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The impact of the impasse

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* From Michael McGrath at Illinois Partners for Human Services…

Hi Rich:

So we’ve heard that the state budget fiasco might impact state employee payroll in mid-July and may have an impact on education in August. But the impact of the impasse is being felt in the human service sector right now. Hundreds of human service organizations that rely on state contracts are cutting services and laying off staff.

* I asked for a few examples. He complied…

Easter Seals of Central Illinois http://www.easterseals.com/ci/ is suspending its early intervention service coordination program starting July 1, which will impact 1,600 families in 11 counties, resulting in the furlough of 40 employees.

Chicago Area Project http://www.chicagoareaproject.org is a not-for-profit employment agency that would normally place 300 youth into summer jobs is now placing none.

LINC, Inc. http://www.lincinc.org is an organization that empowers people with disabilities to live independently. They have been forced to lay off nearly half of their staff, cut hours of the remaining staff and deny service to hundreds in the community.

Also, IARF has just announced that the failure of Illinois state leaders to adopt a new budget has prompted service shutdown planning for nearly 26,000 mentally ill adults and children.

These are innovative programs with well documented outcomes; all about to lose impact.

Keep in mind, these are not programs that lawmakers have decided to defund through some organized budget and policy process. Rather, they are victims of the lack of any budget whatsoever. And the consequences will reverberate across the state, impacting families from every community.

posted by Rich Miller
Wednesday, Jun 24, 15 @ 12:02 pm

Comments

Actually these decisions are very different than any previous decision made when appropriation bills were not signed by July 1. In the past, agencies would tell the service groups the contracts would extended and service reimbursed. This group is just slammin’ the door. Can’t wait to see how they picked winners and losers.

Comment by Anonin' Wednesday, Jun 24, 15 @ 12:07 pm
A friend of mine got his lay-off notice recently too. He works for a non-profit helping homeless families find and stay in decent, safe housing.

Maybe Rauner can get some tent cities built around the state. We can call them Raunervilles, just like the good old days.

Comment by 47th Ward Wednesday, Jun 24, 15 @ 12:16 pm
Are these groups being unduly pessimistic? After all, it seems likely that they will get grants eventually. I know we criticize nonprofits sometimes for not being fiscally prudent, but isn’t not panicking a part of fiscal prudence.

Comment by Cassandra Wednesday, Jun 24, 15 @ 12:21 pm
Bruce Rauner The Project Killer

Comment by Duh! Wednesday, Jun 24, 15 @ 12:21 pm
You are going to hear a lot more specific stories like this as DHS sends out contracts this week. No one knows who will be getting FY16 contracts. Those that don’t will have to begin shut down. Those that do will likely have to begin shut down too.

Comment by Montrose Wednesday, Jun 24, 15 @ 12:22 pm
The goverenor needs to get out of the dorm room and get to work. He wasn’t elected partisan super-legislator.

Comment by Wordslinger Wednesday, Jun 24, 15 @ 12:24 pm
I fail to see how higher unemployment helps Illinois “turn around”?

Comment by JS Mill Wednesday, Jun 24, 15 @ 12:25 pm
“Are these groups being unduly pessimistic? After all, it seems likely that they will get grants eventually. I know we criticize nonprofits sometimes for not being fiscally prudent, but isn’t not panicking a part of fiscal prudence.”

No. Would you ask that question of a for-profit business? The amount of instability that this administration has introduced with how it is handling the budget crisis is staggering. And FY16 funding does not even touch on the growing backlog of bills. Where does the cash come from to run these programs while they wait to see if they get a contract and, if so, when they will get paid on that contract?

For too long nonprofits have continued to do work on behalf of the state in these situations. While it pains them to no end to not continue mission-focused programs, they have learned that they cannot jeopardize everything they do in order to continue unfunded programs.

Comment by Montrose Wednesday, Jun 24, 15 @ 12:27 pm
Kirk Dillard….thanks GOP.

Comment by facts are stubborn things Wednesday, Jun 24, 15 @ 12:31 pm
Well, I presume that even in years when all is running smoothly, some contracts are not renewed.

