August 24, 2004

To the Honorable Members of the

Illinois House of Representatives

93^rd General Assembly

Pursuant to Article IV, Section 9(e) of the Illinois Constitution of 1970, I hereby return House Bill 2220 entitled “AN ACT in relation to public aid,” with the following specific recommendations for change:

            on page 5, line 6, by replacing the phrase “July 1, 2004” with the phrase “January 1, 2005”.             

As currently drafted, House Bill 2220 will have a detrimental effect on federal matching funds. Changes in rates (or rate methodology) require a state plan amendment, which in turn requires a thirty-day public notice.  Without an approved state plan amendment, no federal financial participation (FFP) can be collected.   An effective date of January 1, 2005, rather than the current date of July 1, 2004, would provide sufficient time to insure federal compliance with the requirements to obtain FFP.

With this change, House Bill 2220 will have my approval.  I respectively request your concurrence.

Sincerely,

ROD R. BLAGOJEVICH

Governor