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FY 2012 Proposed Cuts in Human Services:

CENTER FOR TAX AND BUDGET ACCOUNTABILITY 70 E. Lake Street  Suite 1700  Chicago, Illinois 60601  direct: 312.332.1480  Email: rbaiman@ctbaonline.org Illinois State Funding for Human Services in Context For: Wednesday June 14, 2011; 7:30 PM Advocates United Wingate Inn

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FY 2012 Proposed Cuts in Human Services:

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  1. CENTER FOR TAX AND BUDGET ACCOUNTABILITY70 E. Lake Street  Suite 1700 Chicago, Illinois 60601 direct: 312.332.1480 Email: rbaiman@ctbaonline.org Illinois State Funding for Human Services in Context For: Wednesday June 14, 2011; 7:30 PM Advocates United Wingate Inn I8421 N. Creek Dr. Tinley Park, IL Presented by:Ron BaimanDirector of Budget and Policy Analysis

  2. FY 2012 Proposed Cuts in Human Services: THE STARTING POINT

  3. Proposed FY 2012 Cuts Are in the Department of Human Services: Largest Percentage Cut of Any Human Service Agenciy in Last Decade PROPERTY TAX RELIANCE

  4. The Department of Human Services is cut by $ 457 M (12.5%) from FY 2011 in Enacted FY 2012 Budget Human Services Funding in Enacted FY 2012 Budget is cut by $ 68 M relative to Governor’s Proposed FY 2012 Budget

  5. History of Illinois General Fund Appropriations adjusted for Inflation and Population Growth Illinois has cut real spending on public services by 16% since FY 2000

  6. Illinois Human Service Funding Relative to Other States • Illinois is currently ranked 11th in per-capita income • A ranking of human services funding as a share of income of11th would therefore be a median (or “average”) ranking relative to capacity for Illinois. • According to a 2007 IGPA study, in FY 2002 (before the cuts described above) Illinois' ranked 40th in per-income funding for developmental disabilities and 35th in per-income funding for Mental Health. Before the decade of cuts funding for human services in Illinois was already very low relative to capacity

  7. And even if “capacity” is ignored, in 2002 Illinois was a low funder relative to other states • The best measures of funding relative to need are per population, or “per-capita” measures • According to the same 2007 IGPA study, in FY 2002 (before the cuts described above) Illinois' ranked 31th in per-capita funding for developmental disabilities and Mental Health. Even according to exclusively need based “per capita” terms Illinois human services funding in 2002 was low.

  8. Per Income Funding for MH and DD would have had to increase by 72% and 54% respectively to be Average among the States in FY 2002 Illinois Human Service Funding Increase Necessary toAchieve Median in Per Income Spending in FY 2002

  9. Per Capita Funding for MH and DD would have had to increase by 29% and 34% respectively to be Average among the States in FY 2002 Illinois Human Service Approximate Funding Increase Necessary to Achieve Median* in Per Capita Spending in FY 2002(*Relative to Per Capita Income)

  10. Human Services Appropriations Since 1992 Recent Nominal Cuts are the Worst Since FY 2003

  11. Human Services Appropriations have fallen short of inflation since 1992 For an $ 800.4 M (15.7%) Yearly Deficit and $ 8.0 B Cumulative Deficit

  12. And short of population growth For an $ 29.0 M (0.6%) Yearly Deficit and $ 290.2 M Cumulative Deficit

  13. Accounting for inflation and population growth For an $ 829.5 M (16.2%) Yearly Deficit and $ 8.3 B Cumulative Deficit

  14. A Decade of Human Services Evisceration

  15. Continued Human Service Funding cuts have cost Illinois thousands of Mostly private sector jobs • An estimated 75% of DHS expenditures go to private non-profit businesses • Using Mark Zandi (chief economist at Moody’s.com) multipliers, the cumulative $ 8.3 B human services underfunding has cost the state over 118,000 jobs. • Public spending on human services helps the economy more than equivalent tax reductions. Human Service Cuts Have an Immediate Negative Economic Impact

  16. Effort by Senate to add back $108.7 M to Human Service Agencies in Capital Bill 2189 Senate Amendment 1 • These will be added only if capital bill is passed. • This will require 3/5 supper majorities and republican votes in both chambers • And the governor must sign off on any deal Possible Restoration of Some Cuts?

  17. For More Information: Center for Tax and Budget Accountability www.ctbaonline.org Ron Baiman, Ph.D.Director of Budget and Policy Analysis (312) 332-1480 rbaiman@ctbaonline.org Yerik KaslowResearch Associate(312) 332-2151ykaslow@ctbaonline.org Ralph M. MartireExecutive Director(312) 332-1049rmartire@ctbaonline.org Further Information

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