United Way: State budget impact worsens

A new survey conducted by United Way of Illinois, the statewide association of 52 local United Ways and the largest non-governmental funder of health and human services in the state, shows the deepening impact of the budget impasse on the most vulnerable citizens across Illinois and on the human service sector overall.

Results from the third state-wide survey indicate that human service agencies are reaching a tipping point in trying to deliver services and maintain operations amidst continued uncertainty due to the budget impasse. Agencies reported shuttering programs, significantly reducing the number of clients they can serve, draining cash reserves and going further into debt by utilizing lines of credit. Twenty-three percent of agencies reported they will struggle to operate at existing levels if the budget impasse continues through March.

"It is our seventh month without a budget and there is real damage being done to our neediest children and families, and to our human services infrastructure," said Kristi Long, chairman of United Way of Illinois. "Disabled children need critical support, adults who want and need employment need job training, and people who require mental health care and medication need those services."

Key findings from the third survey reinforce the impact of the budget impasse on programs and services for people across Illinois. As of January 2016:

• 85% of survey respondents reported cutting the number of clients they serve, up from 34% in July 2015
• 84% of survey respondents reported cutting programs; since July 2015:
  • Cuts to programs supporting the mentally ill have risen from 3% to 25%
  • Cuts to programs supporting the disabled have risen from 3% to 29%
  • Cuts to programming supporting seniors, children and adults seeking education or jobs have more than tripled

"We receive funding from the state of Illinois for home delivered meals," said Carole Creason, executive director of Seniors Assistance Center in Norridge, Illinois, "If the impasse continues, we will have to reduce the number of meals served by half, requiring us to decide who eats and who doesn't."

Survey findings also highlight the financial strain the impasse is having on the state's human service infrastructure:

• 49% of respondents have tapped into their cash reserves
• 26% of respondents have used lines of credit
  • Respondents have taken on a combined $35 million in debt
  • The average credit extension taken on by respondents was $300,000
• 27% of respondents have been forced to lay off staff and 5% reported having to skip payroll

United Way organizations around the state and their partner agencies are gathering in Springfield today to discuss the findings of the survey and share with government leaders the current and long-term implications of the budget impasse.

This is the third survey conducted by United Way of Illinois on the state budget stalemate. The survey was conducted January 6-January 13, 2016, and responses were received from 444 human services agencies across every county in Illinois. Survey respondents represented a range of service categories including youth development, early childhood education, mental health, emergency housing, senior services and employment training and varied in budget size from less than $500,000 to more than $15 million. 

Poll: Pizza claims top spot for comfort food

There's really no debate that food can be a comfort. Whether stressed or depressed, almost everyone has a favorite go-to dish that seems to help make everything all better.

Just over half (53%) of Americans indicate they eat more when they're stressed and two-thirds (67%) agree they use their favorite comfort food as a pick-me-up. But there's no shame here. As the ultimate food connoisseur, Julia Child, once said: "Everything in moderation... including moderation."

Americans seem to hold a similar viewpoint, as two-thirds (66%) indicate they don't feel guilty after indulging in their favorite comfort food.

So which food seems to do the trick? For Americans, pizza lands in the number one spot as the ultimate comfort food.

These are some of the results of The Harris Poll® of 2,252 U.S. adults surveyed online between December 9 and 14, 2015. Full results of this study, including data tables, can be found here.

Pizza, anyone?

Looking at comfort foods, pizza tops America's list of favorites. With a 15% slice of Americans hailing it as their number one, it gets more than twice as many votes as any other food choice. Chocolate and ice cream tie for second, at 7% each, while mac & cheese and chips round out the top five (5% and 4%, respectively).

