Second Largest Funder Warns Cuts Will Cripple the Health and Human Services Sector
United Way of Metropolitan Chicago today announced the preliminary results of its survey of over 300 United Way funded agencies. The purpose of the survey was to assess the impact of the proposed state budget cuts on the health and human services sector and the people it serves. As the largest funder of health and human services next to the government, United Way is in a unique position to quickly assess the effect of drastic budget cuts proposed in the May budget, passed by the legislature but vetoed by the Governor.
Currently, agencies that provide critical services under state funded contracts have been notified that their grants will be reduced by 50 to 100 percent commencing July 1st. As the budget crisis drags on in Springfield, providers have no choice but to implement sweeping cuts of staff and services.
“Without a state budget, our agencies are immobilized. They are forced to operate under the new mandate, or risk maintaining current levels of service without the assurance they will receive state reimbursement for those expenses,” said Laura Thrall, president and CEO of United Way of Metropolitan Chicago. “Meanwhile, the lives of hundreds of thousands of people who rely on child care, elder care, disability services, substance abuse and mental health counseling, domestic and sexual violence services—to name a few—are left hanging in the balance.”
With just 30% of United Way funded agencies reporting so far, the survey data confirms that the proposed budget cuts will have devastating consequences for Illinoisans. Of the agencies responding to date:
* One third plan to reduce agency staffing by at least 20%
* Half of them will be unable to serve at least 20% of their current client base
* Twenty percent expect revenue reductions in excess of one million dollars each
* Many are still being financially strapped by state reimbursements that are already several months in arrears; in one case an agency is owed over $10 million.
Other impact being reported includes:
* An inability to secure lines of credit if Illinois receivables are the collateral for the loan
* A shift towards paying clients or ‘fee-for service’ work and an elimination of services to the uninsured.
While the findings from the survey are still preliminary, the results are clear; proposed state budget cuts will eliminate crucial services to people in need, devastate the health and human services infrastructure built over several decades, and place thousands of more displaced agency workers on the unemployment rolls. United Way will conclude the survey and report its findings later this month. In the meantime, United Way continues to urge state lawmakers to pass a fair budget with adequate funding for health and human services when they reconvene in Springfield this week. For more information go to ACT NOW.
