Judge: State must pay bills, show a plan

By Mark Fitton

Illinois News Network

SPRINGFIELD — U.S. District Judge Sharon Johnson Coleman is keeping an eye on how well Illinois complies with her order to meet its obligations to citizens with developmental disabilities.

Coleman on Wednesday ordered the state to submit in writing by noon Friday what payments it has made, which payments it has not made and when any outstanding payments will be made. 

The judge also ordered the state to detail all payments it made that may have affected its ability to meet the deadlines she had previously set.

The hearing in Coleman’s Chicago courtroom Wednesday morning was sought by advocates for the developmentally disabled. They had filed an emergency motion arguing the state was not meeting its financial responsibilities despite a consent decree and two earlier orders issued by Coleman.

“People with developmental disabilities have been needlessly put at risk of serious harm because of the state’s failure to comply with the judge’s order,” said attorney Barry Taylor, who is leading the case for the advocates.

“While we are pleased that the state has finally begun to make the mandated payments, we will not rest until all services for all of our clients have been paid for by the state,” said Taylor, who is vice president for civil rights litigation for Equip for Equality, one of the advocates.

Wednesday afternoon, Illinois Comptroller Leslie Geissler Munger issued a statement saying she appreciated the court’s patience and her office would do all it can. "In the absence of a balanced budget for this fiscal year, my office will continue to work to meet the payment timelines set by the courts despite the state's limited resources,” said Munger, R-Lincolnshire.

"To be clear: taxpayers deserve better than government by court order,” Munger said.

Republican Gov. Bruce Rauner and legislative Democrats, who hold supermajorities in both chambers of the General Assembly, have been unable to come to an agreement on a fiscal year 2016 budget.

The state is now nearly 60 days into its fiscal year with the only significant portion of its budget approved being for primary and secondary education.

By one estimate compiled by Senate Democrats, the state is spending at a pace to exceed anticipated revenue by about $5 billion.  

Coleman did not find state officials in contempt, but she may be losing patience.

The judge on June 30 issued an order compelling the state to meet its obligations under the Ligas Consent Decree.

With the state not saying when it would meet the terms of the court order, the plaintiffs sought and received a second order from Coleman, this one establishing dates by which the state must perform.

In her Aug. 18 order, Coleman gave the state until Aug. 21 to pay claims already submitted and until Sept. 4 to pay for or other services provided in August.

When Aug. 21 came and went without payment, the plaintiffs asked for an emergency hearing. The state did make $71 million in emergency payments on Tuesday.

Coleman on Wednesday also set a status hearing for 10 a.m. Tuesday, Sept. 1.

The advocates argue the need is dire, as many of the service providers are “completely dependent upon the funding of the state in order to remain in operation. If the state does not make the payments required by federal law and the orders entered in this case, numerous providers will immediately close their doors, and thousands of individuals with developmental disabilities will not receive services that are essential to their survival.”

The services provided are necessary for survival, they said.

“Many of these individuals cannot feed, clothe or toilet themselves or administer critical medication needed on a daily basis,” the advocates said in their pleadings.

About 10,000 people are beneficiaries of the Ligas decree.

In July 2005, Stanley Ligas and eight other people with developmental disabilities who resided in large facilities or likely to be placed in such facilities sued the state’s Department of Human Services. They had, without success, sought community-based services.

The resulting consent decree, approved by the court in June 2011, helped bring Illinois in line with the Americans with Disabilities Act, which requires people with disabilities be allowed to live in the “most integrated setting” possible.

Advocates for disabled seek ‘contempt’ finding against state

By Mark Fitton

Illinois News Network

SPRINGFIELD — It’s back to court for the Illinois Comptroller’s Office and the Department of Human Services.

Attorneys representing people with developmental disabilities on Tuesday filed an emergency motion. They are asking U.S. District Judge Sharon Johnson Coleman to bring into her courtroom the state’s comptroller, Healthcare and Family Services director and Department of Human Services director to explain why the state has not made payments that were ordered by the court and why the state officials should not be held in civil contempt of court.

The motion is scheduled to be heard at 9:45 a.m. Wednesday, Aug. 26.

