1. © Center for Tax and Budget Accountability 2011 1 CENTER FOR TAX AND BUDGET ACCOUNTABILITY 70 E. Lake Street Suite 1700 Chicago, Illinois 60601 direct: 312.332.1480 Email: rbaiman@ctbaonline.orgrbaiman@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 Baiman Director of Budget and Policy Analysis

2. © Center for Tax and Budget Accountability 2011 2 FY 2012 Proposed Cuts in Human Services: THE STARTING POINT

3. © Center for Tax and Budget Accountability 2011 3 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

4. © Center for Tax and Budget Accountability 2011 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. © Center for Tax and Budget Accountability 2011 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. © Center for Tax and Budget Accountability 2011 6 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

7. © Center for Tax and Budget Accountability 2011 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 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.

8. © Center for Tax and Budget Accountability 2011 8 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

9. © Center for Tax and Budget Accountability 2011 9 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

10. © Center for Tax and Budget Accountability 2011 10 Human Services Appropriations Since 1992 Recent Nominal Cuts are the Worst Since FY 2003

11. © Center for Tax and Budget Accountability 2011 11 For an $ 800.4 M (15.7%) Yearly Deficit and $ 8.0 B Cumulative Deficit Human Services Appropriations have fallen short of inflation since 1992

12. © Center for Tax and Budget Accountability 2011 12 For an $ 29.0 M (0.6%) Yearly Deficit and $ 290.2 M Cumulative Deficit And short of population growth

13. © Center for Tax and Budget Accountability 2011 13 For an $ 829.5 M (16.2%) Yearly Deficit and $ 8.3 B Cumulative Deficit Accounting for inflation and population growth

14. © Center for Tax and Budget Accountability 2011 14 A Decade of Human Services Evisceration

15. © Center for Tax and Budget Accountability 2011 15 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.

16. © Center for Tax and Budget Accountability 2011 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. © Center for Tax and Budget Accountability 2011 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 Kaslow Research Associate (312) 332-2151 ykaslow@ctbaonline.org ykaslow@ctbaonline.org Ralph M. Martire Executive Director (312) 332-1049 rmartire@ctbaonline.org rmartire@ctbaonline.org Further Information