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Today’s number: $350 million

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Illinois owes 800 service providers more than $350 million under contracts the state issued but lacks the appropriations authority to pay, according to Department of Human Services data obtained by the Fiscal Policy Center. The state issued these contracts even though Governor Rauner vetoed spending bills that would have allowed the state to make good on these contracts. Without payment for the services they have provided, many organizations are struggling to survive.

In an attempt to get desperately needed emergency funding to human service programs after more than 10 months without a state budget, the General Assembly last week approved by overwhelming margins a bill for more than $700 million in funding to social services. The nearly $250 million designated for DHS programs would allow the state to pay a sizable portion of the what the state owes under these contracts. Governor Rauner has not yet said whether he will sign this bill.

Pay Now Illinois, a coalition of 64 Illinois-based human and social service agencies and companies, is suing Governor Rauner and agency heads seeking payment of more than $100 million for services provided in FY16. The lawsuit seeks to begin immediate payments of the most overdue bills. The coalition notes that the lawsuit is the “only possible basis of preventing an even more serious cutback of services” and that once “these services and programs are cut or eliminated, it will be difficult to resume them.”

The full list is here.

* Greg Hinz…

The list on Voices site is a sobering collection of IOUs.

Like the $7.7 million owed to the Ounce of Prevention Fund for its healthy families and parents-to-be programs. The fund’s president is Diana Rauner, otherwise known as the governor’s wife.

Among some of the others who got contracts and have been doing the work but not getting paid are Cardinal Health, at $11.5 million; the city of Chicago at $22.2 million just for child care; $2 million to the Easter Seals program for early intervention; $6 million to the Illinois Coalition Against Sexual Assault; and $3.5 million to the Women’s Treatment Center for anti-addiction programs.

…Adding… Emily Miller in comments…

(T)his is only the list of contracts from DHS. There are many hundreds of millions of dollars more in contracts issued from other Departments without appropriation authority for the comptroller to pay for them.

posted by Rich Miller
Monday, May 16, 16 @ 3:12 pm

Comments

there is an interesting fraud/abuse of power issue here is agencies knowingly entered into contracts without approp authority….

Comment by Ghost Monday, May 16, 16 @ 3:20 pm
I don’t think so, Ghost. Issuing contracts without appropriations in place happens all the time, even in normal years. I used to work at a state agency and contracts are almost always finalized before appropriations are in place.

Comment by Athens Monday, May 16, 16 @ 3:26 pm
“Like the $7.7 million owed to the Ounce of Prevention Fund for its healthy families and parents-to-be programs. The fund’s president is Diana Rauner, otherwise known as the governor’s wife.”

This must be a source of interesting pillow conversation st the mansion.

Hey Bruce, any chance of getting Ounce of Prevention any money?

Diana, you know I don’t have a social agrnda and my agenda hasn’t been passed.

I know dear, but think of the children?

The children will have more money than they know what to do with. They will be well enough off to fend for themselves.

I wasn’t talking about our children …

Well who were you talking about? Because if they aren’t blood relations, I don’t care about them.

Comment by Huh? Monday, May 16, 16 @ 3:27 pm
That’s over one-third of one Billion dollars…

…

Owed.

That’s owed. Not subjective to “scrutiny” or “what did they do to earn…”

No. Stop. Full Stop.

Perspective?

Diana Rauner’s Ad for Bruce Rauner has cost Ounce $7.7 million in funds owed.

That’s real. That’s no social agenda “at work”… with no pay, but I digess…

Representative, what do you say to the 800 service providers that are owed more than $350 million under these contracts? Frustrated?

@RonSandack: I’m frustrated 2, but taking steps towards reforming IL more important than short term budget stalemate. - Ron Sandack, 9/28/15

Remember, this is purposeful, even if you did an Ad… for Bruce Rauner.

Ms. Miller, keep on doing the hard work. You are really, really, good. Thank you.

Comment by Oswego Willy Monday, May 16, 16 @ 3:27 pm
Just a note - I believe that this only looks at DHS, and doesn’t look at Aging, DCFS, HFS, DPH, etc.

Aging alone would add, at minimum, another $100-150M.

Comment by AlabamaShake Monday, May 16, 16 @ 3:29 pm
=Like the $7.7 million owed to the Ounce of Prevention Fund for its healthy families and parents-to-be programs. The fund’s president is Diana Rauner, otherwise known as the governor’s wife.=
Maybe The First Lady wanted to be president of the of Gram of Prevention fund under this administration when she did the ad for the Governor(?)

