Illinois Needs Substantial Reforms in Funding of
Developmental Disability and Mental Health Services 

Illinois organizations supporting individuals with developmental disabilities in Illinois, are responding to the July, 2006 report from Dr. Elizabeth Powers and her economic research team at the University of Illinois in Champaign.   

In a report titled “State Funding of Community Agencies for Services Provided to Illinois Residents with Mental Illnesses and/or Developmental Disabilities” and commissioned by the Illinois Senate Appropriations I Committee,  Dr. Powers concludes:  “Illinois needs to proceed with substantial reforms in order not only to preserve but to enhance the role of its community providers”. 

Many disability support organizations, have warned state officials that Illinois’ poor funding record jeopardizes the health, welfare and safety of individuals with autism, cerebral palsy, Down’s syndrome, mental retardation and other developmental disabilities.   The report from Dr. Powers substantiates what they have been telling the governor and legislature for more than a decade.  Community organizations are barely able to preserve services.  Since 1980, Illinois has under-funded community providers by over 50% when compared to the increases provided to state institutional employees. 

This funding inequity becomes very evident when comparing what the state pays its own institutional employees versus what providers can pay in community programs.  According to Dr. Powers, wages in community developmental disability programs range from 28 to 64% less than comparable positions in Illinois’ state operated facilities.   Additionally, the report states that community medical and pension benefits are “substantially below” the 16.4% of compensation given to state government workers.   

The study also finds that Illinois’ funding system requires community organizations to assume tremendous financial risks when delivering services.  It was deliberately designed to not cover the costs of delivering services; therefore programs that underestimate expenses when dealing with more severe persons with disabilities are not adequately reimbursed and must fund-raise in order to help pay for services.  The state circumvents its obligation to provide needed resources and community agencies become reluctant to expand or take on more difficult and costly cases.   

It is estimated that over 10,000 persons are now waiting for state funded residential, day and/or employment services.  Additionally, there are hundreds of students with autism and other developmental disabilities who will be in need of continuing programs.   Community organizations are barely able to maintain the 45,000 individuals currently receiving services.   Illinois' reimburses less than 75% of the actual costs of services; without reforms to its system, community providers will be unable to provide services and Illinois will endanger the well-being of its citizens with developmental disabilities.   

Dr. Powers calls for three recommendations to improve Illinois’ system of disability supports:

1.      Dedicate all Medicaid related developmental disability and mental health funds to a long-term increase of 33% over and above regular cost-of-living adjustments for these respective programs;

2.      Reconfigure funding so that it enhances consumer choice, balances financial risk between the state, provider and service recipient; and promotes innovation and efficiency in the levels and mix of services;

3.      Reduce the use of institutions and focus resources on community support settings.

Statewide, advocates have been promoting self-determination, which is a leading model of consumer choice in developmental disability services.  Organizations have also been working with the Department of Human Services to reduce the institutionalization of individuals with severe behavioral, emotional and other clinical issues.   These are inherent in the recommendations from the study and along with funding and other system change recommendations, have long been advocated by the Institute.   

Statewide, advocates and organizations are applauding Dr. Powers for her and her team’s work on the economics of Illinois’ developmental disability and mental health funding.   Thanks are also due to the Illinois House Human Services Appropriations Committee, whose concern was crucial for the completion of this University of Illinois study. 

We will work in conjunction with other statewide associations to promote the study’s findings with the Governor, Legislature and general citizenry of Illinois to produce major changes in the Illinois systems of developmental disability and mental health support