Human Service Organizations Hit Hard By State's Financial Woes
SPRINGFIELD, Ill. (CBS) -- In another example of the impact of Illinois' financial problems, nearly nine out of 10 nonprofit human service organizations say they have been affected by spending cuts and delayed payments.
As WBBM Newsradio's Bob Conway reports, almost half of the organizations, whose mission is to help the sick and needy, report cutting jobs, reducing services or borrowing money to stay afloat.
LISTEN: WBBM Newsradio's Bob Conway reports
Podcast
While waiting for the state to pay its bills, four out of 10 groups borrowed money, and more than half had to dip into their cash reserves. Other steps included furlough days and skipping payroll.
Gina Guillemette, director of policy and advocacy for the Heartland Alliance for Human Needs and Human Rights, said the state safety net is clearly being weakened.
"I think there's definitely holes," said Guillemette. "The combination (of cuts and payment delays) is creating a situation that for some organizations is untenable."
The value of the state's unpaid bills fluctuates. In early September, it topped $5 billion. A month later, it had dipped to $3.3 billion.
The findings come from a survey by the group Illinois Partners for Human Services which sent questionnaires to non-profit service organizations.
(TM and © Copyright 2011 CBS Radio Inc. and its relevant subsidiaries. CBS Radio and EYE Logo TM and Copyright 2011 CBS Broadcasting Inc. Used under license. All Rights Reserved. This material may not be published, broadcast, rewritten or redistributed. The Associated Press contributed to this report.)
