The Arc of Illinois

July 1, 2010

Leaders in The Arc:

Director Teninty is hosting a web-cast today at 3:30 on the new state budget. I have sent that information to Arc Execs because there are a limited number of openings for that web-cast.

Governor Quinn held about an hour press conference today on the new state budget. The entire press conference is now online: http://www2.illinois.gov/currentfocus/Pages/gov.aspx

The Governor began the press conference indicating that he has already cut $3 billion from the state budget since he has taken over as Governor. He also stated that he has reduced state employees by 1,000 in that same time. Today he will cut an additional $1.4 billion over the FY2010 budget. He also indicated there could be further cuts.

With the Governors new powers under the emergency budget act, it is his goal to have all FY2010 bills paid by Dec. 31, 2010 and hopefully sooner. He will pay the pension obligations required. He again stated that the Senate should return to the Capitol to approve the $4 billion borrowing for pension obligations.

The Governors Office of Budget & Management Director David Vaught reviewed their plan to pay down your outstanding bills by borrowing $1.3 billion now, borrowing $1 billion from interfund transfers and $1 billion from the tobacco settlement. The state also has a cash flow of $2.25 billion per month our bills will be paid. He did not say anything about FY2011 bills!

Secretary Saddler stated today that your contracts are not final but estimated. Her staff will be working with providers one by one. Those contracts can be revised up or down.

She will be meeting with the State Associations to further detail her plans in the next two weeks.

In mental health, the Governor has restored $55 million in funding and their top priority is to continue to support people in residential services in both Medicaid and non Medicaid services. Sec Saddler's message to us was that we do not put anyone out of residential services.

The Governor also restored $253 million in education so school districts will maintain their current school funding.

Nothing to my knowledge was restored to disability services but we shall ask that question later on today at Director Teninty's web-cast.

I know the Governor is doing the best that he can given that legislators have refused to live up to their responsibilities.

We are now in the new fiscal year with no clear understanding what our state contracts are good for, and it will be a few weeks before that important issue is addressed.

Tony Paulauski

The Arc of Illinois

815-4664-1832

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Fiscal Year 2011 Budget

Human services are preserved by minimizing funding decreases in the departments six divisions: Alcoholism and Substance Abuse; Community Health and Prevention; Developmental Disabilities; Human Capital Development; Mental Health; and Rehabilitation Services.

The budget includes significant funding for home- and community-based services, including mental health.

Teen REACH and Safety Net Works are maintained with minor reductions.

Opportunities for persons with developmental disabilities to transition to community-based services are maintained, as well as income assistance programs such as Temporary Assistance for Needy Families (TANF); Aid to the Aged, Blind or Disabled (AABD); and Transitional Assistance.

Overall, funding for the Department of Human Services is reduced by $312.6 million in the fiscal year 2011 budget. Reductions include:

$49.8 million from operations o Impacts operations at local offices and state hospitals

$262.8 million from grants o Reduces or eliminates non-Medicaid programs in mental health and developmental disabilities

o Extends payment cycles for developmental disabilities programs

o Limits eligibility in mental health, developmental disability and rehabilitation services programs

Emergency Budget Act reserves apply.