Illinois Budget Impasse Leaves Nonprofit’s Consolidating their Operations

March 3, 2016

Illinois Budget Impasse Leaves Nonprofit’s Consolidating their Operations

Update

Currently, the state of Illinois is in the 12th month of a budget impasse for the current fiscal year that begins on July 1.

Illinois is eight months into a state budget impasse that affects nonprofits and educational institutions across the state. The severity of the impact on Illinois’ nonprofit organizations varies but for many, staff layoffs and reduced hours have been part of the plan of cutting costs while the State remains in deadlock.

Senior Services Plus, serving about 3,000 older adults a day, and Centerstone, one of the nation’s largest behavioral healthcare providers, are just two nonprofit organizations that have recently announced major changes to their operations. This past month, Senior Services Plus announced that their bus service was shutting down for the first time in 43 years and their Meals on Wheels program also cut back from five meals a week to four. On March 1st, Cornerstone will close its Big Brother Big Sisters of Southern Illinois locations, impacting youth, volunteers and supporters in five counties.

As employers look for ways to shed costs by cutting payroll, employers should expect an increase in the cost of their unemployment insurance expenses. If an employer is self-insured (directly reimbursing the State for unemployment claims), the impact will be felt as soon as the end of the quarter in which the claim starts. A single unemployment claim can range from $1,326 to $14,794. For those employers paying State Unemployment Taxes (SUTA), the financial impact will come via their 2017 Unemployment Tax Rate. Current rates range from 0.55% – 7.75%, which is equal to a cost per employee range of $71 – $1,004.
This article is presented by First Nonprofit Group, the leading provider of state unemployment tax (SUTA) solutions for 501c3 nonprofit employers and governmental entities. First Nonprofit’s programs help organizations save an average of 30% on their unemployment costs compared to the state unemployment tax. Self-insuring your unemployment costs? First Nonprofit programs minimize the risk associated with being a self-insured employer, provide a fixed annual cost and remove the uncertainty of unemployment claim exposure.

Visit www.firstnonprofitcompanies.com to request a fee, no-obligation cost savings analysis on your organization’s unemployment costs.

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Testimonials

In addition to their money-saving purpose on behalf of nonprofit organizations like AHS, First Nonprofit’s Nonprofit Unemployment Fund
streamlines the information we need to efficiently manage unemployment claims. Our relationship with NU Fund gave us access to such things as advice on planning for what’s ahead and how to analyze cost scenarios when unexpected events occurred. Both experiences were very helpful.

Asian Health Services, Oakland, CA

The Ensight Skills Center has enjoyed working with First Nonprofit for several years. We are enrolled in their Unemployment Savings Program and although we have not required a lot of intervention, there have been a few times. I know others have dealt with the same problem of unemployment fraud over the last year and in our case, a call to First Nonprofit (they actually answer their phones) cleared up the issue. They also sent us a letter to send to all our employees telling them what they needed to do to prevent this in the future and protect themselves. What a relief! Over the years if I have questions or concerns, they are happy to listen, advise and help if they can. Another BIG advantage of using First Nonprofit is that all the money that is paid into the Unemployment Savings Program lives on my balance sheet as an asset. The money continues to be Ensight’s not the governments. First Nonprofit has certainly given me peace of mind.

Ensight Skills Center, Inc, Fort Collins, CO

Visually Impaired Preschool Services has been a client of First Non-Profit since it was first offered as a benefit of VisionServe Alliance. We completed a thorough evaluation of cash savings to our agency before taking advantage of this wonderful benefit and it has been a very wise decision. Our experience with the processes from accounting to claims have been professional, expeditious and easy.

Visually Impaired Preschool Services, Louisville, KY

NYCON members who use First Nonprofit’s programs enjoy enduring savings and improved efficiency. Our association knows that success, because from the beginning, we achieved the same great benefits. Great savings, seamless technology, and responsive service. NYCON highly recommends First Nonprofit’s remarkable unemployment solutions.

New York Council of Nonprofits, Albany, NY

It has been our sincere pleasure to maintain a strong, vibrant business partnership with First Nonprofit. We greatly admire their strong industry knowledge, technical expertise, constant professionalism, knowledgeable and dedicated staff. They are always extremely responsive, personable and provide us with the necessary guidance and recommendations on a numerous variety of employment scenarios. We

Thresholds, Chicago, IL

Because INCS advocates for the operating conditions that allow charter public schools to provide high quality public education, partnering with First Nonprofit was an easy decision. First Nonprofit’s unemployment programs provide our member schools two operating elements crucial to their ability to provide high quality public education: savings and budget certainty. Capable, committed teachers are the key to student success. By participating in the unemployment insurance savings plan, charter public schools gain peace of mind and are able to invest more money in their teachers.

Illinois Network of Charter Schools, Chicago, IL

Throughout our membership in the Unemployment Savings Program, First Nonprofit understood our demands, community dynamics, and the importance of seamless services; that allowed us to serve our constituents better.

Prevent Blindness America, Chicago, IL