On June 14, 2010, Health & Medicine Policy Research group (HMPRG) hosted a forum, “The State’s Fiscal Crisis: Changing Our Collective Response.” With over 70 attendees, the forum explored the impact of the State’s budget and recent cuts on health and human services in Illinois. Participants heard from panel speakers about how we might collectively respond to the crisis and ensure responsible and adequate funding for education, health, and human services in Illinois. Materials from the forum can be found on the HMPRG website (www.hmprg.org)

1. State Budget Impact on Human
Services
The State’s Fiscal Crisis:
Changing our Collective Response
June 14, 2010

2. Value of Human Services
• Human services are essential programs and services in place in
every part of Illinois that help individuals and families, create jobs,
build strong communities, and contribute to the state’s economy.
• As many as 2 million people in Illinois depend on state funding for
basic services such as child care; after-school programs for teens;
skills training or help finding jobs; counseling for victims of domestic
violence; assistance for those with mental illness or developmental
disabilities; in-home care for the elderly.
• 400,000 Illinoisans are employed in the human services sector.
• Studies show that every dollar the public invests in community
services returns $5 to $20 to the taxpayer in savings from reduced
emergency room visits, lower crime and unemployment, and higher
standardized test scores and graduation rates.
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3. Survey Findings
• 90% of agencies surveyed rely on government support.
• Almost half of those agencies rely on government
support for more than 50% of their budget.
• 77% are owed payment from the state for services
already provided.
• 62% of the agencies have reduced staff size in last year.
• 60% reported they will be forced to reduce or freeze the
number of people they serve.
• 13% of the agencies anticipate they will be forced to
temporarily or permanently close physical locations due
to reductions in state funding.
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4. Financial Stress Test
• UWMC conducted an analysis of selected partner
agencies to assess level of financial distress
• Three indicators
Revenue over (under) expenses
Days of cash on hand
Current ratio
• Of the 275 reporting agencies, 214 were flagged by at
least one indicator
• More than half had multiple flags
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5. State Budget concerns
• Illinois has cut funding for human services almost every year for the
past decade in real, inflation-adjusted terms.
• The FY11 state budget includes uncertain and unacceptable cuts to
human services.
• These cuts fall on the most vulnerable in our state – seniors, people
with mental illness and disabilities, victims of violence, and children.
• Such cuts will harm individuals and families, result in the loss of jobs
across Illinois, shift more costs to towns, counties, and hospitals,
and further weaken our state’s economy.
• Reimbursement payments from the state are running anywhere
from 3 to 12 months behind resulting in a growing “account
receivable” to the human services sector.
• Depleted cash reserves and exhausted credit lines are leading to
program cutbacks and closures.
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6. ILLINOIS PARTNERS
Illinois Partners for Human Service is a statewide network of
organizations that advocate for high quality, responsible and
sustainable approaches to providing human service in Illinois. We
engage nonprofit, government, faith based, business and education
leaders who agree that our communities are healthier and safer when
residents have access to bedrock public services.
Our focus is uniting the human services sector – including programs
and services ranging from early childhood, afterschool programs,
family support, mental health and substance abuse treatment, to
assistance to people with disabilities, workforce training, violence
prevention, and homecare for the elderly.
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7. ADVOCACY FOCU
S
The collective advocacy of Illinois Partners is focused on three
key issues that are essential to a strong human services
sector:
• QUALITY SERVICES
that are capable of helping Illinois
residents improve their lives
• ADEQUATE FUNDING
that reflects the needs of Illinois
residents and the true cost of providing
quality services
• MEASURABLE RESULTS that establish a standard of mutual
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accountability for achieving meaningful
outcomes

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9. Questions?
Contact:
Jack Kaplan
Director of Public Policy and
Advocacy
United Way of Metropolitan Chicago
(312) 906-2368
Jack.kaplan@uw-mc.org
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