Effects of the Illinois Budget Crisis on Nonprofits

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hhhThe state of Illinois, headed by Republican Governor Bruce Rauner, remains without a budget.  According to Illinois State Senator Daniel Bliss, the following nonprofit organizations have been adversely affected.

“Illinois has not had a full annual budget since June of 2015. Some consequences of the impasse in 2016 included:

  • Lutheran Social Services of Illinois, the state’s largest social service provider, announced mass program closures and layoffs because of the stalemate.
  • 55,000 fewer children of low-income working parents were able to take advantage of the state’s Child Care Assistance Program because Rauner slashed funding for the program.
  • More than $1.1 billion was cut from higher education funding for state universities and community colleges – a more than 70 percent reduction in state support.
  • State payments to K-12 schools for transportation, special education and free and reduced-price lunches were delayed by months, causing a ripple effect for staff and families in districts across the state.
  • Illinois’ bill backlog climbed to $11 billion.”

According to Chicago 5 news, nonprofit organizations are claiming they are owed more than $160 million dollars due to irreparable harm.

“Dozens of nonprofit organizations that provide Illinois’ social services are stepping up their legal battle over a lack of payment during the impasse.

The groups, which help homeless people, victims of sexual assault, foster children and the elderly, have filed a second lawsuit over the state’s alleged failure to honor contracts, after the Illinois Supreme Court declined to intervene last year. The organizations have claimed they’re owed over $160 million and there has been “irreparable injury” from a lack of timely payments, including layoffs and program cuts.

The organizations in the lawsuit include the Chicago-based Ounce of Prevention Fund, which is run by the governor’s wife, Diana Rauner. In a survey conducted by the United Way last year, the agencies said they’d had to cut services to more than 1 million clients.”

Holly Geraci and Peter Francis Geraci support organizations whose mission is to assist those suffering from homelessness, mental health issues and developmental disabilities.  Helphollyhelp.com has helped raise more than $100,000 for various nonprofit organizations.  While the State continues to struggle with their budget crisis, Holly Geraci and Peter Francis Geraci are here to help.

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