1. G OVERNOR ’ S FY16 B UDGET A DDRESS March 2, 2015 Illinois Action for Children, Ounce of Prevention Fund, and Voices for Illinois Children

2. O VERVIEW OF THE S TATE B UDGET Supplemental for this fiscal year (FY15) Appropriations for FY15 were not fully funded — budget was based on revenue consistent with maintenance of income tax rates Tax rates automatically cut 25% on January 1.

3. O VERVIEW OF THE S TATE B UDGET Due largely to tax cut – Governor’s Office of Management and Budget (GOMB) says there is $6.6 billion budget gap for FY16 To close, Governor Rauner proposed: $2.9 billion in pension cuts $1.3 billion in reduced revenue sharing to local gov’t entities  just shifts cuts to local level $1.5 billion in cuts to Medicaid $900 million in other cuts — e.g. DHS, DCFS, public health, etc. Pension cuts almost impossible to achieve in FY16  Other areas would need to be cut more deeply if no new revenue is raised Governor Rauner proposed a cuts-only budget

4. Cuts-only approach would have lasting negative impact on infrastructure serving children and families Revenue must be part of the solution Investments in children and families create a stronger Illinois Preschool and K-12 education don’t occur in a vacuum — gutting investments in other areas that serve children and families reduce PreK-12 effectiveness Illinois residents now pay the lowest effective personal income tax in the Midwest. Current revenue is simply not enough to make needed investments in our children O VERVIEW OF THE S TATE B UDGET

5. I LLINOIS D EPARTMENT OF H UMAN S ERVICES (IDHS) Child Care – FY15 Supplemental ($277) for FY15 still being negotiated Must go through General Assembly Federal Funds ($40 million) come monthly – not enough to pay one month of bills. General Revenue Fund (GRF) is gone for this year. Payment delays to providers have started and are estimated to be about six weeks delayed. Proposed changes for FY16 Not across the board cuts Three programmatic changes proposed for child care Most changes can happen through rule as they are currently not in statute/law.

6. I LLINOIS D EPARTMENT OF H UMAN S ERVICES (IDHS) Early Intervention (EI) FY15 EI budget was underfunded by the Illinois General Assembly Current shortfall = $12 million (according to Governor’s Office of Management and Budget) The governor has proposed to fill the hole with an FY15 supplemental appropriation Proposed program changes in FY16 Proposal to restrict eligibility for services to children who exhibit at least a 50 percent delay Current eligibility threshold = 30 percent Change could leave thousands of infants and toddlers with delays without services

7. I LLINOIS D EPARTMENT OF H UMAN S ERVICES (IDHS) Home Visiting No General Revenue Fund (GRF) lines posted, but sources indicate level-funding for Healthy Families Illinois and Parents Too Soon State must maintain its current level of funding to prevent repayment of federal home visiting funds

8. I LLINOIS S TATE BOARD OF EDUCATION (ISBE) Proposed FY16 funds for Early Childhood Education $380 million in FY09; $300 million in FY15 Advocates asked for an $80 million restoration ISBE recommended a $50 million restoration Governor Rauner’s proposal = $25 million restoration Bilingual Education $75 million in FY09; $63.6 million in FY15 Advocates pushed for a $12 million increase ISBE recommended the same Governor Rauner’s proposal = level funding ($63.6m)

9. A DDITIONAL FY16 B UDGETARY C ONCERNS Proposed cuts to other state agencies and programs Local government $634 million to local governments cut  Cuts shifted to local level Public Health $22 million (16%) cut from General Funds 10% cut to School Health Centers, Perinatal services, immunizations. Elimination of SIDS funding Foster Care 20% general funds cut  2,400 young adults 18-21 lose services, 475 fewer DCFS staff, cuts to counseling/education Public Transportation Over $200 million cut  fare hikes and service cuts Higher Education 30% cut to all public universities  likely tuition increases

10. Illinois Action for Children Day of Action – Wednesday, March 11 th Conference and Day at the Capitol– April 21-22 Rally Day – Wednesday, May 13th Contact: advocacy@actforchildren.orgadvocacy@actforchildren.org Voices for Illinois Children – David Lloyd and Emily Miller Kids Count Symposium, Thursday, March 12 th http://www.voices4kids.org/ - Report available online http://www.voices4kids.org/ Ounce of Prevention Fund Early Childhood Advocacy Day – Tuesday, April 28 th Contact: advocacy@theOunce.orgadvocacy@theOunce.org A DVOCACY & A CTION S TEPS

11. Illinois Action for Children Twitter: https://twitter.com/iafc_careshttps://twitter.com/iafc_cares Facebook: https://www.facebook.com/ILaction4childrenhttps://www.facebook.com/ILaction4children Ounce of Prevention Fund Twitter: https://twitter.com/theOuncehttps://twitter.com/theOunce Facebook: https://www.facebook.com/ounceofpreventionfundhttps://www.facebook.com/ounceofpreventionfund Voices for Illinois Children Twitter: https://twitter.com/Voices4ILKidshttps://twitter.com/Voices4ILKids Facebook: https://www.facebook.com/voices4kidshttps://www.facebook.com/voices4kids Responsible Budget Coalition (RBC) Twitter: https://twitter.com/RespBudgetILhttps://twitter.com/RespBudgetIL Facebook: https://t.co/irdHN3UVsDhttps://t.co/irdHN3UVsD

12. Q UESTIONS ?