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Showing posts with label social Services. Show all posts
Showing posts with label social Services. Show all posts

Wednesday, October 18, 2017

Illinois Gov. Rauner (R) Cuts Human Services Programs Statewide in 20180State Budget

Illinois - Gov. Bruce Rauner’s administration has identified millions of dollars of cuts it will make to the new state budget, including to human services, agriculture programs and transportation.

article by Doug Finke for The State-Journal Register | Oct. 17, 2017                                   
Even then, the administration says the budget remains $1.5 billion out of balance, which will require further reductions.

The cuts were outlined in materials provided to the four legislative caucuses by Rauner’s budget office.

Rep. Greg Harris, D-Chicago, the lead budget negotiator for House Democrats, said the cuts included $89 million to various human services programs, including autism services, after school programming and immigrant and refugee services.
“He has the authority, I understand that,” Harris said. “If you look at the human service programs, it is the same vulnerable seniors, people with disabilities and children that he has consistently targeted year after year despite the legislature continually trying to restore the funds. Those are his regular targets.”
Rauner spokeswoman Patty Schuh said the governor was forced to make reductions.

“The governor received a budget $1.7 billion out of balance and has to take action where possible to begin reducing that structural imbalance,” she said.

Sen. Heather Steans, D-Chicago, who chairs one of the Senate appropriations committees, said she hasn’t had a chance to fully review all of the cuts and fully determine their effect. She said her initial review is that the administration did not gut programs that have traditionally been targeted in the administration’s budget proposals.
"I believe they worked to preserve those greatly, and that’s about 95 percent (funding level),” Steans said. “I certainly appreciate they’re not just going in and cutting those willy-nilly. ... They may have made some reductions, but primarily they were keeping all of those programs and not just going to zero on them.”
In addition to the human services cuts, the administration outlined $85 million in cuts to the Illinois Department of Transportation, $41 million to the Department of Commerce and Economic Opportunity and $21 million to the Department of Agriculture.

Harris said cuts were made to soil and water conservation districts, cooperative extension, county fair assistance, business development and tourism grants. He also said there are 5 percent reductions to para-transit and senior citizen reduced fares, as well as cuts to operations at IDOT.

Although the legislature approved the budget in early July, it only authorizes the governor to spend money on programs up to a certain limit.

“The legislature appropriates and the governor spends,” Steans said. “It is certainly within their legal authority not to spend everything we appropriate.”

Rauner has repeatedly said the budget approved by lawmakers contains a $1.7 billion deficit, despite an income tax increase passed to help cover state expenses. In an Economic and Fiscal Policy Report filed with the General Assembly last week, the administration said it had identified “approximately $150 million in general funds deficit spending reductions to decrease the deficit to $1.5 billion.”

Rauner has said he wants to work with lawmakers to find additional savings to bring the budget into balance. House Speaker Michael Madigan, D-Chicago, sent a letter to Rauner saying he had appointed a working group headed by Harris to work with the administration on budget issues.

“There’s been no response to that that I know of,” Harris said.
http://www.sj-r.com/news/20171017/rauner-cuts-human-services-other-area-in-state-budget

Thursday, July 6, 2017

Statement on Illinois Budget from Agencies Supporting People with Disabilities

From the ‘They Deserve More’ coalition, more than 50 agencies and organizations from throughout the State of Illinois focused on supporting people with disabilities.

July 6, 2017
We congratulate our state leaders for coming through with a budget for the state, and appreciate that additional support addressing the needs of individuals with intellectual and developmental disabilities has been included in this important legislation. We understand that reaching this compromise required many difficult decisions, and we are encouraged that this budget starts to address critical priorities. 

Individuals with disabilities rely heavily on the personal and professional help provided by their caregivers. It has been nearly a decade since these direct support professionals (DSPs) have had an increase in their average starting wages. This lack of funding has led to devastating outcomes for those who rely on direct support staff for daily care and support; community homes have closed, hundreds of caregiver positions have gone unfilled, and nearly 20,000 children and adults with disabilities have languished on a state waiting list for services.

