State Representative Arthur Turner

Town Hall Meeting

Exploring the Impact of State Budget Cuts

Monday, March 23, 2015

What We Will Cover

• Nonprofit Survey……......………..

• Impact of Executive Order 8……..

• Impact of FY 2015 Budget Cuts…..

• Overview of FY 2016 Budget……

Valerie F. Leonard, Co-Founder, The Lawndale Alliance

Attorney Jeanette Foreman

Donald Dew, CEO, Habilitative Systems, Inc.,

Commissioner, IAAFC

Michael Holmes, Executive Director

Illinois African American Family Commission (IAAFC)

Bobby Otter, Budget Director

Center for Budget and Tax Accountability

State Representative Arthur Turner

Town Hall Meeting

Presenters:

Valerie F. Leonard, Co-Founder, The Lawndale Alliance

Attorney Jeanette Foreman

Nonprofit Survey

• Representative Turner is surveying nonprofit organizations to assess the impact of budget cuts

• Assess nonprofits’ ability to maintain essential services in their communities

• Provide opportunity to share stories and upcoming meetings and events regarding the impact of budget cuts

• Survey links are available through email

• Email Terri Sikorski, District Office Administrator at terri@reparthurturner.com

Why You Should Respond

• Reports we read focus on state-level impacts and don’t drill down to the community level. The data from this survey may be sorted by zip code, so we can get a sense for the geographies of the hardest hit areas.

• Communities like North Lawndale are highly dependent on social services.

• Social net for our most vulnerable citizens

• Fifty percent of our local workforce is employed in health and human services

• Twenty-five percent of our local employers are nonprofit organizations

• Our largest employer is Mount Sinai Hospital. The Hospital relies heavily upon the state for reimbursement for medical and public health services

• The data will be analyzed and shared with elected officials to provide better advocacy on behalf of the community

The first section of the

survey focuses on basic

contact information

This section focuses on

the organization’s

mission, budget,

programs, community

impact and state funding

source.

This section focuses on

the impact of the budget

cuts to the organization

This section allows

agencies to share their

stories and provide ideas

for improving the

situation, either at the

community level, or on

the part of our elected

officials.

State Representative Arthur Turner

Town Hall Meeting

Presenter: Donald J. Dew

CEO, Habilitative Systems, Inc.

Commissioner, Illinois African American Family Commission

Executive Order 15-08

• Executive Order to Address the State’s Fiscal Crisis • Signed by Governor Rauner January 12, 2015

• Section II.1 (Procurement and Personnel) requires the Governor’s Office of Management and Budget (GOMB) to review every state contract or hire made or terminated on or after November 1, 2014.

• Section II.4 requires a review of all contracts that are not essential for the State Agency’s operations. Every State agency was required to provide a report to the GOMB regarding all non-essential contracts with information about how the contracts could be terminated without any material penalty to the State of Illinois.

Source: Executive Order 15-08 https://www.illinois.gov/Government/ExecOrders/Pages/2015_8.aspx

Impacts of Executive Order 15-08

• The GOMB has terminated contracts of agencies who received state funding if the programs for which they have received funding do not seem to fit within the grantees’ core missions, as opposed to whether or not the service provided suits the goals and objectives of the State Agency that provided the grant.

CeaseFire

• CeaseFire was budgeted to receive $4.7 million for FY 2015

• Notified March 4, 2015 that their FY 2015 funding was suspended

• Funding for FY 2016 was cut 60% to $1.9 million

• Some of the CeaseFire funds shifted to Adult Redeploy, whose budget will increase 53%, from $7 million in FY 2015 to 10.75 million in FY 2016. Adult Redeploy is run by the Criminal Justice Authority.

• According to a recent Crain’s Chicago Business article, CeaseFire had to suspend operations immediately, and is working to negotiate restoration of FY 2015 funding.