Looking at favorites by various demographics – gender, generation, and geographic region – it seems as though pizza is number one for just about everyone, with the exception of Matures (those 70+), who turn instead to ice cream. However, some clear differences do arise for second and third choices:

• Women turn to chocolate and ice cream as their second and third choices, respectively. Men, on the other hand, opt for ice cream and then chips.
• Ice cream is the second choice for Easterners and Southerners alike, while Midwesterners turn to chocolate and Westerners prefer to dig into some mac & cheese. In third place, those in the South and West opt for chocolate, while those in the Midwest want a bowl of ice cream and the East is hankering for mac & cheese.
• While chocolate is number two for Gen Xers, this treat is reserved for third place by all other generations. Millennials' second choice is mac & cheese, while Baby Boomers opt for ice cream and Matures reach for steak. Gen Xers name chips as their third place pick.

Comfort food has its time and place, however. When they're sick, Americans would much rather turn to soup, by a wide margin. Roughly six in 10 Americans name soup as their go-to when they're sick, with nearly four in 10 (39%) mentioning it more broadly and an additional 22% specifically mentioning chicken soup. Soups reign supreme as the top two under-the-weather foods across all key demographics. The top five foods eaten while sick are rounded out by ice cream (3%), toast (2%) and, yes, pizza (2%).

When it comes to celebrating a special occasion, Americans continue to have differing top choices as well. Steak has a strong hold on the number one spot, with more than two in 10 (22%) adults choosing it as their favorite special occasion meal, while 12% turn to cake. Americans across all key demographics cite these two as their favorite celebratory foods. Rounding out the top five celebratory dishes are pizza (7%), lobster (4%), and other types of seafood (3%).

A Time for Comfort

So when do Americans turn to their favorite comfort food? Over four in ten say they need an edible pick-me-up when they're stressed (45%) or after a really bad day (43%). One third (33%) indicate they turn to a comfort food when they're depressed.

However, not everyone needs to be down in the dumps to dig into their favorite comfort food. Nearly four in 10 indicate they'll turn to their tried and true dish after a really good day (38%) or on their birthday (37%).

More distantly, 13% indicate they eat it after a break-up and, among those 21 or older, 9% each say they need that special dish either the day after or during a night of heavy drinking.

Demographically speaking, there are clear differences in the top reasons for needing some comfort food.

• Women are most likely to reach for their favorite comfort food when they're stressed (54%), while men are most likely to turn to comfort food after a really good day (43%).
• Looking to the generations, Millennials and Gen Xers are most likely to need comfort food when they're stressed (58% and 50%, respectively). Baby Boomers, on the other hand, need it after a really bad day (38%), while Matures look to it after a really good day (39%).

Food for thought

While most will agree there's no place like home, a vast majority of Americans (90%) are going one step further to say there's nothing like a home cooked meal. With that sentiment in mind, it likely comes as little surprise that more than six in 10 (62%) adults say their favorite comfort food reminds them of their childhood.

Though Americans may not feel guilty after indulging, more than four in 10 (41%) do indicate they'll sometimes work out longer or more intensely to justify eating a favorite comfort food. This is particularly true of Millennials, compared with their older counterparts (57% vs. 42% Gen Xers, 29% Baby Boomers, 22% Matures).

To see other recent Harris Polls, please visit our website, TheHarrisPoll.com.

Methodology

This Harris Poll was conducted online, in English, within the United States between December 9 and 14, 2015 among 2,252 adults (aged 18 and over). Figures for age, sex, race/ethnicity, education, region and household income were weighted where necessary to bring them into line with their actual proportions in the population. Propensity score weighting was also used to adjust for respondents' propensity to be online.

Cullerton puts school reform out front, says pension deal near

By Mark Fitton

Illinois News Network

SPRINGFIELD — State Senate President John Cullerton, D-Chicago, dropped two big pieces of news Monday:

1. Cullerton wants a rewrite of the state’s school funding formula, and he’s linking it directly with talks about the overall state budget.
2. He and Gov. Bruce Rauner, R-Winnetka, are back on the same page regarding a pension reform bill.

Cullerton, D-Chicago, argues the state’s two-decade-old school funding formula doesn’t adequately address student need and therefore rewards prosperous school districts while penalizing those with higher levels of poverty.

