At an Appropriations hearing in the Illinois State House last week, the Department of Human Services (DHS) informed the legislature that it has insufficient funds to meet its Temporary Assistance to Needy Families (TANF) obligations through the fiscal year ending in June.
This is particularly disturbing since Illinois provides TANF benefits—which is cash assistance—to just 13 of every 100 families with children in poverty, according to the Center on Budget and Policy Priorities (CBPP). Prior to welfare reform in 1996 the state helped nearly 87 of every 100 families with children in poverty. Further, the benefit level is only 28 percent of the federal poverty line, or roughly $4,800 annually for a family of three, similar to that in a majority of states.
According to Dan Lesser, director of economic justice at the Shriver Center in Chicago, Illinois will find the funds to pay the TANF benefits one way or another—but just how the state will do it is a significant question.
“The governor has asked the legislature for a $73 million supplemental appropriation to pay for it,” says Lesser. “Historically, supplementals are approved here when they are needed. But nowadays nothing is assured. If it’s not approved, we face a real possibility of crashing the state’s child care system.”
That’s because without the supplemental, Illinois will pay cash assistance by diverting money DHS had intended to use to fund the state’s childcare assistance program.