What If Police Powers…?
Lately, I’ve been thinking about my potential, so I looked
into the top ten jobs for the immediate future.
Since my own future is pretty immediate, this remains hypothetical, but
in Illinois there are several predicted favorites I’d shy away from if I were a
younger individual with some probable distance between point A and point Omega.
According to US News, there are many potential future
opportunities besides computer programmers and web designers (lonely vocations
at home with Doritos); in fact, the Baby Boomers will generate many future
employment opportunities for those youngsters interested in the health
profession: in-house nursing, physical
therapy, occupational therapy, and pharmacy.
Sound like a calling?
Beware of Illinois…
Although sitting in front of a computer may seem dreary, the
job will probably pay more in Illinois than those other interesting
vocations. Indeed, even if it pays only
a trifle, it will probably easily outstrip the payment you’d receive in
Illinois.
In Illinois – a state that is as deadbeat with its medical
bills as its payment to the pension systems over the decades – you might not
get paid at all.
In Illinois the payments for work rendered in areas of human
services is woefully behind; one might even say negligent. It would appear that payment to human and
health services and education were slighted nearly as badly as payment to the
pension systems over the last many decades.
And, with the exacerbation of the crushing Recession of 2008 and the
legislative unwillingness to rectify a structural deficit problem, the debt
just kept enlarging.
Before her untimely passing, Comptroller Topinka warned that
although increased revenue from a somewhat-healing economy and taxation (except
for corporate) had eliminated some of the backlog of bills to providers in
Illinois, the amount owed was still formidable.
Numbers: The fiscal year ended in June of 2014 with an
amount of $2.4 Billion still to be paid to providers (down from the $3.28
Billion owed in 2013). However, that
backlog number included only what had been submitted thus far, not what was in
process or being held by expectant agencies.
Including those numbers ran the current bill (end of 2014 upwards toward
$4.6 Billion).
And who is owed this ever-growing amount? A plethora of agencies and services,
including school districts, universities, library systems, drug/alcohol
intervention programs, funeral homes, restaurants, Xerox Corp., and sundry
other businesses who have done any business with the state of Illinois.
In essence, Illinois has been able to receive services at
the expense of agencies and businesses, which in turn have had to borrow from
banks and elsewhere to cover their own expenses while they wait for months and
possibly years for the money from Illinois to finally show up. That is, the state has used the businesses as
banks from which they can borrow service credit while the state’s own credit
rating tanks due to the structural revenue issue it refuses to face.
Sound familiar? Think pension payments used as loans to build
highways, and bridges and provide services for decades.
Target number one for money owed = health home care
providers, home health care therapists, pharmacists and any company dealing
with the medically marginalized or Medicaid.
Some pharmacies have become so inundated in unpaid bills that they
choose between not making payroll or refusal to see/assist Medicaid
patients.
And if they themselves seek a loan from a nearby bank to
make their payroll, promising that the repaid money is guaranteed because it is
from the State of Illinois, one can imagine that loan officers looking at an A-
rating are hesitant to offer any assistance, except a smile and “good
luck.” In fact, some loan officers tell drowning
pharmacists that they don’t think Illinois can be counted on to repay.
The wait for services rendered now in Illinois can stretch
as far as seven months or more. One
reason that Ms. Topinka struggled with the exact number of what was owed was
due to the fact that so many agencies times their billing to retrieve the best
tax deductions each or subsequent year(s).
What is considered $4.6 Billion could be more…
According to Statista, Illinois owed around $25,000 per
capita for its debt. This would include
pension debt, and it is a very SCARY number.
In all likelihood, this is the kind of number that someone like Governor
Rauner would like to throw around in an upcoming speech or two.
Don’t be fooled. Every state in the union is in deficit. In fact, Illinois is 5th, not
first – although the distinction is dubious indeed. Of all places, Palin and with a glut of oil,
Alaska is number 1 with nearly $41,000 per capita. So much for the GREAT Republican Governors. Michigan per capita is $14,000 and Indiana is
$7,100.
And what happens if Illinois is able to unlock its own
chains and shackles from decades of avoidance of payments to the pension
systems by using the legal canard of Police Powers to deny what is owed to
those who worked for the state?
Attorney General Lisa Madigan would tell you that she (and
the state) would be able to pay for these significant human services that are
in desperate need of succor due to lack of money. Hmmmm.
Would she or anyone like her father address the structural
fiscal deficit in the state?
Or – God help us all – if she were to prevail in the Supreme
Court – would she declare the pharmacists, the health care providers, the
businesses that have done business with the state a terrible drain on the
economy in Illinois and therefore subject to the need for Police Powers to
break more contracts?
In fact, if she were
to win her necessity argument before the Illinois Supreme Court – why pay
anything owed again? To anybody?
Precisely! If the state prevails at the ISC, pensioners will be only the first to get the ultimate deadbeat treatment. Even our biggest enemies (at the Civic Committee, IPI, Tribune, et al) should realize the danger of getting their way on pension reform. Rauner has actually identified the need correctly - moderate spending, enhance revenue. There is no other formula. However, the devil is in the details, of course, and if you trust him, well, good luck.
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