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This week...
Blagojevich Tries to Circumvent Legislature
After suffering several defeats in the General Assembly this spring, including recently being excluded from budget meetings by the four legislative leaders, Governor Blagojevich sought to strike back by announcing a plan to circumvent the legislature and create a massive new $500 million health care expansion by executive order and administrative rule. With Senate President Emil Jones (D-Chicago) at his side, Governor Blagojevich, ignoring the will of the General Assembly, indicated that he would cut nearly $500 million from the state budget and commit those resources to new health care programs.
In his press release, Blagojevich acknowledged that the current budget does not have the necessary funding and pledged to work with the House and Senate to "ensure adequate revenue is in place." In essence, the Governor is seeking to implement the massive health care expansion without legislative approval and then come back to seek a tax hike (Gross receipts tax, payroll tax) to fund it.
This move comes only a week after the General Assembly passed a new state budget to fund the basic operations of state government for the coming year. The new budget (HB 3866), that passed overwhelmingly in the House (98-8) and Senate (52-5), was agreed upon after nearly three months of overtime session caused by the Governor's failure to negotiate with the legislative branch.
At the press conference, Senate President Emil Jones' statement that he will act unilaterally and not call any motion to override the Governor's line-item vetoes is an indication that he did not bargain in good faith and broke a pledge to the other three legislative leaders. Jones' action comes the day after Governor Blagojevich broke a campaign pledge and signed a nearly10 percent legislative pay raise for himself and legislators. The pay hike was one of Jones' top priorities.
Based on public statements, the Governor plans to ask state agencies to change administrative rules and will issue an executive order creating the new $500 million program. Under this scenario, the Governor will circumvent the legislative process that requires a majority of legislators in both the House and Senate to approve his plan. Under the Governor's plan, the rules will be heard by the bipartisan and bicameral 12-member Joint Committee on Administrative Rules (JCAR) where it takes 8 votes to block the plan from taking effect.
While the Governor has the constitutional authority to use the line-item veto on the state budget, he does not have the authority to add additional money to the budget or create new programs without legislative authority. In public remarks, House Speaker Michael Madigan called the plan "contrary to the Constitution" because of the stated goal to increase spending above what the legislature authorized. The Governor's announced actions appear to be a clear violation of his powers and are designed to insult and antagonize the legislative branch. A protracted legislative fight and possible judicial challenge could await.
Governor's Health Care Proposal
The massive expansion of state health care programs, as proposed by the Governor, includes five specific provisions that will enhance coverage for more than 700,000 Illinoisans:
- $50 million to expand the Illinois Breast and Cervical Cancer Program to all uninsured residents of the state. Provides screenings and treatments for participants.
- $15 million to expand the All Kids program to subsidize premiums for children between the ages of 19 and 21 years of age.
- $200 million to create the Illinois Covered Assist program that will provide primary care, prescription drugs, hospital services, and disease management for
uninsured Illinoisans under 100 percent of the federal poverty level.
- $155 million to provide annual health care premium subsidies for individuals or families earning up to $61,950 per year. Subsidies will be capped at $1,000 annually.
- $43 million to expand the Family Care program to provide assistance to families making up to $82,600 annually.
This decision by the Governor is simply a continuation of severely underfunded state programs that will haunt the state in the future. While health care is a very laudable goal, this massive expansion comes at a time when the state cannot afford its current fiscal obligations including billions of dollars owed to the state pension systems and health care providers. The IMA has and will continue to help offer reasonable solutions that will help solve the fiscal crisis.
Governor Breaks Promise, Signs Pay Raise
Less than a year after being sworn in for a second term, Governor Rod Blagojevich broke a second major campaign promise and signed into a law a nearly 10 percent pay raise. Blagojevich waited until midnight on August 13 to sign the appropriations bill in order to avoid the media spotlight. The Governor earlier broke a campaign promise not to raise taxes on Illinois families by seeking a nearly $9 billion gross receipts tax and $1 billion payroll tax that would have hurt Illinois employers, workers and consumers.
Under Illinois law, legislative pay raises as recommended by a Compensation Commission, take effect unless both the House and Senate vote to deny the raises. Last year, the Illinois House of Representatives, led by Speaker Michael Madigan (D-Chicago) voted against the pay raises citing the state's poor fiscal condition. However, Senate President Emil Jones, who publicly advocated for the pay hike, refused to allow it to come for a vote before the Senate thereby all but guaranteeing the pay raise.
It is very unfortunate that Governor Blagojevich and Senate President Emil Jones acted irresponsibly to hike their own pay at a time when the state severely underfunds its pension system and owes billions of dollars to health care providers.
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