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Just a couple more weeks of strain and Seguin Services might not have been able to pay its employees.
But after offering up its buildings as collateral and pleading with lawmakers, the nonprofit found a way to make ends meet.
“We came close, but we asked for an emergency payment from the state and they provided it to us and that put us over the hump,” said Seguin president and CEO John Voit.
Cicero-based Seguin offers a range of services for individuals throughout suburban Cook County with developmental disabilities and other special needs.
In the early spring, the agency received a letter from the state that stated Seguin was no longer on a list of agencies the state pays on time. So state checks stopped coming.
Then in April, Seguin told the Berwyn Life that it was only weeks away from being forced to send IOUs to its employees.
With an annual budget of about $25 million, Seguin spends about $2.25 million a month on payroll and other basic things like phones and electricity.
Seguin gets some of its state money via the Illinois Department of Humans Services. The state has been late in making promised payments to many entities like schools, vendors and municipalities.
Voit said that in May the state placed Seguin on an expedited list of agencies receiving money. Now, the state is making regular payments that range from $1.5 million to $1.7 million, Voit said.
Because a month and a half — or $1.8 million — worth of state payments were missed, Seguin still had to borrow money to keep its financial situation stable.
When the Berwyn Life spoke with Seguin in April, Seguin’s senior vice president James Haptonstahl said Seguin had already tapped $2 million of its $2.5 million line of credit.
To increase its line of credit and cover the $1.8 million the state still owes it, Seguin had to use its buildings as collateral.
“We are approved up to a $5 million amount to borrow,” Voit said. “We had pledged all of our main buildings here at the corner (of 31st Street and Central Avenue). We’ve pledged those assets against that $5 million line of credit.”
Seguin also has been able to pledge whatever money the state still owes them.
In getting its properties reappraised, Seguin got another reminder of how bad the economy really is. Two years ago, its assets were worth $7.2 million.
Now, “The property is valued at $3.5 million,” Voit said, laughing. “It’s nothing to laugh at, but what are you going to do? Everybody’s suffering here. What are you going to do?”
Just a couple more weeks of strain and Seguin Services might not have been able to pay its employees.
But after offering up its buildings as collateral and pleading with lawmakers, the nonprofit found a way to make ends meet.
“We came close, but we asked for an emergency payment from the state and they provided it to us and that put us over the hump,” said Seguin president and CEO John Voit.
Cicero-based Seguin offers a range of services for individuals throughout suburban Cook County with developmental disabilities and other special needs.
In the early spring, the agency received a letter from the state that stated Seguin was no longer on a list of agencies the state pays on time. So state checks stopped coming.
Then in April, Seguin told the Berwyn Life that it was only weeks away from being forced to send IOUs to its employees.
With an annual budget of about $25 million, Seguin spends about $2.25 million a month on payroll and other basic things like phones and electricity.
Seguin gets some of its state money via the Illinois Department of Humans Services. The state has been late in making promised payments to many entities like schools, vendors and municipalities.
Voit said that in May the state placed Seguin on an expedited list of agencies receiving money. Now, the state is making regular payments that range from $1.5 million to $1.7 million, Voit said.
Because a month and a half — or $1.8 million — worth of state payments were missed, Seguin still had to borrow money to keep its financial situation stable.
When the Berwyn Life spoke with Seguin in April, Seguin’s senior vice president James Haptonstahl said Seguin had already tapped $2 million of its $2.5 million line of credit.
To increase its line of credit and cover the $1.8 million the state still owes it, Seguin had to use its buildings as collateral.
“We are approved up to a $5 million amount to borrow,” Voit said. “We had pledged all of our main buildings here at the corner (of 31st Street and Central Avenue). We’ve pledged those assets against that $5 million line of credit.”
Seguin also has been able to pledge whatever money the state still owes them.
In getting its properties reappraised, Seguin got another reminder of how bad the economy really is. Two years ago, its assets were worth $7.2 million.
Now, “The property is valued at $3.5 million,” Voit said, laughing. “It’s nothing to laugh at, but what are you going to do? Everybody’s suffering here. What are you going to do?”
For the time being, Seguin is able to hold its finances together.
“Keep your fingers crossed,” Voit said. “We’re playing it day by day, week by week. Because the big deal is something happening after the (November) election(s). That’s the big deal.”
Voit said that because state bills are being pushed into the future, once the elections pass something will have to be done about them.
“It’s terrifying,” Voit said. “Because what’s not being said, ... you know that the bills are looming and building down there.”
Added to the tension is the fact that Seguin can only stay on the state’s expedited list for so long. Voit said in about three months he will have to reapply to be put back on it. If that does not work out, he can apply for an emergency payment.
“Then there’s always the chance (Seguin) won’t qualify for that,” he said. “You’re kind of living hand to mouth.”
