Capitol Recap: Pritzker signs $46B budget into law | Govt-and-politics

The plan includes $500 million beyond statutory requirements to the state’s beleaguered pension funds; $1 billion to the state’s “rainy day” fund which currently has a balance of just $27 million; and an estimated $1.8 billion in tax relief, much of which is temporary.

The budget also includes a one-year suspension on the state’s grocery tax ($400 million), a one-time 5% property tax rebate up to $300 per household ($520 million), and a 10-day sales tax holiday for back-to-school items and clothing from Aug. 5-14 ($50 million).

Another $685 million would fund one-time direct rebate checks at $50 per individual and $100 per dependent, up to three, for individuals earning $200,000 or less or joint filers earning $400,000 or less.

While that relief was temporary, the budget also permanently increased the earned income tax credit from 18 to 20% of the federal credit while expanding the program to noncitizens. That program would cost about $100 million.

The state’s statutory annual motor fuel tax increase will be delayed for six months this year, costing about $70 million.

Republicans in the General Assembly opposed the spending portions of the budget but largely supported the tax relief proposals, even though they criticized them as being temporary.

While Democrats have generally praised themselves for fiscal stability, Pritzker’s Department of Revenue in a February committee presentation noted that much of the unforeseen state revenue growth was a result of pandemic-related shifts in consumer spending and other federal aid, either directly or indirectly.

Revenues for the current fiscal year were about $5 billion higher than originally budgeted last year, creating surpluses that allowed for the flexibility in the FY 2023 spending plan.

The revenue windfalls have created the opposite reality of one that Pritzker had predicted would come to fruition if voters rejected his graduated income tax proposal in November 2020. After that initiative failed Pritzker said “painful” budget cuts were unavoidable.

Rep. Tom Demmer, R-Dixon, who is a candidate for state treasurer, contrasted the governor’s dire warnings with the financial picture put forth by Democrats in an election year that will see every statewide office and seat in the General Assembly up for grabs.

“You were bailed out by billions in additional funding from the federal government in Medicaid matching funds. You were bailed out by, across the country, trillions of dollars that were injected into our economies that led to higher-than-expected collections in revenue for the state temporarily,” he said during floor debate.

Democrats, on the other hand, have tried to paint Republicans as voting against fiscal stability.

As well, in an election year in which Republicans are relentlessly campaigning on a platform that pits Democrats as weak on crime, Sen. Elgie Sims, a Chicago Democrat, accused Republicans of voting to “defund the police.”

Democrats touted $240 million in spending – $235 million of which came from federal American Rescue Plan Act funding – for violence reduction programs; funding for 300 additional Illinois State Police troopers; $30 million for the Violent Crime Witness Protection Program; $30 million for police body camera grants; $20 million in grants for less lethal devices and training; $10 million for a local law enforcement retention grant program; and $20 million for cameras and automatic license plate readers on state routes, among other public safety spending.

CREDIT UPGRADE: Illinois on Thursday received its second credit rating upgrade from Moody’s Investors Service within one year, moving up one notch but remaining in the worst shape of the 50 states.

It’s the third upgrade between the three major credit ratings agencies during Pritzker’s tenure.

The upgrade to Baa1 status, or three notches above what is referred to as “junk bond” status, reflects “solid tax revenue growth,” which allowed the state to bolster financial reserves and increase payments toward unfunded liabilities, according to Moody’s.

The upgrade to the general obligation bond rating likely means lower interest costs when the state borrows money.

“Higher credit ratings result in the elimination of wasteful spending, and they mean that we will have more resources for education, for health care, public safety and future tax breaks,” Pritzker said in a news conference called after the Moody’s announcement.

Pritzker credited the upgrade to the recently passed $46 billion state operating budget, and the fact that the state dedicated an added $500 million to its pension system and retired $900 million in other interest-accruing health insurance debts.

The budget dedicated $1 billion to the state’s “rainy day” fund and created an ongoing $3.75 million monthly contribution to the fund beginning in July 2023.

The pension investment is expected to reduce unfunded liabilities in the pension system by about $1.8 billion. At the end of 2021, the Commission on Government Forecasting and Accountability pegged that unfunded liability at about $130 billion.

While the pension investment indicated an “increased commitment to paying its single-largest long-term liability,” according to the report, the remaining liability precluded a more substantial upgrade.

As well, the report noted, Illinois’ economy has routinely expanded at a slower pace than the nation at large in recent years, as evidenced by its 4.7% March unemployment rate compared to a 3.6% rate nationwide.

Comptroller Susana Mendoza, a frequent critic of former Gov. Bruce Rauner who presided over eight credit downgrades between the three major agencies, said the state began making fiscal progress prior to the direct receipt of federal funds.

An unpaid backlog of bills overseen by the comptroller’s office that once reached nearly $17 billion under Rauner now sits within a 30-day billing cycle from the date vouchers are received by the comptroller’s office.

MEDICAID EXPANSION: A bill that would expand Medicaid coverage to otherwise ineligible noncitizens is now awaiting Pritzker’s approval.

