Next session dates: April 29 - May 1, 2008
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This week...
Judge Rebukes Governor, Stops Health Care Plan
Cook County Judge James Epstein agreed with Illinois business leaders Greg Baise and Ron Gidwitz in ruling this week that the Blagojevich administration did not have the power to unilaterally expand the state's Family Care program using hundreds of millions of dollars in non-appropriated money to add thousands of additional enrollees. As part of his ruling, Judge Epstein issued an injunction ordering the Blagojevich administration to halt the program and work with the state legislature if he wants an expansion. The Governor was allowed a small seven-day grace period under which the decision can be appealed.
The successful lawsuit, filed by IMA president Greg Baise and Illinois Jobs Coalition chairman Ron Gidwitz as individual taxpayers, sought to prohibit the Governor from creating new programs and fees without approval from the Illinois General Assembly. Despite having his massive health care expansion program rejected by both the General Assembly and Joint Committee on Administrative Rules (JCAR), the Governor chose to move forward and circumvent the legislature.
Fortunately, Judge Epstein put a halt to the Quixotic quest and ruled that the administration had expanded the state's Medicaid program improperly using taxpayer dollars.
If left unchallenged, the expanded coverage would have added more than $400 million annually to an already overburdened state budget. The State Comptroller has already warned that revenues are behind some $750 million this year and the economy continues to worsen along with tax revenues.
The lawsuit challenging the Governor's actions was appropriate and forewarns the legislature that if expanding state-paid health care is to become a reality that a significant revenue source must be identified to pay the costs. The IMA will continue to be the leading voice for fiscal restraint and reforms to balance the state budget without raising taxes.
Lawmakers Applaud IMA, President Greg Baise
On the heels of the Cook County court decision to stop the Governor's unilateral health care program, lawmakers from both parties arose on the floor of the Illinois House of Representatives to recognize IMA president Greg Baise. The IMA appreciates the comments from both Rep. John Bradley (D-Marion) and Rep. Roger Eddy (R-Hutsonville).
Representative John Bradley (D-Marion): "Mr. Speaker, members of the house I'm sure that everyone is aware that yesterday there was a ruling on a constitutional issue involving this chamber and… and the legislative process in Illinois. The courts ruled in our favor on this very important constitutional issue and at this time I want to compliment and thank the Illinois Manufacturers' Association as well as their leader Greg Baise for having the courage and the ability to go forward and try to respect and protect the constitutional integrity of this body and the legislative process."
Representative Roger Eddy (R-Hutsonville): "Thank you Mr. Speaker I just want to take a moment to echo the words of Rep. Bradley. I think that this body, because of the fact that the Illinois Manufacturers' Association and Mr. Baise and Mr. Gidwitz took it upon themselves to defend the process and defend what we do here by using their own resources to go to court to put a stop sign up and recognize the fact that there is a constitutional process we owe them in this body a debt of gratitude for…. for that. In fact I'm not sure we shouldn't be doing more here ourselves to make sure that we stand up to abuse of the process here. Thank you Mr. Speaker."
Structural Work Act on Hold
Legislation (HB 2094) seeking to reinstate the Structural Work Act (SWA) was not called for a vote this week when sponsor, Rep. John Fritchey (D-Chicago), was unable to generate the 60 votes needed for passage. Strongly supported by trial lawyers, the legislation would reenact the Structural Work Act or "Scaffold Act" to allow injured workers to seek damages which are already provided by the Workers' Compensation system. This archaic and duplicative legislation will cost employers nearly $200 million annually.
The Structural Work Act was originally passed in Illinois in 1907 as a means of protecting injured workers. However, less than a decade later, Illinois lawmakers passed the no-fault Workers' Compensation Act that covered more employees and provided wages in additional to medical damages. Most states repealed their SWA when they created Workers' Comp – however, Illinois maintained it because of another law that prohibited an injured party from seeking relief under both laws. That law was overturned in the 1950s and the trial bar began suing under the SWA until its repeal in 1995.
The IMA asks that you call your state representatives as soon as possible and encourage your lawmaker to OPPOSE the Structural Work Act that will make Illinois' economy more hostile to employers.
$90 Billion Health Care Program Passes Committee
Politicians continued playing games with health care this week as the House Health Care Access & Availability Committee passed the Health Care for All Illinois Act on a partisan 8-4 vote. The measure, sponsored by Rep. Mary Flowers (D-Chicago) would essentially create a universal single-payer health care system in Illinois. If passed, the cost of this program would more than double the entire state budget.
One of the most egregious bills to be offered this session, HB 311 seeks to take a page out of Hugo Chavez's socialist playbook and eliminate all private competition in the health care field. The bill would make it unlawful for any private health insurance company to sell insurance coverage that duplicates the state program. Further, the measure would prohibit private investor ownership of health care facilities including hospitals, health maintenance organizations, nursing homes and health care clinics.
