New Report Says Illinois Ranked Worst in Nation for Late Payments to Human Service Agencies; Illinois Substance Abuse Providers Owed $34 million

(Chicago, IL) — October 8, 2010. A new report says Illinois is the worst state in the nation for late payments to non-profit human service providers, as Illinois’ substance abuse prevention and treatment providers are waiting on more than $34 million from the state, according to advocates.

”Illinois is failing its residents just at the time when they need high-quality services the most. Unfortunately, this is just further evidence that Illinois’ system for human services is broken and needs to be fixed,” said Laurel O’Sullivan, Vice President, Public Policy, at Chicago-based Donors Forum.

According to the new report by the Urban Institute, Human Service Nonprofits and Government Collaboration, 72% of Illinois human service nonprofit organizations report delays in state reimbursements for services rendered, compared to 41% of non-profit providers nationally.

A recent survey by the state’s top substance abuse prevention and treatment advocacy group revealed that, among 24 community providers alone, the state owes a total of $34 million to them for both FY10 and FY11: FY10: $19 million and FY11: $15 million.

“Illinois owes substance abuse prevention and treatment providers more than $34 million, stretching back months,” said Illinois Alcoholism and Drug Dependence Association CEO Sara Moscato Howe.

“Our agencies have essentially exhausted their lines of credit and exhausted their ability to guarantee paychecks to employees who are critical care providers.”