That provision was part of an “omnibus” Medicaid bill, House Bill 4343, that passed through the General Assembly on the final day of the session.

And while Medicaid bills are traditionally worked out in a bipartisan “working group,” this one drew strong opposition from Republicans because the language about noncitizens had never been discussed in any public hearing or working group meeting.

Sen. Ann Gillespie, D-Arlington Heights, who chairs a Medicaid subcomm
ittee, defended the process and said there were other provisions of the bill that were negotiated outside the working group.

She said the bill clarifies statutory language to help providers and meets a goal of expanding health care coverage amid the pandemic to “make sure that we’re taking care of as many people as we can.”

In 2020, Illinois became the first state to offer coverage for undocumented noncitizens by extending it to those 65 and older who would otherwise qualify for Medicaid if not for their immigration status. In 2021, lawmakers lowered the age limit to 55. This year’s bill lowers the age limit even further to 42.

In addition, Illinois does not apply a citizenship requirement for children under age 18 or pregnant women, including up to 60 days postpartum.

Medicaid is a government-funded health care program for low-income individuals and families. It is jointly funded with state and federal dollars and is administered by the state under federal guidelines.

Under federal rules, certain categories of noncitizens can qualify for Medicaid if they are lawfully present in the country. Among those are green card holders, asylees, refugees and members of federally recognized Native American tribes who were born in Canada. Those individuals typically must be U.S. residents for five years before they become eligible.

But federal rules do not allow for coverage of those who are not lawfully present in the U.S., which means the federal government will not reimburse for their care and all costs of covering those individuals must be paid solely with state dollars, estimated at $68 million a year for the latest expansion.

DCFS CONTEMPT: A Cook County judge found DCFS Director Marc Smith in contempt on Thursday.

It’s the ninth time this year that Smith has faced contempt citations for failing to place children in settings that comply with the agency’s recommendations and court orders.

The latest case involves a 15-year-old boy with special needs who remains in a locked psychiatric unit despite a medical release on Jan. 31. The court ordered on March 14 that DCFS move the child to an appropriate placement by March 25. DCFS had not moved the child as of Friday.

Cook County Public Guardian Charles Golbert represents the boy in court and stated DCFS failed for months to schedule a neuropsychological exam to assess the boy’s special needs.

Pritzker’s spokesperson, Jordan Abudayyeh, said Pritzker and Smith share the judge’s frustration with lack of appropriate placements.

“DCFS is working hard to find placements for these vulnerable children with special needs. Tragically, when Gov. Rauner decimated social services, we were warned that it would be much easier to lose the 500 beds he destroyed than to recreate them again. Advocates warned that these services weren’t like a light switch that could be turned on and off with ease,” Abudayyeh said.

Golbert said the hope is the contempt citations will drive change within the agency, including removing children from inappropriate and harmful settings. Golbert said there are empty beds at existing group homes and residential facilities, but they are not appropriately staffed.

In the long term, Golbert said, DCFS needs to expand placement across the board, but especially in specialized foster care.

Gov. Pritzker’s budget set aside $250 million to hire additional staff, increase rates for DCFS’ private partners and create new residential capacity, Abudayyeh said.

“Since taking office, the governor increased DCFS’ budget by over $340 million with DCFS launching aggressive hiring efforts to bring on hundreds of additional staff,” she said. “The administration inherited a DCFS with outdated technology and inadequate trainings. Since then, technology has been overhauled and trainings and retrainings have taken place for every DCFS staff member.”

The contempt citations, child deaths and death of a DCFS investigator have drawn scrutiny from the legislature and the public.

Pritzker has been asked on multiple occasions about his confidence in Smith’s leadership at DCFS, most recently on April 9, saying that every time a challenge arises, the answer is not “let’s toss out the director.”

In Illinois secretary of state race, AFL-CIO stays neutral

LABOR BOARD APPOINTEE: Former Illinois Prisoner Review Board member Jeffrey Mears, who failed to receive confirmation for that post from the Illinois Senate last month, has been appointed to the Illinois Labor Relations Board.

Pritzker made that appointment Thursday, setting Mears up to face another Senate vote in the next General Assembly.

The Illinois Labor Relations Board certifies collective bargaining units. It also investigates and remedies unfair labor practices by public employers and unions, assists with arbitration and mediation to resolve labor-related disputes, and conducts emergency investigations of public employee strikes.

Before serving on the Prisoner Review Board, Mears was employed as a union painter for the Department of Corrections for nearly 20 years, but also served as a hostage negotiations coordinator, the negotiations team and statewide audit review team.

“His experience in de-escalation and crisis intervention speaks to his skills in collaboration, communication and thoughtful approach to complex issues and we look forward to his continued service to the state of Illinois,” Pritzker spokesperson Jordan Abudayyeh said.

Mears’ new appointment to the Labor Relations Board comes with a nearly $98,000 salary.

