its budget within five years if the state does not get Medicaid spending under control and end the practice of buying services in one year and then charging the costs off onto future years. Massive deficits like those projected by the Civic Federation, and even the Governor's own social service agency, could jeopardize the healthcare safety net for those who truly need it.
Lawmakers in the Executive Committee weren’t in agreement on May 16, when Democrat lawmakers pushed through a measure that would raise the state’s minimum wage to the highest in the nation. Senate Bill 1565 would phase in the increase to the current minimum wage of $8.25, increasing by 50 cents annually until reaching $10.55 in 2015. At that point, the minimum wage would increase each year with the cost of inflation.
Republican Committee members voted against the measure, with one GOP Senator noting the timing for such an increase is “terrible.” Many Illinois' employers are already struggling and business owners say a minimum wage hike will force them to lay off workers and increase prices.
Senate Republicans pointed out that a minimum wage increase won’t help the state’s business climate, which is already negatively impacted by Illinois’ high income taxes and workers’ compensation rates, as well as the state’s fiscal uncertainty and overly burdensome regulatory and legal system.
The Illinois Senate took final action May 15, passing a new law inspired by the horrific allegations against a former Penn State football coach.
State Sen. Kyle McCarter (R-Lebanon) sponsored House Bill 3887 in the Senate.
“In the Penn State case, an assistant football coach was accused of sexually abusing minors on the university campus. University employees were said to have witnessed the abuse but did not report the actions of the coach to outside authorities,” said McCarter. “We want to make sure nothing like that occurs in Illinois.”
State Rep. Dwight Kay (R-Collinsville) introduced the measure in the House.
“I’m pleased that my colleagues in the Senate unanimously agreed with the spirit of the bill. It’s important we close our state’s reporting law loopholes, similar to Pennsylvania’s, that allowed the alleged child sex abuse at Penn State to go on for so long unhindered,” Rep. Kay said. “I look forward to the Governor signing it into law.”
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