News
The aftermath of the state budget crisis: Survey results as of December 1, 2009
United Way of Illinois, whose 57 members together represents the largest non-governmental funder of human services for the state, surveyed more than 500 community service providers 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 originally 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, 59% 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 $80 million is owed to 259 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.
- 72% 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.
- 13% 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:
The State of Illinois is the largest funder of human services providing about 97% of the dollars for service. United Way and other philanthropic donors are unable to fill the gap-a gap that is the responsibility of the state. We look to the people in our local communities 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 advocacy for adequate human service sector appropriations, please contact Jack Kaplan, Director, Public Policy and Advocacy at jack.kaplan@uw-mc.org or call him at 312-906-2368.