Agencies call on state to pay bills

CHICAGO – Social service organizations that serve the elderly said Thursday that dozens of agencies could close, hundreds of workers could lose jobs, and thousands of seniors could be forced into nursing homes in coming months if the state doesn’t make good on millions in unpaid bills.

The AARP and agency leaders called on state officials to come up with immediate solutions, including short-term borrowing, to keep the system afloat. They estimated 175 agencies are waiting for $200 million from the state, including some who haven’t been paid since June.

“The wolf is at the door,” state Rep. Greg Harris said. “These decisions can’t be put off any more.”

More than 60,000 seniors depend on social services that are funded by state money in order to stay in their homes rather than go into nursing homes, according to the AARP. Those services include home meal delivery, transportation to medical appointments and adult day care.

Advocates insist keeping seniors in their homes saves the state money. It costs about $800 a month, on average, to provide home care to a senior, compared with $3,000 per month for nursing home care, AARP officials said.

Individual agencies have had some success in asking Comptroller Dan Hynes for emergency funding, but it’s unlikely his office could cover all the money owed. In an open letter to service providers posted on his Web site, Hynes shared in providers’ frustration but said he wasn’t budging on borrowing.

Borrowing more money will “simply exacerbate the existing problem of paying back the money we already owe, and more seriously, give false hope to all of you awaiting payments from the state,” Hynes wrote.

Meanwhile, some agencies are facing the prospect of closing at the end of the year, and some service providers find themselves dipping into their personal savings accounts to make payroll.

Carol Acord said she’ll have to ask her bank for help to pay her 15 staff at Circle of Friends Adult Day Care Center in Champaign next week. But banks are wary about making loans once they hear that agency owners are waiting for money from the state.