Friday, July 17, 2009
 
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As more cuts loom, hard for agencies to plan

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[July 17, 2009]  SPRINGFIELD -- Illinois Gov. Pat Quinn brags that he got more money in the state budget for social services than lawmakers originally sent him.

But it's not so clear-cut for the state-subsidized groups that serve low-income families, the developmentally disabled, seniors and more.

With the state budget two weeks late in being approved, employees have already been laid off. Rented space has been vacated. Some programs have been canceled. That can't be reversed overnight.

"It's unrealistic for the state to expect that social services are this light switch -- just turn on and off at will," said Jay Tcath, senior vice president of the Jewish Federation of Illinois.

And the compromise budget still includes a multibillion-dollar deficit. That means in January, if Quinn doesn't get the income tax increase he initially sought, there will be more cuts.

The result is more uncertainty for groups trying to figure out what services they can offer over the next 12 months.

"If the state gives us a five-month budget, then we still can't do an entire annual budget unless in some cases we make a hard decision to close a program. Then we won't get that money at all," said Barbara Castellan, CEO of Gads Hill Center in Chicago, which provides day care and preschool for children of low-income working families.

When Quinn and the General Assembly couldn't agree on how to close an $11.6 billion deficit by their original May 31 deadline, lawmakers sent him a "50 percent" budget, a spending plan that covered just bare-bones expenses and which Quinn vetoed.

But when officials couldn't meet the July 1 date for the start of the budget year, service providers said the Quinn administration told them they had to sign contracts at the reduced levels to get any money at all.

So the providers set their budgets, reduced their staffs, and cut or delayed programs.

A Rantoul-based military school for high school dropouts will start a month late. Nurses conducting tobacco education programs in Knox County were sent home. A housing program in the southeastern Illinois town of Olney shut down.

On Wednesday, state officials finally came up with a new state budget. It requires borrowing billions of dollars to cover expenses and delaying billions of dollars in payments the state owes to businesses. It cuts spending, although not as deeply as the earlier version of the budget, and give Quinn broad authority to decide which programs get hit.

The budget, which Quinn signed Wednesday, promises cuts of 13 percent instead of 50 percent in grants to service providers. But that's an average -- he could end up giving some programs full funding and slashing others more deeply.

And the governor and legislators warn that the new budget is far from solid. Quinn could order more cuts at the end of the year.

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So additional money now will be nice, but no one will rush to spend it, said Janet Hasz, executive director of the Supportive Housing Providers Association, whose members run programs to shelter the homeless and mentally ill, those with chronic physical illnesses or substance-abuse problems.

"Providers are going to feel cautious about expanding their programs at this point," Hasz said. "They will be wanting to put some of that aside, thinking that they're going to get further cuts."

Quinn said new contracts will be going out to providers soon.

"Those will be a lot better contracts than originally anticipated based on the first budget of the General Assembly, which was going to cut them in half," Quinn said Thursday in Chicago. "That was a pretty scary prospect, and that's why I spoke out against that."

But agencies getting the money still don't know how much more they'll get, or when, or what restrictions will be on it.

The type of funding matters, said Castellan of Gads Hill. A provider can't shut down one service and transfer funding to another to keep it going a full year, because often the money comes from different funds with different rules.

When programs shut down -- programs that lawmakers created in state law, the Jewish Federation's Tcath points out -- clients are left to find other options. A senior who no longer has a health worker to help her in her home has to go to a nursing home, costing six times more, said Keith Kelleher, president of SEIU Healthcare, which represents home health care workers.

That will strain other state-supported services, from hospitals to jail cells, critics say.

"If we don't fund these agencies at the level they need to be funded, it's going to be a drain on other state resources, and we'll be worse off in six months than we are now," said Sen. Brad Burzynski, a Rochelle Republican.

[Associated Press; BY JOHN O'CONNOR]

Copyright 2009 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.

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