As the unifying voice for business in Illinois, the Chamber pursues an aggressive agenda in Springfield. Working closely with member businesses, our full-time Government Affairs representatives strive to make state government more business-friendly and the Illinois business climate more competitive.
Government Affairs Team
Left to right: Tom Wolf, Connie Beard, Jay Shattuck, Doug Whitley, Todd Maisch, Andrew Proctor, Laura Minzer, Sarah Frye and Gideon Blustein.
Government Affairs Report 
*Take a look at Labor’s proposed tax increases here.
May 18, 2012
Tick Tock Tick Tock…
The ever present countdown to adjournment keeps on ticking as legislators try to resolve major issues before May 31. As we’ve mentioned before, negotiations on how to reform Medicaid and pensions have been ongoing for the last few weeks. Since Medicaid has to be dealt with first, leaders are especially wary of the time remaining before a three-fifths majority is needed to pass any legislation in overtime session. Although the House cancelled session Friday and Sunday, staff is working around the clock to have a concrete Medicaid proposal in bill form by early next week.
The latest drafts meet the $2.7 billion goal by including a mix of revenue by way of a cigarette tax increase and savings achieved through base cuts, eligibility and care coordination reforms, strengthening waste/fraud/abuse mechanisms, rate reductions to providers and increased hospital assessment revenue. Also incorporated are the savings achieved by the 2011 Medicaid reform law that has not yet been accounted for in the budget.
The Chamber identified several points of opposition in the Governor’s initial proposed reductions, including:
- proposed cigarette tax increase,
- proposed private coverage mandate for children with specialized needs that impose a substantial cost increase on individual and small group policies,
- steep rate reduction to providers.
While we continue to oppose the cigarette tax increase, we hear that it will be run in a separate bill from the other Medicaid cuts and reforms. The latest draft also calls for a smaller rate cut to providers and the private coverage mandate is not included.
Meanwhile, pensions have taken a backseat to Medicaid but negotiations still continue. Several different proposals have been floating around regarding the retirement age, cost of living allowances and how much state employees would contribute. Speaker Madigan also introduced amendments that fund a cost shifting employer pension costs from the state and onto suburban and downstate school districts with money from the corporate Personal Property Replacement Tax. The amendments were scheduled for House Executive committee this week but Speaker Madigan did not call them. There is a chance that pension reform could be delayed until veto session which would occur after the November election.
Minimum Wage Increase Update
Senator Lightford passed her minimum wage increase legislation out of Senate Executive committee on Wednesday on a 9-4 vote. The Chamber was present at the committee to testify in opposition. Senator Lightford is supposedly holding the bill for more discussion but we will keep a watchful eye on this job-killing bill.
SB1565 raises the state’s minimum wage to $10 an hour. This is a 21% increase in labor costs to many Illinois small businesses. The legislation also indexes the minimum wage with inflation. This would guarantee annual increases and continue to place Illinois employers at a competitive disadvantage with the rest of the nation. Illinois currently has the third highest minimum wage in the nation at $8.25 an hour and the highest corporate income tax rate in the industrialize world.
Gaming Proposals Make Late Session Appearance
Towards the end of session each year, you can more than likely guarantee that gaming proposals will be floated around once again. This year is no different. Earlier this week Senate President Cullerton introduced an amendment to create an internet gaming division within the Illinois Lottery. Amendment 2 to HB4148 allows for an online poker site that could create internet gambling throughout the world through Illinois. With Illinois being the first state to offer lottery tickets online, this would give Illinois the advantage of being the first to offer internet gaming that would create more revenue.
Other Democratic leaders are pushing for another gaming proposal similar to the one passed last year. SB1849 would add five new casinos, expand gaming positions at existing facilities and add slot machines at horse racing tracks. Proponents pushing for this legislation say it would create roughly $200 million in revenue annually and add over 20,000 jobs to the state. Many also believe that the slot machines at horse tracks would be a key component to passing this proposal in both chambers. Governor Quinn has previously stated his opposition to slot machines and other gaming expansions. We’ll have to wait and see whether these proposals have time for negotiations with the other major issues still waiting to be resolved.
Illinois Receives Additional Federal Dollars for Health Benefits Exchange; Feds Call for Exchange Blueprint by November
Despite the state’s stalled efforts to pass legislation implementing the Illinois Health Benefits Exchange prior to the Supreme Court’s ruling on the Affordable Care Act (ACA), Illinois was one of six states to receive additional Exchange establishment grant funding. The additional grant of $32.8 million brings Illinois total to $37.9 million in Level One dollars. U.S. Department of Health and Human Services’ announcement this week also included another Level Two award to the state of Washington, which besides Rhode Island, is the only other state to receive the award; a testament to the slow pace at which states are proceeding on the implementation and establishment of these exchanges.
In addition to the grant announcement this week, HHS is also directing states seeking to operate a state-level exchange or a state-federal partnership exchange to submit a complete Exchange Blueprint by November 16, 2012. HHS must sign off on the blueprint for the state-level exchange or state-federal partnership exchange in order for the state to begin operation of an exchange by January 1, 2014.
Although the future of the ACA and the exchange is still uncertain, HHS has put into place a number of options for states to pursue while the nation awaits the Supreme Court’s decision and perhaps even the outcome of November’s Presidential Election.
The Department’s release of final regulations on the exchange earlier this spring outlined a state-federal partnership option to give states that have made some progress towards an exchange, like Illinois, the opportunity to use federal resources for exchange functions like qualified health plan certifications and eligibility determinations until the state has the opportunity to fully implement their own exchange. Prior to the issuance of the final regulations, the Department also gave states exchange funding flexibility by extending the Level Two funding deadline from June 29, 2012 to December 31, 2014.
Illinois’ Department of Insurance states that they will use the additional Level One funding to put into place an exchange design management team, continue development of a Consumer Assistance Portal and a Navigator education and training program, and also secure an integrated eligibility vendor. The additional funds will also go towards ongoing analysis of the state-partnership exchange option and other exchange-related provisions, including the development of an Essential Health Benefits package.
Playing the Waiting Game on Other Chamber Initiatives
We’re still pushing for our Chamber initiatives but expect them to move in the last few days of session.
- Procurement: there was another procurement meeting this week with legislative staffs, governor’s office and CPO office. Much of the discussion was not pertaining to any of the changes we’re seeking but have been assured that the draft amendment previously circulated will remain intact. Legislative staff anticipates one more meeting to finalize the procurement omnibus amendment.
- Tax Tribunal: the amendment containing the language for the Tax Tribunal has been drafted and we are waiting for it to be filed in the House.
- Air Regulation Standards: SB3672 expands existing rulemaking authority that is currently used at the state level to adopt federal land regulations to a very narrow set of air regulations: ambient air quality regulations. When the U.S.EPA adopts certain federal regulations, the IL Pollution Control Board uses a streamlined process to adopt those same standards at the state level. This has already passed the Senate and sits on House 3rd Reading.
Next Week:
Next week the House and Senate return on Monday for the final two weeks of scheduled session. Friday, May 25 is 3rd Reading Deadline and the countdown until scheduled adjournment is at 11.