This state budget provides an important first step in the right direction – a 75-cent per hour raise which will help us get over the $10 mark with average starting wages for DSPs. But it is only a first step. As we move forward, we hope that state leaders will make good on their intention to make the needs of individuals with intellectual and developmental disabilities a priority. That includes ensuring that we address the ongoing workforce crisis facing DSP’s by funding a living and competitive wage of $15.00 per hour.   

Our state leaders’ sustained commitment to this critical issue is essential to ensure that future budgets help us get closer to a living wage, and ensure the best possible care is provided for those citizens who need the most support.

~ ~ ~
source: press release ‘They Deserve More’ coalition

Thursday, February 9, 2017

Illinois Gov. Rauner ‘Have a Heart, Support Vital Services’ Valentine’s Day Message from Disabled Caregivers, Clients to Rally Feb. 14th


On eve of Rauner’s budget address, and the vote on controversial overtime rule, people with disabilities, home caregivers and union members to call on governor to end policies that threaten thousands of Illinois residents and the workers on whom they rely.

CHICAGO—February 9, 2017.  Thousands of people with disabilities in Illinois live vibrant independent lives as workers, students, parents and participants in their communities — because they have the support and assistance of caregivers. But those workers and the clients they serve are now threatened by heartless new work rules being pushed by Illinois’ governor as part of a broad campaign to undercut labor rights — including for these low-wage workers. Caregivers are fighting back with the clients whose independence is grounded in their work — and they’re joining union workers, public employees and allies to send that message to Rauner on the eve of his annual budget address.
This Valentine’s Day, they’ll gather to deliver valentines to Rauner with one clear message: Have a heart, Governor, and safeguard the rights of caregivers, public workers, union members and the Illinois residents who rely on their services. Participants will gather at 11 a.m. on Valentine’s Day, February 14, at the Thompson Center — the local administrative seat for the State of Illinois — in the public square outside the main doors at Clark and Randolph, for a press conference and picket before delivering their valentines to the governor’s office.
Among the issues participants are challenging are Rauner’s proposed new overtime rules for PAs or personal assistants, caregivers who make it possible for people with disabilities to live independently instead of inside institutions like nursing homes — and who could be fired for working overtime for their disabled clients. Speakers will talk about the dire consequences of Rauner’s heartless attacks on people with disabilities and other recipients of public servants, the critical need for home services and fair overtime rules, Rauner’s broad effort to undermine public services throughout Illinois, and his agenda to break the back of workers’ rights and public unions across the state.
Many of Tuesday’s participants will also be traveling to Springfield the following day for Rauner’s third annual budget address, where they’ll raise concerns with their legislators over the harm Rauner’s ‘turn-around’ agenda causes for Illinois residents — from low-income working parents to people with disabilities — who rely on public services and the workers who provide them.
Tuesday’s action is sponsored by the Alliance for Community Services and its members: low income families, people with disabilities, front-line workers, unions and community residents, fighting to put human need before corporate greed.
Source: Alliance for Community Services

Wednesday, July 13, 2016

Illinois Social Service Collation "Pay Now Illinois" push for lawsuit post stop-gap budget

A coalition of 99 human and social service agencies "Pay Now Illinois" serving Illinois' most vulnerable populations. Their purpose is seeking payment of more than $161 million from the state for more than 300 days of work performed under signed contracts.
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Monday, May 23, 2016

Illinois Human Services as an Economic Engine Throughout Illinois, May 2016 Report

May 23, 2016 -- The following article and information is shared from the wonderful Illinois Partners for Human Service, which is excited to release their report (posted below) on "Human Services as an Economic Engine" Research Report. 


