Illinois Human Services Coalition Urges Governor Quinn, Treasurer Giannoulias, and Comptroller Hynes to Agree to Short-Term Borrowing to Pay State Vendors

Governor Pat Quinn

(Chicago, IL) – A coalition of almost 100 non-profit human service providers today called on Governor Pat Quinn, Comptroller Dan Hynes and Treasurer Alexi Giannoulias to work together on a mutually acceptable plan to borrow a short-term loan to enable Illinois to speed delayed payments to provider agencies.

At a press conference in Springfield, human service advocates warned that non-payment of state bills are threatening client programs and undermining agencies’ finances.

“At the moment, most human service providers have been waiting since August to be paid—that’s more than four months,” said Don Moss, Coordinator of the Illinois Human Services Coalition.

“Without payments, agencies, which serve senior citizens, individuals recovering from mental illness, at-risk teenagers, will soon exhaust lines of credit from local banks to pay their employees.”

Illinois now owes approximately $4.5 billion to all state vendors, and, in some cases, the payment cycle extends six months.

“There is no sign that legislature will raise meaningful new revenue in the immediate future to pay the state’s unpaid bills,” said Marge Berglind, President & CEO of the Child Care Association of Illinois. “Without a short-term loan, payment delays will grow even further, guaranteeing the collapse of programs and agencies in Illinois.”

Agencies represented by the Child Care Association are alone owed approximately $23,545,000 from assorted state departments, Berglind noted.

“They are running on fumes,” Berglind said.

• Specifically, for example, the state of Illinois owes $1.1 million to the Children’s Home Association of Illinois in Peoria, which cares for children with mental health needs and youth with delinquency support needs throughout Central Illinois. The state has failed to pay most bills since the beginning of July.

• The states also owes $743,00 to Kids Hope United in Springfield and Chicago, which provides youth services and family supports to young mothers at risk of child abuse and neglect statewide. Again, the state has failed to pay most bills since July.

Since July, Illinois has borrowed $2.25 billion in short-term loans that must be repaid by June 30, 2010. Governor Quinn  has been seeking a third loan for $500 million that could draw in federal government matching Medicaid money.

“The Illinois Human Services Coalition strongly encourages Governor Quinn, Treasurer Giannoulias and Comptroller Hynes to craft a workable and mutually acceptable short-term borrowing plan that will enable the state to help pay bills to financially stretched human service providers,” said Moss.

Child Welfare Advocates Award “Champion for Children” Honor to Froehlich, Lang, Cronin and Kotowski

State Senator Dan Cronin

(Chicago, IL) – The Child Care Association of Illinois today bestowed its “Champion for Children” award on four Illinois state lawmakers for their legislative advocacy in behalf of Illinois abused and neglected children and foster families.

Receiving the award are State Rep. Paul Froehlich (D-Schaumburg), State Rep. Lou Lang (D-Skokie), State Senator Dan Cronin (R-Elmhurst), and State Senator Dan Kotowski (D-Park Ridge).

Kotowski and Froehlich sponsored legislation this year to create a new approach to help Illinois abused and neglected children living in residential and group homes get more sophisticated care and avoid hospitalization.

The measure, Senate Bill 1372, would develop a performance-based program and payment model for the state residential foster care services to be implemented by the Illinois Department of Children and Family Services (DCFS).

“We are very grateful to Senator Kotowski and Representative Froelich for their aggressive and successful efforts to win approval of the bill,” said Marge Berglind, President of the Child Care Association of Illinois.

State Senator Dan Kotowski

“For this significant legislative achievement, we are proud to present them our Champion for Children Award.”

Senator Cronin earned his “Champion for Children Award” for his sponsorship of legislation that requires DCFS each year to review cost reimbursements the foster parent cost of care for abused and neglected children and report to the General Assembly.

This year, the state ignored that food prices jumped 8% in 2008 and ignored the forecast that prices would increase another 7% to 8% by the end of 2009, providing no extra money to help foster parents pay for groceries, Berglind noted.

“With Senator Cronin’s bill, foster children will benefit by helping to expand the pool of willing and capable foster parents who currently are deterred by the out-of-pocket expenses,” said Berglind.

“We are proud to recognize Senator Cronin’s leadership on behalf of foster families.”

Finally, House Deputy Majority Leader Lang received the award for his long-time legislative advocacy in behalf of Illinois foster families.

“Rep. Lang has long fought to adequately reimburse Illinois foster parents for the cost of care and more broadly has long been a leader in child welfare reform,” said Berglind, “And we are proud to grant him our ‘Champion for Children’ award this year.”