“The consent decree and Judge Coleman’s two orders make clear that payment for people with developmental disabilities must be paid,” Barry Taylor, the plaintiffs’ lead attorney, said in a written statement.

The state, Taylor said, “will have to explain to the judge why payments have not been made.”

Rich Carter, spokesman for Comptroller Leslie Munger, R-Lincolnshire, said the comptroller’s office is ready to explain its actions to the court, but the short story is that the cash-strapped state is doing everything it can to meet its obligations. The state did make $71 million of applicable emergency payments on Tuesday, he said.

After hearing motions earlier this summer, Coleman on Aug. 18 entered an order saying the state was not meeting its obligations under the Ligas Consent Decree, which arose from a lawsuit against the state on behalf of people with developmental disabilities.

In that order, Coleman compelled the state to make payments at funding levels of no less than in fiscal year 2015.

For claims already submitted, the state had until Friday to pay. For other services provided in August, the state has until Sept. 4 to pay. By Sept. 18, the state must be in full compliance.

The plaintiffs’ argue the need is dire and more than 10,000 people are at risk.

In their emergency motion, they say many of the service providers are “completely dependent upon the funding of the state in order to remain in operation. If the state does not timely make the payments required by federal law and the orders entered in this case, numerous providers will immediately close their doors, and thousands of individuals with developmental disabilities will not receive services that are essential to their survival.”

Carter said the state, which is currently without a budget for most of its operations, is running against a multi-billion-dollar backlog as it attempts to meet all of its obligations, including consent decrees and court orders.

And, he said, the money is moving out at an unsustainable clip. By one projection, compiled by Illinois Senate Democrats, the state is spending at a pace that will exceed the current budget year’s estimated income by $5 billion.

The Ligas Consent Decree, Carter said, is a little different than others the state is attempting to comply with in that it has a timeline for payments, “but we are doing everything we can as soon as possible.”

“We are prioritizing all payments to the best of our ability, with precedence being given to those serving our elderly, children and most vulnerable,” Carter said.

The Ligas lawsuit, named for the principal plaintiff, Stanley Ligas, was filed against the director of the state’s Department of Human Services in 2005 by nine people with developmental disabilities who resided in large, private, state-funded facilities or who were likely to be placed in such facilities. The plaintiffs had, without success, sought community-based services.

The decree eventually issued helped bring Illinois in line with the Americans with Disabilities Act, which requires people with disabilities be allowed to live in the “most integrated setting” possible.

Republican Gov. Bruce Rauner and legislative Democrats, who hold supermajorities in both chambers of the General Assembly, have been unable to come to an agreement on a fiscal year 2016 budget. The state is now nearly 60 days into its fiscal year with the only significant portion of its budget approved being that for primary and secondary education.

Market volatility concerns heightened, survey says

Managing market volatility, preparing for a possibly imminent rate hike, and generating investment income in a low-return environment are the top concerns of financial advisors and their clients, according to the most recent ATOMIX survey conducted by Eaton Vance.

The survey of 1,006 financial advisors found that many retail investors are anxious about a market correction, with a strong majority (87 percent) of advisors reporting that at least some of their clients are wary of equities and seven in 10 (69 percent) believing that their clients are motivated by fear. Nearly six out of 10 (56 percent) advisors believe that their clients view market volatility as a risk, and typically mitigate market risk through diversification (65 percent) and moving holdings into cash (41 percent).

"Volatility always lurks, but how investors are preparing for and managing volatility is what really matters," said Eaton Vance Managing Director John Moninger. "It starts with having a plan to address the effects of volatility on a portfolio and harnessing the opportunity it may create to influence long-term goals."

Edward Perkin, chief equity investment officer at Eaton Vance, believes skittish investors are contributing to increased volatility. "Taking a disciplined approach to research and stock-specific fundamentals can help calm market fear and position investors to take advantage of the opportunities market volatility generates." 

Less clarity in the market means fewer clear signals for investors, according to Kathleen Gaffney, co-director of diversified fixed income at Eaton Vance.  

"There is a lot of uncertainty in the market right now, which has historically led to good value," Gaffney said. "In a market environment driven by low yields and uneven global growth, it's critical to respond in a thoughtful, rational way that allows investors to take advantage of undervalued opportunities that can potentially lead to long-term rewards."

