The Arc of Illinois

July 15, 2010

Leaders in The Arc:

Phil Milsk, Arc's Governmental Affairs Consultant serves on Sec. Saddler's Social Services Advisory Committee. Here is Phil's summary of that meeting last week.

I am headed to Chicago today for a rally against the cuts to human services!

Tony Paulauski

The Arc of Illinois

815-464-1832

____________________________________

Here is a summary of what we were told at the Social Services Advisory Committee meeting last Thursday.  Sec. Saddler attended the entire meeting.  Bob Brock, the DHS Budget Director, also attended.
The budget for FY 2011 is still unresolved.   DHS is working on a "management plan" with the Governor's Office of Management and Budget and Chief of Staff Jerry Stermer with respect to (1) the total allocation of funds to DHS, (2) apportioning cuts and (3) reserves.
Within DHS already, the cuts are as follows:

-Division of Community Health and Prevention (which includes, among other programs, Early Intervention):  10% cut across the board (although I'm hearing that some contracts are cut up to 30% within DCHP).
-Division of Mental Health:  Elimination of non-Medicaid grants except the Governor restored $55 million for residential services.
-Division of DD:  Almost all non-Medicaid grants eliminated plus a 2.5% cut in Medicaid rates, totaling $90-110 million
-Division of Alcohol and Substance Abuse:  8% cut to non-Medicaid services (layered on to cuts made the last 2 years)
-Division of Human Capital Development:  $76 million cut to Child Care program.   Increase in TANF line due to higher caseload
-Division of Rehab Services:  Home Services will receive a slight increase due to caseload growth, but asset limit for new applicants will be reduced from the current $17,000 to the Medicaid minimum of $2,000 and services and service hours for some customers will be reduced.
Now the real bad news:  Revenue estimates are $891 million short, and this does NOT include the loss of approximately $750 million of federal Medicaid matching funds if the US Senate fails to extend the enhanced FMAP rate beyond December 31, 2010.   This could mean another 3% reserve (if done across the board).   DHS is vigorously trying to make the case that it has already been hit very hard and should not suffer any additional cuts.   They are also looking for savings through unified budgeting (across human services agencies), utilization reviews and further cuts in agencies' operational costs.
DDD is moving as fast as possible to convert grants to Medicaid in order to capture additional FFP.   Contract amounts (across all of DHS) are not final.   They wanted to get contracts out to cover July and August.   As for bills for 2010, I really didn't get a clear answer other than it's a cash flow issue and we are just going to run up more debt in 2011.
Phil Milsk
Law Offices of Phil Milsk
328 East Lincoln Hwy., Suite D
P.O. Box 757
New Lenox, IL 60451-0757
(815) 685-8553
SPRINGFIELD No.: (217) 899-1566
FAX: (815) 462-9165