                                                       

Read the exclusive coverage in Crain's Chicago Business below:

Crain's Chicago BusinessGreg Hinz on Politics, May 23, 2016

The budget war's hidden $4.5 billion problem

As Springfield nears the end of another budget season-without a budget-in which social-service groups again are likely to get the shaft. A coalition of such groups is releasing a solid analysis of what's at stake economically-and not just statewide, but in the district of every member of the General Assembly.
A new report (posted below) I've obtained exclusively from Illinois Partners for Human Service says agencies serving the disabled, elderly, poor and others collectively are responsible for $3.1 billion a year in direct spending and $1.4 billion in secondary spending. They employ 3.5 percent of the state's workforce, roughly 169,000 people; and generate $597 million annually in state and local taxes.
Not to mention the value of the services to their recipients.
What's really fascinating, though, is that such spending, proportionally, tends to be concentrated not so much in Chicago and nearby suburbs, but in rural Downstate areas.
For instance, the report says the Cook County has 262 poor persons and 160 disabled persons for every agency serving their needs. But that ratio is two to three times higher in areas such as Hancock County along the Mississippi River, Pike County west of Springfield and Massac County at the southern tip of the state. 
Human service workers make up 2.9 percent of the workforce in Cook County but 4.3 percent in Gallatin County, 5.3 percent in Hardin County, 3.9 percent in Johnson County and 4.8 percent in Lawrence County, for instance.
And by Senate district, just five of the top 20 areas ranked by the economic impact of social service spending are located in Chicago, with six having Republicans serving as their senator. Among those is the district of Senate GOP Leader Christine Radogno of Lamont, ranked 13th, with $73 million of such spending a year and 3,311 employees.
All of this occurs, the report says, even though such workers make well below what they'd garner in another line of business-even degree holders earning a median hourly wage of $16.61, compared to $26.14 for college grads generally.
"As a coalition of over 850 community organizations, Illinois Partners for Human Service understands that human services are the pillars that uphold healthy, vibrant communities," Executive Director Judith Gethner says in a forward. "Evidence suggests that human services make a major contribution to Illinois," she adds, yet the state has been imposing cuts and flat rates, when money is made available at all.
Some social service spending is on autopilot during the budget standoff between Gov. Bruce Rauner and Springfield Democrats. But other groups are owed hundreds of millions of dollars a year, and have gone to court in a bid to spring free their money.
The report was prepared by local demographer Rob Paral and by the Public Policy Center at the University of Massachusetts-Dartmouth.
http://www.chicagobusiness.com/article/20160523/BLOGS02/160529965/the-budget-wars-hidden-4-5-billion-problem
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Wednesday, April 13, 2016

Illinois Social Service staffing crisis for essential services are hurting people with disabilities

I was working on a story once about adults with disabilities and, in a day program on the West Side of Chicago, watched a caregiver lovingly cradle the head of a young man and adjust his position in a wheelchair.
wonderful article by Rex Huppke for the Chicago Tribune | April 13, 2016

The man was able to move only his fingers, and even that was a struggle. Without the caregiver he was helpless, though certainly no less a person than anyone else. I thought then, and I think now, that those who care for people with disabilities, the ones who step in to handle the tasks some bodies or minds can't manage, are earth-born angels.
And it turns out we here in Illinois aren't treating those angels fairly. A story in Wednesday's Chicago Tribune by my colleague Vikki Ortiz Healy starts like this:

"Organizations that provide care to people with disabilities are reporting crisis-level shortages of employees needed to feed, bathe and perform other essential tasks for residents in Illinois, a situation that has prompted the closure of some group homes and kept hundreds of families on waiting lists for services."

The average wage for direct support professionals — the people who help people with disabilities in group homes and day service centers — is $9.35 per hour. The story notes that the wages haven't gone up in eight years, "leaving potential applicants in the improving economy to opt for jobs where they can make more money doing less grueling work."

The staffing shortages are leading to the closing of some group homes and the consolidation of residents into other group homes. It's causing parents whose children have been approved for residential services to wait with little hope for openings on the horizon.

The seriousness of a staffing shortage in this arena can't be overstated. I spoke with Tony Paulauski, executive director of advocacy group The Arc of Illinois, and he said: "When staff don't show up, holy cow. People's lives can be in jeopardy. Because of this, there can be medication errors. People aren't able to follow strict dietary requirements. In some cases we're putting health and safety at risk. It's serious stuff."

The benefits of giving people with disabilities the opportunity to live in their communities, as opposed to placing them in state institutions, are enormous. They are closer to family. They have greater opportunities to work and engage in the world around them, to live full and productive lives.

Paulauski told me about Bob Peterson of Naperville, a man in his mid-40s who spent many years in state institutions. He has cerebral palsy and other disabilities. Once Peterson got into a group home, Paulauski said, "his life exploded in a very positive way."