Source: Corfman, Thomas A., “Rauner halts funding for CeaseFire”, Crain’s Chicago

Businesshttp://www.chicagobusiness.com/article/20150305/NEWS02/150309860/rauner-halts-funding-for-ceasefire

The Biggest Budget Losers FY 2016

• Child Care Assistance Program:

• Eliminating payments for children cared for by a relative would limit parent choice for more

than 15,000 families and eliminate care for many families that work non-traditional hours. (1)

• Increase parent co-pays by $10.5 million (1)

• Limiting Child Care Assistance Program intake to children 5 years and younger would

eliminate school age after school care and summer programs for more than 100,000 low-

income children ages 6-12. (1)

• Teen REACH, which supports after school programs for 14,000 disadvantaged youth across the

state, would be eliminated from the budget (2)

• After School Matters would lose all state funding (2)

• Funding for homeless youth shelters and services will be cut so deeply that the program will be

nearly eliminated the program, ending services for 1,300 homeless youth. (2)

Sources: (1) Illinois Action for Children (2) Community Renewal Society

The Biggest Budget Losers FY 2016

• DCFS budget will be reduced $147 million by eliminating care, services and housing support for 2,400 Illinois wards, age 18-21. (3)

• DCFS wards who will lose their home and support services include teenagers in foster care, residential treatment centers and college.

• DHS will lose $193 million in funding for community-based services and supports for children and adults with intellectual/developmental disabilities and mental illnesses. (4)

• This includes residential services for individuals with high medical/behavioral support needs (ICFDD), psychiatry, housing supports, early intervention, respite, autism, dental and epilepsy services.

• Impact: 51,447 clients and 1,539 jobs around the State of Illinois (only includes data from IARF members who responded to a survey)

Sources: (3) Child Care Association of Illinois (4) Illinois Association of Rehabilitation Facilities (IARF)

State Representative Arthur Turner

Town Hall Meeting

Presenter: Michael Holmes

Executive Director

Illinois African American Family Commission

Illinois African American Family Commission

• The Illinois African American Family Commission was established by Public Act 093-0867 to

assist various state agencies to advocate for and promote the well-being of African American

families and children through public policy. This will be accomplished by:

• Monitoring existing legislation and programs designed to address the needs of African

Americans in Illinois

• Assisting State agencies in developing programs, services, public policies and research

strategies that will expand and enhance the social and economic well-being of African

American children and families

• Facilitating the participation of African Americans in the development, implementation,

and planning of strong and vibrant communities.

Fiscal Year 2015 Operating Appropriations by

Results Area Percentage of Total

Note: This chart is

based on the original

budget proposed by

Governor Pat Quinn.

Source: State of Illinois Fiscal

Year 2015 Agency Fact Sheets

FY 2014

Final

FY 2015

As Passed

Change

FY 2014 to

FY 2015

%

Change

General Funds $31.470 $31.467 -.004 0%

Other State Funds 29.387 31.109 1.721 5.9%

Federal Funds 8.056 7.882 -.174 -2.2%

Total $68.914 $70.458 1.544 2.2%

FY 2015 State of Illinois Budget Summary (In Billions)

Source: State of Illinois Budget Summary, September 8, 2015

The Current Budget Situation

• The State of Illinois’ temporary income tax increase expired January 1, 2015. As a result, a number of state agencies are under-funded and do not have enough cash to sustain operations through June 30, 2015, the end of the current fiscal year.

• The estimated budget deficit for FY 2015 is $1.6 billion.

• The Department of Corrections is one example.

Department of Corrections (Original Budget)

• Current situation:

• The Department of Corrections needs $117 million to fund operations through June 30, 2015.

• Of that amount, $70.8 million would be required to fund payroll.

• Five prisons with a combined payroll of nearly 5,000 employees could run out of cash in

coming weeks.

• By early May, another 11 prisons with a combined payroll of 4,000 workers could run out of

cash to pay employees. (5)

(5) Erickson, Kurt, “Prison Payrolls Coming Up Short”, Herald and Review, March 11, 2015.

Source: State of Illinois Fiscal Year 2015 Agency Fact Sheets

State Representative Arthur Turner

Town Hall Meeting

Presenter: Bobby Otter

Budget Director

Center for Budget and Tax Accountability

See The Center for Budget and Tax Accountability Presentation on Illinois State Budget, Revenue, and Pensions prepared by Bobby Otter.