Concerns over the impact of rising rates persist

Three quarters of advisors (74 percent) report at least some concern about a near term increase in rates, and one in five say they are very concerned. The majority of advisors expect rates will rise in the next 12 months, with four in 10 (42 percent) predicting an increase in the first half of 2016 and another 38 percent expecting a move will come in the second half of 2015.

As Fed action possibly looms, most advisors are taking measures to prepare their clients for rising interest rates. One-third (34 percent) of advisors have already taken action, while another 47 percent are currently adjusting portfolios on their clients' behalf.

Low yields and uneven global growth have advisors searching for income

Advisors' concerns over income rose to 111.5 from 96.3 last quarter, while nearly half (49 percent) of advisors say generating income from investments increased in importance over the past six months. This increase has been driven in part driven by the perception that fixed income markets are at their peak and may be poised for a correction.  

Gaffney believes the payoff may be worth the wait. "Our approach is centered on embracing market uncertainty, which often translates into riding out periods of volatility," Gaffney said. "That sometimes feels uncomfortable in a low-yield environment, but we believe patience will ultimately be rewarded."

Eaton Vance's quarterly ATOMIX is part of an ongoing study that measures the overall importance of key issues facing financial advisors and their clients, combined with how fast these issues are increasing in importance.

Eaton Vance ATOMIX Methodology
ATOMIX is calculated based on the findings of a survey of 1,006 financial advisors from a diverse group of companies. Eaton Vance contracted with a third party to conduct the online survey from June 18 – July 10, 2015. ATOMIX uses a similar methodology as the U.S. Consumer Confidence Index* (which has no affiliation with Eaton Vance) in that it calculates a weighted average of current perceptions (40 percent of the Index) and what advisors think about the trends (60 percent of the Index). The Index set a baseline average of 100 for April 2014. Each component measured is tracked quarterly to illustrate changes in advisor perceptions and changes in trends over time. Future surveys will sample different financial advisors and may produce different results.

Key Advisor Top-of-Mind Index (ATOMIX) Survey Findings:

• Volatility measured 109.5 on the Index in the second quarter of 2015, up from 102.2
• Income measured 111.5 on the Index, up from 96.3 last quarter
• 87 percent say that at least some of their clients are wary of equities
• 74 percent of advisors are concerned about an interest-rate increase
• 69 percent of advisors believe their clients are motivated by fear
• 56 percent believe their clients view market volatility as a risk rather than an opportunity

Five Points becoming part of the equation; comedy show a start

It’s probably not every day that the Chicago-based comedy group that gave us Tina Fey, Amy Poehler, Mike Meyers and Chris Farley is used as a “test case.”

But in a way, that’s exactly how the comedy show called “Comedy Rocks,” scheduled for Saturday, Aug. 29 at Five Point Washington, is being considered by the complex in the city just east of Peoria.

Featuring the improvisational comedy grouo iO Theatre, formerly known as ImprovOlympic, “Comedy Rocks” will give Five Points the chance to see how an outside group with far-ranging appeal will fare at the complex that is striving to get itself known as an entertainment venue for the entire central Illinois region, said Shae Harris, Five Points’ marketing representative.

“We have a great facility here and while we are attracting a lot of weddings and using the auditorium for events such as corporate meetings and the Heartland Festival Orchestra and Peoria Pops, we will to promote it to the surrounding area. We want to bring in additional events to appeal to a wider range of audiences,” Harris said.

“Here we have this beautiful, state-of-the-art auditorium that seats 1,020 and we want to see it get used more often.”

Five Points opened nearly eight years ago in the heart of Washington. It is self-sustaining and non-profit, with fitness center memberships, facility rentals and event admission sales funding day-to-day operations and building reserves for repairs and maintenance.

Aside from the Caterpillar Auditorium, it houses a gym, fitness center with new fitness classrooms, swimming pools for competitive meets as well as recreational swimming and aquatic classes, a banquet center that can be split into multiple banquet/meeting rooms, and the Washington Public Library.

Five Points works with local companies and retailers to help with promotions. For example, new fitness center members get a gift certificate to Blue, an apparel store in downtown Washington. Five Points maintains a list of 20 caterers for its banquet facilities, which can be used for weddings, receptions, meetings or parties.