Peterson now does volunteer work, works in a day program in Naperville and hopes to get a job in the community. But none of that is possible without the support services he receives.

The wage issue, as with so much here in Illinois, is tied up in the budget impasse. Bills that would raise the wage for direct support professionals to $15 per hour still need to get through the state Senate and House of Representatives, and then would need support from Gov. Bruce Rauner.

If you're like me and you've spent time in group homes and around people with disabilities, making sure that the people who help them are paid fairly is a no-brainer. People with disabilities deserve as fair a shake at life as anyone, and if we can't provide them with those opportunities, shame on us.

But even if you haven't had a chance to get to know people like Bob Peterson, or have never witnessed the hard but admirable work that direct support professionals do, know this: Supporting people with disabilities and providing them with community living opportunities makes financial sense.

Paulauski said it costs about $60,000 per year to house a person in a Community Integrated Living Arrangement (the technical term for a group home) versus $257,000 per year to put a person with a disability in a state-run institution.

I ask two things of you on this front.
1) Get angry. This is an immediate problem that puts vulnerable people at risk. Contact your local legislators and implore them to address this issue, one that should have been dealt with years ago. An easy way to find your representatives is to go to  www.elections.il.gov/districtlocator/addressfinder.aspx and enter your address.

2) Get happy. Do that by getting out and meeting people with disabilities in your community. Volunteer to help at local organizations. Spend some time with people who we still, sadly, tend to treat as "others." It will change your perspective and show you that the only thing separating us is the ability to do certain things.

And that separation can be bridged only by making sure good people are there to help.

Copyright © 2016, Chicago Tribunehttp://www.chicagotribune.com/news/opinion/huppke/ct-disability-staffing-crisis-huppke-20160413-story.html
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We try and wait a few days after publication before we post articles from news agencies, but due to the urgency in Illinois of funding for many social service agencies, and programs. I decided to post article on the same day of original report. 
If you could contact your Illinois Legislators on your opinion of issues addressed in the article. Also if you have a few extra hours, volunteer for a Social Service Agency, the help is needed. I will be volunteering tomorrow  over in Chicago's westside, 
WHAT WILL YOU DO! - Jim

Thursday, March 31, 2016

Illinois Politicians, and SEIU Health Care Union Call Bruce Rauner A 'Deadbeat' Governor

