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Executive Report

Legislature's eye on block grant spending


IN ILLINOIS, most federal block grant money is spent by executive departments, but that spending must be authorized, and comes under the scrutiny of a special legislative committee. Except for federal funds received under the Community Development Block Grant, which goes directly to cities and counties, all federal block grants to Illinois will come before the appropriations committees.

The Illinois Commission on Intergovernmental Cooperation created the Advisory Committee on Block Grants when President Ronald Reagan consolidated 63 categorical grants into nine "blocks" effective October 1981. The purpose of the committee is to oversee the distribution and use of the federal money. The advisory committee, which includes four senators, four representatives and four public members, recently asked the six Illinois agencies which administer the bulk of the federal block grant money to report on their activities.

The six agencies, Public Aid (DPA), Public Health (DPH), Commerce and Community Affairs (DCCA), Mental Health and Developmental Disabilities (DMHDD), Dangerous Drugs Commission and the State Board of Education, are responsible for the distribution of some $440 million in federal block grant money in state fiscal 1983. The nine blocks are: Social Services (DPA); Maternal and Child Health Services and Preventive Health and Health Services (DPH); Community Development — Small Cities, Community Services, Job Training and Low Income Home Energy Assistance (DCCA); Alcohol and Mental Health Services (DMHDD); Drug Abuse Services (Dangerous Drugs), and Education Consolidation and Improvement (Board of Education). ( For more details about the distribution of federal aid for social programs in Illinois, see Diane Ross' series in Illinois issues, "The flow of federal funds through public aid," May 1982, p. 14; and "The flow of federal funds for social services," June 1982, p. 20.)

The general feeling among the advisory committee members is that the agencies are keeping close watch on the federal dollars, and are more than willing to inform and advise the legislative committee on their activities. Advisory Committee Chairman Sen. Kenneth Von Buzbee (D-58, Makanda) said that the committee would report to the House and Senate later this session, after his committee holds public hearings about the performance of the various departments and their block grants.

Department representatives told the committee that under the new block grant format, agencies are experiencing a decrease in paperwork requirements. Funding remains, as always, subject to the uncertain budget process in Washington. However, with the passage of the federal Emergency Jobs Act, each agency will receive additional funds for state fiscal 1983, as well as part of 1984.

In all, Illinois should receive $254.8 million in additional federal funds: The bulk of the funds, $90.7 million, will go to the Department of Transportation for roads; $66.42 will go to DCCA for community development block grants; $13.9 million for social services. The remainder is scattered among 23 programs administered by the other agencies.

The agency representatives told the committee that they are developing plans for spending the extra federal money, but that they had reservations about starting any new programs since there is no guarantee that such extra money will be available for the remainder of state fiscal 1984.            —Nora Newman Jurgens

State Stix

The end-of-month general funds balance in April was $65 million, down $6.17 million from March's end-of-month balance. Comptroller Roland W. Burris reported that this is the lowest end-of-April balance in two decades and the twenty-first consecutive month below the $200 million "warning zone" level. The average daily available balance in April was $115 million; the combined funds end-of-month balance was $142.02 million.

The final statewide seasonally adjusted unemployment rate in April was 12.2 percent, the same as in March. Final seasonally adjusted unemployment rates in February in the state's Standard Metropolitan Statistical Areas were: Bloomington-Normal, 9.8 percent; Champaign-Urbana-Rantoul, 7.3 percent; Chicago, 12.4 percent; Davenport-Rock Island-Moline (Illinois sector), 19.8 percent; Decatur, 18.9 percent; Kankakee, 20.5 percent; Peoria, 19.2 percent; Rockford, 17.5 percent; Springfield, 10.4 percent, and East St. Louis (Illinois sector), 14.9 percent.

Emergency Jobs Bill funding

Illinois will receive $66.4 million in community development block grant funds from the U.S. Department of Housing and Urban Development (HUD) under the federal Emergency Jobs Bill recently passed by Congress. The funds are to be used to encourage economic development and for projects related to housing and public facilities. States like Illinois which have had an unemployment rate higher than the national average are receiving a larger share of the funding. All in all, Illinois expects to receive about $250 million from the Emergency Jobs Bill.

Of the $66 million in community development funds, about $58.4 million will go directly to 28 Illinois cities with a population over 50,000 and six counties. Chicago ($37.7 million) and East St. Louis ($1.05 million) are the two cities receiving the greatest amount of direct assistance. The six counties receiving direct money are Cook, DuPage, Lake, Madison, St. Clair and Will. The remaining funds will be allocated to smaller communities and counties through the state's Community Development Assistance Program.

The remaining funds totalling $8 million are destined for small cities and will be combined with an additional $33 million which was recently approved by the federal government to fund the state's Community Development Assistance Program (CDAP). CDAP, which will target cities with a population of 50,000 or less, is administered by the Department of Commerce and Community Affairs (DCCA).

CDAP funds are to be distributed as follows. Small cities will compete for about $21 million available for economic development projects and improvements in public facilities and housing. Projects which create permanent jobs will be favored. About $9.5 million is designated for multi-year commitments made previously by HUD and being honored by the state. Among the multi-year commitments are grants of $1 million each to the cities of Carbondale, Danville, East Peoria and Pontiac, and to the counties of Champaign, Jefferson and Winnebago. Another $9 million is earmarked for natural disaster assistance or unique economic development opportunities. The Designated Cities Program, a new DCCA program awaiting approval by the U.S. Small Business Administration, will receive $1 million to help small businesses in hard-hit areas get low interest loans. The final $1 million will be used for administrative purposes.

NIU dedicates law school

THE NORTHERN Illinois University College of Law was formally dedicated March 19. Ceremonies included an address by U.S. Supreme Court Justice Harry A. Blackmun The law college was acquired by Northern Illinois University from Lewis University, a Catholic university near Lockport, on August 1, 1979. Lewis had established the law college in Glen Ellyn in 1974, and NIU maintained the facilities there until last summer when operations were transferred to DeKalb. Full accreditation for the law college was received from the American Bar Association in August 1982.







Lawyers permitted to lobby

THE ILLINOIS Board of Ethics, in Interpretation No. 40, determined that it is not a conflict of interest for an attorney who is employed by the state to actively participate in a legislative lobbying program through the Illinois State Bar Association (ISBA) provided the lobbying is done during personal time and is in keeping with the rules of the attorney's employing agency. Ethics interpretations are usually determined on a case by case basis; however, John Larsen, director of the Board of Ethics, feels that Interpretation No. 40 sets a precedent for all attorneys employed full time by the state who choose to be involved in the ISBA lobbying program.


June 1983 | Illinois Issues | 28



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