Mears was one of six members to leave the Prisoner Review Board in recent weeks after the appointment process came under scrutiny by Republican members of the Senate.

PRB member Oreal James resigned. Eleanor Kaye Wilson, along with Mears, failed to win Senate confirmation. Pritzker pulled his appointment of Max Cerda, who had been convicted and served time for a double murder before his release from prison and his working with offenders.

Senators voting against Mears and Wilson cited some of their votes to release controversial individuals. Senate Republicans long raised concerns about the number of PRB members who were voting on offender releases without being confirmed by the Senate. Those releases included offenders convicted of rape and murder, killing police officers and the murder of children.

In addition to 18 Republicans who voted no on Mears’ appointment to the PRB, 18 Democrats did not vote. Sen. Patrick Joyce, D-Essex, joined the GOP and voted no.

Mears served on the Prisoner Review Board for a year, making decisions on 40 cases involving the release of those serving time in the Illinois Department of Corrections. He received an annual salary of roughly $90,000.

PUBLIC TRANSIT MASKING: Pritzker officially lifted the state requirement that face coverings be worn on public transportation Wednesday after a federal judge overturned the U.S. Centers for Disease Control and Prevention mask mandate.

U.S. District Judge Kathryn Kimball Mizelle of the Middle District of Florida ruled on Monday that the federal mask mandate was unlawful since it exceeds the authority of the CDC. The ruling comes about a week after the CDC extended the mask mandate through May 3. The Biden administration announced Wednesday it would appeal that ruling, however.

Regardless, masks are no longer required on public transit, in public transit hubs or at airports, but local governments still have the right to maintain their own face covering requirements on public transportation.

Pritzker’s order now only requires masks where they are federally mandated, as well as in congregate facilities and health care settings.

Following Pritzker’s announcement on Tuesday about revising mask requirements, the Chicago Metra and CTA announced that masks will no longer be required, effective immediately. The Chicago Department of Aviation, which oversees O’Hare and Midway International Airports, also announced that masks are no longer required.

A number of major U.S. airlines such as Delta, United and Southwest immediately dropped the requirement following the court ruling as well.

The CDC continues to recommend face coverings for those who are immunocompromised, people who can’t be vaccinated and in areas of high transmission.

The Illinois Department of Public Health reported 3,931 confirmed and probable cases of COVID-19 and nine deaths on Wednesday, the highest one-day case count since Feb. 11. There were 568 individuals hospitalized for COVID-19 as of Tuesday night, 61 in intensive care beds and 29 on ventilators, all of which remained near pandemic lows.

More than 21 million vaccine doses have been administered with about 73% of Illinois residents age 5 and over fully vaccinated against COVID-19.

VACCINE MANDATE RULING: A state appellate court ruled last week that it will not block enforcement of the Pritzker administration’s mandate that certain categories of public employees either be vaccinated against COVID-19 or undergo regular testing.

The 2-1 ruling by the 4th District Court of Appeals upheld a Sangamon County judge’s decision on April 1 not to issue a temporary restraining order blocking enforcement of the policy.

The decision involved three consolidated cases in which public employees are seeking to overturn the mandate. The cases include suits against Gov. Pritzker, various state agencies, the Pekin Fire Department and the Deland-Weldon school district.

Pritzker first issued a vaccine mandate on Aug. 26, 2021. The employees sued to block enforcement of the order citing the state’s Health Care Right of Conscience Act which, among other things, makes it illegal to discriminate against anyone for refusing to receive any particular form of health care that they find contrary to their conscience.

That law was originally enacted to shield health care workers from liability for refusing to perform or assist in abortions. During last year’s fall veto session, however, lawmakers passed an amendment to that law making a specific exception for health care measures that are intended to prevent the spread of COVID-19.

That provision does not officially go into effect until June 1. But lawmakers inserted language in the measure stating the section “is a declaration of existing law” rather than a new enactment.

In other words, the General Assembly said it was only clarifying something that was ambiguous in an existing law, which in this case involved the word “discriminate.”

In its ruling Wednesday, the 4th District appellate court said it would only be discriminatory if an employer punished workers who refused to be vaccinated or tested as a matter of conscience but did not punish those who refused for other reasons.

The vaccine and testing requirements, the court wrote, could actually be seen as merit-based policies because those who are vaccinated or tested are less likely to spread COVID-19 in the workplace.

The plaintiffs also challenged the vaccine and testing mandates under the Illinois Department of Public Health Act, which gives that agency “supreme authority in matters of quarantine and isolation.”

But the appellate court rejected that argument as well, saying that the employers in the three cases had not quarantined or isolated anyone, but had instead only threatened loss of employment.

“To be fired is not to be quarantined or isolated from the community at large,” the majority wrote.

The opinion was written by Justice Peter Cavanagh, with Justice James Knecht concurring.

Justice Robert Steigmann wrote a dissenting opinion. He argued that the word “discriminate” has a clear and understandable meaning and that the legislature included in the statute numerous examples of the kinds of discrimination that are prohibited.