As the largest non-governmental funder for the region, United Way of Metropolitan Chicago surveyed almost 400 non-profits throughout Illinois to understand the impact of the recent state budget cuts. While the immediate affect of the state budget was not as devastating as anticipated, the budgeted delayed payments are impacting agencies across the sector. As we prepare for the next budget cycle, already reported at a deficit of $12 billion, our survey finds agencies are currently forced to re-evaluate programs, staffing and client capacity.
Of the participating non-profits surveyed, 57% reported they are waiting on back payments from the state to provide services including: employment, youth services, job training, domestic violence and other crucial services. To compensate, almost a third of the non-profits reported laying-off more than 10% of their staff. Additionally:
• More than $77 million is owed to 223 of the agencies surveyed for services provided in the last fiscal year which ended June 30, 2009.
• Over half the agencies will see more than a 10% decline in their state revenues between fiscal year 2009 and fiscal year 2010.
• 70% of non-profits surveyed reported that state revenues represent more than 20% their budget.
• 60% reported they will be forced to reduce or freeze the number people they serve.
• 12% of the agencies anticipate they will be forced to temporarily or permanently close physical locations due to reductions in state funding.
Impact on United Way:
At United Way alone, funding applications for programs that help people become financially stable have doubled, and for every $6 of requests, there is only $1 of funding available. Despite a decrease of $12 million from fiscal year 2007, last year, United Way was able to distribute $43 million to nearly 700 programs across Chicagoland. However, the gap between United Way’s funding ability and the state’s is drastic. The State of Illinois is the largest funder of human services providing about 97% of the dollars for service. United Way and foundations are unable to fill the gap—a gap that is the responsibility of the state.
Just over 75 years ago, in the grip of the Great Depression, the people of Chicago came together to create, fund and sustain a network of community services to help people in their time of need, a network eventually known as United Way. As history seems to be repeating itself, we look to the people in our region to encourage their state legislators to work side by side with us to promote the common good and protect its citizens by maintaining funding for health and human services.
For more information about the impact of the delayed payments and United Way’s efforts to work with legislatures during this process, please contact Jack Kaplan, Director Public Policy and Advocacy at jkaplan@uw-mc.org or visit www.liveunitedchicago.org.
