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 Weekly Review
Provided through the Generous Support of the McCormick Tribune Foundation
CTBA Weekly Review May 13, 2008  
CTBA Quick Links
In This Issue
Education Funding & Fiscal Reform
Capitol Update
Constitutional Convention Resources
New Analysis of Unpaid Health Care Bills
Calendar
Education Funding & Fiscal Reform  
Schools and Kids Need Your Help!
 
Is Your Senator a Co-Sponsor of SB 2288?
 
 
SB 2288 now has 22 co-sponsors! 
Click here to see if your Senator is a sponsor.  If not, please contact him or her and tell them to co-sponsor SB 2288!
 
The lead sponsors of SB 2288, Senator James Meeks and Senator John Cullerton, are committed to bringing the bill to a vote in November.  This gives us the spring and summer to work for the passage of the bill. 
 
Senate Bill 2288 provides a new, permanent revenue source for schools, property tax relief for homeowners and
$1 billion for debt service for a state infrastructure program.  It is the only piece of legislation that will truly reform the way education is funded in Illinois by making the state the primary funder of K-12 education.  The bill also provides $300 million for community colleges and universities.
 
Read the bill here
 
 
Please continue to call or write your Senator and tell them to co-sponsor SB 2288.  Use the A+ Illinois' website tools to find your Senator and their contact information here.   
 
SB 2288 makes significant changes to tax and school funding laws.
  • It reduces our reliance on property taxes to fund schools by mandating an annual property tax abatement of $2.9 billion (indexed to inflation for each subsequent year) with every property owner seeing a minimum of 20% property tax relief on the portion of the bill designated to education.
  • The Invest in Illinois Fund is created and funded with $1 billion each year to provide funding for debt service and fees on bonds for capital projects, such as roads and schools, throughout the State.
  • The bill also mandates a $300 million annual appropriation (indexed for inflation) for grants to institutions of Higher Education.
  • Increases for Early Childhood education are phased in, from $45 million in 2009-2010 to $180 million in 2012-2013.
  • Increases to the Foundation Level are phased in, raising it from $6,253 for the 2009-2010 school year (from $5,734) up to $7,809 for the 2012-2013 school year.  The Foundation Level and Supplemental General State Aid (Poverty Grants) are automatically tied to increases to the Employment Cost Index to control for inflation.
  • Creates a School Improvement Partnership Fund to target resources to proven programs such as smaller class sizes, literacy coaching, longer school days and teacher mentoring;
  • Maintains and expands grants for high-poverty schools
  • The personal income tax is increased to 5% (from 3%), and the corporate income tax is increased to 8% (from 4.8%).
  • Family Tax Credits are provided to single taxpayers earning less than $26,695 and married couples earning less than $53,694.

 

    Click here to listen to a presentation on SB 2288 by the Center for Tax and Budget Accountability.

CTBA has numerous reports outlining the education funding problem in Illinois and how to fix it.  Visit the education page of the CTBA website for more information. 
From the Capitol  
Capitol Dome
Ethics Bill Update
 

There hasn't been any movement on HB 824, the bill that will end "pay to play politics."  The bill will ban campaign contributions from contractors doing $50,000 or more in state business.
 

Key leaders, like Rep. John Fritchey (D-Chicago) and Sen. Don Harmon (D-Oak Park) have expressed that there is support for the legislation in the General Assembly.

The bill has been placed on 3rd reading in the Senate.

Track HB 824 Here.
 
 
ONLY THREE WEEKS OF SESSION LEFT
Constitutional Convention
 
 
New Report Provides Critical Information on Constitutional Convention
 

 

The Legislative Research Unit (LRU) has compiled documents on it's Website to provide information in advance of the constitutional convention referendum to be held at the November 4, 2008 General Election.  This site brings together information on the 1970 constitutional convention and earlier conventions; the last referendum on holding a constitutional convention, in 1988 (which was rejected); and current issues for consideration if a convention were held in 2010.
 

Many of the resources on this site were not widely available to the general public.

Its parts can be reached by clicking on the links shown below. Click here to visit the site.


 

Outline of the site:

Part I-History provides information on Illinois' past constitutional conventions, including the last one in 1969-1970.  It includes the Introduction to the 1970 Illinois Constitution from the Record of Proceedings of that convention, which gave a history of earlier Illinois constitutional conventions.  Part I also contains summaries of research papers prepared before and after the 1970 convention, and related reports by the Legislative Research Unit.

Part II-1988 Referendum describes legislative and other preparations for the first mandatory constitutional convention referendum, in 1988.  It includes information on the Committee of 50 (a group established by the General Assembly in 1986 to advise on whether another convention was necessary).  A list of proponent and opponent groups for a 1990 convention, and a copy of the voter pamphlet on the referendum are also included in Part II.

Part III-Current Issues gives information about the forthcoming 2008 constitutional convention referendum.  It describes legislative actions and provides links to recent articles and other materials on the 2008 referendum.  Proponent and opponent groups are listed, along with topics that a 2010 convention might address.  Part III also contains a list of constitutional revision experts and contact information for them.

Part IV-Other States contains a Legislative Research Unit report on recent constitutional revision efforts in other states, using either automatic referenda or other means.

Part V-Bibliography provides a supplemental bibliography of printed sources on constitutional revision in Illinois.


