August 3, 2010

RML Specialty Hospital is pleased to announce that on Tuesday, July 20, 2010, Governor Pat Quinn approved Senate Bill (SB) 3743 – requiring the Department of Healthcare and Family Services to create the Long-Term Acute Care Hospital (LTCH) Quality Improvement Transfer Program. This Act (PA 096-1130) takes effect Friday, October 1, 2010.

With the approval of PA-096-1130, it increases accessibility to care in LTCHs which specialize in caring for patients who need ventilator treatment, wound care and who have medically complex conditions.  PA–096-1130 is expected to not only improve health outcomes for seriously ill patients, but reduce Medicaid spending by almost $10 million annually.

“Considering the benefits to patient outcomes and the projected cost-savings, establishing a program that would transfer patients who need really intense, extended care to a facility dedicated to caring for their specialized needs creates a win-win situation,” said State Sen. Christine Radogno (R-Lemont), the lead sponsor of the legislation.

Read more: Bill signed to improve specialized care for Illinois' sickest patients

July 30, 2010

Illinois Democrats plan to raise the state income tax by 66 percent in January, Governor Pat Quinn's budget director has told Bloomberg Businessweek.

“We’re going to pass a tax increase in January. We expect it is going to be substantial,” Quinn budget director David Vaught is quoted as telling the national business publication.

Vaught said an increase from the current 3 percent to 5 percent is likely. It would cost taxpayers $6 billion and would be the largest tax hike in Illinois history.

In 2009, Democrats in the Illinois Senate approved a similarly-sized tax increase, but the House has not acted on that increase. It's unclear from Vaught's remarks if he was referring to that increase – which could yet be passed by the House – or if he was referring to a new proposal.

Senate Republicans have consistently said raising taxes would hurt consumers and could have a deadly effect on job-creation at a time when Illinois is already suffering from some of the highest unemployment rates in the nation. Republicans also point out that any tax increase, without core reforms to state government, will only offer temporary relief and lead to even more tax hikes in the future.

The Illinois Chamber of Commerce recently honored Sen. Radogno with its “Champion of Free Enterprise” award. The award is given to Illinois lawmakers whose voting records demonstrate a commitment to the state’s employers and support of legislation that stimulates economic growth.

“One of the most important things I do as a lawmaker is support initiatives that will bring jobs to Illinois. The best way to grow jobs is to support the business owners who employ Illinois residents,” Radogno said. “I’m proud to receive this recognition. Moving forward, stimulating employment and supporting economic development is the key to Illinois’ financial recovery.”

The Illinois Chamber of Commerce recognizes legislators with the Champion of Free Enterprise Award if over the past three legislative sessions he or she had an average of 85 percent or better voting record on pro-jobs issues.

Illinois taxpayers got an $8 million taste during the week of just how expensive poor fiscal management can be.

State Senator Radogno explained that the Quinn administration took out a short term loan in mid-July and -- even though federal treasury rates have been cut nearly in half -- the state will end up paying about $8 million more in interest when compared to a similar loan taken out last year.

The key difference is that Illinois has seen its credit rating plummet. One major credit rating agency ranks Illinois as tied for worst in the nation with California, while two other agencies have Illinois just one notch above California. The state has had eight credit downgrades since Quinn replaced impeached Governor Rod Blagojevich.

Also during the week, Radogno said dozens of measures were signed into law as the deadline for the Governor to act on legislation passed during the spring legislative session nears.

And, in another development, a conservative think-tank is calling for reform of the state's "fiscal note" process to make it more effective in helping legislators estimate the true cost of new laws. At least one Republican senator has already agreed to sponsor the legislation.

In regards to the state borrowing, a short-term state loan recently drew an interest rate of 2.11%, which is nearly a full percentage point, or more than 80 percent higher, than a similar loan taken out in August of 2009. That's despite a U.S. Treasury rate of about .26% or almost half of the 2009 one-year U.S. Treasury rate of about 5%.

The short-term loan of $1.3 billion carries with it about $19 million in interest—which is an $8 to $9 million premium that can be attributed to the state’s lower credit score.

Meanwhile, the Illinois Policy Institute is advancing a reform that would make the state’s fiscal note process a more meaningful tool to highlight the impact legislation has on Illinois’ finances.

Fiscal notes are incorporated into legislation as a way to estimate the cost of the initiative, as well as any savings, revenue gains or losses that may result from the proposed bill becoming law. Unfortunately, Illinois’ fiscal notes often fail to provide accurate estimates.

As a result, it’s often difficult if not impossible for legislators and the public to determine what a bill’s true cost will be. The proposed reform would require fiscal notes whenever the proposed legislation involves spending or taxation; include a minimum five-year forecast; and would have to be authored by a neutral source, not the state agency that will be impacted by the legislation.