While Illinois lawmakers play chicken with the
budget for the 2016 fiscal year, which is just
days from ending, its Pay Now Illinois creditors
face a new dilemma. Youll recall that the
social service companies and agencies that
provide essential services have become de facto
creditors to the state because we havent been
paid for nearly 12 months. We are the 81
plaintiffs in the Pay Now Illinois lawsuit
against the governor, state comptroller and
seven agency department heads seeking immediate
payment of about $130 million for services that
have been rendered under signed contracts.
As the case moves through the legal process
(next hearing is set for July 13), its
important to remember we didnt start out being
their creditors. We started out being service
providers for vulnerable populations. But since
the state isnt paying its bills, we have in
fact been lending them money. With no interest.
For nearly a year, the state has been getting
something for nothing; we are helping to keep
the state alive. And now we are drowning. Some
agencies are closing doors. Others are slashing
programs. Staff is being cut.
While we wait to see how our lawsuit plays out,
heres our Catch-22. With the approach of Fiscal
Year 2017 on July 1 2016, we must decide whether
to sign new contracts with the State of Illinois
to provide a wide range of services including
help for the homeless, in-home healthcare for
seniors, mental health counseling and jobs
training. Our Boards of Directors are wrestling
with a very real dilemma do you sign a
contract with somebody who owes you for a year
of unpaid bills, exacerbated by the reality that
there is no certainty of future payment? Or do
you turn your back on the very individuals,
families, and communities you have pledged to
serve?
The administration is asking providers right now
to prepare and submit budgets, complete
mandatory paperwork, and even in some cases, re-
apply for their funding under a competitive
grant process. They are working to implement the
Grants Accountability and Transparency Act
requirements on our FY17 contracts, holding us
accountable in new and changing ways to the
terms of our contracts, when they can offer us
NO assurances that we will be paid for the work
we do under those contracts.
As we contemplate whether to extend Illinois
more credit, we are cognizant of the fact that
the states credit rating is plunging. Each day
that passes, the state is a riskier and riskier
business partner. That bodes badly for us and
our clients. But it also bodes badly for all
Illinoisans.
Posted 14:52
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