Speaking at the City Club of Chicago, the Senate president called the school funding formula “most inequitable system of school finance in the country” and “the defining crisis of our times.”

Cullerton made it clear it’s a big issue for him: “The governor has linked things together. We don’t have a (fiscal year 2016) budget because he’s got his Turnaround Agenda. So, I can link things together, too. This is a turnaround agenda. We’ve got to change the school funding formula.”

Cullerton argued a fair rewrite of the funding formula would ultimately benefit Chicago but would not be giving it special treatment. He said Chicago would getting funding proportionate with its high percentage of low-income students in the same fashion as other challenged districts, such as East St. Louis or East Aurora.

And, he said, a single formula must give Chicago pension parity. That is, the state would pick up the same share of pension costs as it does for downstate districts.

Chicago, however, would lose block grants that it now qualifies for, Cullerton said.

“It’s not a special deal for Chicago; we’re eliminating the special deals,” he said.

“The amount of money we are talking about shifting is about $400 million into the poorer school districts out of about $8 billion,” he said. “It can be done in a fair way.”

The governor’s press office declined to comment on Cullerton’s remarks, but the GOP’s legislative leaders did offer emailed statements.

“Senate President Cullerton’s remarks today will strike fear in the hearts of families and schools across the state. He’s threatening the opening of schools next fall,” said Senate Republican Leader Christine Radogno of Lemont.

“The Democrats majority-controlled state government for more than 10 years and ignored school funding reform — other than to create special deals for Chicago Public Schools,” she said. “The most recent proposal again advantaged Chicago at the expense of suburban school districts.”

Radogno said Senate Republicans “are willing to tackle school funding reform — but it’s not the only place in Illinois ripe for reform. We need to work together for school reform and the structural reforms that will help all of Illinois.”

Rep. Jim Durkin of Western Springs, leader of the House Republicans said, “As a suburban legislator, I remain open to working with the Democrats to fix our archaic school funding formula. At the same time, I hope this means Democratic leadership is now ready to work with us on other structural reforms to put Illinoisans back to work and to bring the budget impasse to a close.”.

House Speaker Michael Madigan’s spokesman did not a return phone message seeking comment.

Illinois is in the seventh month of fiscal year 2016 without a budget.

Rauner complains Democrats sent him a spending plan $4 billion heavier in spending than estimated revenue.

Democrats complain Rauner and the GOP have been unwilling to work with them on a plan until the governor gets movement on his own agenda items, which Democrats do not consider directly related to the annual budget.

Meanwhile, the state is said to be spending on 90 percent of its annual obligations as it funds primary and secondary education and meets expenses incurred by way of debt service, continuing appropriations and court decrees.

That spending — which does not include higher education nor many human services — is said to be running at a clip that would put Illinois as much as $6 billion in the red for fiscal 2016 if nothing changes.

Pension deal?

Speaking to reporters after his speech, Cullerton said he and Rauner had spoken Monday morning and smoothed out their differences on pension reform legislation, and that bill is now being drafted.

“I think we have an agreement,” Cullerton said. “There are some tweaks to be made by the lawyers, and then the question’s going to be, ‘How do we pass it?’”

“All these pension bills in the past that have passed have been very bipartisan and controversial, so we expect that the unions will probably not be supportive. So, that will make it more difficult to pass, but we’re going to be on the same page,” Cullerton said.

The plan reportedly focuses on giving state employees a choice. For instance, an employee who wants to keep the 3 percent, compounded cost-of-living raises payable in retirement would have to accept a lower pensionable salary. On the other hand, the employee could take the higher salary while working but get smaller cost-of-living raises while in retirement.

Backers of the Cullerton plan say it could save Illinois — which has unfunded pension liabilities of more than $111 billion — about $1 billion annually.

However, even supporters acknowledge such a plan likely would face a court challenge if passed.

The Illinois Supreme Court last year threw out a 2013 pension reform effort, saying it violated the pension protection clause of the state constitution that says membership in a public pension system is a contractual relationship, “the benefits of which shall not be diminished or impaired.”

