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Fiscal reform is needed to solve budget crisis

Source: Chicago Tribune

By: Valerie Lies

posted 3/18/10

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In his budget address, Governor Quinn responded to the state's budget crisis with significant cuts across the board and for the human services sector.

There is really only one way for the state to solve its financial problems. It must increase revenues and engage in fiscal reform to address the underlying structural elements needed to bring the state's spending in line with its income. Until Illinois pursues new, stable, fair, and diversified sources of revenue, funding for the many services critical to the economies, health and well being of the people of our state will remain inadequate.

Additional cuts to funding the critical services that our communities and residents in need rely upon will have a devastating impact on our entire system of service provision in Illinois and, if the state enacted true fiscal reform, would not be necessary.

If the state cannot find a way to continue funding services, anchor institutions within our community will be forced to close their doors and even more people will be laid off, resulting in further economic consequences.

Just as importantly, we stand to lose system-level gains in early childhood education, community-based living for people with developmental disabilities or mental health issues, preventive health and many other programs – gains that have been made possible by investments over many years by the private sector, government and philanthropic organizations.

Along with fiscal reform, we must also reform the human service delivery system. Elements of reform are mutual accountability, high standards for service quality, and a streamlined delivery process.

Six "Partnership Principles", developed last year by the Donors Forum in collaboration with leaders from human services, government, business, and philanthropy provide a roadmap for making these reforms. We urge the Governor to embrace these Principles and begin implementing them immediately. Please join United Way and others in endorsing at www.donorsforum.org.

In a climate of scarce resources, we need to ensure that we have a sound fiscal roadmap in place for ensuring the people of Illinois receive maximum value for every dollar spent on services. We have an opportunity to put the system right, but it will take both of these steps – reforming the way in which we deliver services and overall fiscal reform – to do it.

-- Valerie Lies, President and CEO, Donors Forum

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