Illinois will not meet a court-set deadline Tuesday to increase spending on backlogs of Medicaid payments, pushing the problem off until the end of the month as the state’s unprecedented budget impasse is on the verge of entering its third straight fiscal year.
Medicaid talks will continue past Tuesday, with a new deadline set for June 28 — just two days before the final deadline for the state legislature to agree on a spending bill during a special session, an attorney said late Monday. The new fiscal year begins July 1.
Illinois owes Medicaid providers $2 billion for care provided to more than 3 million people — a small sum compared to the state's total unpaid bill of $15 billion — or 40 percent of Illinois' operating budget. After being unable to pass a spending bill for two straight fiscal years, the state has been functioning on appropriations since 2015.
Failure to strike a budget agreement by the end of the state legislature’s annual session on May 31 resulted in a critical credit downgrade for the country’s fifth largest state to Baa3, the lowest of any state and only one level above non-investment grade — also known as junk. Illinois has received 8 downgrades in as many years and most states are rated at least 8 levels higher, according to Moody’s.
The state’s backlog of unpaid bills will skyrocket to $28 billion by June 2019 without a deal, Moody’s predicted, which would rack up even more interest and penalties than what is already owed. Even if a deal is reached, state debt and taxpayer dues will both likely increase.
Additionally, the state currently has more than $250 billion in unfunded pension obligations, annual payments of which could be cut if a deal isn’t struck — a scenario that Moody’s warned would be a negative credit event for bondholders.
The state legislature’s special session begins Wednesday and will take place over 10 days. The impasse between the Democratic-controlled legislature and the Republican governor has paralyzed the state so severely that Gov. Rauner even compared Illinois to a “banana republic” earlier this month because it cannot manage its finances.
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LawyerLady
I can explain it to you, but I can't understand it for you.
Yep it's bad in many states. Mass is having issues as well. They kick the pension can down the road. They should switch every state worker over to a 401K. In 20-30 years the pension system will be done. The liberal states have the worst financial issues. Pretty telling.
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Sometimes you're the windshield, and sometimes you're the bug.
Liberal finances don't work. You can't make half the people pay for everything - there just isn't enough people to take from for all the entitlements they have created.
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LawyerLady
I can explain it to you, but I can't understand it for you.
Born and raised in Illinois - lived there my whole life.
My issue is that we are already paying some of the highest taxes and what is it getting us? We have terrible roads and infrastructure. Every dollar is sucked into a bottomless pit with no end in sight. It will never be enough. If we pay more it will just dissapear and we will still be in the same mess.
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Born and raised in Illinois - lived there my whole life.
My issue is that we are already paying some of the highest taxes and what is it getting us? We have terrible roads and infrastructure. Every dollar is sucked into a bottomless pit with no end in sight. It will never be enough. If we pay more it will just dissapear and we will still be in the same mess. .
My only suggestion is to move out before it gets worse. Because it will.
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Sometimes you're the windshield, and sometimes you're the bug.
Speaking of pensions, when Pat Summit died, she named her 25 yr old son the beneficiary of her pension. He will receive $14,000 a month for the rest of his life. I think that it is crazy that someone can name a child the beneficiary of their pension. The only exception I can think of would be for a handicapped child.
Speaking of pensions, when Pat Summit died, she named her 25 yr old son the beneficiary of her pension. He will receive $14,000 a month for the rest of his life. I think that it is crazy that someone can name a child the beneficiary of their pension. The only exception I can think of would be for a handicapped child.
Someone I know is named as the beneficiary of her mother's school teacher pension. It is insane.
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Sometimes you're the windshield, and sometimes you're the bug.
