Gov. Pat Quinn Aims to Borrow $900 Million to Ease Illinois Cash Flow Crisis—Madigan, Cullerton, Cross, and Radogno Must Address Longer-Term Illinois Budget Problem

Gov. Pat Quinn

(Springfield, Illinois) – Governor Pat Quinn is planning to borrow $900 million to help cash-strapped Illinois to pay its bills through the winter.

Quinn’s borrowing plan should help newly-appointed Secretary of the Illinois Department of Human Services Michelle Saddler to ease the cash flow crisis at the agency and to pay social service providers.

“A Cash flow crisis on top of earlier budget cuts at the Illinois Department of Human Services is creating more risk to reliable care for at-risk youth each day,” said Marge Berglind, President of the Child Care Association of Illinois. “The new borrowing should help Secretary pay the bills.”

“For example, one of our agencies should have received about $43,000 by now to provide the 24-hour crisis service to youth at risk of entering child welfare or juvenile justice systems,” said Berglind. “To date, they’ve received only $900.”

“Another 24-hour youth crisis service agency is owed $136,000 and has received nothing,” Berglind added. “Vendors need to be paid.”

“However, the longer-term cash flow problem is not Governor Quinn’s responsibility alone,” said Berglind. “House Speaker Michael Madigan, House Leader Tom Cross, Senate President John Cullerton and Senate Christine Radogno must assume the responsibility as well.”

“The Illinois budget dysfunction is undermining the provision of basic services to its citizens,” Berglind added.

The Child Care Association of Illinois is also raising the provider cash flow problems to House Human Services Appropriations Chair Sara Feigenholtz (D-Chicago) and Senate Appropriations Chair Donne Trotter (D-Chicago), Berglind noted.

Child Welfare League of America Hosts Chicago Roundtable to Grapple with New Federal Foster Care, Adoption Law

Marge Berglind, President & CEO, Child Care Association of Illinois

(Chicago, IL) — 1 September 2009. The Child Welfare League of America today convenes a regional round-table in Chicago to focus on the implementation new landmark federal legislation, the Fostering Connections to Success and Increasing Adoptions Act of 2008.

Participants, including Marge Berglind, President and CEO of the Child Care Association of Illinois, will examine implementation challenges in kinship care, youth aging out of foster care, educational provisions, tribal issues, and provisions to strengthen the child welfare workforce.

The act, signed by President George Bush on October 7, 2008, will help hundreds of thousands of vulnerable children find a safe, loving and permanent home by increasing opportunities for adoption and relative guardianship, according to a Casey Foundation Family Programs summary report.

The Casey Family Program summary also says the new law will improve critical education and health care services for children in foster care and better prepare older youth for adulthood by extending federal support for transition programs to age 21.

In addition to the Child Care Association of Illinois, roundtable participatns include:

• Child Welfare League of America
• American Bar Association
• American Academy of Pediatrics
• Illinois Department of Children and Family Services
• Former Foster Youth

The round-table will be held at the administrative offices of the Illinois Department of Children and Family Services 100 W. Randolph, Room 2-025. The event begins at 9:00 a.m.

For additional information, contact Linda Spears at 703/412-3165 and visit the Child Welfare League of America website at www.cwla.org.

IL Legislature Approves, Governor Pat Quinn Signs Illinois Budget–Homeless Youth, Mentally Ill, Others Still Face Loss of Care, Services

(Springfield, IL) — The Illinois General Assembly last night approved and the Governor Pat Quinn signed the Fiscal Year 2010 Illinois budget.

The good news is that there is now a regular FY’10 budget, so that contracts and cash can begin to flow. The bad news is that the budget still contains serious cuts.

The budget does not contain revenue for a tax increase, but contains revenues from fund sweeps and

Governor Pat Quinn

funds generated from pension borrowing to offset the Illinois “doomsday” budget losses in human service funding. However, human services are funded only at an average of 86% of FY ’09 levels.

State agencies will be mandated to set aside $1.1 billion total in reserves, not spending appropriated dollars until review later in the year, so this will pose an additional strain for programs that are already reduced. Finally, there is an expectation inherent in this budget that some FY ’10 payments to providers will be delayed into FY ’11 as a way of saving funds in FY ’10. This “borrowing” from providers is estimated at $1.5 billion. . There is estimated to be $1.1 billion in cuts.  The overall funding for the state is approximately 92% of FY ’09 levels.

