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Seguin Services is learning the hard way about the scope of the state’s financial crisis.
This nonprofit provides living and educational services for people with developmental, emotional and physical disabilities. Seguin owns 62 residential facilities in 21 southern and western suburbs.
It receives funding from the state to perform these functions, or at least it’s supposed to receive funding from the state. Illinois owes the group more than $2.2 million — the estimated amount that Seguin spends each month on its payroll. But what’s owed to Seguin is a small portion of the state’s $4.4 billion in total unpaid obligations.
The lack of funding has been devastating on Seguin’s ability to plan its financial future. It has nearly hit its credit limit, and it may be forced to start giving employees IOUs next month.
Certainly, the group is not alone in confronting this dilemma. Organizations have been battling legislators for the past year to do something about the state’s budget woes and meet their financial obligations. The state relies on these groups to provide a variety of services at reduced costs, but these organizations can’t do their job if they don’t know from month to month if they’ll get paid by the state.
The harsh reality is that these organizations will most likely have to accept that funding from the state isn’t coming. Legislators have for far too long refused to deal with their budget problems effectively, and some of the most vulnerable among us are poised to suffer the most.
Seguin and other groups should proceed as if collecting back revenue from Illinois is a lost cause. This way, they can assess how they’ll need to adjust their operations to realistic funding expectations and not hold out hope that a check will come in the mail from Springfield at the last minute.
As tragic as this is, it’s the situation we face. There is nothing to suggest that legislators are in any rush to resolve this problem. So, let’s presume they won’t.
Seguin Services is learning the hard way about the scope of the state’s financial crisis.
This nonprofit provides living and educational services for people with developmental, emotional and physical disabilities. Seguin owns 62 residential facilities in 21 southern and western suburbs.
It receives funding from the state to perform these functions, or at least it’s supposed to receive funding from the state. Illinois owes the group more than $2.2 million — the estimated amount that Seguin spends each month on its payroll. But what’s owed to Seguin is a small portion of the state’s $4.4 billion in total unpaid obligations.
The lack of funding has been devastating on Seguin’s ability to plan its financial future. It has nearly hit its credit limit, and it may be forced to start giving employees IOUs next month.
Certainly, the group is not alone in confronting this dilemma. Organizations have been battling legislators for the past year to do something about the state’s budget woes and meet their financial obligations. The state relies on these groups to provide a variety of services at reduced costs, but these organizations can’t do their job if they don’t know from month to month if they’ll get paid by the state.
The harsh reality is that these organizations will most likely have to accept that funding from the state isn’t coming. Legislators have for far too long refused to deal with their budget problems effectively, and some of the most vulnerable among us are poised to suffer the most.
Seguin and other groups should proceed as if collecting back revenue from Illinois is a lost cause. This way, they can assess how they’ll need to adjust their operations to realistic funding expectations and not hold out hope that a check will come in the mail from Springfield at the last minute.
As tragic as this is, it’s the situation we face. There is nothing to suggest that legislators are in any rush to resolve this problem. So, let’s presume they won’t.
