From: Policy Information Exchange (PIE) [pie@thearcpa.org]
Sent: Wednesday, February 10, 2010 1:05 PM
To: ssnyder@consumerhealthcoalition.org
Subject: PIE Info: Governor's Budget

 

PIE Info:  Governor's Budget
February 10, 2010
 

Governor's Proposed Budget for 2010-11

First Impressions

Policy Information Exchange

February 9, 2010

 

Given the dire financial situation of the Commonwealth, some budget watchers were relieved to see that the Governor's proposed budget for 2010-11 did not include significant cuts for key disability programs.  While the budget does not go as far as advocates hoped, it does continue existing programs and includes some funding to serve additional people in need of home and community based services.

 

Below we highlight some areas of interest to the disability community.  Note that these highlights are based on a very preliminary view of the budget and an initial briefing by the Secretaries of DPW and Aging.  PIE will provide updates as more information becomes available.

 

General Observations

·        The Governor does not propose a general tax increase.  Instead he again calls for a tax on smokeless tobacco and cigars and on the extraction of natural gas from Marcellus Shale.  He also proposes applying the sales tax to more goods and services, while lowering the rate from 6% to 4%.  These proposals would not be used this year, going instead into a special reserve fund meant to help deal with a "fiscal tsunami" created by the loss of federal stimulus funds and a crisis with state pensions expected to create a $5.6 billion deficit in 2012.

·        The budget does rely on a proposed extension of federal enhanced Medicaid funds.  Under the current law the funding would end half way through the next fiscal year.  The President's budget proposes extending the enhanced funding through the next fiscal year as do several other bills which have seen some action in Congress.  If Congress does not extend the funding, there will be a more than $800 million hole in the Governor's proposed budget which would necessitate significant cuts.

·        The Governor proposes increases in public education funding.

·        No Medical Assistance (MA) cuts are proposed.

·        The Governor is again proposing moving long term living programs out of the DPW budget and into the Aging budget.  For the current year the General Assembly did not agree to the move.  The creation of a new Department of Aging and Long Term Living would still require legislative action.

 

Department of Public Welfare (DPW)

  • The Governor proposes a small increase for the Office of Developmental Programs (ODP).  It includes funds to provide home and community based services to 150 additional people with Intellectual Disabilities.  Deputy Secretary Kevin Casey described this as a small initiative focused on keeping people out of institutions in emergency situations.
  • While the ODP budget includes funds to annualize (pay for a full year for people who came into programs part way through the current year) funding for young people making the transition from special education in the current year, it does not include funding to serve new people graduating in 2010-11.
  • The ODP budget includes funds for additional people in the autism waiver and ACAP.  The document says 226 additional people, but in the budget briefing, Secretary Dichter indicated 300 people in the waiver and 108 in ACAP.
  • The budget does not anticipate closing a State MR Center in 2010-11.
  • The budget includes a 1% reduction in MR waiver provider rates.
  • The Office of Mental Health and Substance Abuse Services (OMHSAS) budget provides for closing Allentown State Hospital and moving 150 people to the community.
  • OMHSAS proposes adding Psych Rehab and Drug and Alcohol services to the MA State Plan.
  • The budget would continue in next year's budget the cut which began this month in the amount of State Supplement for SSI recipients.
  • The state plans to move 250 people out of nursing homes, State Hospitals and State Centers under Money Follows the Person in 2010-11.

 

Aging and Long Term Living

  • The Governor proposes funding to serve an additional 1692 people in the Aging Waiver, 780 people in the Attendant Care Waiver and Act 150, and 744 people in Community Services for Persons with Disabilities which includes Independence, CommCare and OBRA (though OBRA admissions are still closed).
  • Nursing homes will receive an increase for increased acuity.
  • PACE and PACENet will grow by 4,000.  The use of litigation settlement funds to pay for prescription coverage for eligible individuals under age 65 continues, but the pot of money is limited and will at some point be exhausted.
  • The Michael Dallas waiver is under review.  The Department indicates that major changes are needed to meet cost neutrality requirement of the federal Center on Medicare and Medicaid Services (CMS).

 

Labor and Industry

  • OVR state match is level funded.
  • Centers for Independent Living (CILs), Supported Employment and Assistive Technology are all funded at the current year level after the 1% budget reduction/freeze.  For example, CILs were funded at $2,176,000 in the enacted budget for 2009-10.  Their budget was reduced to $2,154,000 in mid-December.  The Governor proposes $2,154,000 for 2010-11.
  • There is no funding proposed again next year for state only VR or for Self-Employment Assistance (I CAN).

 

Health

  • Like a number of programs in Labor & Industry, the following Department of Health programs are proposed to be funded in 2010-11 at the 2009-10 freeze level:  AIDS; Children with Special Needs (Home Vents and Spina Bifida); Sickle Cell; and Newborn Hearing Screening.
  • Drug and Alcohol programs are level funded.
  • Epilepsy Support would be cut slightly below the freeze level.
  • Funding for Tourette Syndrome would be eliminated.

 

Education

  • The Governor's proposed budget does not include funding for the Scranton School for the Deaf.
  • Special Education and Approved Private Schools are level funded.
  • Early Intervention for pre-school age children and Charter Schools for those who are Deaf and Blind would receive increases.
  • There's a small reduction proposed for Intermediate Units.

 

Department of Community and Economic Development (DCED)

  • The Accessible Housing (home mod) program would be funded at the freeze level.

 

For More Information

 
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