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Below is a preliminary analysis of the Governor's proposed budget.
We welcome your feedback. If you circulate this document, please
let us know.
Preliminary Analysis of Items of Interest
to the Disability Community in the
Governor's Budget Request for 2007-08
February 7, 2007
By the Policy Information Exchange
On Tuesday, February 6, 2007 Governor Rendell introduced his budget
request for the state fiscal year 2007-08 (July 1, 2007 through
June 30, 2008). The General Assembly will now begin its consideration
of the Governor's request and will work to pass a budget bill or
bills before the June 30 deadline. This analysis is a first draft,
based on information in the Governor's public statements and a briefing
called "Pennsylvania Cares" presented by members of the
Governor's cabinet. As additional briefings by the administration
and appropriations hearings are held, and as more information comes
to light, PIE will update this analysis.
Budget Overview
First of all, it's important to note that this budget is not a
finished product. Given the scope of the Governor's proposal which
has been described as "ambitious," "aggressive"
and even "stunning," there will be lively debate and likely
changes to what is proposed. Spending increases and program expansions
will come under special scrutiny. So it's very important that, even
while pointing out needed changes in the Governor's budget, advocates
let legislators know about the Governor's proposals which deserve
support.
The $27.3 billion proposed state budget contains many significant
expansions of home and community based services for people with
disabilities which are outlined below. Several advocates attending
the PA Cares briefing expressed gratitude to the Administration
for these recommendations.
Meanwhile the media has focused largely on the number of proposed
tax increases in the Governor's budget. The front page headline
in the February 7 edition of the Harrisburg Patriot News is "The
Taxman" above a picture of the Governor. The tax proposals
include:
* raising the sales tax from six to seven per cent to bring more
property tax relief and to balance the budget;
* creating a new tax on oil company profits to pay for mass transit,
including a statewide expansion of the Persons with Disabilities
Shared Ride Program;
* requiring employers who don't offer health insurance to pay a
3% payroll tax, raising cigarette taxes and beginning to tax cigars
and smokeless tobacco to pay for the Rx for PA to provide health
coverage to uninsured Pennsylvanians;
* increased trash fees; and
* an electricity consumption tax.
Another controversial proposal is the leasing of the PA Turnpike
to help pay for construction and repair on our roads and bridges.
Republican leaders expressed strong concern about the tax package
and even Rendell's fellow Democrats were not quick to embrace it.
Yet, according to the Governor, in order to move forward with his
plan and make up for lost federal funds in Medicaid and other areas,
these funds are needed.
The Governor's plan for covering the uninsured is called the Rx
for Pennsylvania. It calls for a variety of measures aimed at cutting
costs and improving quality. It also would make affordable health
insurance available to all Pennsylvanians replacing AdultBasic.
The first year cost of $302 million would be paid for with tobacco
settlement funds, Medicaid, a payroll tax on businesses not providing
coverage, Blue Cross-Blue Shield funds and other sources. For more
information, go to http://www.ohcr.state.pa.us/prescription-for-pennsylvania/index.html
<http://www.ohcr.state.pa.us/prescription-for-pennsylvania/index.html>
The budget includes increases for early education, including early
intervention, and a 3.5% increase in basic education and a 3% increase
in special education.
Department of Public Welfare
* The budget proposal includes a 3 percent cost of living increase
(cola) for most community services including community mental health
and mental retardation, attendant care and CSPPPD, aging waiver,
etc. Hospitals and nursing homes receive a 2% cola.
* Community Mental Retardation services would receive an increase
of almost 10% to continue to: serve 46,000 people; annualize 2006-07
initiatives; provide for the 3% cola; provide for quality improvements
and program management; and expand services to an additional 3,428
people. The $26.9 million to expand the program will serve 100%
of those on the waiting list for non-residential services and about
68% of those on the emergency waiting list for residential services.
Breaking this down further, this includes: $4.9 million for group
home residences for 204 people; $8.6 million for non-group home
residential services for 759 people; $6.4 million for non-residential
supports for 1,592 people; $3.2 million for day activities for 800
special education graduates; $2 million for 73 people aging out
of EPSDT; and $1.8 million for waiver enhancements.