Comment by Qui Tam Monday, May 16, 16 @ 3:33 pm
Rauner is daring the do-gooders to lay down and stop serving as the bank for a hostage situation he dreamed up. So much win for him. He gets to weaken the providers. He gets to blame Madigan. He gets to divide Democrats who actually care about these people. It is morally reprehensible, but I can see why he’s been so good at this type of governance. I mean, not like HE’s going to know any suffering, is it?

Comment by Albany Park Patriot Monday, May 16, 16 @ 3:36 pm
Doesn’t have the same human implications but a lot of vendors are in the same boat. Trying to finalize FY17 contracts right now. I’m not sure how to answer when the execs ask “how is this going to work out?”

Comment by Out Here In The Middle Monday, May 16, 16 @ 3:37 pm
Isn’t there a federal law that states one has to pay one’s workers for the work they performed?

Comment by Mama Monday, May 16, 16 @ 3:39 pm
- AlabamaShake - Monday, May 16, 16 @ 3:29 pm–

Correct-this is only the list of contracts from DHS. There are many hundreds of millions of dollars more in contracts issued from other Departments without appropriation authority for the comptroller to pay for them.

And of course, even if there were appropriation authority, Illinois lacks the revenue it needs to make good on those contracts.

Comment by Emily Miller Monday, May 16, 16 @ 3:40 pm
The Raunerism of the ILGOP.

“The ILGOP, the Party of Forced Pain, unless… “

Comment by Oswego Willy Monday, May 16, 16 @ 3:41 pm
Medical providers - the state owes them a ton of money for their services too.

Comment by Mama Monday, May 16, 16 @ 3:43 pm
Rauner holding up this money makes absolutely no sense. Madigan couldn’t care less about those he’s hurting by keeping Illinois on the path to fiscal oblivion, so there’s no ‘leverage” play here. If you want to hurt Madigan, you hold up grants to his buddies in Chicago patronage havens like streets and san, and veto state spending on “pork” projects that keep Madigan’s union buddies fat and happy, NOT folks barely making enough to pay the bills.

He could also have cut Madigan’s daughter’s budget big time through the line item veto in the budget, especially since the AG seems more interested in promoting the “progressive agenda” through her litigation than actually prosecuting criminals these days.

I’ll admit it. I just can’t figure out the Rauner “strategy” here. If anyone has insights to what it is, please educate me (even Willy).

Comment by Arizona Bob Monday, May 16, 16 @ 3:43 pm
The list does include some funds being paid under court orders–Early Intervention is a good example of this.

Comment by emerson Monday, May 16, 16 @ 3:45 pm
Disgraceful.

Conservative and Deadbeat are not supposed to be synonyms.

Comment by wordslinger Monday, May 16, 16 @ 3:55 pm
state agencies have begged providers to continue serving their eligible clients. The Court of Claims option is not realistic; would flood that late payment system of collecting, and the problem remains of available funds to make payment from.
Time to bite the bullet and both borrow to pay old FY 16 bills and raise or restructure taxes to raise revenues to pay FY 17 bills.
But as I have mentioned before, with fewer local providers surviving the disaster that is the State of Illinois, there will be less spending in FY 17 due to less providers out there to care for state eligible clients. Longer waiting lists creates less spending… immoral and inappropriate, but the new reality of a devastated community based human services sector.

Comment by Capitol View Monday, May 16, 16 @ 3:59 pm
Rauner’s no social agenda is the gift that keeps on giving.

Comment by Joe Biden Was Here Monday, May 16, 16 @ 4:31 pm
Mr./Ms. ArizonaBob:
Cut AG? Only office that makes money…even BigBrain not that dumb — we think.
Still thinkin’ CMSers need to approve more letters for VSI requests.

Comment by Annonin' Monday, May 16, 16 @ 5:05 pm
- Oswego Willy - Monday, May 16, 16 @ 3:41 pm:

Yep! And their forced pain sure does frustrate THEM.

Comment by Jimmy H Tuesday, May 17, 16 @ 10:46 am
For many DHS contracts, the dollar value on the contract is a maximum, and services still have to be provided and billed individually. so the state may owe up to 350 million is closer to the truth. Like I said though, depends on the contract

Comment by Per rid Tuesday, May 17, 16 @ 9:13 pm