 
State Finance
 
 
 New Auditor General's Report:  On Average, from FY05 - FY07, $1.5 Billion of Unpaid Medical Claims Have Been Carried Over into the Next Fiscal Year
$81 Million Acquired in Interest
 

The Illinois Office of the Auditor General just completed an audit of the Department of Healthcare and Family Services' (HFS) Medicaid and Group Health Insurance Program activities relating to the Prompt Payment Act (Act) and its processing of Medicaid claims.

Highlights of the audit:


 
  • Medicaid claims received in each of the past four fiscal years, when added to unpaid bills carried over from the prior year, have exceeded the funds available to timely pay providers.  On average, from FY05 - FY07, $1.5 billion of unpaid medical claims have been carried over into the next fiscal year.
  • HFS could not document how payment schedules and payment parameters used to make Medicaid payments were established.
  • In FY06, it took HFS an average of 6 days to process claims; however, it took HFS an average of 57 days to submit claims to the Comptroller for payment.
  • HFS used a poorly defined and documented process to expedite $5.7 million in "one-time drop" payments to providers in FY07.
  • In CY06, it took HFS an average of 87 days to notify non-expedited providers of a rejected service when the rejected service was submitted on a claim along with a service that was paid.
  • In 2006, HFS used 123 error codes to notify providers of rejected services that were not listed in HFS' provider handbook.
Regarding HFS' compliance with the Prompt Payment Act, the audit concluded the following:
  • Between July 1999 and November 2007, approximately 3.3 million claims accrued a potential liability of almost $81 million in interest pursuant to the Prompt Payment Act.  Claims with interest totaling at least $5 but less than $50 accrued a potential liability of $44.5 million while claims with interest totaling $50 or greater accrued a potential liability of $36.1 million.

    The AG Office also surveyed Medicaid providers asking them to identify problems they may have encountered with the claims rejection process.  The survey specifically asked providers how often they understood the reason(s) why the bill was rejected and whether or not they agreed with the decision to reject the claim. 
 

  • The majority of the providers (71%) responded that they usually or always understood the reason the claim was rejected.  Fifteen percent responded that they rarely or never understood the reason.
  • Additionally, the majority of the providers (78%) responded that they sometimes, usually, or always agreed with the reason the claim was rejected.  Twenty-two percent of the providers responded that they rarely or never agreed.
  • Sixty-seven percent of the providers responded that they had experienced a problem with the claims rejection process.  Specific problems identified by providers included:  HFS taking too long to deny claims; confusion why a claim was rejected; denial of clients after they had been approved; and denial for refilling a prescription too soon.
  • Since July 1999, HFS' handling of prompt payment interest has not been in compliance with the Prompt Payment Act or the Administrative Rule that governs the payment of prompt payment interest.  Prompt payment compliance issues identified were:

 

  • ·HFS is not paying interest to providers in a "reasonable time" as required by 74 Ill. Adm. Code 900.90.  Since July 23, 1999, the Prompt Payment Act required HFS to automatically pay interest to Medicaid providers when interest penalties amount to $50 or greater.  However, HFS did not have a system in place to pay automatically owed interest to providers until May 2007 - almost eight years after the inclusion of Medicaid claims in the Prompt Payment Act.  Additionally, for interest amounts owed of at least $5 but less than $50 (which the Prompt Payment Act requires must be requested by the provider), it took HFS an average of 452 days to pay providers requested interest in FY06.

 

 

  • HFS is excluding certain claims from interest payments, some of which are not supported by Administrative Rule.  In May 2007, after our audit began, HFS established an Exclusion Policy which lists several reasons why HFS will not pay accrued prompt payment interest to a provider.  Some of the exclusions are supported by Administrative Rule; others, however, are not.  Furthermore, HFS retroactively applied this Exclusion Policy to interest owed dating back to FY00.

 

 

  • HFS is not notifying providers within 60 days that an interest request has been denied, as required by Administrative Rule.  If HFS approves part, but not all of the interest request, the provider is not notified of the denied part until the payment for the approved portion of the interest request is received.  As noted above, in FY06 HFS took an average of 452 days to pay providers interest after it was initially requested.

 


 

RESOURCES:

Read the entire audit here

CTBA has several reports on this subject.  For more  information please visit the health care section of www.ctbaonline.org here
 
 


 



 

 

 

 

 

 

 

Calendar of Events  
WHAT? Making Media Connections 
WHEN? June 11-12
National new-media experts like Beth Kanter as well as some of Chicago's most prominent journalists such as Renee Ferguson from channel 5 will keynote. For $150 you can take two half-day workshops highlighting new media tools that nonprofits are using to tell their stories and raise money or a one-day Media Boot Camp class. For another $150 you can hear Chicago-area journalists and veteran nonprofit communicators offer advice on everything from how to work with newspapers' editorial boards to planning a nonprofit public relations career. 

 
The conference organizers, Community Media Workshop, offer a range of discounts and scholarships for nonprofits; with budgets under $100,000, they offer everything at half-price. 

 
Learn more and register at www.communitymediaworkshop.org/mmc2008
If you can't make it to the conference but want free communication tools and tips and info about communications workshops in the future, you should check out their home page, www.newstips.org, where you can also sign up for the Workshop's free email list.
 

WHAT? Making the Connection Basic Training

WHEN? Tuesday, June 10, 2008

WHERE? Naperville, IL

Presented by the DuPage Federation on Human Services the session contains practical information in an easy to understand format regarding many programs available to assist low income persons.

Register Here

 
 
 
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