July 11, 2002

BY CHRIS LAFORTUNE

STAFF WRITER

Area social service organizations say the restoration of threatened state budget cuts means they'll still be able to operate, but there won't be any growth in their programs any time soon.

The state budget didn't kill us this year," said Bob Okazaki, president of Avenues to Independence, but they're still slowly strangling us to death."

Many of the threatened state contract cuts were restored, said Fran Hook Hume, chief executive officer of the Maine Center for Mental Health, but some targeted cuts remained.

And there were no increases in rates for services, Hook Hume said, meaning agencies are receiving the same amount of money they have over the past several years.

Typically, agencies want to see an increase in funding that at least reflects the consumer price index, to cover increasing costs of doing business. But that hasn't been going on, Hook Hume said.

"Even though this past year has been really bad and there wouldn't have been significant, if any, growth here, we're still behind three years," she said.

Under original state budget plans, the Maine Center looked to lose about $52,000 in contract cuts, Hook Hume said. But that was restored.

Money was also restored to Lutheran General Hospital. The hospital did look to lose about $3 million in Medicaid dollars, said Sue Reimbold, spokeswoman for Advocate Health Care, but some of that money was restored.

In the first six months of the year, Reimbold said, the hospital saw a loss of about $1.6 million.

?We?re taking a look to see what the improved budget for fiscal year 2003 is going to mean for Lutheran General,? Reimbold said.

Under original budget proposals, Avenues to Independence could have lost as much as $300,000 in state money, Okazaki said. Instead, it will lose about $60,000.

And as the Maine Center has, Avenues has also seen no increases in money over the last three years. During that time period, Okazaki said Avenues to Independence has failed to receive about $150,000 in increases.

And over the next five years, considering the number of babyboomers with developmental disabilities, Okazaki said, the need for programming continues to grow.

?The slow strangle continues,? he said.

State money remained level this year because of the budget shortfall, said Thomas Green, spokesman for the Illinois Department of Human Services.

Under the original budget proposal, cuts would have included $12 million across the board for community mental health programs statewide. Another $4.7 million was included for targeted cuts for selected grants.

?We were fortunate that funding for community based human service programs was restored by the General Assembly,? Green said.

There have been some reductions. A mental health center in Peoria will be closed, one in Elgin reduced and a program in Alton closed, Green said.

But there has also been some growth. The state will be able to open an additional 300 community integrated living arrangements statewide, Green said. Those are group homes for people with mental health problems.

In the previous two years, Green said there has been some growth in money for community programs statewide.

It has not been large growth, but it hasn't been level," Green said.

As for the future, Hook Hume said she has heard the state is anticipating another two years of cash flow problems, as far as the state paying vendors.

State payments lagged in May and June, Hook Hume said, though money had come in by the end of June for Maine Center. Hook Hume has been told that money for July and August may not come in until the end of August.

That's really a serious issue for us, because not-for-profit organizations that are not monster-sized or are small, community-based organizations really depend on state payments to be able to pay our bills,? she said.