But wouldn’t it make sense to wait until your agency knows if it is one of them. For the rest, the money will come eventually, I presume. And I imagine that delays in reimbursement precede Gov. Rauner’s admin.

Comment by Cassandra Wednesday, Jun 24, 15 @ 12:33 pm
It may be helpful for a news outlet to ask the Comptroller’s Office for the monthly payroll schedule for every state agency. I believe the legislative staff are one of the first ones to miss a paycheck.

Comment by Just saying .... Wednesday, Jun 24, 15 @ 12:37 pm
Cassandra-

“After all, it seems likely that they will get grants eventually.”

Have you ever worked for a non-profit in the human services field? Grants take months, sometimes years, of planning, researching, and writing on the part of the non-profit to see if it is a fit, and are, in most cases, more than just a year in length. They also, usually, require a match of time and/or money on the behalf of the applicant. I’m not trying to be condescending, but if you have never been involved in the grant process, it isn’t as simple as you seem to think.

Comment by Anon221 Wednesday, Jun 24, 15 @ 12:38 pm
Cassandra.

How long would you stay with your employer if they notified you that due to fiscal issues, you’re welcome to stay on, work, but won’t be paid. HOWEVER, it seems ‘most likely they will have funding eventually’.

Essentially, that’s what you are suggesting both the non-profit AND it’s employees do. Continue working, w/out income with the assumption that, perhaps someday funding will be restored. Maybe.

Comment by How Ironic Wednesday, Jun 24, 15 @ 12:40 pm
Heard second-hand, the ADAP program that subsidizes the life-saving drugs for people who are HIV+ will be suspended as of July 1. That’s life and death stuff.

Comment by ACA insider Wednesday, Jun 24, 15 @ 12:41 pm
I misspoke. I mean, it seems likely they will get money eventually-I presume they already have the grants and are awaiting this year’s funding.

I think there is way too much panic talk at this point. Of course, it was the same under Governor Quinn. You could say, it’s an annual rite of Illinois state government contracting.

Comment by Cassandra Wednesday, Jun 24, 15 @ 12:43 pm
Cassandra, are you intending to sound cavalier and privileged? Because you are coming off more than a bit “let them eat cake”ish. Just sayin.

Comment by Honeybear Wednesday, Jun 24, 15 @ 12:48 pm
https://www.dhs.state.il.us/page.aspx?item=39157

Just a sampling of the complexity from DHS:

Request for Proposal (RFPs) & Request for Applications (RFAs)

Comment by Anon221 Wednesday, Jun 24, 15 @ 12:54 pm
Cassy the difference this time is state agencies are not telling the providers to keep doing what they do and they will be made whole. Big difference.

Comment by Give Me A Break Wednesday, Jun 24, 15 @ 12:54 pm
And at the bottom of that page link:

Services for Preschool Instructional Excellence Announcement

Guess who-

Successful Applicant:
The Ounce of Prevention Fund

Comment by Anon221 Wednesday, Jun 24, 15 @ 12:55 pm
Not privileged, just waiting for some facts. If Montrose is correct, we should have some soon.

Comment by Cassandra Wednesday, Jun 24, 15 @ 12:55 pm
Mr/Ms 47th Ward
“We can call them Raunervilles, just like the good old days.”
Actually we generally prefer thee domiciles be refered to as Rancho Ruanerosa please. The help wil grasp what we mean much faster.

Comment by Anonin' Wednesday, Jun 24, 15 @ 12:57 pm
Rauner owns the budget.

Rauner owns the impasse, and here’s why;

Governors need budgets.

I’m constantly amazed that a governor refused to see a budget as his constitutional duty, even with it clearly spelled out as such.

Note; every single time the Rauner Crew and Rauner himself talk about the Madigan-Cullerton budget, all of them, including the governor himself, acknowledge that “Bruce Rauner is failing” at his duties as governor…

… like candidate Rauner railed on Governor Pat Quinn. Remember that last debate?

“Pat Quinn failed”… said over and over by candidate Rauner.

Understand Governor Rauner, you are failing these groups.

You are. it’s on you. It comes with the job.

