Chicago Alliance Update

Dear Friends of the Chicago Alliance,
We have some cautiously good news to report. Both the Illinois House and Senate passed bills last night that will spare human services the draconian cuts we have been fighting against for the past two months. The FY2010 Budget does not include an income tax hike – rather it attempts to fill the budget hole by borrowing $3.5 billion to pay the state’s pension obligation, freeing up funds for the general revenue budget. However, the state will run out of money later this year if additional revenue is not found. Senate President John Cullerton has stated clearly that he plans to move an income tax increase in January, when the General Assembly will only need a simple majority to pass it.
What does this mean for homeless services? The budget gives Governor Quinn discretion to distribute $2.23 billion to community-based human and health service providers, approximately 86% of the FY2009 level. As the Chicago Tribune reports, “the borrowing would allow many of those grants to be funded at more than 80 percent, budget negotiators said.” 80% sounds a lot better than 50% but it still remains to be seen who gets what – the Alliance and our partners will continue to work hard to make sure homeless services are strongly represented at the table. We should all be proud that our voices were heard loud and clear – legislators know that they cannot cut vital programs and that we are watching.
Thanks for all you do.