Most people have heard the tune, “Money makes the world go ‘round...” But these days, the state of Illinois’ world isn’t revolving very well.
The state’s newest budget, which began June 30, has made a significant impact on a vareity of local service providers, including McDonough District Hospital, Western Illinois University and Bridgeway.
John Maguire, public relations director at MDH, said the state owes the hospital for state employee health insurance claims. Delayed payments have left the hospital without $2.6 million dollars for services already provided.
It is the largest amount the hospital has ever been without, according to Maguire. Although the hospital has been able to accept late payments, Maguire said some small practices are being forced to reduce staff or close.
Maguire said despite the budget shortfalls, patients are still receiving the care they need.
Western Illinois University is also feeling the budget pinch. Julie DeWees, interim vice president for administrative services, said the state still owes Western over half of $56.2 million promised for fiscal year 2011. Finances for fiscal year 2012 are not expected to show much improvement.
On top of the debt owed to Western, the state has reduced Western’s funding by $644,400 to $55.5 million. In order to combat the cuts, Western now requires upper-level management to authorize purchases over $500 as well as all new hires. The funding is split between WIU’s Macomb and Quad Cities campuses - spreading the money even thinner.
While faculty and staff salaries are not affected, DeWees said the delayed payments make planning, repairs and technology upgrades difficult.
“This hurts not only Western but the economy of Macomb,” DeWees said.
Another Macomb institution feeling budget strains is Bridgeway, an organization that helps individuals with disabilities. The state has cut $900,000 from the company’s budget, which will affect its facilities across the Midwest, including Macomb.
CEO Jim Starnes said this week that Bridgeway will determine its budget next week and will factor in state cuts. He said planning will be difficult, because the state has only guaranteed funding for four months.
As of the beginning of this year, the state mandated that Bridgeway clients can only receive eight state-funded medical visits per year. Although Bridgeway can make appeals for more funding, additional budget resources must be used.
Starnes said Bridgeway’s current funding situation is the worst he’s ever seen. During tough economic times, Bridgeway sees an increase in demand. Unfortunately, this increase in demand comes when state funding is being decreased.
Starnes said cuts at the Macomb office will not be “earth-shattering,” and that services will be maintained.
He said cuts to developmental disability services were made last year and this year has seen a sizable cut in substance abuse programs.
He said Bridgeway is working hard to minimize the impact of the cuts, but Macomb’s Bridgeway is considering some cost-cutting measures. One option is a possible consolidation of staff offices in Macomb. Starnes also said that Bridgeway is hiring fewer people in an effort to reduce its staff.
Starnes said Bridgeway provides services to the sickest and poorest of people. He said while some organizations can raise their rates for services, Bridgeway cannot.
The cuts will force clients to wait longer for medical care, which could leave them at risk for emergency room visits or encounters with law enforcement.
State Senator John Sullivan weighed in on the state budget during his visit to Macomb City Hall earlier this month. This year’s budget was divided among several different committees, which, “allowed so much more input from legislators as to what’s important to them,” Sullivan said.
Sullivan remarked, “To me, personally, education is extremely important. If you can catch children at a young age, their minds are like sponges, you can really make a difference in their lives.”
“We don’t have enough money to do all that we do. We’re trying to make sure the money that we do spend is spent in the most efficient manner that we possibly can. Unfortunately, a lot of the mental health services are not Medicaid matchable,” Sullivan said.
Sullivan is struggling to gain support for a debt restructuring plan that would boost state revenues through bond sales.
“If we don’t do that or some version of that, the only other option we have is to pay those bills when the money becomes available,” he said. “Quite frankly, that’s going to take years and years.”
# As posted by The McDonough County Voice : report By Ryan Hagan
Posted July 30, 2011
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