Aside from massive service disruptions, slashing state-funded programs in Illinois would likely have nasty concurrent effects that haven't been discussed much. For one, cutting state dollars for programs that are covered jointly by Illinois and the federal government means the state could forfeit a considerable amount of additional matching funds. Proposed cuts to programs financed in part by Medicaid could violate conditions set out in the federal stimulus law, threatening the extensive relief President Obama approved early this year.

John Bouman, president of the Sargent Shriver National Center on Poverty Law, made another interesting point during an appearance on WVON 1690 yesterday: The looming doomsday budget cuts -- if ultimately implemented -- could lead to a deluge of lawsuits for Illinois to defend.  Listen:

Internal mp3

BOUMAN: If they go ahead and make these cuts, then they are probably going to be violating a whole set of court orders and consent decrees that have been arrived at over the years that govern some of these programs. And a lot of what goes on state government will begin to get crippled by all kinds of lawsuits -- with attorneys representing people who needs these programs who have rights being violated and so forth.

We asked Bouman to provide us with some more detailed scenarios.  Here's what he sent along:

For example, there is a huge global decree that governs much of what DCFS does, called "BH".  ...  The cuts on the table by DCFS clearly implicate a massive problem with compliance with that decree.

Another example is a decree we have that involves children's access to medical services after they are covered by Medicaid.  Even if they hold eligibility harmless (in an attempt to qualify for the stimulus funds), many of the cuts implicate quality of care and access to providers.  These raise serious questions about the ability to comply with the court order. 

There are also a number of court decisions that govern the procedural fairness of closing programs or transitioning to tighter eligibility rules.  Most of these involve concepts of Due Process of law under the constitution.  There is no time between now and July 1 to put the necessary procedures into place in order to implement cuts and cutbacks in a constitutional way.

Another category of legal problems involves compliance with state and federal laws.  The General Assembly did not enact all the substantive law changes necessary to legally make the cuts the doomsday budget forces.  I believe there are problems along these lines in the various "community care" programs for seniors, DD, mental health, and persons with disabilities.