“This meaningful reform changes ‘business as usual’ in Springfield and will save taxpayers about $200 million every year. During these difficult economic times, we can no longer afford to provide free health insurance coverage for the people that have the means to pay for it,” – State Senator Dan Kotowski

SPRINGFIELD, IL – Legislation today sent to the governor will save taxpayers nearly $200 million by reforming the way the State pays for retired workers’ health insurance costs. The major cost-saving measure would eliminate free health care premiums for state retirees, legislators, and judges that have the means to pay for it.

State Senator Dan Kotowski (D-Park Ridge), chairman of the Senate Appropriations II Committee, said this is the first of what will likely be a set of difficult – albeit necessary – choices to ensure the state lives within its means and ends the reckless spending policies of the past.

“This meaningful reform changes ‘business as usual’ in Springfield and will save taxpayers about $200 million every year,” Senator Kotowski said. “During these difficult economic times, we can no longer afford to provide free health insurance coverage for the people that have the means to pay for it. This measure demands greater accountability from everyone.”

Currently, most retired state and university employees receive free health insurance if they work 20 years for the State of Illinois. Retired members of the General Assembly are granted this benefit if they serve four years in the House or Senate, and retired judges earn the benefit after six years. In total, almost 80,000 (or nearly 90%) do not pay for their health care premiums. That cost is picked up by the State, which will result in almost an $890 million this year for Illinois taxpayers.

Although it’s unclear how much retirees will specifically have to pay towards their insurance premiums, the legislation allows for the construction of a “sliding scale.” Under this model, those with higher pensions would pay more for health coverage compared to those who receive a lower pension benefit.

After passing the Senate today, the measure will be sent to the governor for his consideration.

“This audit shows our ongoing obligation to change business as usual in Springfield. We must put an end to the reckless policies of the past,” – State Senator Dan Kotowski

SPRINGFIELD, IL – On the heels of legislators’ requests last spring, an audit released this morning reveals some major problems in the College Illinois! Prepaid Tuition Program, which enables parents to lock in present tuition rates and then make payments toward their children’s future tuition costs at Illinois colleges and universities.

State Senator Dan Kotowski (D-Park Ridge), a member of the Legislative Audit Commission, reacted with criticism and said more reforms are necessary to restore the public’s faith in government.

“This audit shows our ongoing obligation to change business as usual in Springfield,” Senator Kotowski said. “We must put an end to the reckless policies of the past. I’m pleased that ISAC has agreed to accept and implement the audit’s recommendations to serve as a guide to improve its business practices and stabilize the program.”

The Auditor General’s report looks at actions taken over a six-year period (July 2006 – June 2011) by the Illinois Student Assistance Commission (ISAC). The audit found that the former executive director of College Illinois didn’t disclose conflicts of interest. The program also reportedly ignored or changed its criteria for deciding how to invest money that participants put into the program. Meanwhile, costs nearly tripled in just five years.

Since the spring of 2011, ISAC has made a number of changes and implemented safeguards on its own. Some of the reforms include replacing the Commission Chair and appointing a new ISAC Interim Executive Director, replacing the entire sitting Commission Board members, and hiring a new Chief Investment Officer to manage the College Illinois! trust fund.

ISAC has also certified to the Governor, the General Assembly, and the Illinois Board of Higher Education that the program will meet all obligations for Fiscal Year 2013, which begins in June.

“This is another important step to putting an end to business as usual and stopping the reckless spending policies of the past,” – State Senator Dan Kotowski

SPRINGFIELD, IL – Nearly two years after Illinois Senator Dan Kotowski (D-Park Ridge) ended his participation in the much-scrutinized legislative scholarship program, the General Assembly is finally following his lead, as well as the nearly-80 other legislators who have already opted to end the program.

House Bill 3810 today passed out of the Illinois Senate today and now heads to the Illinois House where it will be given further consideration. The measure abolishes the program and sets up a task force to review and evaluate tuition waiver programs offered by state universities.

“This is another important step to putting an end to business as usual and stopping the reckless spending policies of the past,” Senator Kotowski said. “I took steps to end this program two years ago. It’s a welcome sight to see that the General Assembly is following my lead ending this abused program.”

Current law allows state senators and representatives to award free tuition at Illinois’ public universities for up to eight students from their district each year. The public universities they attend are forced to absorb the cost of their tuition, and this expense can get passed on to other students in the form of tuition increases.

Several media stories have highlighted abuses of the tuition waiver program. According to the reports, some legislators have given scholarships to family members and children of campaign donors. Prior to leaving the program two years ago, Kotowski had an independent committee select the recipients of the tuition waivers based on their qualifications and need.

Kotowski, who spearheaded legislation through the Senate to cut legislators’ pay earlier this year, also called on members of the Illinois House to take up his cost-saving proposal during the next four weeks – saving taxpayers’ an additional $1 million.

“We must work to restore faith in government by doing more with less and forcing state government to live within its means. I hope the House will realize that both of these bills accomplish that goal and take swift action to enact them,” Kotowski added.