Comment by Oswego Willy Wednesday, Jun 24, 15 @ 12:57 pm
“I think there is way too much panic talk at this point.”

After all, I’m not feeling the pinch.

– MrJM

Comment by MrJM Wednesday, Jun 24, 15 @ 12:58 pm
A BIG change/caveat this year = Nonprofits have been told that, until a budget is in place, contracts will only take effect on the date they are signed, i.e. not backdated to July 1.

Comment by Left Leaner Wednesday, Jun 24, 15 @ 12:59 pm
I don’t mean to put words in Cassandra’s mouth, but it sure seems as though she’s saying:

“Can’t those who serve those that have nothing, continue to provide those vital services, with nothing? After all, what’s a little less when you don’t have anything anyways?”

Comment by How Ironic Wednesday, Jun 24, 15 @ 1:01 pm
Most of these agencies have little or no cash reserves because of the constant state fiscal crisis. Because of that they can’t hold out until their is a budget because they can’t pay employees. Their only responsible option is to lay off employees. They can’t be confident this gets resolved quickly and when it does how fast the agencies and Comptroller gets caught up. Both the GA and Governor have to wear the blame on this.

Comment by Hoping for Rational Thought Wednesday, Jun 24, 15 @ 1:04 pm
“Not privileged, just waiting for some facts. If Montrose is correct, we should have some soon.”

The facts we will know is whether or not a nonprofit has a contract for FY16. What we do not know is if there will be other contracts, if those contracts will hold, if they will be reduced, when they would take effect, etc. I honestly don’t know if it is better to get a contract of not right now given the situation.

How Ironic nailed it.

Comment by Montrose Wednesday, Jun 24, 15 @ 1:05 pm
===Both the GA and Governor have to wear the blame on this.===

Nope.

These types of situations are owned by governors. Always been.

It’s up to a governor to make the case, get a budget, run the programs, staff and fund the agencies attached to the programs…

Governors..

Comment by Oswego Willy Wednesday, Jun 24, 15 @ 1:08 pm
The state has gone down this road before. You can’t contract without an appropriation. That is why it’s best to get the budget passed and approved in April or May. The Governor owns this because of his stonewalling the budget process over his turnaround agenda. Whether the public and general media understand that is another question.

Comment by A Jack Wednesday, Jun 24, 15 @ 1:10 pm
“He wasn’t elected partisan super-legislator.”
I think the guv confuses the difference between being a CEO of a company and the Governor of IL.

Comment by Mama Wednesday, Jun 24, 15 @ 1:20 pm
There will not be a monthly payroll schedule if there is no budget for FY2016.

Comment by Mama Wednesday, Jun 24, 15 @ 1:23 pm
Because many social services in Illinois are delivered by groups like Catholic Charities,
Lutheran Family Services, and other religious
organizations and their affiliated Hospitals,
schools, and outreaches hasn’t the Governor’s
master plan been both foolish and unrealistic?
Taking on the General Assembly or Unions is it
somehow different than challenging the Altar?

Comment by Illoinoisvoter Wednesday, Jun 24, 15 @ 1:24 pm
Cassandra, providers have been told in unequivocal terms that they should not expect any services they provide to be be paid retroactively to July 1 if they are funded through general revenue dollars. It’s a significant risk to their bottom lines to gamble against that presumption. Outside of staff costs, there are business expenses that simply cannot cease on July 1 and then start up again whenever they “eventually” get contracts, such as leases, liability insurance, etc. To the extent that providers cannot bill the state for its share of those costs doesn’t mean the costs go away. They just must be absorbed by cash reserves or fundraising for unrestricted dollars. And it is mighty difficult to ask a funder to pay the rent for a building while the program is shut down.

Comment by Pawn Wednesday, Jun 24, 15 @ 1:29 pm
Candidates are not elected governor to harm the state’s citizens. So everyday this governor behaves like this, he isn’t being a good governor. There is a professional way to work with a legislature, and then there is the political way. Rauner has chosen poorly.

