BIG Budget News

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From Governor Quinn's office today: News that two SODCs for DD will be closed

due to budget cuts, but Governor leaves door open to push for supplemental

funding in Veto Session to prevent further 'service disruptions'. The two

closures announced today, effective Feb. 2012, are:

ville Developmental Center

ville, IL

Residents: 196

Staff (actual): 420

Annualized Operational Cost: approximately $27.9 million

Jack Mabley Developmental Center

Dixon, Illinois

Residents: 91

Staff (actual): 163

Annualized Operational Cost: approximately $10.7 million

Savings in FY12: $14.6 million

To read the entire Factsheet from Governor's Office, keep reading...

Office of the Governor (GOV)

Fact Sheet – FY12 Budget Management

The Fiscal Year 2012 budget does not provide enough money in personnel and state

operations to run a number of state agencies for the entire year. The

appropriations passed by the General Assembly are inadequate to meet staffing,

facility and payroll needs while also maintaining core services. Without the

money in the personnel and operation lines you cannot keep the lights on in

facilities. You cannot pay people to run them.

The total amount of operations and personnel shortfall across all agencies is

approximately $313.5 million. The most severe deficiencies are at DHS and DOC.

The shortfalls at the agencies affected today are:

DHS: $140.8 million (approx.) DOC: $110 million (approx.) DJJ: $9.8 million

(approx.) DHR: $2.5 million (approx.) CSC: $51,500 (approx.) ICC: $5 million

(approx.) Ag: $1.7 million (approx.)

The General Assembly passed a line item budget. This means that they chose how

much money is allowed to be spent in particular areas. The Administration cannot

move money from other areas of state government to make up the shortfall in

operations and personnel.

To most effectively manage the budget and operational lines, the Governor's

office first sought to prevent automatic pay raises at the affected agencies. In

July, we notified the directors at 14 state agencies and the impacted unions

that approximately 30,000 employees would not be receiving scheduled pay

increases in the new fiscal year.

Cancelling the pay raises was only the first step to prevent these agencies from

running out of money for payroll and operating facilities (such as, lights,

meals, running water), thus disrupting core services for the people of Illinois,

including children, the elderly, and those with special needs. However, even the

$76 million saved by cancelling the raises does not fill the $313.5 million

deficit in appropriations provided by the General Assembly. Put simply, we must

also lay off workers and close facilities, in addition to pay freezes, to manage

the budget passed in May.

In the spring, the Administration made it clear to the General Assembly there

would be serious consequences to the budget they passed.

Today, the Governor notified the General Assembly that the following seven state

facilities would be closed, resulting in 1,938 layoffs of state employees.

However, this is not an overnight process; it will take several months to

complete the closures and layoffs.

DHS - Division of Mental Health

Closures:

Tinley Park Mental Health Center

Tinley Park, IL

FY11 budgeted bed capacity: 75

Staff: 195

Annualized Operational Cost: approximately $20.1 million

Singer Mental Health Center

Rockford, IL

FY 11 budgeted bed capacity: 76

Staff: 150

Annualized Operational Cost: approximately $13.6 million

Chester Mental Health Center

Chester, IL

FY11 budgeted bed capacity: 243

Staff : 464

Annualized Operational Cost: approximately $34.7 million

Savings in FY12: $18.1 million

DHS - Division of Developmental Disabilities

Closures:

ville Developmental Center

ville, IL

Residents: 196

Staff (actual): 420

Annualized Operational Cost: approximately $27.9 million

Jack Mabley Developmental Center

Dixon, Illinois

Residents: 91

Staff (actual): 163

Annualized Operational Cost: approximately $10.7 million

Savings in FY12: $14.6 million

Note: DHS has identified funds to put toward transitions to community care and

to update facilities for transferring populations.

Department of Corrections

Logan Correctional Center

Lincoln, IL

Security Level: Medium

Population: 1,980 on 8/29/11

Staff: 270 security staff and 87 non-security staff

Annualized Operational Cost: approximately $30.5 million

Net Savings in FY12: $9.2 million

Department of Juvenile Justice

IYC sboro

sboro, IL

Security Level: Medium

Population: 59 youth on 8/27/11

Staff: 101

Annualized Operational Cost: approximately $8.6 million

Net Savings in FY12: $3.1 million

Number of remaining facilities after closures by agency/division

DHS/DMH: 6

DHS/DD: 6

DOC: 26 prisons (does not include bootcamps, transition centers)

DJJ: 7

Layoffs by Agency

DHS: 1,392 (due to facility closures)

DOC: 357 (due to facility closures)

DJJ: 101 (due to facility closures)

DHR: 23

ICC: 41

AG: 23

CSC: 1

Total: 1,938

At some agencies, such as DHS, we are able to move towards long-term goals (such

as moving people with developmental disabilities into community-based care), but

are forced to do it on an accelerated deadline. While this is the right policy,

it is the wrong implementation – putting our clients and our workers at a

disadvantage.

Implementing the budget is a year-round process. Today's actions are the second

of many steps required to manage the FY12 budget.

However, as serious as these actions are, they do not fill the deficit in

personnel and state operations in the budget. After today's action, DHS will

still have a shortfall of more than $100 million; DOC will have a shortfall of

more than $68 million. Many state agencies still have deficits even after the

first two phases of this budget implementation.

FY12 Budget Management

Phase I (cancelling pay raises) $76 million (approx.)

Phase II (today's layoffs and closures) $54.8 million (approx.) Remaining Gap

(to be addressed in Phase III and beyond) $182.8 million (approx.)

Total Operations and Personnel Shortfall $313.5 million (approx.)

Without action by the General Assembly, there will be further steps to ensure

that core services for the people of Illinois continue to function.

The Administration will continue to work with members of the General Assembly

during the veto session to explore the shortfalls in the budget. We will

continue to implement this incomplete budget in the most responsible manner

possible.

Timeline

Notification to COGFA: 9/8/11 DHR, AG, ICC layoffs: 11/1/11 (approx.) Tinley

Park (DHS/DMH) closure: 11/30/11 (approx.) sboro (DJJ) closure: 12/31/11

(approx.) Logan (DOC) closure: 12/31/11(approx.) Singer (DHS/DMH) closure:

12/31/11 (approx.) ville (DHS/DD) closure: 2/29/12 (approx.) Mabley

(DHS/DD) closure: 2/29/12 (approx.) Chester (DHS/DMH) closure: 3/31/12 (approx.)

Note: Union notification of layoffs precede both employee notification letters

and ultimate effective date of the layoff. For DHS, DJJ, and DOC, union

notification of layoffs will be delivered after the conclusion of COGFA's review

(approximately 50 days after agency submission of recommendation for closure for

each facility). DHR, AG and ICC are delivering notices of layoffs on Sept. 9 to

unions.