The Illinois budget impasse continues, and since July 1, 2015, our state has been without a complete budget for fiscal years 2016 and 2017. Despite the politics stalemating this issue, nonprofits organizations in Illinois, and especially nonprofits that provide Illinois Social Services, are continuing to struggle. In fact, during this impasse, social service providers and some Illinois nonprofits are forced to get in line while facing extraordinary payment delays.
This serious issue is still ongoing, and if you have a nonprofit providing Illinois social services, getting the necessary funding you need to provide essential services is not easy and very time-consuming. Fortunately, however, Illinois has not completely shut down and there is some funding for K-12 education and some social services. Nevertheless, if your nonprofit is continuing to suffer due to the budget impasse, then it may be helpful to contact Chicago IL nonprofit attorney James C. Provenza.
With years of experience helping nonprofits just like yours, we can help provide essential legal oversight and counsel regarding your nonprofit, its compliance with state and federal agencies, and more. For a free, no-obligation consultation with our Illinois nonprofit law firm, call us today at (847) 729-3939.
Overview of the Illinois Budget and Social Service Programs
When there are payment delays for an Illinois nonprofit that provides social services, then both the organization’s providers and dependents are put under tremendous stress. In fact, according to a survey conducted by United Way, there are nearly 1 million people in Illinois who have been affected by Illinois’s budget impasse. This is mostly because of the massive state and local government retirement date, which was $267B in 2016. As a result, Illinois’s unfunded debts are drowning out social services, and some of the largest impacts have included:
- Lutheran Social Services, which is Illinois’s largest social service provider, has conducted program closures and layoffs
- The Child Care Assistance Program had their funding slashed, resulting in 55,000 fewer children of low-income families who were able to take advantage of this service
- A 70 percent reduction in state support, equalling more than $1.1 billion, was applied to higher education funding
- Cut funding for the state’s antiviolence programs, including Operation Cease Fire and Redeploy Illinois. Violence has increased in Chicago in the last year
With Illinois’s accumulated deficit in its current accounts hovering around $11 billion, there are huge delays for nonprofits that require state payments. For instance, there are many nonprofits in Illinois who are able to continue providing essential services under valid agreements with the state, but when it comes to receiving checks in return for providing these services, the nonprofits are forced to wait months and months.
Nonprofits Taking Action
Due to the lack of funds trickling down to nonprofits who have valid agreements with the state, a number of organizations have stepped up their legal battles over a lack of payment during the impasse. No matter if the groups are helping the homeless, victims of sexual assault, foster children and the elderly, and many others, these organizations have filed lawsuits regarding the state’s failure to honor contracts.
Contact Chicago Nonprofit Attorney James C. Provenza & Associates
The Illinois budget impasse is definitely “unchartered” territory for nonprofits in the state, and when payments for contracted social services are no longer coming in, it can be incredibly stressful and difficult for a nonprofit to survive. Many have resorted to layoffs, reductions in services, and more. Nevertheless, if you’re facing dire prospects while running a nonprofit in this situation, it can help to speak with one of the leading Chicago area nonprofit attorneys, James C. Provenza.
Don’t wait until your nonprofit is forced to close its doors, and get the legal help you need by calling our nonprofit law firm at (847) 729-3939 today. Free consultations are available.