The continued State of Illinois Budget Impasse has accomplished lack of proper funding of schools, healthcare, transportation, etc - but Social Services and agencies that provide services are in a dire situation, many are reducing days open, laying off staff, and cutting services offered. Some have already closed completely, and many others are ready to.
Progress Illinois continues to report on Illinois politics statewide, we highly recommend to follow.
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State lawmakers and the union representing Illinois home care workers say Republican Gov. Bruce Rauner's "deadbeat approach to governing" has resulted in a "crisis in care" for the state's most vulnerable residents.
wonderful article by Ellyn Fortino for Progress Illinois | March 30, 2016
According to the union, Illinois has a more than $235 million backlog in payments to home health care service providers, and 2,400 seniors have allegedly "fallen through the cracks as a result."
"There are real human consequences of the governor being a deadbeat. These agencies are essentially being asked to bankroll the lack of a state budget," Terri Harkin, vice president of the Home Care Division at SEIU* Healthcare Illinois, said during a news conference at the Thompson Center.
"In adopting this approach," Harkin added, "we estimate that 2,400 seniors in Illinois have been affected. This could mean that they lost their services altogether, or just for a couple days. We don't know, because the Rauner administration has not accounted for any of the consequences of his disastrous budget. What we do know is that for seniors, and for people with disabilities, going even one day without home care services is both traumatizing and dangerous."
"No seniors have lost care due to Democrats failure to pass a balanced budget," the Rauner administration pointed out to Progress Illinois via email.
Rauner and Democratic leaders have yet to agree on a budget for the fiscal year that began July 1. At the center of the budget battle is Rauner's pro-business, anti-union policy agenda, which the governor wants tied to the budgeting process.
The long-running impasse means higher education institutions and a number of social services have not been funded. Payments have also been delayed for many service providers, including Addus HomeCare, Inc. The agency is one of the largest providers of in-home and adult day care services through the state's Community Care Program for low-income seniors.
The state owes Addus HomeCare over $50 million in service payments, according to SEIU Healthcare Illinois.
Addus HomeCare is weighing whether to take legal action against the state now that the Illinois Department of Aging has rejected its request for a caseload cap. Specifically, Addus HomeCare said it asked for a cap on its "caseload of clients funded on GRF," or the General Revenue Funds. 
In a statement, Addus HomeCare said it has not been paid for services provided to those clients during the current fiscal year.
"The company is evaluating its options with regard to this denial, including potential legal action," said Addus HomeCare's Chief Development Officer Darby Anderson.
For its part, the Rauner administration says Addus HomeCare requested a service cap on non-Medicaid clients, and the request "was denied because the department does not allow providers to cap services based on Medicaid eligibility."
State Reps. Sonya Harper (D-Chicago) and Emanuel "Chris" Welch (D-Hillside) joined union officials as well as Democratic legislative candidates Omar Aquino and Juliana Stratton at today's press conference. The representatives and candidates defeated opponents backed by Rauner-allied groups in their respective Democratic primary races earlier this month.
Aquino beat out Angelica Alfaro for the open 2nd Senate district seat, while Stratton won in a landslide against incumbent Ken Dunkin in the 5th House district. 
"A message was sent on March 15," Welch said. "Governor Rauner's agenda has failed miserably, and the voters rejected that failed agenda. I call on the governor to listen to that message. Listen to that message, and we need to pass a budget now."
The spring legislative session kicks off Monday in Springfield. 
Rauner spokeswoman Catherine Kelly called on legislators to get behind the governor's proposed "structural reforms."
"No one is more frustrated than Governor Rauner by [the] failure of the majority party - which includes Rep. Welch and Rep. Harper - to pass a balanced budget," Kelly told Progress Illinois. "By working together, we can achieve bipartisan compromise like we did when restoring child care funding and protecting senior care. We urge lawmakers to help enact structural reforms and a balanced budget to ensure care continues to our most vulnerable while getting Illinois on sound financial footing."
Those at today's press conference also slammed Rauner for his 2017 budget proposal, which seeks to cut about $198 million from the Community Care Program. The cuts, according to the union's analysis, would come through Rauner's proposal to split the Community Care Program into two subsets, with one for those covered by Medicaid and another for non-Medicaid clients. 
The governor's proposal to create a new "Community Reinvestment Program" for non-Medicaid participants could negatively impact services for nearly 44,000 seniors, the union estimates. 
"Today we are calling on the governor to account for the seniors and people with disabilities he is putting in harm's way by his deadbeat approach to governing," Harper said. "Today we are calling on the governor to withdraw his $200 million in cuts to the Community Care Program. We are calling on him to stop using social service agencies as lending institutions for his political pleasures, and we are calling on him to get his priorities straight."
Aquino, a former Community Care Program case manger, said it would be "ridiculous" and "shortsighted" to cut or reduce home care services for 44,000 seniors.
"This is a program that actually, over time, saves our state money, because some of those seniors could potentially go into a nursing home facility, and the cost of that care is astronomical," he said. 
For its part, Rauner's office said the Community Reinvestment Program "will better personalize a senior's individual care." 
"All seniors enrolled in the CRP will receive the services they need based on their level of need, because every person's needs are different," according to Rauner's office. "The CRP is a very individualized approach that will keep seniors out of nursing homes and in their own homes and communities."
But union officials and their legislative allies do not buy the administration's argument.
"Instead of heeding to the voice of the people, Governor Rauner continues to justify his destabilizing cuts to the Community Care Program, which will put 44,000 seniors at risk," Harper said. 
*The SEIU Illinois Council sponsors the Progress Illinois website.
http://www.progressillinois.com/quick-hits/content/2016/03/30/health-care-union-state-reps-call-rauner-deadbeat-governor

Monday, March 28, 2016

The Future of Social Services in Illinois – City Club of Chicago discussion with Marca Bristo, Wendy DuBoe, and Ric Estrada

The City Club of Chicago provides a venue for members and non-members to hear politicians, business leaders, and community leaders discuss a wide variety of public policy issues. Several events are scheduled each month, with the exception of the summer months when City Club activities are on hiatus.