Social services are funded at an average of 86% of FY ’09 amounts. This is an AVERAGE only.

State agencies received lump sum appropriations and not detailed line item appropriations. State agencies will make determinations of how to spend and allocate the reduced amounts within the lump sum allocations. The General Assembly did not appropriate division, program or line items for the state agencies. The Governor and state agencies will need to make decisions on how the 86% funding levels will be distributed to meet human needs.

Legislators who presented and commented on the proposed budgets confirmed that the budget represents all the money Illinois has. Cuts will be deep. However, they acknowledged that Illinois was out of time and options in terms of passing some type of budget. They characterized this as a budget that avoids a complete meltdown but avoids a tax increase.

Child Care Association of Illinois staff reviewed the lump sum appropriations for each state agency. At this time, there is really no way to determine if the lump sums represent the expected 86% funding level, or if the Illinois Department of Children and Family Services appropriation represents the mandates of the federal BH consent decree.   We will need to obtain more detail from the state agencies, once the dust settles.

Governor Quinn and thus, the state agencies, will have wide latitude in determining how to spend the reduced funding levels. Although the 86% funding level for human service grants is an AVERAGE, there is NO GUARANTEE THAT ALL PROGRAMS WOULD BE FUNDED AT 86%.

The state agencies will need to make determinations about priority programs, funding levels and potential rate or utilization reductions. Language in the budget bill allows the agencies to do this.  For example, in the Illinois Department of Humans Services, appropriations are usually made in very specific amounts by division. This year, however, there is no differentiation of the total funds given to DHS for use in youth services or mental health or developmental disabilities or substance abuse. The Governor has asked the state agencies for their spending plans. There is much work to be done ahead with the state agencies.

The DCFS budget is not necessarily exempt from all aspects of the budget restrictions, although the requirements of the BH court order of July 1 mandate certain services.  We have asked DCFS finance staff to let us know whether their analysis of the amounts appropriated to DCFS reflect the budget needs necessary so that DCFS can fund services at FY ’09 levels as planned.

The budget is actually named “Emergency Budget Implementation Act of Fiscal Year 2010” and refers to the extraordinary financial situation. The legislative intent of the budget bill states:

“The General Assembly hereby finds and declares that the State is confronted with an unprecedented fiscal crisis. This Act is to be liberally construed and interpreted in a manner that allows the State to
address the fiscal crisis for the fiscal year ending June 30, 2010.”

The budget bill also contains language that will allow emergency rule making. This will allow the state agencies to implement the program and finance challenges expeditiously in rules.  The JCAR process of legislative review will still be used.

Finally, there does not appear to be any agreement at this time about revisiting a tax increase. Some legislators predict such discussions will emerge in the fall veto session. Others look to January before there is any serious consideration of a tax increase. There is no guarantee that the budget we have today will in any way be enhanced by other revenue within this fiscal year.

The great disappointment of this budget means challenges for CCAI members throughout this fiscal year and as we plan for FY ’11. Advocacy efforts must continue to remind the public and the general assembly that an 86% human service level is not acceptable.

Policy advocacy and scrutiny of the state agency decisions will become a big part of this year’s activities. We need to prepare for the inevitable funding challenges of FY ’11 when some of the federal stimulus money protecting ISBE this year, goes away.

Quinn Contract Cuts Bite: 17,000 Kids Lose 24-Hour Crisis Intervention for Runaways, Mental Health Care, Homeless Shelters,

(Springfield, IL) – An initial survey of Illinois child welfare agencies reveals that local providers have already absorbed more than $50 million in direct program cuts from the Illinois Department of Human Services, affecting more than 17,000 children.

“Governor Pat Quinn’s contract cuts have already hit all parts of the state from Chicago to Putnam County, slashing care to more than 17,000 children,” said Marge Berglind, President of the Child Care Association of Illinois.

Click Here: CCA Podcast: CCA News Interview with Child Care Association President Marge Berglind

“Even with no state budget, agencies have acted on Governor Quinn’s cuts to children’s services contracts and have already eliminated approximately 1,075 jobs and many children and youth programs.”

