Fact sheet--State Budget Cuts FY08-FY12

Governor Quinn’s Proposed Budget Cuts Would Trigger an Increase in Homelessness

The Governor’s introduced FY 2012 Illinois budget would drastically impair our efforts to end homelessness and ensure all Illinoisans have safe, affordable housing.  The threat to the continuum of homeless services has been ongoing and deep. See chart of funding cuts to these programs on reverse.

• From FY 2008 to FY 2011, state line items specifically dedicated to homeless services were reduced by over $10 million or 41%; the additional $6 million in cuts proposed in the proposed FY 2012 budget would reduce these services by a cumulative total of 65%.

·         Maintain Homeless Prevention funding at $2.4 million and work to restore previous cuts by FY 2013, when federal HPRP funds will have run out .  Homeless prevention funding was reduced from $11 million to $2.4 million in FY 2010 and is slated for an additional cut to $1 million in the FY 2012 budget proposal.

·         Maintain funding of Emergency and Transitional housing at $9.1 million as funded in FY 2011.  Cutting the program in half, as proposed in the FY 2012 budget, would force an additional 21,000 people on to our streets. 

·         Restore Homeless Youth Programs’ funding to $4.7 million.  While FY 2012’s proposed budget keeps homeless youth services’ funding level with FY 2011, this life-saving program for unaccompanied youth was hard hit by a 31% cut (or approximately $1.5 million) in FY 11.

·         Maintain  FY 2011 funding for Supportive Housing Services and add $2.4 million for new units next year.  The Governor’s introduced budget included enough supportive housing funding to continue services in the 8,700 units of housing around the state as well as funding 879 new units opening next year.  However, the Senate and House Appropriations bills would cut $5.4 million from this program.

Prevent Harmful Transfers of Programs to Other State Agencies

·         All state-funded homeless programs described above should be kept in the Illinois Department of Human Services, specifically within the Division of Human Capital Development, where they will continue to benefit from staff with expertise and experience in overseeing these programs.

·         The Governor’s proposed budget aims to move homeless prevention and emergency and transitional housing to the Illinois Department of Public Health and shift homeless youth services to the Illinois Department of Children and Family Services

·         Moving these programs doesn’t make sense. It jeopardizes their future funding and decreases efficiency.

·         Homeless unaccompanied youth are not a priority population for DCFS.  They are non-wards, ages 14-22—a population not covered by consent decrees and other mandates like wards of the state.  Furthermore, homeless youth programs are successful due to their ability to tailor services to individual youth.

Budget Cuts for Homeless Programs

State Budget            Line Item	Recent High Funding Level	High Funding Year	FY11 Funding	$ Change High/FY11	% Change High/FY11	Proposed FY12 Funding	$ Change High/FY12	% Change High/FY12
Homeless Prevention	11,000,000	FY 2009	2,400,000	(8,600,000)	(78%)	1,000,000	(10,000,000)	(91%)
Emergency and Transitional Housing*	9,123,600	FY 2010	9,104,900	(18,700)	(0%)	4,428,000	(4,695,600)	(51%)
Homeless Youth	4,747,700	FY 2008	3,259,800	(1,487,900)	(31%)	3,259,800	(1,487,900)	(31%)
Total	24,871,300		14,764,700	(10,106,600)	(41%)	8,687,800	(16,183,500)	(65%)

* Formerly called the Emergency Food and Shelter Program

When we prevent a family’s descent into homelessness or provide shelter and housing to individuals experiencing homelessness, it is hard to measure the value of this service. For some, are intervening in a life or death situation. 

• Homeless unaccompanied youth fleeing abuse at home or violence on the street can achieve stability and independence with the help of homeless youth programs. Eighty-seven percent of homeless youth exit programs into safe, stable housing.
• A family facing a one-time economic crisis can avoid eviction with the assistance of the homeless prevention program. Eighty-nine percent of households stayed housed 4 months after using homeless prevention funds.
• When stable housing is unavoidably lost, a family can seek shelter or transitional housing rather than squat in an abandoned building not knowing if they will have a meal that day. Fifty-four percent exited into permanent or transitional housing.
• Individuals and families, veterans, and people with disabilities can move from shelter to achieve long term stability with supportive housing in a community-based setting, saving the state $2400 annually in institutional costs for each individual served.

What costs are we avoiding by providing these services?

• Crimes of survival such as prostitution, theft and forgery that unnecessarily clog up our courts, jails, and prisons.
• Victimization in the home of origin or on the street
• Hospitalizations and ER visits for untreated medical and mental health issues
• Overflow of  individuals in need of shelter
• Loss of employment and base of tax-paying citizenry (and associated consumer consumption)
• Over-reliance on public benefits