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Human Services & Illinois’ Budget Crisis

Why Does Illinois Partners Say “No Cuts” to Human Services Human services are severely underfunded in Illinois. When inflation and demand and growth are taken into consideration, human services would have required an additional $4.4 billion between 2003 and 2010 just to maintain 2002 funding levels. But even in 2002, funding levels were weak in comparison to other states. In 2002, for example, Illinois ranked 35th and 40th, respectively, in funding services for Menal Health and Developmental Disabilities. What is the Impact of Under-funding Human Services? Payments from the state are running anywhere from 6 to 18 months behind, forcing nonprofit organizations to take out loans to operate programs mandated by the state. Not only do organizations have to bear the interest costs themselves, in some cases, lines of their credit have been completely exhausted, leading to program cutbacks and closures. In addition, the state has begun demanding retroactive contract changes that unexpectedly further reducing funding. All of this makes it difficult to provide high quality, consistent services.

How Do Cuts Impact Jobs?

According to the Center on Tax and Budget Accountability, cuts to human services cost Illinois jobs and are bad for the state economy. In addition to the families that receive services, cuts to human services will fall primarily on private sector workers and businesses, hurting family and business incomes and local economies statewide.

1.  Approximately 400,000 jobs in Illinois are
    connected to the human services sector.
2.  More than 75% of the human services contracts
    are with private sector/non-profit businesses
3.  Approximately 61,000 private sector jobs were
    cut in the past eight years due to $4.4 billion in
    spending cuts.
4.  $1.36 of private sector economic activity is lost
     for every one dollar cut in humans services
     spending

Can We Afford Human Services Given the Budget Crisis?

We can’t afford not to. Human service programs are a cost effective way for ensuring that low-income and other vulnerable families have the opportunity to work and meet basic human needs while improving their lives. For example:

• Every $1 spent on child abuse prevention saves
  taxpayers $19 in child abuse treatments
• Every $1 spent on home care for the elderly saves
  taxpayers $10.50 on nursing home costs
• Every $1 spent on childhood learning generates
  $7.00 in taxpayer benefits
• Every $1 spent on drug treatment saves taxpayers
  $7 in reduced crime, emergency room visits
• Every $1 spent in job training returns $4.60 to the
  taxpayer

How Many People are Impacted?

As many as 2 million people in Illinois depend on state funding for basic services such as child care; after-school programs for teens; skills training or help finding jobs; counseling for victims of sexual or domestic abuse; assistance for the mentally ill and developmentally disabled; in-home care for the elderly.

Does Illinois Partners Support a Tax Increase? Where should the funds come from?

Illinois Partners doesn’t take a position on how services should be funded. We leave that to the people who were elected to make those decisions. This is the purpose of electing a governor and state legislators. It is their job to ensure the state’s citizens get the services they need and make the best decision about how to make sure those services are paid for.