According to Berglind, the discontinued or drastically reduced services include:

• 24-Hour Crisis Intervention for runaways to prevent DCFS entry or law enforcement detention
• Outpatient counseling for youth with serious mental illness
• Supportive Shelter Care for runaways
• Parents Too Soon programs to help teen parents avoid child abuse/neglect
• After school programs for youth to avoid gangs and remain in school
• Home Visiting Programs to ensure new moms properly care for their at-risk babies
• Mental health services in early childhood programs
• Respite Support for Parents of DD or Mentally Ill Children

“Even in the absence of an actual budget—Governor Quinn has put drastically reduced contracts on the streets and children’s agencies have—drastically reduced jobs and services,” said Berglind. “Doomsday is already here.”

“We urge the General Assembly to quickly develop a budget for FY’10 that immediately stops the massive cuts and contains sufficient money to restore desperately needed services for children and youth,” Berglind added.

Court Order Prompts Governor Pat Quinn to Reverse DCFS Illinois Doomsday Budget Cuts

Memorandum

TO: CCAI CEOs/EXECUTIVE DIRECTORS/POLICY COMMITTEE
FROM: Marge Berglind, President, Child Care Association of Illinois
DATE: JULY 1, 2009
RE: DCFS Contracts Update/State Budget Update—Part 3

Today, Illinois Department of Children Family Services Director Erwin McEwen called a special CWAC Meeting to provide information about the requirements of the BH Consent Decree order. Earlier, providers received a letter from DCFS asking you to provide all programs and services.

DCFS must comply with the order of federal judge John Grady and is asking all agencies with contracts to comply.

Governor Pat Quinn’s office has informed DCFS that they intend to comply with the BH decree and should continue to assure services are provided. The Director asked that any agency that had a DCFS contract for FY ’09 continue to provide these services as of July 1. This request will override any previous letters/notices you received that either eliminated or cut services. Your FY ‘10 contracts will continue at the FY ’09 levels.

DCFS is working with the Governor’s office and Comptroller Dan Hynes to reach an understanding that will allow DCFS providers to be paid for the services they provide, and asking the Controller to give DCFS providers priority in the payment queue.  The request is for the Comptroller to make payment without a budget appropriation.

DCFS contracts are going in the mail within the next 5 days. Providers should return those promptly. These contracts will be 12-month contracts, based on FY ’09 contract levels.

DCFS realizes that some agencies may not be in a position to reactivate or continue a DCFS service for which they may experience payment delays. They understand that some agencies are already experiencing cash challenges based on payment delays from FY ’09.

If any agency feels it cannot reactivate its program, or continue to serve the DCFS children currently in care, that agency should inform DCFS Director McEwen via e-mail immediately. DCFS will then arrange service coverage for those clients that program cannot serve.

The Director requested that agencies act immediately to halt the closure or downsizing of any contract that DCFS had informed you would not be renewed. He does not want any client to be without even one day of service. SOC cases that were just closed because they were clinically due to be closed anyway should remain closed. Those that were closed only because of the potential termination of the DCFS contract should be opened immediately.

Day care providers used by foster caregivers, for which the day care is paid by DCFS, will also still be needed as a provider.  Those day care providers are being notified, along with 40,000 miscellaneous DCFS providers, of DCFS’ intent to continue all services.

If a foster parent is having difficulty with their day care provider, that provider can contact the DCFS contracts unit for verification of DCFS’ intent:  217-785-3920. A copy of the Director’s letter regarding compliance with the BH court order is also on the DCFS web site.

Illinois Doomsday Budget Edges Toward Illinois Doomsday Budget-Lite

MEMORANDUM

TO:        CCAI CEOs/EXECUTIVE DIRECTORS/POLICY COMMITTEE
FROM: MARGE BERGLIND, President, Child Care Association of Illinois
DATE:  JUNE 30, 2009
RE:       HOUSE APPROVES BILL TO ADD $2+Billion TO BUDGET

Last night, the Illinois House voted to approve $2.23 billion in general obligation bonds to fund pension obligations. This would free those funds to use for the FY’ 10 operating budget. An amendment was added to the original bill that mandates use of these funds for community-based human services. The amendment reads:

SB 415 with HA # 4
“Section 1. Legislative intention; assist our most vulnerable citizens. It is the intention of the General Assembly in enacting this legislation that, by applying the net proceeds of the sale of general obligation bonds in the amount of $2,230,000,000 authorized by this amendatory Act of the 96th General Assembly to fund pension obligations of the State, an equivalent amount will be made available for the State’s operational expenses in these times of fiscal crisis to help fund programs and services provided by community-based human service providers to ensure that we continue assisting the most vulnerable of our citizens.”