The Monday March 28, 2016 luncheon focused on the Future of Social Services in Illinois with Marca Brisco, Wendy DuBoe, and Ricardo (Ric) Estrada as the guest speakers. Below is a link to listen to the full presentation of 1 hour, very interesting insight into social services crisis in Illinois, and yet the State of Illinois Legislators still has not passed a budget for 2015, and we are going into the 2016 Budget. 

YouTube published by City Club of Chicago on March 29, 2016

Marca Bristo is a nationally and internationally distinguished leader in the disability rights movement. As president and chief executive officer of Access Living of Metropolitan Chicago, Bristo is the leader of one of the nation’s foremost disability rights organizations. For over 30 years, she has directed Access Living, one of the first centers for independent living in the United States.

As the former president of the National Council on Independent Living (NCIL), Bristo worked with the broader civil rights community on the Civil Rights Restoration Act of 1987, the Fair Housing Amendments Act of 1988, and the Americans with Disabilities Act of 1990.

Bristo has received numerous awards and recognitions, including the Distinguished Service Award of the President of the United States; the Americans with Disabilities Act Award for her role in the creation and passage of the law; and the Henry B. Betts Laureate. Bristo also was named by the Chicago Sun-Times as one of Chicago’s “100 Most Powerful Women” and by Crain’s Chicago Business as one of Chicago’s “100 Most Influential Women.” In 2007, Chicago Magazine named her one of the seven “Outstanding Chicagoans” of the year.

Bristo holds two degrees: a Bachelor of Arts in Sociology from Beloit College, and a Bachelor of Science in Nursing from Rush College of Nursing. She lives in Chicago with her husband Bob Kettlewell, and has two children, Sam and Madeline.

Wendy DuBoe
serves as the President and Chief Executive Officer of United Way of Metropolitan Chicago (UWMC), the largest private funder of health and human services in the greater Chicago region.

Since joining United Way of Metropolitan Chicago in 2003, DuBoe has held positions of Chief Strategy & Integration Officer, Chief Community Investment Officer and Chief Operating Officer prior to her current position as President and CEO. She has lead the regional merger of 54 local offices into one metropolitan system, unifying staff and volunteers, integrating investments and operations and reducing operating costs by 20% across the territory. DuBoe has been instrumental in transforming United Way’s community investment approach from broad human service funding to more strategic and focused investment.

DuBoe was a member of Mayor Rahm Emanuel’s 2011 Transition Team and currently serves as a commissioner of the Governor’s Human Services Commission. She chairs the Board of FEMA’s Emergency Food and Shelter Program for Chicago and Cook County. She is a member of the Executive Council of Thrive, a member of the Mayor’s Commission on Public Safety and a member of the International MENSA Society.

DuBoe graduated cum laude with a BA in Economics and Psychology from the University of Michigan, earned her MA in International Economics and International Relations from Johns Hopkins University School of Advanced International Studies and received a degree in Economics from the London School of Economics and Political Science.

Ricardo (Ric) Estrada was named President and CEO of Metropolitan Family Services (MFS), one of Chicago’s first and largest human services agencies, in March 2011.

During his tenure at MFS, Estrada has led the expansion of the agency’s reach by 25,000 (currently totaling 68,000), and overseen the growth of the agency’s budget from $32 million to $50 million. Estrada spearheaded efforts to secure funding to establish an early childhood facility on Chicago’s Southwest Side. In 2015, he also led the launch of the Campaign to Mpower Families, a $25 million initiative to reach more families and strengthen Metropolitan’s communities with better services and an even stronger organization.

Estrada has more than two decades of leadership experience in human services, philanthropy and government. His record of civic and community involvement includes appointment to the Chicago Early Learning Executive Council; the University of Illinois Board of Trustees; Board of Directors of Leadership Greater Chicago; and Board member of the Woods Fund of Chicago.

