Capitol Fax.com - Your Illinois News Radar

Human service providers beg governor to stop planned cuts

Posted in:

Illinois

* Background is here if you need it. Open letter…

Dear Governor Pritzker,

We know that you and your administration agree that health and human services benefit every community, and ensure all Illinoisans can reach their full potential. Thus, we are greatly concerned about the $200 million in budget reductions to health and human services announced this week. On behalf of our 800+ partners around the state, we are writing to request specific information about these budget reductions as soon as possible. Our coalition still needs clarity, predictability, and partnership from your administration.

As we face an unpredictable climate in 2021, our coalition supports solutions that protect lower-income communities from further economic disparity, and that give our partners the tools they need to provide equitable access to care. We know you agree that it’s time to erase the line between health and human services. We wholeheartedly stand with you in calling for structural solutions and the tearing down of systemic health and economic inequalities in our communities. That’s why Illinois Partners for Human Service supported a higher minimum wage and the Fair Tax ballot measure, and why we center the pursuit of equity and the dismantling of systemic racism in our work.

The stable foundation provided by the human services sector has been threatened in recent months by higher costs, due to elevated staffing ratios and COVID sanitation protocols. Simultaneously, human services providers lost revenue, due to cancelled in-person events and fewer billable hours. As a result, almost 50% of human services employers in Illinois are worse off financially entering 2021.

Cuts to health and human services threaten well-being for everyone. Our sector cannot, and does not, “close.” Caseloads may be temporarily suppressed, as COVID-19 throttles access to care and disrupts employment. But, we know that as the state re-opens, this trend will reverse. Our communities will benefit if our human services sector remains well equipped to support all kinds of people across the lifespan. Now is the time to rebuild, not tear down.

We are grateful for your entire administration’s tireless work during this extraordinarily challenging year. We will continue to support your efforts, while remaining firm in our call to invest in health and human services so that all of Illinois’ residents, neighborhoods, and communities can achieve well-being.

Sincerely,
Lauren Wright,
Executive Director of Illinois Partners for Human Service
182 human services stakeholders statewide (see following pages)

Click here for the full list.

posted by Rich Miller
Monday, Dec 21, 20 @ 1:54 pm

Comments

The governor set expectations by threatening the opponents of the Fair Tax with consequences.

Now the folks that supported the fair tax want to know why they are targets.

They have a fair point.

Eliminate state grants for the Art Institute and the Civic Opera if you want to get the attention of Griffin and Crown.

Etc, etc.

Comment by Thomas Paine Monday, Dec 21, 20 @ 2:08 pm
This should make people like Ken Griffin happy—the poor, sick and most vulnerable begging to not be cut. Happy Holidays.

Comment by Grandson of Man Monday, Dec 21, 20 @ 2:08 pm
=== Now the folks that supported the fair tax want to know why they are targets.

They have a fair point.===

They need to lobby the legislature and legislators to save things.

Cuts are coming.

Which legislators are going to help save these services… or their own districts

Comment by Oswego Willy Monday, Dec 21, 20 @ 2:10 pm
The proposed cuts so far are simply the trial balloon…and they have already seen significant opposition from labor and human service agencies. Those proposed cuts unfortunately do not even scratch the surface of what is needed to make up for our budget shortfall.

I just don’t see a way out of this without a tax hike, which would just drive more people out of the state.

Comment by NIU Grad Monday, Dec 21, 20 @ 2:12 pm
Maybe HHS providers can get a vote on a constitutional amendment placing a lockbox on their funds, or even prohibiting their funding from ever being cut or even reformed in any way.

Just thinking out loud here.

Comment by JB13 Monday, Dec 21, 20 @ 2:13 pm
Is there legislative support to re-amortize the ramp? This seems like the best of bad options (politically speaking).

Comment by 1st Ward Monday, Dec 21, 20 @ 2:30 pm
Of JB’s 711 million cut, $126 was from DHS. It’s going to hurt. Everyone’s screaming, pointing fingers, claiming that everyone else should bear the pain, etc., but I think we just have to understand it’s going to hurt all around for a long time.

There needs to be cuts and new revenue. I don’t think we’re going to find enough new revenue from cutting “corporate loopholes”; we need to hike the income take up, yes, cut some loopholes or tax credits to businesses, broaden the sales tax, at minimum. My dream is for retirees making over 100k from their pension to be taxed, but third rail and whatnot.

Comment by Perrid Monday, Dec 21, 20 @ 2:41 pm
1st Ward, the argument against re-amortizing, as I understand it, is fear that the rating agencies would react poorly. IL is once notch above junk, so this isn’t really a great time to see how much we can push it.

Comment by Perrid Monday, Dec 21, 20 @ 2:42 pm
” I understand it, is fear that the rating agencies would react poorly”

Correct BUT they downgraded the outlook to negative which means there will likely be action within 24 months. There’s no magic solution that’s going to right the ship back so a downgrade feels inevitable - The ramp is ramping, no one wants to cut, no one wants to raise taxes. Something has to give in a meaningful way. Why would you not sacrifice the rating if its going down anyway when you have an out blaming it on the pandemic induced recession. If you tax and cut now and get downgraded anyway what was the point? There’s no reason State Pension Funds need to be 90% funded by X date. If there 40%, 50%, 70% everyone still gets their check each month.

Comment by 1st Ward Monday, Dec 21, 20 @ 2:54 pm
This is a challenge but the opponents said make cuts. Instead of announcing and doing a slow roll out of the cuts the governor needs to simply say the amount that needs to be cut, then make the cuts and put out a complete list of all cuts made to achieve the dollar goal. Then hand it over to the legislature and get input as to what they want to change.