The bill will now move to the senate for concurrence with the amendments.

If the bill is approved by the Senate and signed by Governor Pat Quinn, it could provide some budget relief for FY ‘10. However, the shortfall in Governor Quinn’s current, projected Illinois doomsday budget is purported to be $5 billion in community-provided services. This leaves a shortfall of $2.77 in community human services, which include the Illinois Department of Children and Family Services (DCFS). There is also a $4.2 billion deficit in state-provided services.

During debate, the sponsor verified that this bill is not intended to be a line-item appropriations bill. It generates revenue. The intent is to give Governor Quinn and the state agencies latitude to determine which human services must  be funded, in whole or in part, with this $2.23 billion.

If the Senate approves and Governor Quinn signs this bill, there will be additional funds for the state budget. However, there will still likely be cuts and reductions, since there is still not enough revenue to fill the budget gap.

As of last night, no vote was expected on a tax increase.

Illinois Doomsday Budget Prompts ACLU Lawsuit to Halt Illinois Child Welfare Budet Cuts

(Chicago, IL) – The looming Illinois doomsday budget cuts facing the Illinois child welfare system prompted the American Civil Liberties Union of Illinois to file an emergency motion in federal court today seeking to enforce the terms of a consent decree monitored by the U.S. District Court in Chicago.

“The Governor and the legislature need to understand that this state’s budget cannot be balanced on the backs of its most vulnerable residents – children in foster care,” said Benjamin Wolf, Associate Legal Director of the ACLU of Illinois announcing the filing of the complaint.

“This state recognized when it agreed to the consent decree that the child welfare system was a disaster, and they agreed to specific steps to reform DCFS.  Now is not the time to retreat from that commitment and derail this important process.”

Judge John Grady will hear arguments in support of the ACLU of Illinois’ efforts to enforce the decree on Monday, June 29th at 5:00 p.m.

In recent days, the full impact that the 50% cut in the Illinois Department of Children and Family Services budget will have on safety and well-being of children in foster care in Illinois has become clear.

Governor Pat Quinn’s Chief of Staff, Jerome Stermer, estimated, as an example, that the caseload of DCFS staff workers’ will more than triple, from 15 children (at present) to as many as 50 children.    Likewise, the budget cuts nearly double the DCFS investigator caseloads, from 11 active investigations to 20 active cases at any one time.

Both of these figures violate the consent decree and place children at risk since caseworkers and investigators do not have the time and attention to focus on the needs of an individual child.

Taken together, these cuts and others will put DCFS in violation of federal law and the consent decree, according to the ACLU of Illinois.

That view is shared, apparently, by the current Director of DCFS, Erwin McEwen.

In a June 5, 2009 letter describing the impact of the budget cuts, Mr. McEwen wrote the Director of the Governor’s Office of Management and Budget, Ginger Ostrow, declaring that the cuts place DCFS “in violation of the law and Consent Decrees regarding services to protected classes of Illinois citizens,” and that DCFS would “fail in its ability to reasonably insure the safety of the children and families we serve.”

The decree grew out of negotiations around a case filed originally in 1988, and now called B.H. v. McEwen.

“No one wants to return to the dark days of the 1980s and 1990s when the newspapers were filled with stories about children under the care of DCFS – and who should have been under the care of DCFS – being neglected and abused,” said Heidi Dalenberg of the Chicago office of Schiff Hardin, a cooperating counsel on the case.

Illinois Doomsday Budget Forces Quinn to Slash 9,000 Illinois Foster Parent Subsidies 50%, Many Foster Kids to be Returned Within 90 Days

(Chicago, IL) – Nearly 50 Chicago-area foster parents gathered for a press conference at the James R. Thompson Center today to denounce Governor Pat Quinn’s reduction of Illinois foster parent expense reimbursement by 50% and to implore that the legislature find the money to reverse the cuts.

