A letter to the editor that appeared in Crain’s Chicago Business on November 30, 2009

As corporate donors, we all understand philanthropy is tethered to the health of the economy. When business is good, we are able to better support our safety-net services. The reality, however, is that health and human services are needed more when times are tough. This year, charitable donations are down 6%, the sharpest drop in 53 years. And if researchers are correct, it will take at least three years for philanthropy to return to the same levels.

At the helm of supporting the non-profit community is United Way. As the largest non-governmental funder for health and human services, United Way is setting the standard for measurable results and allocating contributions where they have the greatest impact. Its campaign represents more than dollars raised; it is a measure of our investment in the programs and organizations supporting our children, communities and even colleagues who may depend on after-school care for their children or rely on assisted living facilities for aging parents.

As the 2009 United Way Campaign chair, I want to applaud Chicago’s business leaders for increasing their giving and their commitment in the community. Last year, through United Way Days of Caring, more than 5,500 volunteers from 118 companies completed 305 volunteer projects, saving non-profits more than $490,000.

On behalf of United Way and Illinois Tool Works, I want to thank you for opening your doors to the United Way. Our communities are counting on our generous support now more than ever.

David B. Speer
Chairman, CEO
Illinois Tool Works

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.

Governor Pat Quinn signs the 2-1-1 Act on August 21.

On August 21 at a press conference at the United Way offices, Governor Pat Quinn signed the 2-1-1 Service Act to advance the development and implementation of a health and human services help line for the people of Illinois.

“People united cannot be defeated,” Governor Quinn said to dozens of United Way employees and other 2-1-1 supporters at the bill-signing. “We believe in community and we believe in United Way. To all those who give to United Way, whether it be money or time, you’ve done more than pay your rent in service.”

The Governor also called the bill important for public safety and for health and human services accessibility and he thanked United Way for leading the charge to bring 2-1-1 to Illinois.

“This service will provide easy access to health and human services for residents when they need them, and where they need them,” said Jack Kaplan, Director of Public Policy and Advocacy for
United Way of Metropolitan Chicago and United Way of Illinois. “It represents a unique collaboration between the business, government and nonprofit sectors. It’s also a great example of LIVING UNITED because we are achieving things together that none of us could have done alone.”

The 2-1-1 Service Act allows the Illinois Department of Human Services to identify a lead organization to plan and implement the statewide information and referral system for health and human services. It is anticipated that the 2-1-1 line will be active across the state by early 2010.

With the support of United Way, Illinois began operating the first 2-1-1 call centers in February of 2009. They are currently active in 13 counties as pilot programs in conjunction with the United Way of McLean County, the United Way of the Quad Cities and the United Way of Greater St. Louis.

The hotline will be a 24-hour, one-stop telephone number that will connect citizens to a variety of social services. As 9-1-1 is the phone number to call in case of emergencies, 2-1-1 provides an easy to remember telephone number that connects people with vital community services, disaster response and relief and volunteer opportunities.

SB 1922, sponsored by Sen. Susan Garrett (D-Lake Forest) and House Minority Leader Tom Cross (R-Oswego), passed unanimously in both chambers.

“2-1-1 allows people to give help and get help,” said Greg Cott, President of United Way of McLean County and Treasurer of United Way of Illinois. “I thank Senator Garrett, Representative Cross and Governor Quinn for working to make statewide 2-1-1 a reality.”

Click here for photos of the bill signing and press conference.
Click here to listen to the Governor’s speech.

On July 14 the General Assembly passed a budget for the State of Illinois. Thanks to the hard work and dedication of thousands of concerned organizations and citizens the “doomsday budget” that would have devastated human service programs was avoided. Instead, the Legislature passed a budget that funds human service and grant programs at roughly 90% of their 2009 levels. This means there are still an estimated $1.5 billion in cuts needed in order to balance the budget.

The General Assembly has given complete power to Governor Quinn to decide where cuts will be made and how deep they will be. Call Governor Quinn today and everyday and tell him to prioritize health and human services. Our work needs to continue. Over the coming months we encourage everyone to meet continually with legislators to show them how important these programs are to their community and the importance of full and stable funding.

Click here to contact Gov. Quinn via email, or to obtain his phone number and mailing address.

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.

Just one of the many images of rallies held throughout the state in support of human service funding. Click image for more photos.

For months Illinois State Legislators have been crafting a budget that takes into account the needs of all its residents. The budget as it stands is woefully devoid of support and funding for hundreds of human service programs for the elderly and disabled, children, victims of domestic violence, foster parents and kids to name just a few. United Way has joined its partner agencies in calling for lawmakers to put aside their differences and pass a sound and responsible budget that does not neglect those who need human services most. Throughout the month of June social service representatives, clients, government officials and taxpayers alike came out en masse to decry these unfair cuts. Through rallies, vigils and by contacting State Senators and Representatives, our voices were heard but unfortunately not listened to.

Timeline of what has been happening in Springfield:

May 31st: The State of Illinois passed a budget that cuts funding to health and human services across the state by 50-75%.  The General Assembly faced a July 1st deadline to come up with an alternate spending plan that would keep human service programs active.

June 4th: Hundreds gathered at the Thompson Center to protest the unfair cuts to human services.

June 8th: United Way launched its ACT NOW webpage encouraging Illinoisans to write to their legislators before the July 1st deadline and urge them to fund human services.

June 12th: The State sent letters to Illinois human service agencies detailing the cuts their current funding would be facing. Cuts ranged from 50-75% of programs’ total budgets.

June 16th: Gov. Pat Quinn’s chief of staff, Jerry Stermer briefed the public at a press conference and warned of the devastating impact these drastic cuts would have on human services and on Illinois residents overall.