Estrada’s educational background is grounded in social services and business, including an MBA from the University of Illinois at Chicago, an M.A. in Policy and Administration from the University of Chicago, and a B.S. in Psychology from Loyola University of Chicago.

Friday, August 7, 2015

Illinois spending on social services fuels economy, yet Gov Rauner cuts state-funded caregiver programs with devastating impact

When the State of Illinois spends more than $2 billion on home care for children, seniors and people with disabilities, what do the rest of us get out of it?

Opinion as published by the Chicago Sun-Times, Written by ELIZABETH AUSTIN | 08/06/2015

Just tens of thousands of jobs, hundreds of millions in tax savings, and even more billions of dollars in economic activity.

Over the past few weeks, most of the discussion of Gov. Bruce Rauner’s cuts in these state-funded caregiver programs has focused on the devastating impacts of those cuts on the people who rely on those services, on their families, and on the caregivers themselves. And that’s appropriate, because those are the people most directly affected by these sudden, severe cutbacks.

But as the stalemate over the state budget continues, we need to recognize that these investments in caregiver programs do much more than provide help to people in need. These programs save taxpayer dollars, create jobs for caregivers, recapture federal funds, support local jobs, and generate vital economic activity.

At Innovation Illinois, we recently took a close look at the budgets of caregiver programs in Fiscal Year 2013. We found that the state paid nearly $2.6 billion in state and federal funds to provide childcare for low-income working parents and to give in-home care to seniors and people with disabilities.

That’s a lot of money, to be sure, but not where the story ends – thanks to a fundamental principle of economics known as the multiplier effect.

The concept is that, when someone earns a dollar, it doesn’t just stay in that person’s pocket. Rich or poor, people spend their money, generating economic activity.

Economists say that wages paid to low-income people yield a much greater multiplier effect, because poorer people spend almost every dime on the necessities of life, and they spend it locally. They’re not spending money on vacations in Tahiti, and they’re not parking it offshore. Instead, they spend it in their own communities. And the people who receive that money tend to turn around and spend it in similar ways.

To understand the precise economic impact of the state’s caregiver programs, Innovation Illinois worked with IMPLAN, a world leader in economic impact analysis. Using sophisticated software and an exhaustive database of facts and figures, IMPLAN created a specific multiplier to measure the impact of these expenditures in Illinois.

Using that multiplier, we calculated that the state’s $2.6 billion combined investment in caregiver programs yielded a total of more than $5.3 billion in economic activity statewide. But we found even more good news.

On average, in-home care for seniors and people with disabilities costs about one-third as much as nursing home care. So the State of Illinois’ in-home care programs for these populations save state taxpayers hundreds of millions of dollars – perhaps as much as $1 billion – each year.

The programs also create jobs in communities that need them. In total, Illinois’ caregiver programs directly created 144,062 caregiver jobs. And because of the multiplier effect, the programs indirectly created another 66,591 jobs. That totals more than 210,000 jobs – equivalent to a job for every man, woman and child in Aurora, with enough left over to employ every single person in Centralia as well.

These programs, which draw substantial federal grants and matching funds, also bring our federal tax dollars back home. In FY13, they brought more than $1.14 billion in federal dollars back to Illinois taxpayers.

Because these programs leverage so many federal dollars, we get even more bang from the scarce bucks in the General Revenue Fund (GRF) – the state’s “checkbook.” So if you look at the economic impacts of just those $1.4 billion in state tax dollars that were invested in these programs, you find that every dollar of GRF spending generated an average of $3.74 in economic activity.

Too often, the debates over state spending on human services programs devolve into shouting matches of “You’re heartless!” vs. “You’re fiscally irresponsible!” By letting the numbers tell this important economic story, we hope that we can encourage all sides to stay focused on the real goal: Creating jobs and promoting prosperity for everyone who lives here in the Land of Lincoln.

Elizabeth Austin is vice president for policy and communications at Innovation Illinois, a nonpartisan research-based advocacy organization dedicated to promoting progressive public policies that reflect real world-tested best practices and expand economic opportunities for working men and women and their families.
http://chicago.suntimes.com/opinion/7/71/857796/opinion-state-spending-social-services-fuels-economy