Please Join 

State Senator Heather Steans,

 State Representative Kelly M. Cassidy, 

and the

Title One ESEA/NCLB Parent Advisory Council

Of Sullivan High School 

for a presentation on Cyber Bullying

given by the Assistant State's Attorney, ICAC Task Force Commander Kathleen Muldoon

and

ICAC Member, Detective Al Krok

Wednesday

May 23, 2012 - 6 p.m.

at

Roger Sullivan High School

6631 North Bosworth Avenue, Chicago, IL 60626

Dear Neighbor, 

Much work remains as we near the end of session. We still need to address Medicaid reform, pension stabilization, and the budget. Here's where we are on these three critical issues.

Medicaid

I represent the Senate Democrats in the bi-partisan,

bi-cameral negotiations on Medicaid. We are close to an agreement, and I believe we will have a vote this week. You can check the General Assembly's website here to read the bill which is in House Amendment number 3. The approach we are laying out will be balanced, requiring shared sacrifice to provide a strong, sustainable health care system for our most vulnerable residents for years to come.

Key elements include:

• Numerous cost controls (such as limiting the number of prescriptions without doctor approval) and efficiencies (such as scrubbing the rolls) will be implemented to minimize the elimination of people or services they can receive;
• Provider rate reductions will be generally under 3%, with safety net and critical access hospitals protected from any rate cuts;
• New reimbursement methodologies, service delivery systems, and incentives are included to better coordinate care and emphasize prevention to reduce higher cost treatment later; and
• New revenue.

This will not be easy legislation to pass and the reductions

will be felt by real people. Our goal throughout discussions is to do the least harm to the fewest number of people and ensure providers share in the sacrifice. Funding for the Medicaid program became a crisis this year because we underfunded it: by the end  of the current fiscal year the state is projected to have $1.9 billion in unpaid Medicaid bills on hand. We must make difficult decisions now to prevent even deeper cuts that cause far greater pain if we continue to deny the fact that we must stabilize Medicaid spending.

Pensions

The leaders and caucus representatives are engaged in daily negotiations with employees and their unions, school districts and other local governmental units, and numerous other stakeholders to reform our employee pensions systems. Elements that may be included in any pension legislation include increasing the retirement age, increasing contributions, and changing cost of living adjustments to simple rather than compounded interest for at least some portion of benefits. While employees have made all payments that were due, changes will be needed to ensure pension security. 

Budget

The Senate and House passed a resolution agreeing that there is $33.7 billion in General Fund Revenues available to spend this year. Friday the Senate Democrats presented their budget plan to live within this revenue. It's a balanced plan that pays down $1.3 billion in unpaid bills while minimizing cuts to critical programs.             

 Highlights of this plan are:

•  $1.3 billion is set aside to pay old bills, largely paid from non-GRF sources ($400 million from unused Other State Funds accounts, $150 million from reducing GRF statutory transfers out, and $500 from federal matching dollars to pay Medicaid bills).
• Pension payments and debt are fully funded.
• $2.7 billion in Medicaid reductions are presumed.
• K-12 education is protected, with spending the same as the current fiscal year.

This plan leaves $16.85 billion for discretionary spending in all program areas aside from Medicaid. The table below shows how this discretionary spending compares to the current year, the Governor's introduced budget and the House plan based on the budget allocation plan this chamber passed.

As noted, the Senate Democratic proposal is $248 million less than the Governor's introduced budget and $552 million more than the House's proposed budget. The Senate Democratic proposal is balanced, protects our priorities, and has responsible cuts. This coming week we will begin to negotiate with the other caucuses once the Medicaid reform package is complete (a first needed step to solidify what dollars are available for all other spending).

Please let me know if you have questions, concerns, or

suggestions on these or any other items. You can reach me by email at hsteans@senatedem.ilga.gov or by phone at 773-769-1717.

Best regards,

Heather A. Steans