Comment by VanillaMan Wednesday, Jun 24, 15 @ 1:32 pm
Of course everyone here knows the Governor doesn’t really “own” this, as the Democrats have a supermajority. But if we’re just speaking about perceptions, if it’s true the Governor owns the budget, then he also owns the blowback from the voters if they perceive he raised taxes while getting nothing back for it. The spending cuts that would come with a nice quiet deal with Madigan wouldn’t be seen as “getting something back.” And most of the people who voted for him are not ringing the phones of the hook saying “FOR THE LOVE OF GOD, RAISE MY TAXES, BUT DON’T LET THIS HAPPEN TO EASTER SEALS!” Yes, I know, Rauner has agreed in principle to raising taxes, but I doubt that’s what registers with most people. Rauner will get all sorts of criticism if the government shuts down and these vulnerable people are hurt, but if in the deep dark night of the soul a majority of the voters credit him with saving some of their paycheck, he wins. Alternatively, if he is forced to cave but the perception is that it was Madigan and “those people” who made him do it, he (or the GOP) wins down the line.

I’m not saying he’s a sure winner by any means, I just don’t see this strategy as a sure loser.

Comment by lake county democrat Wednesday, Jun 24, 15 @ 1:33 pm
I work for one of the above organizations and am fiscal agent for the state contracted program–let me be clear–this year is not like other years–previously they extended existing contracts beyond July 1–the governor says he won’t do that. Without an FY16 budget in place we have no contract! DHS has made it clear that even if we sign our FY16 contract no one at DHS will sign to execute and without a budget in place there is no spending authority. If we keep the door open we do it on our dime since DHS says there is no guarantee of reimbursement back to July 1. Also, there is a legal issue here–even if you want to keep the door open how can you act as an agent of the state when you have no executed contract?

Comment by emerson Wednesday, Jun 24, 15 @ 1:37 pm
I work at a social service agency likely to be affected by the budget mess. Agencies aren’t pre-emptively laying people off - they lay people off when there is no contract (i.e. no money) to pay staff to continue to provide services. The alternative is to continue to offer services with the hope that some day the State will put in place contracts that are back-dated. This is something that some agencies tried last time we went through this and many got burned…furlough is a common technique to try and maintain fiscal sustainability while preserving the option of re-hiring if contracts are granted.

Comment by 'Kiddin Me? Wednesday, Jun 24, 15 @ 1:39 pm
Yes. This is not a fight over money, for nonprofits or any other budget items. The money is there, it’s rolling in as we speak, there’s, ahem, “tax anticipation” money,that is the money currently in our pockets, and of course my favorite state kitty, (billions in) “special funds”.

This is a fight over who pays and who gets the blame for making them pay.

Comment by Cassandra Wednesday, Jun 24, 15 @ 1:42 pm
Cassandra,

Special funds are exhausted. Remember Ruaner took $1.3 Billion for FY 15. They haven’t magically refilled.

Additionally, many of the special funds are comprised of federal $$ which specifically prohibit the ’sweeping’ of such funds.

Get over it. There is no more money to sweep. It’s gone. And the money that’s ‘rolling in’ isn’t enough to pay for our current obligations.

Stop pretending that we are somehow going to sustain the state on money that’s been hidden away somewhere.

Or do you pay your mortgage each month, only using money that you shake out of the couch, and find under the seats of the car? Because that’s what you are asking the state to do.

Comment by How Ironic Wednesday, Jun 24, 15 @ 1:50 pm
Cassandra:

A lot of these non-profits need a consistent stream of money to operate. Some submit payment requests weekly to maintain cash flow.

And you gotta get off of your special funds kick. You act like it’s an indefinite source of revenue. It ain’t. I’d be happy to give you a lesson on the budget any time.

Comment by Demoralized Wednesday, Jun 24, 15 @ 1:52 pm
I already got my lesson on special funds in a recent Chicago Tonight segment on the issue. It seems that Illinois is an outlier in its use of special funds. And there are other interesting points. I didn’t conclude from this segment that
the billions in special funds were necessarily all that special, unless the pols want them to be. I also didn’t get the impression that there was nothing left for fy 2016.

I didn’t say all the bills could be paid from special funds, however. I also mentioned “tax anticipation,” better to say tax increase anticipation, seems to be a favorite of many here.