It’s parking lots close to 500 vehicles and is frequently filled, particularly when there are events at Washington High School, whose football field is across the street.

Still, Harris said, “it seems people from outside the Washington-Sunnyland-East Peoria really don’t know about us, or at least everything we have to offer. It’s not like the Illinois River is a border that can’t be crossed. We would like to change the perception that we’re only a Washington facility.”

Since its opening, Five Points has expanded only once, to add fitness studios for classes in Pilates, spinning and others so the gym can be kept open for the purpose it was intended, for basketball, volleyball and such. “Almost from the start we knew we’d need to do that because there was an almost-immediate overflow of people signed up for classes. That was a good thing,” Harris said.

But that doesn’t mean the facility has gone without upgrades when needed, especially in maintenance. For example, its pools all were closed for the month of April this year so the operations system could be upgraded and the pools emptied and repainted.

A juice bar has been added so those coming to or from working out can get refreshed.

And in September, Five Points will unveil a new area outside, on the south end of the facility, which will be called Washington Pride Plaza. In the middle will be a sculpture called “Community Spirit” that is intended to recognize the strength of the community that was shown after a tornado devastated much of the community in November 2013.

The 10-foot bronze sculpture was created by Missouri sculptor Charles Strain. It was purchased by Sharon and John, whose home was heavily damaged in the tornado, and donated to Washington Pride Plaza. The Amdalls had previously acquired and donated a sculpture that was placed in front of the WTVP and Peora Symphony offices in Peoria. 

Harris said Five Points prides itself on its cleanliness and being a place its 7,000-plus members can be proud of. “Our members, of course, mean everything to us so we are always listening to them and we consider their suggestions to make Five Points better. We don’t have any more expansion plans at this time, but we certainly wouldn’t rule it out in the future,” she said.

The Caterpillar Auditorium, named for the Peoria-based manufacturing giant that donated millions to the construction of the facility, is certainly one of the highlights of Five Points. It is the exclusive auditorium for Washington High School plays, musicals and concerts as well as the Heartland Festival Orchestra, which will soon open a new season there.

The Peoria Pops Orchestra uses Five Points for concerts, including its annual holiday show, the Peoria Ballet and the Civic Chorale frequently perform there and companies like the seating capacity and technical facilities of the auditorium for large meetings.

But there are plenty of open dates for the auditorium.

The Aug. 29 “Comedy Rocks” show isn’t the first time an outside professional theatre-type group has been brought in. A troupe from well-known Second City, a Chicago-based sketch and improvisation comedy group, played a concert there more than a year ago as a fundraiser for the tornado relief fund. And in the spring Five Points presented a musical comedy show by the Church Basement Ladies. That one included a luncheon buffet with the matinee and dinner in the banquet hall before the evening performance.

“That one did really well. It catered more to an older audience but we wanted to try something similar, using the banquet facilities before and after the event, with an event that has a wider appeal,” she said.

On Aug. 29 there will be a pre-show party in the banquet hall with cocktails and music beginning at 6:30 p.m., with the show set to begin at 7 p.m. Then there will be an “After Party” following the show with drinks, a DJ, photo booth and food.

All is included for the ticket price of $30. Tickets can be reserved online at www.fivepointswashington.org, by calling (309) 444-8222 or at the door the night of the event, provided it hasn’t sold out.

And if you need a baby sitter, those services are being provided at Washington Middle School by a group of volunteer students and adults who are raising money for a school trip to Washington, D.C.

The event is sponsored by Thomas Eye Care, which is a platinum sponsor for the pre-show party. Gold sponsors for the event are New Image Laser and Massage and Backyard Living, both in Washington.

“This is kind of a test to see what things we need to do to attract people to events they normally wouldn’t find in a small town like Washington. We are bringing awareness of what we can offer and we hope we can get people to see Five Points is really a great place for the entire region,” Harris said.

She acknowledged competition is strong in the region, but she added, “There is enough going on that people should never have to search long to find something to do. We want to be part of that equation.”

For more information about the facility and all it has to offer visit www.fivepointswashington.org.