Cullerton said he doesn’t expect opposition to the plan from Speaker Madigan, D- Chicago, who he described as “not reluctant to take on pension reform.”

“The problem is going to be many of our members are probably going to say, ‘Well, that’s OK; that’s pension reform. But what about the rest of the budget? What about all the other issues?’”

Cullerton said the pension bill he and Rauner are working on does not include diminishment of collective bargaining for state employees.

“That’s not part of the deal,” the Senate president said.

State continues to shed jobs; 2015 job loss pegged at 3,000

By Mark Fitton
Illinois News Network

SPRINGFIELD — December’s employment numbers show Illinois is continuing to lose jobs.

“For the first time since 2009, Illinois ended a year with fewer jobs than when we started,” said Jeff Mays, director of the Illinois Department of Employment Security.

“Even as the nation gained more than 2.6 million jobs in 2015, Illinois lost 3,000,” he said in a Friday news release regarding the December numbers.

Over the year, nonfarm payroll employment in Illinois decreased by about 3,000 jobs, IDES analysts said.

Sectors with over-the-year gains in employment included education and health services with a gain of 6,200 jobs; professional and business services, up 5,400 jobs; and construction, up 5,100.

While several sectors posted over-the-year losses, the biggest tumble was in manufacturing, which lost 14,000 jobs. Trade, transportation and utilities also showed a significant loss, about 6,900 jobs.

“Even as people return to the labor force, Illinois continues to lose jobs at a staggering rate, and statewide unemployment continues to creep up,” said Jim Schultz, director of the Illinois Department of Commerce and Economic Opportunity. “We must make fundamental changes to our state’s business climate to promote growth and job creation if Illinois is going to become competitive and start sharing in the growth the rest of the country is enjoying.”

IDES labor market analysts say the state’s average job growth since employment recovery began in January 2010 remains well below the national average, and employment will not recover from the 2007-2009 recession until September 2017.

Steve Rauschenberger,  president of the Park Ridge-based Technology and Manufacturing Association, said the numbers are troubling. “A lot of people believe the United States is poised on being dragged into a recession by the rest of the world,” he said. “But, for Illinois, the most troubling part is how we’re underperforming the rest of the Midwest and the nation.

Rauschenberger said a good deal of the blame lies on the state’s tax structure, particularly its property taxes.

“We have a property tax system that penalizes job creators,” he said. “Over time, what that does is drives manufacturers to lower cost locations.”

“I think Illinois has a big credibility to climb,” Rauschenberger added. “Even if there were quick reforms, it’s going to take three to five years to start rebuilding the middle class-producing jobs that we all want but don’t have the public policy to support.”

“We need reforms now, but we also need to be patient and let those policies help restore Illinois’ competitiveness to the level we were at in the ‘90s,” Rauschenberg said.

December’s numbers, which are based on preliminary data from the U.S. Bureau of Labor Statistics, show Illinois lost 16,300 non-farm jobs for the month, according to IDES.

The state’s unemployment rate rose by 0.2 percentage points, from 5.7 percent to 5.9 percent. Illinois’ unemployment rate continues to remain above the national rate, which was 5.0 percent for December.

In December, the three industry sectors with the largest gains in employment were construction, plus 6,700 jobs; manufacturing, plus 500; and government, plus 300.

The four industry sectors with the largest declines in December employment were trade, transportation and utilities, down 12,100 jobs; professional and business services, down 4,600; educational and health services, down 2,100; and information, down 2,100.

Illinois is starting to see a bit of improvement in the construction sector, particularly in the Chicago area, said IDES labor market information director Evelina Loescher. That, she added, is one area in which the state has shown continued weakness after the nation began to recover from the 2007-2009 recession.

However, she noted, negative developments in international economies, including China’s, continue to hurt Illinois’ heavy machinery makers, such as Caterpillar Inc.

— Illinois News Network reporter Greg Bishop contributed to this report.