1. 1 Human Services and the FY 2013 Budget PRESENTATION TO THE ILLINOIS HUMAN SERVICES COMMISSION Larry Joseph Director, Fiscal Policy Center Voices for Illinois Children March 14, 2012

2. 2 Overview FY13 proposed funding for major agencies Department of Human Services –Home Services –Developmental Disabilities –Mental Health –TANF income assistance –Child care assistance –Selected program cuts: FY09-FY13 DHFS medical assistance FY13 revenue estimates

3. 3 State Agencies with More Funding in FY13 General Funds Budget Dept. on Aging+77.4 M10.5% Ill. Student Asst. Commission+50.0 M12.3% State Board of Education+31.8 M0.5% State universities+18.3 M1.4% Dept. of Veterans’ Affairs+4.9 M7.6%

4. 4 State Agencies with Less Funding in FY13 General Funds Budget Dept. of Corrections-111.9 M-9.2% DCFS-44.8 M-5.5% State Police-19.6 M-7.3% Dept. of Juvenile Justice-11.7 M-9.4% Dept. of Public Health-9.1 M-6.8% Dept. of Human Services-2.2 M-0.1%

5. 5 DHS Home Services Program FY 2012FY 2013($ mill.) General Revenue Fund573.5329.3 Non-GRF0.0240.0 Total573.5569.3

6. 6 Home Services Program: FY13 GRF Changes Program liability+44.2 M Deferred liability from FY12+12.0 M Eligibility restrictions-42.5 M Other program cuts-17.9 M Shift to non-GRF-240.0 M Net change – GRF-244.2 M Non-GRF+240.0 M Net change – all funds-4.4 M

7. 7 DHS Development Disabilities FY 2012FY 2013($ mill.) State-operated dev. centers293.1277.9 ICFs & community services779.8975.4 Transitions from SODCs10.920.8 All other16.015.8 Total GRF1,099.81,289.9

8. 8 Developmental Disabilities: FY13 GRF Changes Deferred liability from FY12+163.5 M Shift from non-GRF+43.0 M Ligas consent decree+38.9 M Transitions from SODCs+20.8 M Non-Medicaid services-18.4 M State-operated dev. centers-15.2 M Shift to non-GRF-50.0 M Net change+190.0 M

9. 9 DHS Mental Health FY 2012FY 2013($ mill.) State-operated facilities224.6202.8 Community service grants144.285.8 Transitions from SOFs22.736.3 Williams consent decree0.021.0 Transportation0.70.0 All other80.780.9 Total GRF472.9426.8

10. 10 Mental Health: FY13 GRF Changes Williams consent decree+21.0 M Transitions from SOFs+13.6 M Operations+0.1 M State-operated facilities-21.8 M Capacity grants-18.4 M Eliminate non-Medicaid services-17.6 M Other community services-23.1 M Net change-46.2 M

11. 11 Trends in TANF Income Assistance FY09FY10FY11FY12 Recipients (1,000s)64.375.699.9123.0 Cost of benefits ($ M)85.2102.8143.6176.4 Funding ($ M)90.0112.7140.393.7

12. 12 TANF Income Assistance: FY13 GRF Changes Caseload increase+139.3 M 30-day waiting period- 9.2 M 3-year time limit-15.3 M Net change+114.8 M

13. 13 DHS Child Care Assistance FY 2012FY 2013($ mill.) General Revenue Fund281.9265.2 Special Purpose Trust Fund189.5190.5 Employment & Training Fund425.0425.0 Total896.0880.7

14. 14 Child Care Assistance: FY13 GRF Changes Provider rate increase+21.6 M Deferred liability from FY12+18.3 M Increase family co-payments-36.4 M Income eligibility for new applicants-9.3 M Upfront registration of providers-4.9 M Other program cuts-6.0 M Net change-16.7 M

15. 15 Selected GRF Program Cuts, FY09-FY13 Home visiting programs (HFI & PTS)-22% Addiction treatment programs-24% Domestic violence shelters & services-24% Homeless Youth Services-28% Delinquency prevention programs-40% Mental health grants-45% Emergency & Transitional Housing-51% Teen REACH-64% Teen Parent Services-79%

16. 16 DHFS Medical Assistance: Estimated Liabilities and Resources, GRF and Related Funds FY12FY13 Program liabilities10.9 B11.5 B Resources9.4 B8.5 B Outstanding liabilities Current year1.5 B2.9 B Previous year0.3 B1.8 B Total1.8 B4.7 B

17. 17 Components of Outstanding Medical Assistance Liabilities FY 2012 –Enrollment growth –Expiration of enhanced federal matching funds –Inadequate appropriations FY 2013 –Funding gap in FY12 –Enrollment growth –Plan to freeze GRF appropriation

18. 18 GF Revenue Estimates, FY 2012 (excluding federal sources) House Resolution 11028,329 M Senate Joint Resolution 2929,438 M Difference1,109 M GOMB (revised, Feb. 2012)29,416 M CGFA (revised, Feb. 2012)29,587 M Difference171 M

19. 19 FY13 GF Budget under GOMB and HJR68 Revenue Estimates (in $ millions) GOMBHJR68Diff. Total est. revenue33,94033,719-221 Mandatory spending-9,450-9,4500 “Available” revenue24,49024,269-221 Agency approp.24,82824,269-559 Est. unspent approp.-500-5000 Total est. expend.33,77833,219-559 Fiscal year balance162500338

20. 20 For additional information, contact: Larry Joseph Director, Fiscal Policy Center Voices for Illinois Children ljoseph@voices4kids.org 312-516-5556 www.voices4kids.org