Governor Pat Quinn Appoints Human Services Commission; Panel Agenda Will Include Child Welfare

Governor Pat Quinn

(Chicago, IL) – Governor Pat Quinn this week signed an executive order creating an Illinois Human Services Commission to make public policy recommendations on a broad range of human service issues, including child welfare.

“Even in these tough economic times, it’s important that we always focus on providing vital human services to those in need,” said Governor Quinn.

“This Commission can be an important initiative if best practice recommendations in child welfare and other services can be embedded in Illinois public policy to concretely benefit abused and neglected children and others in Illinois,” said Marge Berglind, President of the Child Care Association of Illinois.

Quinn named Toni Irving and Ngoan Le as co-chairs of the Commission. Irving is Deputy Chief of Staff for the Office of the Governor. Le is a longtime public servant and Vice President of Programs at the Chicago Community Trust.

The Commission is comprised of members with expertise in both the public and private sectors. The group includes: two legislators from each of the four caucuses; chief administrators of eight of the State’s major human service agencies; human service advocates and community leaders; and two co-chairs designated by the Governor.

The Executive Order also states the Commission’s membership shall “reflect regional, racial, and cultural diversity to ensure representation of all Illinois citizens.”

The Commission will address issues such as the process for determining fair, adequate and timely reimbursement; efficient management of publicly-funded programs and services; and projections for future human services need in Illinois. The Commission will hold public hearings.

The Commission will submit an initial report on its progress and objectives to the Governor and the General Assembly by June 30, 2010. The Commission will then submit interim reports on November 30, 2010 and April 30 2011, and a final report outlining its findings and recommendations no later than November 22, 2011.

Deputy Majority Leader Lou Lang to Be Honored for Foster Family Legislative Advocacy

Deputy House Majority Leader Lou Lang (D-Skokie)

(Chicago, IL) – November 18, 2009. – The Child Care Association of Illinois will bestow its “Champion for Children” award on Illinois House Deputy Majority Leader Lou Lang (D-Skokie) for his relentless legislative advocacy in behalf of Illinois foster families.

Lang will receive the award in conjunction with efforts by groups across the country to celebrate National Family Week in honor of children and families in their communities.

“Rep. Lang has long fought to adequately reimburse Illinois foster parents for the cost of care and more broadly has long been a leader in child welfare reform,” said Marge Berglind, President of the Child Care Association of Illinois. “And we are proud to grant him our ‘Champion for Children’ award this year.”

Lang, a House lawmaker since 1987, said, “Marge Berglind, the Child Care Association and foster parents are the real champions for children here in Illinois, but I humbly accept and appreciate the honor on behalf of the work they perform.”

National Family Week, founded in 1968 and directed by the Alliance for Children and Families, embraces the premise that children live better lives when their families are strong, and families are strong when they live in communities that connect them to economic opportunities, social networks, and services.

Specifically, in 2010, the Child Care Association of Illinois will be focusing on two key legislative agenda items that aim to bolster Illinois foster families:

• Protecting the current level of foster parent reimbursement in the face of enormous Illinois budget deficits

• Imposing a fair method for calculating foster parent expense reimbursement rates in the future.

“Foster parents have had only two increases in eight years to pay expenses to feed, clothe, house, and transport foster children, and inflation has deeply eroded the value of the static state reimbursement,” said Berglind.

Rep. Lou Lang, Marge Berglind (left), CEO, Child Care Association, and Gladys Boyd (right), President, Illinois Foster Parents Association at a press conference last year on foster parent reimbursements.

“As inadequate as it is, still, we must protect the current reimbursement against any cuts next year as Illinois struggles to balance its budget.”

On average, an Illinois foster parent spends $703 per month—of that $281 comes out of the foster parent’s pocket, Berglind noted.

A national report on foster parent under-funding released two years ago by two national organizations and the University of Maryland said Illinois’ average rates (for children 2, 9, and 16) were $380, $422, and $458 per month and they needed to be raised to $661, $757, and $830 to meet actual costs.

Last year, legislation was sponsored by Lang to provide a one-time payment of $24 million to the state’s 7,500 foster parents. The payments would have averaged $145 per foster child.

“It’s an embarrassment that that the state seeks volunteer foster parents to care for abused and neglected children and then refuses to pay the full cost of care,” said Lang. “The very least we can do is inflict no further financial harm on foster parents next year.”

Once budget deficit pressures recede, Berglind says the Child Care Association of Illinois will resume its campaign to raise foster parent reimbursement rates.

Lang will receive the award at the Hyatt Hotel in Lisle on December 2 during the annual meeting of the Child Care Association of Illinois.

National Family Week is supported by the Annie E. Casey Foundation and the Rockefeller Brothers Fund.

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.