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Notes From The Field
Notes From The Field
Springfield Update
In the waning hours of the 96th General Assembly a bill passed the legislature that combines
spending caps and increases in income tax rates with mixed results for human services.
SB 2505, signed into law as Public Act 096-1496 on Jan. 13, raised the personal state income tax
rate to 5% and the corporate income tax rate to 7% through 2015. As a result, annual revenues
are projected to increase by approximately $7 billion. From 2015 to 2025, the personal income
tax rate will fall to 3.75% and the corporate income tax rate will drop to 5.25%.
Beginning in 2015, .25% of the personal income tax increase will go towards human services and
education through two newly established trust funds: The Commitment to Human Services Fund
and The Fund for the Advancement of Education. The fund for human services, estimated to
bring an additional $400 million to programs, represents the first time the sector has received a
set aside. Still, it is unclear if human services funding will actually increase given past cuts and
those anticipated in fiscal year 2012.
At the same time, SB 2505 imposes hard spending caps on future budgets. General fund
spending growth will be limited to 2% annually between fiscal years 2012 and 2015. Because of
pension contributions and Medicaid obligations the spending cap will result in cuts to state
programs – including human services. With pension and health care costs growing about 8-10%
per year, the spending cap will force legislators to cut about $800 million in the 2012 fiscal year
and $2.2 billion from fiscal years 2012 to 2015 combined.
Based on recent appropriations, there is reason for concern about the impact on human services
funding. For the current fiscal year, $576 million has been slashed from the Department of
Human Services. Human services cuts in this year alone accounted for almost $1 of every $5 cut
over the past two years, or 19.2% of $3 billion in total reductions. The state’s human services
budget fell from about $4.05 billion in fiscal year 2010 to about $3.47 billion in fiscal year 2011.
Grants worth $515.7 million were cut, reducing or eliminating non-Medicaid programs in mental
health, developmental disabilities and rehabilitative services. Furthermore, there is still the very
real possibility of further cuts to human service programs for the current fiscal year under the
Governor’ Emergency Budget powers.
In a recent survey by Illinois Partners for Human Service, more than 95% of the 282 human
services agencies responding reported negative effects of state budget cuts. The survey showed
half of organizations reduced hours or their level of service. More than 40% saw their waiting lists
grow and almost 30% had to refer clients to other providers with no guarantee they would be
served. Almost 30% shut down programs, which eliminated essential services and jobs in the
community.
Survey results also are broken down by Cook County, northern counties, north-central counties,
south-central counties and southern counties.
Another budget reform bill, HB 5424, will implement “budgeting for outcomes,” a set of policies
that requires the Governor and state agencies to prioritize outcomes and undergo performance
measurement, allowing the state to make funding decisions based on sound evidence about the
most effective programs. United Way of Illinois will work with other stakeholders to ensure priority
setting takes into account the expertise of the philanthropic and nonprofit sectors in Illinois.
Streamlined Auditing
The Streamlined Auditing Bill (HB 5124), endorsed by United Way of Illinois and a focus of our
advocacy on Lobby Day last April, was signed by the Governor as Public Act 96-1141 last
summer. This legislation requires several state departments to reduce administrative costs
associated with duplication in program and accreditation audits as well as agency oversight.
United Way played a key role this fall as a member of the steering committee charged with
producing a report to the General Assembly. The process was a model for partnership between
the nonprofit sector and government, as well as inter-agency collaboration at the state level. The
final report had recommendations in seven categories:
While the Steering Committee was only charged with producing the report, it has also begun
contemplating the implementation process, and is committed to working collaboratively with all
parties to bring the required changes to fruition.
211
Activity continues on a number of fronts to move 211 from the pilot stage to more expansive
implementation. A committee of the 211 Illinois board, which was selected as the lead entity to
govern and manage the program, reviewed and recommended changes to its contract with the
state. We are currently awaiting the state’s response. A meeting was held with the new
permanent director of 311 in Chicago to explore possible coordination with 211. United Way
Metro Chicago convened a meeting with information and referral providers to begin discussing
the development of a calling center for the metro Chicago area. Our three pilot programs in
cooperation with the United Way of the Quad Cities, The United Way of Greater St. Louis and
United Way of McLean County continue to serve 13 counties in Illinois with increased call
responses. At the federal level, our valiant efforts to pass the Calling for 211 Act came up short
when key committees were unable to recommend the bill for consideration by either the House or
Senate.
UWMC continues to monitor their performance and work with them to provide technical
assistance as appropriate. Agencies are addressing their situations in a variety of ways (e.g.
staff layoffs wage and benefit reductions)
A version of this “stress test” is now being considered by local United Ways across Illinois as
a tool to improve their own evaluation of agency capacity and to develop a statewide picture
of the financial condition of the human service sector.
Illinois Partners
Illinois Partners for Human Service, the statewide coalition in which we played a founding role just
a few years ago, now has over 600 members in every county and legislative district representing
the full range of human services. The advocacy and active engagement of its members has had a
dramatic impact on a number of issues affecting the sector and resulted in major achievements
including the human service funding set aside in the recent tax bill signed into law. During the fall
gubernatorial campaign, Governor Quinn and representatives of Sen. Bill Brady both responded
to specific questions concerning the human services sector during the coalition’s special call-in
meetings. The coalition also worked closely with the Governor’s Office of Management and
Budget to expedite payments to providers and market a new vendor payment program to reduce
the delay in payments. Conducted in the fall, the state budget impact survey referenced above
demonstrated the dramatic impact that funding cuts continue to have on programs and
employment. The survey resulted in extensive statewide press coverage and a story in The
Washington Post.