By Lauren Leone-Cross : The State Journal-Register : Jun 16, 2013
Editor's Note: This is the latest installment in the Deadbeat Illinois series, where reporters from GateHouse Illinois newsrooms examine the real-world effects of the state's failure to pay its bills. Each Monday, we share the stories of those affected. See more on the Deadbeat Illinois Facebook page.
An unusual surge in tax collections coming into the state in April allowed Illinois to make substantial payments to a number of vendors, including social-service agencies, but the state comptroller is warning officials not to get their hopes up.
[photo: Tyrone rolls out dough to cut out a new batch of Beg O Bone dog biscuits during his shift at Sparc's Work Center, Friday, June 14, 2013, in Springfield, Ill. Beg-O-Bone is one of Sparc's micro businesses that provides an opportunity for paid work and training to individuals with developmental or intellectual disabilities. Justin L. Fowler/The State Journal-Register]
With the influx, the state was able to reduce its backlog of bills from $8.5 billion to $5.7 billion, but Comptroller Judy Baar Topinka cautioned that the backlog could jump back up to $7.5 billion or higher by August, when state revenue often goes down, meaning delays will continue.
“This is merely a spike in the system. This is not going to be a monthly thing. I guess in Illinois, (fewer delays) are something to cheer about,” Topinka said.
But Carlissa Puckett, executive director for Sparc, a Springfield-based agency that serves people who have developmental or intellectual disabilities in Sangamon and Menard counties, said the state is caught up on bills owed to the central Illinois agency — for now.
That’s partly because Sparc has been receiving expedited payments from the state due to its not-for-profit status and because of the April influx in tax dollars, she said.
“We don’t anticipate this will be long term. Before long, payments will get slightly delayed again. But for right now, we’re getting paid fairly regularly,” Puckett said, adding that Sparc operates on an annual budget of $8.2 million — down from about $10 million in 2009. More than 80 percent of the agency’s operating funds comes from the state.
The expedited payments, which last six months and have to be approved by the comptroller’s office, were just about to run out when the influx of tax dollars came in, Puckett said.
In the last couple of years, budget cuts coupled with delayed state payments have forced Sparc to cut back on the number of staff and programs, she said. Last year, the cash-strapped agency had to put a cap on the number of hours employees could spend working with clients in their job-placement program. The employees typically help the person with developmental disabilities find a job, and if necessary, serve as a job coach, too.
In Jacksonville, the Wells Center, a substance-abuse treatment facility, is still waiting on about $500,000 of the $5.5 million appropriated this fiscal year, which ends June 30, according to executive director Bruce Carter.
Because of the temporary increase in tax revenue, Carter said, the state paid the agency a $1.5 million lump sum. That allowed the center to pay off the line of credit entirely for the first time in two years, meaning they no longer have to worry about accruing interest.
When the state began delaying payments a couple of years ago, the Wells Center took out a line of credit with a local bank to make up the difference, Carter said.
“When the state doesn’t pay us, we have to borrow and, of course, we have to pay interest, which means less money for services,” Carter said, noting that the agency’s staff has been cut by about 18 percent over the last three years to avoid eliminating programs.
“It’s been two years since it’s been paid off totally,” Carter said. “So right now, we’ve got money in the bank. We’re enjoying it while it’s there.”
http://www.sj-r.com/top-stories/x871005831/Deadbeat-Illinois-Temporary-respite-for-social-service-agencies#ixzz2WTlK1P9J
Editor's Note: This is the latest installment in the Deadbeat Illinois series, where reporters from GateHouse Illinois newsrooms examine the real-world effects of the state's failure to pay its bills. Each Monday, we share the stories of those affected. See more on the Deadbeat Illinois Facebook page.
An unusual surge in tax collections coming into the state in April allowed Illinois to make substantial payments to a number of vendors, including social-service agencies, but the state comptroller is warning officials not to get their hopes up.
With the influx, the state was able to reduce its backlog of bills from $8.5 billion to $5.7 billion, but Comptroller Judy Baar Topinka cautioned that the backlog could jump back up to $7.5 billion or higher by August, when state revenue often goes down, meaning delays will continue.
“This is merely a spike in the system. This is not going to be a monthly thing. I guess in Illinois, (fewer delays) are something to cheer about,” Topinka said.
But Carlissa Puckett, executive director for Sparc, a Springfield-based agency that serves people who have developmental or intellectual disabilities in Sangamon and Menard counties, said the state is caught up on bills owed to the central Illinois agency — for now.
That’s partly because Sparc has been receiving expedited payments from the state due to its not-for-profit status and because of the April influx in tax dollars, she said.
“We don’t anticipate this will be long term. Before long, payments will get slightly delayed again. But for right now, we’re getting paid fairly regularly,” Puckett said, adding that Sparc operates on an annual budget of $8.2 million — down from about $10 million in 2009. More than 80 percent of the agency’s operating funds comes from the state.
The expedited payments, which last six months and have to be approved by the comptroller’s office, were just about to run out when the influx of tax dollars came in, Puckett said.
In the last couple of years, budget cuts coupled with delayed state payments have forced Sparc to cut back on the number of staff and programs, she said. Last year, the cash-strapped agency had to put a cap on the number of hours employees could spend working with clients in their job-placement program. The employees typically help the person with developmental disabilities find a job, and if necessary, serve as a job coach, too.
In Jacksonville, the Wells Center, a substance-abuse treatment facility, is still waiting on about $500,000 of the $5.5 million appropriated this fiscal year, which ends June 30, according to executive director Bruce Carter.
Because of the temporary increase in tax revenue, Carter said, the state paid the agency a $1.5 million lump sum. That allowed the center to pay off the line of credit entirely for the first time in two years, meaning they no longer have to worry about accruing interest.
When the state began delaying payments a couple of years ago, the Wells Center took out a line of credit with a local bank to make up the difference, Carter said.
“When the state doesn’t pay us, we have to borrow and, of course, we have to pay interest, which means less money for services,” Carter said, noting that the agency’s staff has been cut by about 18 percent over the last three years to avoid eliminating programs.
“It’s been two years since it’s been paid off totally,” Carter said. “So right now, we’ve got money in the bank. We’re enjoying it while it’s there.”
http://www.sj-r.com/top-stories/x871005831/Deadbeat-Illinois-Temporary-respite-for-social-service-agencies#ixzz2WTlK1P9J
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