A series of cuts in federal social welfare spending since 2002 have crippled Illinois and other states' ability to provide childcare, protective services, utility assistance, and other programs aimed at helping low-income Americans, according to the Rockefeller Institute.
In a report released this week, the New York-based public policy think tank highlights the federal government's priorities in recent years:
[S]ince 2002, cash assistance and social services declined, while medical assistance absorbed a growing share of total state and local social welfare spending. These trends were particularly acute in states with low fiscal capacities, that is, states with lower per capita personal incomes and thus fewer resources to compensate for declines in federal grants.
These recent contractions contrast sharply with the expansion and diversification of social welfare spending in the mid-1990s and early 2000s. In this earlier period, total social welfare spending not only increased but also was transformed, as cash assistance spending fell while social service and medical assistance spending grew.
As we reported yesterday, scaled back government spending is creating major stress for Illinois nonprofits as they struggle to secure enough resources to meet the growing demand for their services. Some agencies, including Catholic Charities, have even resorted to layoffs and programs cuts as a result.
"We've been seeing a major retrenchment. And for the first time since the 1980s, during the Reagan administration, we're seeing declines in cash assistance and social services," said Tom Gais, co-director of the Rockefeller Institute. "As services continue to deteriorate ... we have to decide if we want to support low- income people in our country."
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