Comment by Cassandra Wednesday, Jun 24, 15 @ 2:08 pm
MJM continues to dedicate himself to working cooperatively and professionally with Gov. Rauner and calls on Rauner to operate in moderation and not the extremes. He further calls on Rauner to be reasonable because that is how problems get solved in the legislature. MJM is controlling the narrative and is framing the issues. The gov. has the spending bills so if he does not want new revenue he can fashion a budget that would create that. Rauner is paying a sloppy game of checkers and MJM is playing a serious game of chess.

Comment by facts are stubborn things Wednesday, Jun 24, 15 @ 2:38 pm
Rauner is a gift to the Dems because it is allowing them to mend fences with the state workers and unions.

Comment by facts are stubborn things Wednesday, Jun 24, 15 @ 2:39 pm
“facts are stubborn things,” back in the day, when Emil Jones was Senate President, he used to tell incoming former House members that the first thing they had to do was “remove that Madigan chip from your head.”

It was a running joke of his for years that MJM always installed computer chips in his members’ heads which made them say pretty much exactly what you just posted.

I’ve been to two MJM press conferences in the past week or so. I’ve had my fill of “operating in the extreme,” thank you very much.

Comment by Rich Miller Wednesday, Jun 24, 15 @ 2:42 pm
==the billions in special funds were necessarily all that special==

Then you didn’t understand very well, or I suppose it means you have a different definition of “special.” They are special funds because they get money from a dedicated source for specific purposes. If you want them to not be “special” then that money needs to be deposited into GRF and those special funds eliminated. I’m not sure how you think it’s ok to collect money for one thing specifically and the law says that money is supposed to be used on something specific and then say that it’s ok for it to be spent on whatever the heck we want to spend it on.

And please don’t say you got a lesson in special funds from television. It’s a bit more complicated than a tv segment. And, I’ll repeat again, these aren’t the piggy banks you make them out to be.

Comment by Demoralized Wednesday, Jun 24, 15 @ 2:44 pm
Bruce is collecting an additional 14K a week!

Comment by Jack Stephens Wednesday, Jun 24, 15 @ 3:02 pm
==impacting families from every community==
You’re darn right.

My 8 year old autistic nephew will not be able to attend his special school one and a half hours away because transportation will stop.

My 10 year old autistic niece will not be able to have her intervention therapy after July 1st.

My disabled brother-in-law with Parkinson’s, who has difficulty with everyday tasks like eating, bathing, dressing and depends on his assistant to help him live independently is worried because the LINC folks are cutting staff and furloughing personal assistants.

My daughter, who works at Easter Seals, does not know if she will be furloughed or laid off as of yet.

Words do not do justice when one looks into the eyes of a Parkinson’s sufferer who worries if he’ll be able to get dressed and eat without his aide, or knows the small gains an autistic child makes because of intervention and therapy. Employees at Easter Seals aren’t making money hand over fist, yet they are dedicated individuals who patiently work with children with special needs every day.

The funding for these organizations literally is not there, and there’s no guarantee what FY16’s budget will bring.

So while the girding of the loins takes place in Springfield, many vulnerable citizens of this state will be hurting.

Comment by Verbatim Writer Wednesday, Jun 24, 15 @ 3:03 pm
interesting to see Chicago Area Project is supposedly low on funding. They’ve ridden high on the state hog for years, including but not in any way limited to a $5 million appropriation for violence prevention in 2014 and vague plans put forth on what they’d do with it. Looks like their reputation has finally caught up with them. Good.

Comment by Politix Wednesday, Jun 24, 15 @ 3:37 pm
While I tend to put the budget on the legislature because they have a super majority Rauner set himself up by proclaiming he would be in the statehouse each day wrangling with the legislators.

I don’t recall him sitting outside Madigan’s office waiting on a sit down ala West Wing.

Rauner wants a fight to push this to the 2016 election cycle. Madigan needs a lightning rod to dump 2 decades of bad budgets on. They both got what they want, they are both to blame.