The legislation creating the single-payer system for all Illinois citizens sets forth specific health coverage benefits including long-term care and mental health services along with criteria for health care providers and their reimbursement. It establishes one prescription drug formulary and creates a Committee to negotiate the price of pharmaceuticals and durable goods.
The IMA strongly opposes this massive state-run health care program that would cost $90 billion and eliminate competition in health care while doing absolutely nothing about the quality of care.
House, Senate Pass Costly Health Care Mandates
At a time when businesses across the state are facing an economic slowdown coupled with rising inflationary pressures, Republican and Democrat members of the House and Senate continue to force costly health care mandates on the backs of employers. Each mandate increases the cost of health care while doing nothing to address the cost, access or availability of health care.
This past week, both the House (HB 5595) and Senate (SB 2499) voted unanimously to create a new habilitative services mandate over objections from most of the business community. This new mandate that was unfortunately supported by some business groups, will force every business that offers health care coverage for its employees to now cover habilitative services which can last for 19 years so long as a physician claims that patient is "improving." Despite costing tens of millions of dollars, not a single legislator on either side of the aisle stood up to defend the business community.
Additional legislation, SB 1900 (DeLeo, D-Chicago) would require every employer to cover a new autism mandate that could cost nearly $700 million according to fiscal estimates provided in committee. The expensive mandate, which passed the Senate unanimously, would provide nearly unlimited benefits for the full autism spectrum.
Rep. Dan Beiser (D-Alton) sponsored HB 4602 that would require every employer to provide coverage for a shingles vaccine. This bill passed the House by a 107-0 vote.
Businesses make economic decisions on a daily basis. Every time that the Governor and General Assembly add new mandates and increase the cost of health care, it becomes more likely that the company will have to make tough decisions that include increasing employee co-pays, eliminating employee health care, employee layoffs, or postponing investment in the business. The General Assembly needs to immediately stop placing the financial burden on the backs of employers.
E-Waste Bill Passes Senate
The Senate unanimously passed the new Electronic Waste Recycling Act (SB 2313) this week that places new requirements on manufacturers and retailers in order to mandate recycling of residential televisions, monitors, computers, laptops and printers. Sponsored by Sen. Susan Garrett (D-Lake Forest, the aggressive program would establish goals beginning in 2011 along with financial penalties for manufacturing companies that do not comply.
The IMA opposed this burdensome program that offered strict penalties, instead of incentives, to companies who must meet certain goals. In order to meet these goals, companies must rely on consumers to purchase and recycle their products in such a quantity that manufacturers have a chance to meet the goals.
The IMA would like to give a salute to Sen. Randy Hultgren (R-Wheaton), the only member of the Senate to oppose this measure in committee.
House Votes to Increase Teenage Minimum Wage
On a narrow two vote margin, members of the Illinois House of Representatives approved legislation (HB 5141) sponsored by Rep. John Fritchey (D-Chicago) that would increase the teenage minimum wage by 50 cents per hour beginning on January 1, 2009. Under current law, which has been in effect for decades, the minimum wage for employees under the age of 18 years was lower as companies hired and trained young people. It provided an incentive for employers to offer teenagers their first jobs in the workplace.
If passed by the Senate and signed into law by the Governor, the minimum wage for all individuals will be $7.75 per hour with scheduled 25 cent increases each of the next two years.
Employee Privacy Bill Advances
The IMA would like to salute the Democrat members of the House Labor Committee this week who voted in favor of IMA-initiated legislation (HB 4470) that would protect employees from possible identity theft. Under current law, employers who participate in the ETIP job training program are required to submit the names of employees along with their social security numbers. The legislation, sponsored by Rep. Fred Crespo (D-Hoffman Estates) and supported by the IMA would allow a company to submit a certified statement in lieu of social security numbers to protect against identity theft and possible liability.
Stand Up and Be Counted – 2008 Business Day
The IMA fights on behalf of your interests at the State Capitol on a daily basis and has a great track record of success. However, in the past few years, the struggle has intensified as Governor Blagojevich and his anti-business colleagues in the General Assembly have introduced tax, health care, environmental, labor, and tort issues that negatively impact employers.
Individually, each of these issues harm employers but combined they are devastating to the manufacturing community. If the Governor and legislators had their way, there would be no economic incentives for manufacturing companies but plenty of new and expensive mandates.
We need your help on May 7. Come to Springfield for the day and help participate in the 2008 Business Day. Attend issue briefings and personally talk to your elected officials. To hear more, please listen to IMA president Greg Baise personally explain why your attendance is needed at the Capitol.
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