|
 State's Attorney Jonathan Wright has reviewed the loan and said
he would propose that the Logan County Board take out a $350,000
bank loan. The funds would be used to cover operating expenses until
state money comes through. The loan must be repaid within two years.
Committee chairman Chuck Ruben said this proposal brings up several
questions. Ruben asked what the loan would be used for and whether
the amount would be made whole (caught-up), if the state comes
through with money.
Ruben said the county is already around $339,000 short from last
year for insurance; FICA and Medicare.
LCDPH Administrator Don Cavi said eight months into the state's
budget impasse, the Department has used $100,000 worth of reserves.
Grants awarded to the health department total $516,000 and they have
only received around $150,000 of the grant money, so the state still
owes them $366,000 in grant money.
When SIU takes over the Dental Clinic in the fall, that will help
with some of the loss. The Dental Clinic has about $70,000 to
$80,000 in debt each year.
 Cavi said that since so many people are served by the health
department, several core programs need to continue offering
services. He said without a loan, the health department may have to
close some services and there may have to be lay offs of some staff.
A new state statute allows county boards to get loans to help with
operating expenses. The health department would pay back the loan as
grants and fees come in. He said without the loan, it will be
difficult to pay money already owed.
Cavi said a court order requires the state to reimburse the
department for the Family Case Management and Health Works programs,
and they have only received $30,000 for these programs. He
anticipates receiving $250,000 for the programs.
Cavi said the health department is trying to be good stewards of
their money by hiring local contractors.
Ruben said he has some questions about re-payment. He said by adding
a new $350,000 loan, on top a previous $339,000 loan, and the
$170,000 that has to be paid for FICA and the Illinois Municipal
Retirement Fund in May, the debt would be at $859,000. Even with
some of the grants coming in, they would be short and may end up
having to use the levy.
Ruben said he worries that if nothing changes, that amount could be
at $1 million. He thought more grants and state money would be
coming in to offset the debts.
Ruben asked if county is responsible for the loan. He said when FICA
and Medicaid are covered out of county funds, that puts the county
in arrears. The county can get the loan repaid, but Ruben said they
may have to take away revenue from the health department since it is
hard to cover a $300,000 hole.
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Committee member Gene Rohlfs asked Cavi what would happen if the board would not
do the loan.
Cavi said there are certain services they must continue to provide, but they may
need to cut back on underfunded, non-mandated, and "non-essential" programs.
Looking at which departments are losing the most money could also help with
choice of what to scale back on.
Rohlfs then asked what costs might be after the health department does some
"paring down."
Cavi said he is already considering changes to help with the deficit. He is
looking at certain departments and how many people are in them, plus what the
departments are taking in. He said it is a "critical time" and "turning point
for the agency."
County Treasurer Vicki Dugan asked what has changed over the years and whether
some of the home health care has "shifted towards Memorial."
LCDPH Director of Finance, Katherine Yaple, said the department has lost money
in home health care as people are often being set up with Memorial for home
health services, though they are supposed to have more options. She said the
Women, Infant, Children (WIC) program has scaled back, the department has also
lost some grants, and grants have decreased from $940,000 in Fiscal Year 2014 to
$516,000 this fiscal year.
Cavi said when SIU starts providing dental and primary care in the fall, it will
help with revenues. The department will not have expenses with dental when SIU
comes in.
Ruben said the county can do the loan, and guarantee payback at some point in
time through the taxes the health department generates. He is concerned the
situation could become more desperate.
The motion will be brought forward to the Logan County Board for further
discussion at the Logan County Board Workshop on Monday, March 14, 2016.
[Angela Reiners] |