Comment by the Patriot Wednesday, Jun 24, 15 @ 3:56 pm
“Candidates are not elected governor to harm the state’s citizens.”

Private agency staff are negotiating with landlords about canceling leases and staff are desperately looking for other jobs. Meanwhile services are being terminated for clients whether they are autistic, ventilator dependent,foster children, developmentally disabled or mentally ill. The caretakers for these people are petrified of what is going to happen and wondering if will be able to keep their jobs, their houses and their families if there is no, or an inadequate, budget. So lets see…hurt clients? Check. Hurt families? Check. Hurt workers? Check. Great work everybody.

Comment by Tucker Wednesday, Jun 24, 15 @ 4:27 pm
Just received - 23% cut from DHS.

Comment by jt Wednesday, Jun 24, 15 @ 4:56 pm
Coverage of the issue in the Peoria Journal Star:
http://www.pjstar.com/article/20150623/NEWS/150629672/1995/NEWS

Comment by G'Kar Wednesday, Jun 24, 15 @ 5:55 pm
Well, the billion and change that got swept recently became un-special in the blink of an eye.
That doesn’t sound too special to me.

My point. No special funds. Throw all the money in a big pot and prioritize, which is what our political masters are supposed to do (sigh). It’s nice to save butterflies and fish but it’s also disingenous to claim the state is short on cash because you can’t touch the butterfly fund.

Comment by Cassandra Wednesday, Jun 24, 15 @ 6:45 pm
Uh, Cassandra, we’re not talking about butterflies and fish here.

Comment by olddog Wednesday, Jun 24, 15 @ 7:55 pm
I would like to put one more organization on the list. Grow in Illinois. Grow has been serving the mentally ill in the state for over thirty years. We have helped people recover move on get jobs and become tax payers. We are so sad to be closing our doors we serve 1000 mentally ill people a year with a very small budget. We have done everything but get on our knees and beg. I just don’t get it. The gov just thinks we were paid to do nothing all these years. I just don’t get it I just don’t. What a guy! He is cold anyone who will not even take the time to listen to the people very cold. We have been working with DHS and DMH for years and never have I we been left so helpless and hopeless all that money being spent to fill his ego by bad mouthing Madigan could have served so many does he not get it!

Comment by Anonymous Wednesday, Jun 24, 15 @ 11:29 pm
There is an easy solution here. Terminate the management of half of the 7200 different taxing districts in the state, roll the actual workers into the county workforces, eliminate the township governments, and roll the savings into the various charitable organizations listed above. Unless, that is, you have no heart.

Comment by Tom K. Thursday, Jun 25, 15 @ 2:16 am
This fiscal crisis didn’t happen over night. The actual toll this will take is devastating.
WHO is being effected the MOST? The most vulnerable persons served.

Many agencies talk about recovery,but how many can say the word “RecoverED”? Programs like GROW (and others) promote recovered. People move on, get jobs, become tax payers, become active in their families, in their communities and transform from being very mentally ill, to productive citizens.

Special Funds? The state is BROKE. How much money has Rauner spent on the advertising to discredit Madigan and Cullerton? How many agencies could have used THAT money to fund their services? ADVERTISING? Give me a BREAK!

The rise of mentally ill persons being incarcerated since 2009, clearly shows what these type of cuts lead to. Do you honestly think treatment for repeat petty offenders in jail will help an individual? Ask ANY local, state or federal prison employee THEIR opinion on that one.

And what about the employees that will be receiving their pink slips in the coming weeks? Where will they go? Everyone will be downsizing! So now … you have mentally ill, disabled and children without much needed services, AND hundreds of unemployed workers throughout the state unable to find work.

It breaks my heart to be one of the agencies that will be unable to serve those needing services. We are working to find placement for 6 individuals at our residential facility, and my last day of employment will be mid-July (along with 9 others)as we close our doors.

“Each person’s recovery or growth aids in the transformation of the world.”
~GROW program~

Comment by Anonymous Thursday, Jun 25, 15 @ 3:16 am
Cassandra @ 6:45p

Butterflies? You are woefully misinformed about special funds.

Comment by Politix Thursday, Jun 25, 15 @ 3:56 am