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Education Funding & Fiscal Reform |
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Schools and Kids Need Your Help!
Is Your Senator a Co-Sponsor of 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
SB 2288 makes significant changes to tax
and school funding laws.
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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.
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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.
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The
bill also mandates a $300 million annual
appropriation (indexed for inflation)
for grants to institutions of Higher
Education.
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Increases for Early Childhood education
are phased in, from $45 million in
2009-2010 to $180 million in 2012-2013.
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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.
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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;
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Maintains and
expands grants for high-poverty schools
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The
personal income tax is increased to 5%
(from 3%), and the corporate income tax
is increased to 8% (from 4.8%).
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Family Tax Credits
are provided to single taxpayers earning
less than $26,695 and married couples
earning less than $53,694.
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From the Capitol |
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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
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Constitutional Convention
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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.
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State Finance
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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.
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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:
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·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.
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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.
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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
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Calendar of Events |
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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.
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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Do you have something to share in the
Weekly Review?
Please email Chrissy Mancini
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