Schmidt’s Spotlight Newsletter 2/28/23

February 28, 2023

Dear Neighbor,

Welcome to the first edition of the “Schmidt’s Spotlight” e-newsletter! Twice a month, I will be providing a legislative update for you, the residents of the 114th District. I am proud to serve you and wish to stay in regular content through this newsletter. To view a map of our district, please click here: District – Kevin Schmidt (repschmidt.com).

I have been hard at work this year drafting and filing new legislation, reaching out to community leaders, and engaging in our community. If you want to learn more about me, my district office, and how we are striving to make an impact in District 114, check out my website at RepSchmidt.com. You can message me directly through my website. My staff and I look forward to serving you.

The Illinois House of Representatives reconvened in Springfield on January 31st. I am proud to be serving on the following committees: Appropriations-General Service; Appropriations- Health & Human Services; Ethics & Elections; Health Care Availability & Access; and Public Health.

Please scroll below for legislative updates on current issues and follow my official page on Facebook at ‘State Representative Kevin Schmidt’.

Sincerely,

Kevin Schmidt

State Representative, 114th District

HUMAN SERVICES

  • Republicans demand hearings on Choate Mental Health and Developmental Center, propose a plan to make improvements.  House and Senate Republican legislators held a Capitol news conference Thursday to call for immediate joint House and Senate hearings to investigate disturbing reports of abuse and neglect of the residents of Choate Mental Health and Developmental Center.

State Representatives Paul Jacobs, Charlie Meier, Norine Hammond, and Dave Severin, along with State Senators Terri Bryant, Dale Fowler, and Jil Tracy called for public hearings to discuss the serious concerns regarding disturbing reports of neglect and abuse of the residents at Choate Mental Health and Developmental Center located in southern Illinois. In addition to their request for public hearings, the legislators discussed their plan called ‘Help Protect Us and Improve Our Home’ which offered eleven changes needed to make improvements at Choate.

The press conference was held after all members of the Illinois House and Senate Republican caucuses signed on to a letter that was sent to the Chairpersons of the Committees charged with oversight of the Illinois Department of Human Services requesting the hearings and following news reports that have quoted Governor Pritzker threatening to close down the facility if changes and improvements aren’t made.

In a report published by ProPublica on February 10, 2023, lawmakers learned that multiple investigations by the Inspector General designated to oversee the Illinois Department of Human Services (DHS) revealed serious and unacceptable incidents of neglect and abuse and a culture of intimidation and retaliation against whistleblowers. Choate has been the subject of more than 1,500 complaints to DHS over the last decade.

The Republicans unveiled an 11-point proposal they say could begin to fix issues at Choate right away. The plan includes:

  • Install cameras in common areas
  • Implement ongoing staff training
  • A mass hiring of qualified staff to help
  • Track staff incidents by location and trends
  • Increase administrative and security inspections
  • Improve overall accountability of staff performance
  • Remind employees if they see something is wrong, report it
  • Increase the amount of active treatment and activities for residents
  • Encourage and welcome parents/guardians visiting their loved ones
  • Assign an interim director or assistant director to Choate Developmental Center
  • Reevaluate the Office of Inspector General reporting system as it currently operates

BUDGET

  • Illinois’ credit rating upgraded from worst to tied for worst.  Illinois’ credit rating got upgraded from worst in the country to tying with New Jersey for the worst.

For a seventh time in two years, Illinois’ credit rating was increased Thursday with the announcement from S&P Global ratings.

“The upgrade on the [general obligation] debt reflects our view that Illinois’ commitment and execution to strengthen its budgetary flexibility and stability, supported by accelerating repayment of its liabilities, rebuilding its budget stabilization fund to decade highs; and a slowing of statutory pension funding growth, will likely continue during the outlook period,” S&P Global Ratings credit analyst Geoff Buswick said.

Illinois’ outstanding $27.7 billion GO bonds were upgraded from BBB+, the worst in the country, to A-, tied with New Jersey GO bond ratings. The last time Illinois had the A- rating was in December 2015.