June 16th: Organizations from across the sector held another rally at the Thompson Center immediately following Stermer’s press conference. State Representative Julie Hamos addressed the crowd to show her support for human services funding.

June 18th: A rally organized by Illinois Action for Children and other human service agencies brought out the largest turnout yet. The rally stopped traffic and closed streets as thousands expressed their outrage over the fate of human services in Illinois.

June 20th: A rally was held in DuPage County where human service cuts would devastate up to 200,000 people.

June 29th: Lawmakers returned to Springfield with plans to iron out a solution to the budget crisis.

June 30th: Midnight vigils were held at the Thompson Center in Chicago and at the State Capital in Springfield as organizations tried a last-ditch effort to sway legislators to fund human services.

July 1st: The deadline came and went with little progress toward ending the budget impasse. Gov. Quinn vetoed what he called an inadequate plan to fund human-services programs. The House speaker and Senate president announced they’re calling a special legislative session for July 14th.

Go to ACT NOW to see what you can do.

The deadline for passing a fair and responsible budget by our State Legislators has come and gone. The result? Nothing yet. We are still facing massive cuts to human service programs and state-run agencies that rely on equitable funding from the State to protect and serve the elderly, the disabled, children and others who depend on these services.  Social service representatives, clients, government officials and taxpayers alike came out en masse throughout the month of June to decry cuts to human service programs. Through rallies, vigils and contacting State Senators and Representatives, our voices were heard but not listened to.

We continue to urge legislators in Springfield to do their job and create a solid budget that leaves no one behind. We also urge them to be clear and transparent when communicating the results of the current Springfield session. All Illinois residents have a stake in this budget, and as it stands right now human services is not only lacking funding but direction on how to proceed. Please continue to reach out to your State Representative and Senator. Click here to ACT NOW.

The current Illinois State Budget is set to expire at midnight tonight and despite the emergency session in Springfield and the public outcry of support for human services in Illinois, there has been little if any progress made to resolve this impasse. Rallies have been held in Chicago and throughout the state, including a midnight vigil last night at the Thompson Center. It is now up to legislators to decide the fate of hundreds of thousands of people who depend on the State to produce a fiscal budget that includes funding for vital programs that help move people beyond crisis.

We continue to urge all Illinois residents to reach out to their lawmakers and urge them to find a way to resolve this stalemate that can have serious repercussions on the well-being and stability of people throughout this state. It is not too late to contact your State Representative and/or Senator. We have made it easy for you. Click here to ACT NOW.

United Way President and CEO Laura Thrall addresses rally crowd on June 16 at the Thompson Center.

On Tuesday, June 16 members of the Illinois Partners for Human Service attended a briefing at the Bilandic Building in the Loop. At the briefing Governor Quinn’s Chief of Staff Jerry Stermer outlined what he called a real-life “half funded, half hearted, half baked budget” that slashes appropriations for human services by $5 billion. The cuts include all pre-school funding, substance abuse prevention, programs for people with disabilities, teen pregnancy prevention, sexual violence, delinquency prevention and elder care among other services.

“We are in desperate need of economic recovery and what this disaster budget needs is a public dialogue to fix it,” said Stermer.

Hundreds of human service agency representatives, including some United Way partner agencies, voiced their concerns and opposition should this current budget stand. Lawmakers have until July 1st to come up with a viable solution.

“The human service sector in Illinois is comprised of three critical partners – the government, private philanthropy and community-based service providers,” said Laura Thrall, president and CEO of United Way of Metropolitan Chicago. “The State of Illinois is the largest funder providing about 97% of the dollars for services. As the second largest funder of human services United Way invests about $100 million across Illinois with foundations providing another $73 million. No matter how generous individual or corporate donors are, there simply is no other source to fill this $5 billion funding gap.”

Immediately following the briefing, hundreds of protesters converged across the street at the Thompson Center for a rally calling for full funding of human services. State Representative Julie Hamos, Laura Thrall and Julie Kasak Martin, YWCA coordinator of Victim Service, addressed the crowd that called for the General Assembly to put “people before politics”.

Check out pictures from the briefing and rally

United Way Coverage:
ABC Channel 7 (1)

ABC Channel 7 (2)

WGN Radio

General Coverage of Illinois State Budget cuts and rally:
CBS Channel 2   

Fox News

Laura Thrall, United Way president and CEO, explains why private funding cannot fill state budget gap at human service rally at the Thompson Center.

In this article:”What State Budget Cuts Mean”

The State of Illinois has passed a budget that cuts by half health and human services across the state. However, it is not too late to reverse the dire consequences that are sure to result if this vote stands. During the week of June 22, Governor Quinn has the option to recall law makers for a re-vote on the budget. United Way is calling on its supporters to help the hundreds of thousands of people who will be affected by this budget proposal. Already, the Illinois Department of Human Services is looking to close four mental health facilities, eliminate substance abuse treatment and prevention programs and slash all human service agency budgets by 75%. The negative effects of this will impact people for years to come.

Although the state is facing a massive budget shortfall—cutting health and human services is not the answer. Studies have shown that every $1 invested in community services returns $6-8 to Illinois taxpayers.

United Way partner agency programs have once again been forced to tighten belts after already working on shoestring budgets, while record numbers of people are seeking the services they provide. At United Way alone, funding applications for programs that help people become financially stable have doubled, and for every $6 of requests, there was only $1 of funding available.

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.

How you can help:

Contact your Illinois legislator and tell him or her that holding the line on Health and Human Services funding is critical if Illinois is to be positioned for future growth and prosperity. Click here for information on how to reach your State Senator or your State Representative.

For more information, please email Jack Kaplan, director of public policy and advocacy for United Way of Metropolitan Chicago and Untied Way of Illinois at jkaplan@uw-mc.org.