February 9, 2012

On the heels of recent criticism from Republican lawmakers, on Feb. 7 Illinois Department of Healthcare and Family Services Director Julie Hamos sent a letter to the federal government outlining the Department’s intentions to begin implementation of commonsense Medicaid eligibility requirements passed by state lawmakers.

On Feb. 2, HFS and Quinn’s Administration were taken to task by Republican lawmakers for attempts to expedite expansion of the Medicaid program in Cook County, even as the Administration dragged its heels on pursuing execution of the bipartisan Medicaid reforms signed into law in 2011.

Senate Republicans were pleased to see the Administration pursue a more aggressive stance on Medicaid reform. However, the Caucus was particularly interested in DHS findings outlined in Director Hamos’ letter that suggest nearly six percent of the Department’s monthly medical card mailings from November 2011 were returned “undeliverable with out-of-state addresses.” If six percent of Medicaid recipients were deemed ineligible for benefits for failure to meet residency requirements, that would amount to approximately $650 million in savings each year.

February 9, 2012

Illinois' problems with job creation were highlighted during the week when long-time Illinois company, Caterpillar, acknowledged the state's poor business and economic climate would have prevented them from considering Illinois for a significant expansion

Almost a year ago, Caterpillar Inc. made headlines when a private letter penned by Chairman and CEO Doug Oberhelman to Gov. Pat Quinn was leaked to the media. The missive outlined CAT’s concerns that the state’s massive tax increase would undermine the company’s ability to remain profitable.  This week, fears the company would bypass Illinois for greener pastures were realized.

On Feb. 7, an e-mail was leaked to the Peoria Journal-Star that Caterpillar—prompted by logistical deficiencies, and reinforced by the state’s inhospitable tax policies and bleak budget outlook—is bypassing Illinois to build the company’s new North American manufacturing plant in North Carolina. In a letter to Peoria County, the CAT facility selection team cited, “previously documented concerns about the business climate and the overall fiscal health of the state of Illinois,” that make it impractical to expand in Illinois.

As the largest private sector employer in the state—employing more than 23,000 Illinoisans—CAT’s decision is a blow to the Peoria area and the state as a whole. In the past, Caterpillar has lamented Illinois' excessive workers' compensation costs, pointing out that the cost for an employee with an identical injury is more than seven times higher in Illinois than at a similar plant in Indiana. Senator said that serious efforts must be made to right the state’s fiscal ship, roll back the Democrats’ tax increase, and reform Illinois’ tedious regulatory system.

February 9, 2012

According to two recent rankings, Illinois is leading the nation – unfortunately it’s for things we’d rather not be. A new survey by the job search site Career Builder listed Illinois as the eighth worst state for job seekers. Noting that “not all states are equal when it comes to economic recovery,” the report suggested Illinois’ higher than average unemployment rate (9.8 percent) and number of foreclosures (151,304 in 2010) are making it very difficult for those seeking employment in the Land of Lincoln.

As tough as things are for those struggling in the job market, a second survey suggests things are even worse for those who’ve retired from it. According to TopRetirements.com, Illinois is now the second-worst state for retirees to live due to its pension funding, deficit spending, unemployment and foreclosure rates that are “among the worst of any state.”

Neither survey made recommendations on how Illinois can fix its woes, but we in the Senate Republican caucus have come up with a few common-sense suggestions.