Governor Quinn’s Budget Proposal Shaves Funding from HIV Services

Governor Quinn’s Budget Proposal Shaves Funding from HIV Services
AIDS Foundation of Chicago Supports Structural Budgetary Reform Proposal

SPRINGFIELD, IL (March 18, 2009) – Facing an unprecedented fiscal crisis, Illinois Governor Pat Quinn proposed today a state budget that reduces some HIV prevention and care spending by three percent. The plan is part of sweeping reforms designed to balance the state’s budget without eviscerating essential health and human services. 

“In these difficult economic times, tens of thousands of HIV-affected Illinoisans need a dependable health and human services safety net to meet their basic needs,” said Mark Ishaug, President/CEO of the AIDS Foundation of Chicago (AFC).  “While troubled by HIV funding cuts, we recognize that budgetary reform is urgently needed.  We will work closely with Governor Quinn and the General Assembly to find sustainable solutions in order to ensure that essential state services continue for those most vulnerable due to illness, disability, unemployment, and other hardships.”

Gov. Quinn said the state must address a debilitating deficit of nearly $11 billion in fiscal years 2009 and 2010. Without a balance of cost-containment measures and targeted revenue increases, vital state services would need to be eliminated at a time when help is needed the most, he said.

"We recognize that without tax and other revenue increases, reductions to HIV services and other programs for vulnerable citizens would be far greater," said John Peller, AFC Director of Government Relations. “HIV funding reductions will require even more diligence among state officials to ensure continuity of care and strategic investments in evidence-based interventions that yield the greatest results.”       

The governor’s plan includes a state income tax increase of 1.5 percent, which would be offset by raising the personal exemption for families with annual incomes of about $56,000 or less. Households living at or below the federal poverty line would pay no state income tax. 
AFC supports efforts to shield low-income and middle-income earners, and those in poverty, from higher taxes. In addition, AFC believes Illinois should finance essential services from a broad tax base of the state’s economy and among those residents and businesses most able to afford it.     

The HIV service sector is already woefully under-funded. A three percent reduction will translate into funding cuts of $600,000 or more for the AIDS Drug Assistance Program, HIV prevention, community re-entry assistance for HIV-positive people released from jails and prisons, and other important HIV services. 

Details of the governor’s HIV/AIDS-related budgetary request include:

•    $18.4 million for the AIDS Drug Assistance Program (ADAP), HIV prevention and other care services, a reduction of $570,000 (3%) over FY09
•    $1.94 million for HIV correctional services, a reduction of $60,000 (3%)
•    $3.15 million for the Minority HIV/AIDS Prevention and Outreach, the same amount appropriated in FY09
•    $2 million for HIV testing and education services through the Brothers and Sisters United Against HIV/AIDS (BASUAH), the same amount as appropriated in FY09
•    $1.4 million for the Quality of Life Endowment Fund (Red Ribbon HIV/AIDS lottery), the same amount as appropriated in FY09
•    African American HIV/AIDS Response Fund is slated for up to $3 million, provided state officials authorize a funding transfer to the Response Fund

In addition to the HIV programs, AFC is concerned about supportive housing services, which did not receive a requested funding increase of $3 million.  The governor’s proposal would appropriate the same level of funding in the new fiscal year. With supportive housing services, homeless people with HIV/AIDS and other chronic illnesses receive intensive case management with housing assistance to stabilize their lives and health. While matched by federal funds, failure to appropriate new state funding for supportive housing will stall plans to help as many as 600 vulnerable Illinoisans escape homelessness.  For chronically ill homeless individuals, permanent supportive housing is essential to better health outcomes.

AFC supports Gov. Quinn’s efforts to strengthen the Medicaid program, which provides health care for one quarter or more of all people living with HIV in the state. Gov. Quinn called on legislators to use federal stimulus funds to pay providers within 30 days. Payments to medical providers for Medicaid services are often delayed by several months, which results in reduced access to care and threatens the financial solvency of providers.

The budget must now be reviewed and approved by the legislature.  AFC will work closely with lawmakers to prevent deeper HIV-related funding cuts and champion structural budgetary reforms that are fair, equally distributed across the economy, and add no additional burden to low-income households. AFC will also urge lawmakers to consider funding increases for supportive housing programs.

Founded in 1985 by community activists and physicians, the AIDS Foundation of Chicago is a catalyst for local, national, and international action on HIV/AIDS.

                                                        aidschicago.org

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