Comment by illinifan Monday, Dec 21, 20 @ 2:57 pm
==placing a lockbox on their funds==

There’s already a lockbox preventing the state from re-allocating motor fuel taxes to human services. No more lockboxes.

Comment by City Zen Monday, Dec 21, 20 @ 3:04 pm
I think these agencies and partners should be lobbing the general public. They shot down the fair tax. Make everyone understand why they need everyone’s tax money. I think most people have no idea how thier tax money is spent. Most people think it is all fraud and waste and goes to a bunch of pols in Springfield. Make Ken Griffin seem like Scrooge.

Comment by Publius Monday, Dec 21, 20 @ 3:18 pm
I’ve accepted the reality that services are going to be massively cut, taxes will go up, and the Springfield/central IL community is going to suffer hard.

Even with a massive Biden state bailout we still will be forced to make cuts. Its going to get ugly and I’m worried the news will start trickling in about how ugly after these holidays.

Comment by The Dude Monday, Dec 21, 20 @ 3:24 pm
“Most people think it is all fraud and waste and goes to a bunch of pols in Springfield.” - I don’t think it is all fraud. There is plenty of ineptitude and mismanagement to blame too.

Comment by essentially working Monday, Dec 21, 20 @ 3:32 pm
There is waste everywhere even in private companies generating profits. However the agencies have always done a poor job of getting the word out to what they do and why they need those tax dollars.

Comment by Publius Monday, Dec 21, 20 @ 3:36 pm
== Most people think it is all fraud and waste and goes to a bunch of pols in Springfield.==

You forgot pensions. We’re trying to scrape together $200 million to prevent human services because we’re spending $9 billion on pensions.

Comment by City Zen Monday, Dec 21, 20 @ 3:38 pm
And yet CPS announced a 40k raise for their schools chief in the last week bringing her salary to a whopping 300k. I guess the pain of the fair tax fiasco knows it’s bounds. Cutting human services makes for better headlines than asking executives for shared sacrifice.

Comment by Jed Monday, Dec 21, 20 @ 3:42 pm
Pensions always seem to be the excuse to raise taxes and/or cut services to the poor or citizens with special needs.
Public pensions are supported by employee contributions, employer contributions (in our case Illinois Taxpayers) and investments. If the investments don’t do well then the taxpayers and employees have to put in more money. Some employees were give discounts on their required contributions and in effect got more money in salary or benefits. I suspect Team Pritzker will be looking at raising the actual employee contributions to match what is in the respective statutes and will be looking at an overall across the board increase to cover the large shortfalls that have been built up.
Or maybe they will just cut food, housing, education and health programs and raise taxes.

Comment by Back to the Future Monday, Dec 21, 20 @ 3:47 pm
==Team Pritzker will be looking at raising the actual employee contributions==

Non-starter. Raising the employee contribution rate is considered a diminishment and impairment of pension benefits.

Comment by City Zen Monday, Dec 21, 20 @ 3:51 pm
City Zen
Respectfully disagree. Pension contributions by employees have been raised in the past. Pension benefits would not be changed.
I suspect Illinois citizens that have hit a rough spot will take it on the chin.

Comment by Back to the Future Monday, Dec 21, 20 @ 3:58 pm
>we are writing to request specific information about these budget reductions as soon as possible

Not unreasonable to ask where the cuts are falling so you can make (or stop) plans. Don’t tell human service providers they’re being cut then leave them in the dark–it’s serious work impacting many lives and decisions need to be made.

Comment by Earnest Monday, Dec 21, 20 @ 4:03 pm
Back to the future; CZ is correct. Employee contributions can’t be raised without consideration; I.E. offering an enhancement in exchange. An example: When the employee contribution was raised in 1989 to 4% the current 3 % AAI was the offered in return.

Comment by Just A Dude Monday, Dec 21, 20 @ 4:14 pm
I appreciate your point, but employee contributions were reduced in the past as part of overall compensation packages. I really don’t believe employee contributions have to stay the same. The cases, as I read them, talk about a contract regarding benefits, but I appreciate your point and you might be right on this.
Of course, I would not want anyone’s pay adjusted especially in these tough times, but the programs that provide shelter, food, safety and health options are basic and necessary.

Comment by Back to the Future Monday, Dec 21, 20 @ 4:29 pm
These agencies are going to take the beating again. Just like many, who weren’t under consent decrees, did back just 3 years ago.

Wonder if any of the typical insider lenders will be knocking on those providers doors again to help them out. Then get those nice interest payments when the state doesn’t pay out timely on these contracts for service.

Comment by Frank talks Monday, Dec 21, 20 @ 4:30 pm
=we’re spending $9 billion on pensions.=

Wrong. Roughly $7 billion in legacy debt payments and about $2 billion in annual cost of the pensions.

Legacy debt, money diverted from or borrowed from the statutory pension payments that were not made in full for most of a century. You benefited directly from those actions as did most of Illinois. Stadiums for billionaires, roads, infrastructure built for corporations. That kind of stuff.

Legacy debt for the umteenth time.

Comment by JS Mill Monday, Dec 21, 20 @ 4:32 pm
==You benefited directly from those actions==

As did every government employee who received a raise or any compensation enhancement when the pensions were shorted. Couldn’t have paid for them otherwise.

==Legacy debt for the umteenth time.==

Spin it however you want, but it’s pension debt.

Comment by City Zen Monday, Dec 21, 20 @ 5:19 pm