© Center for Tax and Budget Accountability CENTER FOR TAX AND BUDGET ACCOUNTABILITY 70 E. Lake Street Suite 1700 Chicago, Illinois direct: 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 Baiman Director of Budget and Policy Analysis

© Center for Tax and Budget Accountability FY 2012 Proposed Cuts in Human Services: THE STARTING POINT

© Center for Tax and Budget Accountability PROPERTY TAX RELIANCE Proposed FY 2012 Cuts Are in the Department of Human Services: Largest Percentage Cut of Any Human Service Agenciy in Last Decade

© Center for Tax and Budget Accountability 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

© Center for Tax and Budget Accountability 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

© Center for Tax and Budget Accountability Illinois Human Service Funding Relative to Other States Illinois is currently ranked 11 th in per-capita income A ranking of human services funding as a share of income of11 th 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 40 th in per-income funding for developmental disabilities and 35 th 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

© Center for Tax and Budget Accountability 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 31 th 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.

© Center for Tax and Budget Accountability Illinois Human Service Funding Increase Necessary to Achieve Median in Per Income Spending in FY 2002 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 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

© Center for Tax and Budget Accountability Illinois Human Service Approximate Funding Increase Necessary to Achieve Median * in Per Capita Spending in FY 2002 (*Relative to Per Capita Income) 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

© Center for Tax and Budget Accountability Human Services Appropriations Since 1992 Recent Nominal Cuts are the Worst Since FY 2003

© Center for Tax and Budget Accountability For an $ M (15.7%) Yearly Deficit and $ 8.0 B Cumulative Deficit Human Services Appropriations have fallen short of inflation since 1992

© Center for Tax and Budget Accountability For an $ 29.0 M (0.6%) Yearly Deficit and $ M Cumulative Deficit And short of population growth

© Center for Tax and Budget Accountability For an $ M (16.2%) Yearly Deficit and $ 8.3 B Cumulative Deficit Accounting for inflation and population growth

© Center for Tax and Budget Accountability A Decade of Human Services Evisceration

© Center for Tax and Budget Accountability Human Service Cuts Have an Immediate Negative Economic Impact 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.

© Center for Tax and Budget Accountability 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?

© Center for Tax and Budget Accountability For More Information: Center for Tax and Budget Accountability Ron Baiman, Ph.D. Director of Budget and Policy Analysis (312) Yerik Kaslow Research Associate (312) Ralph M. Martire Executive Director (312) Further Information