The state’s appropriation-backed debt saw an increase Thursday from BBB to BBB+ and moral obligation debt from B+ to BBB-. Build Illinois bonds, paid for with gas tax and other fee increases, goes from A- to A.

Illinois’ credit upgrade cannot fully make up for the effect of rising global interest rates. Illinois taxpayers will continue to pay higher interest rates in 2023 on the State’s outstanding multi-billion-dollar debt load than was paid in 2022 and previous years.   

The credit rating enhancement reflects Illinois’ hard work at recovering from the debt crisis created by political dysfunction and the COVID-19 pandemic and resulting shutdown orders. The advocacy and outreach of the House Republican Caucus were significant in getting the State of Illinois to pay back a large debt chunk, money owed by the once-insolvent Illinois Unemployment Insurance (UI) Trust Fund. S&P credited Illinois’ increased liquidity, and its “deep and diverse” private-sector economic base, for the credit rating move. At the same time, however, S&P continued to point to Illinois’ continued significant burden of unfunded pension liabilities.

GAMBLING

  • Illinois State Lottery reports results for the first half of FY23.  The Illinois State Lottery reported record sales of $1.8 billion, with a net revenue intake of $468 million, in the six-month period. Sales were paced by a succession of multistate jackpot games that rolled over into super-sized prizes. One of the $1 billion-plus ticket winners, awarded in July 2022, was a ticket sold in Des Plaines, Illinois. In addition to this mammoth ticket, other Illinois Lottery players collected almost $1.2 billion in prizes during the six-month period. The reporting period began on July 1, 2022, just before the Des Plaines jackpot, and ended on December 31, 2022. Net proceeds from Illinois Lottery ticket sales, other than specialty scratch-off tickets to benefit specific causes, are deposited in the Common School Fund to benefit Illinois public education.

JOBS

Published reports indicate the company’s CEO Douglas Boothe made a surprise announcement in a video to employees. According to those who viewed it, Boothe indicated the company was no longer able to secure financing and will file Chapter 7 bankruptcy this week.

It went on to say employees will be paid through Thursday and for all accrued vacation time.

The shutdown and Chapter 7 bankruptcy filing was a harsh end to the employment of hundreds of biochemical technicians and production workers at Akorn’s Decatur plant.

Prior to the shutdown, Akron Pharmaceuticals manufactured consumer health and animal health products with nationwide scope. Founded in 1971, Akorn specialized in the manufacture of generic pharmaceutical products that can be manufactured off-patent. At the height of its corporate existence, the firm had publicly traded stock on the NASDAQ equity market and was a component of the NASDAQ Biotechnology Index.   

However, starting in 2020, Akorn began to face serious financial challenges. The company filed Chapter 11 bankruptcy in 2020. The firm offered itself for sale, but announced on Wednesday, February 22 that it had received no bids. Akorn’s shutdown was effective immediately.

STATE GOVERNMENT

  • Gov. Pritzker elevates the status of Illinois’ chief anti-terrorism agency.  The Illinois Emergency Management Agency (IEMA) will now be known as the Illinois Emergency Management Agency and Office of Homeland Security. The reorganization means that the fight against terrorism in Illinois will now be headed by a person who will be a Deputy Director, a senior law enforcement official. The Homeland Security Advisor will coordinate with cabinet-level public safety agencies throughout Illinois on terrorism-related strategic issues, including cybercrime and electronic sabotage. The change also elevates the current Illinois Terrorism task Force to the level of a permanent board of advisors, the Illinois Homeland Security Advisory Council. The change will better situate IEMA to apply for and pass through federal grants to local law enforcement and the private sector aimed at the reduction and prevention of terrorism and sabotage.

The state government reorganization move was filed on Tuesday, February 21, as Executive Order 2023-03. The Illinois Constitution grants broad powers to the Governor to reconfigure State government agencies. The reconfigurations have to maintain the sets of State government responsibilities previously created by the General Assembly through State law. In this case, the General Assembly has already asked IEMA to fight against terrorism and sabotage, and this executive order continues this General Assembly policy.