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Human Services and the FY 2013 BudgetPRESENTATION TO THE ILLINOIS HUMAN SERVICES COMMISSION

Larry JosephDirector, Fiscal Policy Center

Voices for Illinois ChildrenMarch 14, 2012

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Overview• FY13 proposed funding for major agencies• Department of Human Services

– Home Services– Developmental Disabilities– Mental Health– TANF income assistance– Child care assistance– Selected program cuts: FY09-FY13

• DHFS medical assistance• FY13 revenue estimates

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State Agencies with More Funding in FY13 General Funds Budget

Dept. on Aging +77.4 M 10.5%Ill. Student Asst. Commission +50.0 M 12.3%State Board of Education +31.8 M 0.5%State universities +18.3 M 1.4%Dept. of Veterans’ Affairs +4.9 M 7.6%

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State Agencies with Less Funding in FY13 General Funds Budget

Dept. of Corrections -111.9 M -9.2%DCFS -44.8 M -5.5%State Police -19.6 M -7.3%Dept. of Juvenile Justice -11.7 M -9.4%Dept. of Public Health -9.1 M -6.8%Dept. of Human Services -2.2 M -0.1%

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DHS Home Services Program

FY 2012 FY 2013($ mill.) ($ mill.)

General Revenue Fund 573.5 329.3Non-GRF 0.0 240.0Total 573.5 569.3

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Home Services Program:FY13 GRF Changes

Program liability +44.2 MDeferred liability from FY12 +12.0 MEligibility restrictions -42.5 M Other program cuts -17.9 MShift to non-GRF -240.0 MNet change – GRF -244.2 MNon-GRF +240.0 MNet change – all funds -4.4 M

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DHS Development Disabilities

FY 2012 FY 2013($ mill.) ($ mill.)

State-operated dev. centers 293.1 277.9ICFs & community services 779.8 975.4Transitions from SODCs 10.9 20.8All other 16.0 15.8Total GRF 1,099.8 1,289.9

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Developmental Disabilities:FY13 GRF Changes

Deferred liability from FY12 +163.5 MShift from non-GRF +43.0 MLigas consent decree +38.9 MTransitions from SODCs +20.8 MNon-Medicaid services -18.4 MState-operated dev. centers -15.2 MShift to non-GRF -50.0 MNet change +190.0 M

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DHS Mental HealthFY 2012 FY 2013($ mill.) ($ mill.)

State-operated facilities 224.6 202.8Community service grants 144.2 85.8Transitions from SOFs 22.7 36.3Williams consent decree 0.0 21.0Transportation 0.7 0.0All other 80.7 80.9Total GRF 472.9 426.8

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Mental Health: FY13 GRF Changes

Williams consent decree +21.0 MTransitions from SOFs +13.6 MOperations +0.1 MState-operated facilities -21.8 MCapacity grants -18.4 MEliminate non-Medicaid services -17.6 MOther community services -23.1 MNet change -46.2 M

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Trends in TANF Income Assistance

FY09FY10FY11 FY12

Recipients (1,000s) 64.375.699.9 123.0

Cost of benefits ($ M) 85.2102.8143.6176.4

Funding ($ M) 90.0112.7140.393.7

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TANF Income Assistance:FY13 GRF Changes

Caseload increase +139.3 M30-day waiting period - 9.2 M3-year time limit -15.3 MNet change +114.8 M

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DHS Child Care Assistance

FY 2012 FY 2013($ mill.) ($ mill.)

General Revenue Fund 281.9 265.2Special Purpose Trust Fund 189.5 190.5Employment & Training Fund 425.0 425.0Total 896.0 880.7

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Child Care Assistance: FY13 GRF Changes

Provider rate increase +21.6 MDeferred liability from FY12 +18.3 MIncrease family co-payments -36.4 MIncome eligibility for new applicants -9.3 MUpfront registration of providers -4.9 MOther program cuts -6.0 MNet change -16.7 M

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Selected GRF Program Cuts, FY09-FY13Home visiting programs (HFI & PTS) -22%Addiction treatment programs -24%Domestic violence shelters & services -24%Homeless Youth Services -28%Delinquency prevention programs -40%Mental health grants -45%Emergency & Transitional Housing -51%Teen REACH -64%Teen Parent Services -79%

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DHFS Medical Assistance:Estimated Liabilities and Resources,

GRF and Related Funds

FY12 FY13Program liabilities 10.9 B 11.5 BResources 9.4 B 8.5 BOutstanding liabilities

Current year 1.5 B 2.9 BPrevious year 0.3 B 1.8 BTotal 1.8 B 4.7 B

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Components of Outstanding Medical Assistance Liabilities

• FY 2012– Enrollment growth– Expiration of enhanced federal matching funds– Inadequate appropriations

• FY 2013– Funding gap in FY12– Enrollment growth– Plan to freeze GRF appropriation

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GF Revenue Estimates, FY 2012 (excluding federal sources)

House Resolution 110 28,329 MSenate Joint Resolution 29 29,438 MDifference 1,109 M

GOMB (revised, Feb. 2012) 29,416 MCGFA (revised, Feb. 2012) 29,587 MDifference 171 M

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FY13 GF Budget under GOMB and HJR68 Revenue Estimates (in $ millions)

GOMB HJR68 Diff.Total est. revenue 33,940 33,719 -221Mandatory spending -9,450 -9,450 0“Available” revenue 24,490 24,269 -221Agency approp. 24,828 24,269 -559Est. unspent approp. -500 -500 0Total est. expend. 33,778 33,219 -559Fiscal year balance 162 500 338

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For additional information, contact:Larry Joseph

Director, Fiscal Policy CenterVoices for Illinois Childrenljoseph@voices4kids.org

312-516-5556

www.voices4kids.org