October 24, 2008

Governor Holds Funds for State Historic Sites and Parks Hostage

The governor continues to hold onto funds for various state programs and services, despite legislative efforts to restore some of the $1.4 billion he carved out of the FY 2009 budget earlier this year.  Legislators specifically returned to Springfield in late September to approve SB 1103 providing for these budget restorations, including $4.5 million needed to keep a number of state historic sites and state parks from shuttering their doors at the end of November.  The House and Senate also approved special state funds sweeps legislation in order to pay for those restorations earlier this month.

Although the governor quickly signed SB 790 authorizing the transfer of $221 million out of dedicated state funds, the companion legislation- SB 1103- providing the spending authority necessary to prevent those budget cuts from going into effect still remains on his desk.  Governor Blagojevich indicated earlier this week that he may not sign the legislation due to the instability of the national economy and the uncertainty as to whether the state’s budget can weather the economic downturn, warning that more budget cuts may follow.

If the governor fails to restore the budget cuts, 13 state historic sites and 11 state parks will close on November 30th.  A number of health and human service-related programs have already been forced to make drastic cuts and in some cases, end services altogether.  Critics argue that the transfers out of special state funds to pay for the budget restorations are insulated from the downward trends in the economy and the governor is merely playing politics yet again.

The Chamber worked closely with legislators to pare down the funds sweeps legislation to protect certain critical state funds, such as the LUST Fund, from being swept.  The Chamber has also worked with local chambers and historic preservation community organizations to stave off the closures, arguing that closing historic sites chases away potential state tourism dollars and harms local businesses.

Battle Over Unauthorized FamilyCare Expansion Continues; Administration Refuses to Release Data

Nearly a year after the governor first announced his plan to extend eligibility for the state’s FamilyCare program to families with income levels up to 400% of the federal poverty level, the program continues to find itself at the center of an increasingly more tangled legal web.  After the governor failed to win legislative approval, the approval of the Joint Committee on Administrative Rules (on two different occasions), and most recently, the approval of a state appeals court, the administration is now attempting to shroud its failings in secrecy by refusing to release programmatic data.

A Cook County judge first issued an injunction last spring to stop the Department of Healthcare and Family Services (HFS) from enrolling new participants under the new eligibility guidelines.  The injunction was the result of a taxpayer lawsuit accusing the governor of exceeding his executive authority by blatantly ignoring legislative rejections of the expanded FamilyCare program.  The administration then sought sympathy in a state appeals court only to have that court reject the administration’s pleas earlier this week, ruling that the expansion of the program must be approved by the legislature. 

Since the injunction was first issued, the courts have asked the administration to prove compliance with that injunction, but HFS has consistently stated that sorting through the paperwork to determine what claims are subject to that injunction is virtually impossible.  The courts have further questioned whether or not the administration has even kept records on those individuals that have already been enrolled under the new eligibility guidelines; a theory that may prove highly plausible in light of the administration’s recent rejection of an Associated Press FOIA request asking for participation and spending data.

Although the governor has faced rejection of his FamilyCare expansion plan at nearly every level, he will most likely take his fight to the state Supreme Court.  Regardless of whether that court agrees with the lower courts or not, the governor has created an administrative nightmare that will not be easily untangled.  Consequently, the administration’s latest display of arrogance will haunt the families that have been enrolled in the new program, the providers that have served them, as well the taxpayers that will ultimately foot the bill for some time.