Deputy House Majority Leader Lou Lang (D-Skokie)

“The Illinois ‘doomsday’ budget threatened by Governor Quinn have now become our reality,” said Marge Berglind, President of the Child Care Association of Illinois, commenting on budget cuts to the Illinois Department of Children and Family Services (DCFS).

“Last week, Governor Quinn ordered DCFS to move forward and cut its budget by $461million,” said Berglind. “Starting on July 1, DCFS is reducing by 50% the expense reimbursement money to the Illinois’ 9,000 foster parents and eliminate support services.”

On May 31 the Illinois General Assembly approved a new budget which cut $7 billion from a range of state programs, imposing—on average—50% reductions on many human services programs.

Lawmakers cut $460 million from the $1.3 billion DCFS budget.

Berglind estimates that within 90 days after the reduced reimbursements begin and support services are eliminated that many of the foster parents will begin to return kids to DCFS

“Many foster parents will be unable to continue to feed and clothe foster children and within 90 days or so many foster parents will, painfully, begin to return the kids,” said Berglind. “Since there will be no available beds in residential facilities, the state will likely need to deploy cots in state buildings to house and monitor the kids.”

Foster parent Gladys Boyd, 59, of Richton Park reluctantly agrees.

“It breaks my heart,” said Boyd, president of Illinois Foster Parents Association. “I love my kids and I will keep them with me as long as possible, but without the full reimbursement and the support services after more than three months, I’ll have no choice but return them to DCFS.”

“These politicians should be ashamed of themselves,” Boyd added. “Completely ashamed.”

In addition to the foster parent subsidy reductions, DCFS’ other cuts being implemented are:

• 50:1 worker-to-child caseload ratios in foster care (15:1 is current caseload;
• 25:1 is permitted under a federal court consent decree
• 18% reductions in residential rates
• Drastic reductions or complete elimination of foster parent support and ancillary services.

“The failure of the Illinois General Assembly to agree to an income tax increase to avoid the gutting of care for abused and neglected children is a disgrace,” said Berglind. “Fortunately, lawmakers, such as Deputy Majority Leader Lou Lang possess the courage and leadership to put the interests of children before politics.”

Lang voted for a temporary income tax increase to fund foster child care and other human services.

Governor Quinn and legislative leaders–House Speaker Michael Madigan, House Minority Leader Tom Cross, Senate President John Cullerton, and Senate Minority Leader Christine Radogno–continue to discuss potential budget solutions but have so far failed to reach a deal.

The legislature returns to Springfield on Tuesday, June 23 to seek a budget solution.

Illinois Foster Children Could be Returned to the State Unless Quinn, Lawmakers Act

(Chicago, IL) – From Fox-TV/Ch 32 is reporting that social service providers contend that Illinois residents will face dire consequences if Governor Pat Quinn and lawmakers don’t pass a new Illinois budget.

The providers says foster children could be returned to the state, addicts won’t get treatment, senior citizens could go uncared for and domestic violence victims will have nowhere to turn.

Read more and view video on FOX TV …

Press Conference: Quinn Slashes 9,000 Foster Parent Subsidies 50% – Many Foster Parents to Return Kids within 90 Days; Cots Likely in State Buildings, Advocates Warn

(Chicago, IL) – The Child Care Association of Illinois will host a press conference on Thursday to highlight the risk to care for abused and neglected children as Governor Pat Quinn’s budget plan for the Illinois Department of Children and Family Services slashes 9,000 foster parent expense reimbursements by 50% and eliminates foster child support services due to the Illinois doomsday budget which begins July 1.

Press Conference:

Who?

• 25 Chicago-area Foster Parents

• Marge Berglind, President, Child Care Association of Illinois
• Lou Lang (D-Skokie), Deputy House Majority Leader (right)
• Rev. Timothy C. Rhodes,CEO and President, Lifelink

What?

• Nearly 25 Chicago-area foster parents will appear at a press conference at the James R. Thompson Center to denounce Governor Pat Quinn’s budget reduction by 50% of expense reimbursements to the state’s 9,000 foster parents and to implore the legislature find the money to reverse the cuts.

When?

• Thursday, June 18 at 12:30 p.m.

Where?

• James R. Thompson Center, 15th Floor Press Room, 100 West Randolph Street, Chicago, Illinois