A number of HIV/AIDS agencies, all serving persons of color, are preparing to lobby the Illinois government to release funds that had been awarded to them for fiscal year ( FY ) 2015, but were never allocated.
In July, the Illinois Department of Public Health ( IDPH ) informed 20 service providers that money awarded to those agencies for FY 2015 through the African-American HIV/AIDS Response Act would not be allocated to them. Those agencies were awarded the money through a request for proposal process, and most made budgeting decisions based on those awards, so the sudden reversal could have potentially devastating effects.
Why the money was not turned over remains unclear. IDPH officials say the General Assembly needs to replenish funds. But Illinois state Rep. Greg Harris, D-Chicago, who chairs the House AppropriationsHuman Services Committee, said that although IDPH requested an initial appropriation of about $1.5 million, it did not specify a revenue source from which to draw the funds.
The agencies were informed of the situation in a July 17 conference call that most participants expected was going to be about policies and procedures pertaining to the awards.
"Most of us were really excited going into the call," said Calvin Spinks, CEO of the Chicago chapter of Black Men's Xchange, which had been awarded a $100,000 grant. "Then they just hit us with the news that the money would not be allocated."
Spinks said that Mildred Williamson, chief of IDPH's HIV Division, told callers that the matter was "out of IDPH's hands," and that the agency was unaware when issuing the request for proposals that there would be a problem with the appropriation. No explanation was offered.
Without the grant money coming through, Spinks is faced with the prospect of having to shut down. "That money was my entire budget," he said. "I am exploring other grant options, and using my personal money, and I let my contractors go. But if nothing comes through in the next few months, I'm going to have to close my doors."
Kim Hunt of Affinity Community Services said her organization was scheduled for a $100,000 grant as well. "That would have doubled our budget," she added. "It was intended to provide resources for Black trans women on the South Sidethat's enough [money] for two staff members. But for us, the impact was not as severe because those were new services."
"This is a very strange situation," said activist Keith Green. "This has the potential to devastate many of these organizations."
Shortly after the conference call, Harris inquired about the situation. In a letter dated July 21, IDPH Director LaMar Hasbrouck told Harris, "Since grants were awarded in FY 2014 ( from FY 2008 leftover money ), the IDPH HIV section were hopeful that such funding would continue. As a result of this, IDPH included a request for appropriation authority for this fund in our initial FY 2015 budget submission. Without [Illinois Office of Management & Budget] and/or the legislature identifying additional funding to be deposited, the only monies that could be spent in FY 2015 from this fund would be any unspent monies from the FY 2014 grants."
Harris said, "We have about 2,200 funds like this. Often, they are funded from a specific revenue sourceif a cigarette tax funded smoking prevention, for example. But there was no request made for the money to come from a specific fund."
Windy City Times asked IDPH whether Harris' assessment was fair and accurate. In an emailed response, spokesperson Melaney Arnold said, "In creating the African-American HIV/AIDS Response Act, the legislature did not identify where the money would come from to populate the fund. This means that unless the General Assembly allocates cash directly to the fund, the fund receives no new monies. Money from other IDPH funds cannot be used to populate the African-American HIV/AIDS Response Fund."
Hasbrouck said in the letter that about $650,000 remained unspent as of late July, and that a determination would be made in August as to how much would be available for FY 2015.
Arnold said in her email, that, as of Sept. 4, "A little more than $220,000 remains in the fund, and the Department is exploring options to supplement money into this fund prior to issuing grants."
The African-American HIV/AIDS Response Act was signed by Gov. Rod Blagojevich in 2005. The original legislation, co-sponsored by former state Rep. Constance Howard, D-Chicago, and state Sen. Kimberly Lightford, D-Maywood, was intended to alleviate disparities facing persons of color with HIV/AIDS. Among its objectives were funding that targeted organizations of specific sizes, ensuring that smaller agencies would be able to enjoy equal opportunities for funding that larger ones did. It also expanded HIV testing in prisons.
Activist Michael O'Connor was an aide to Howard at the time, but did not assist her with work pertaining to the act. Nevertheless, he was very aware of its potential impact: "This legislation was monumental in 2005. The fact that HIV infection rates among African Americans was even dealt with this way back then was incredible. I thought the African-American HIV/AIDS Response Act was a public policy solution."
But for its first two years, just under half of the act's appropriation was allocated to the now-defunct Let's Talk, Let's Test Foundation ( LTLTF ), headed by Lloyd Kelly, who had previously been an aide to Howard. Kelly was accused of using the foundation's funds for his personal use, as well as some of Howard's campaign expenses, and was indicted by federal prosecutors in mid-2013 for mail fraud. He is currently scheduled to stand trial in November. Howard pled guilty to mail fraud in 2013, and is likely to be sentenced late this year.
The act's funds were frozen once Kelly's handling of the money was called into question, according to Hasbrouck's letter to Harris. IDPH had to reclaim the first year's allocation, but the second year's monies were never allocated, and resided in the Fund's account while the investigation proceeded. So nothing was spent in the account between FY 2009 and FY 2013. In that time, the money was rerouted after Gov. Pat Quinn authorized "inter-fund borrowing," but it was eventually replenished, and the funds became available again in FY 2013. Funds that were appropriated in FY 2014 were actually monies left over from 2008.
"We want to continue to fully fund HIV outreach opportunities, but until the state can resolve many of its budget issues, this can get worse," said Harris.
Eighteen of the 20 affected organizations are forming a coalition they hope will compel the General Assembly to authorize the release of the funds, Green said. He added that the coalition has enlisted help from several legislators, including many from the Illinois Legislative Black Caucus, but could not yet disclose who they were. The coalition will issue a formal announcement sometime the week of Sept. 7.
"It looks like we're going to be doing some lobbying this fall," said Hunt. She noted that, should they prove successful during the fall veto session, the agencies would be still not be getting any money until January.