* An additional 100 adults with Autism will receive services with
an appropriation of $1.6 million. The budget also includes $737,500
to develop quality systems for adults with autism and an additional
$1,955,000 in state funds for the autism intervention and services
line item. According to Secretary Richman, the Autism Waiver request
will be ready for submission in March.
* The Office of Mental Retardation is being renamed the Office of
Developmental Programs. Kevin Casey will continue as Deputy. The
scope of the ODP will be expanded to include people with autism
and possibly other developmental disabilities that currently have
no home in state government. (At the PA Cares budget briefing, Secretary
Richman also mentioned people with ?acquired brain injury and cerebral
palsy without mental retardation.)
* In addition to the 3% cola for community services, the Office
of Mental Health and Substance Abuse Services budget includes $19.4
million to provide home and community based mental health services
for 200 people currently in state hospitals and respite care for
2,000 families of children with mental illness. Also, the last 15
counties will be moved into Behavioral Health HealthChoices, bringing
the program to all 67 counties by July 1.
* The Governor's proposal includes funding for a three percent cola
for Attendant Care and the CSPPPD program (OBRA, CommCare and Independence
waivers). The budget anticipates serving an additional 405 people
with the CSPPPD waivers and an additional 595 people in attendant
care. Funds for CSPPPD and Attendant Care are reduced for the current
year (2006-07) because of a change in the accounting method.
* The budget assumes a number of cost saving measures including
consolidating Medical Assistance pharmacy under fee for service
(saving $45.2 million) and moving MA recipients out of voluntary
managed care and back to fee for service in the Access Plus program(saving
$23.2 million). The Department also will be implementing "Pay
for Performance" in a number of areas.
* Medical Assistance Transportation would receive almost a 15% increase
to pay for increased utilization and an increased cost per trip.
* The Early Intervention program in the Department of Public Welfare
will receive a 14% increase in state funds and an 11% increase overall,
while the Education program will receive a 22% increase. The two
programs are now part of the Office of Child Development and Early
Learning which spans both Departments and is headed by Harriet Dichter.
Long Term Living
* The Administration has created an Office of Long Term Living,
a new agency, to be headed by Mike Hall. Mr. Hall is coming from
Maine and starts work on March 5th. The Office will be connected
to both DPW and Aging and will oversee the Aging waiver, the DPW
physical disability waivers (Bureau of Home and Community Based
Services formerly Office of Social Programs), and Nursing Homes.
* In the PA Cares budget briefing, Mike Nardone, the former Director
of the Long Term Living Council, indicated that the Administration
is planning to "develop additional residential options."
This includes $3.7 million to expand domiciliary care and other
residential options including "transitional housing for those
coming out of nursing homes." He indicated that in order to
accomplish that, an assisted living bill would have to be passed.
The Administration will bring together all parties to come up with
legislation that will expand options and offer consumer protections.
* The budget also includes funds to do a public education campaign
about home and community based options, to open additional Aging
and Disability Resource Centers, and to convert nursing home beds.
* There are $30 million in savings anticipated by moving from annual
assessment of nursing home residents to quarterly assessments.
Department of Aging
* The budget includes funds to serve an additional 2,200 people
in the Aging waiver.
* PENNCARE lottery funds are included to continue current Attendant
Care Services and to serve an additional 346 people.
* While the budget provides for expansion of PACE, it does not
provide for expansion of coverage to people under age 65 or to those
who are dually eligible.
* A number of programs, including administrative/staff costs and
the Family Caregiver Program, which had been funded with dollars
from the General Fund will instead be funded with lottery funds.
There?s a three percent increase in state Family Caregiver funds.
* Four million dollars in grants for Senior Centers are eliminated.
Department of Labor and Industry
* The following line items in the Labor and Industry budget are
level funded: OVR State only; I CAN; OVR State Match; and Supported
Employment.
* Centers for Independent Living are proposed for a reduced appropriation
($1.8 million as compared to the $2,250,000 current year's funding).
* Assistive Technology is also reduced from $1,301,000 in the current
year to $801,000 proposed for next year.
Department of Transportation
* The shared ride program for people with disabilities is level
funded at $4.8 million. But part of the $760 million package for
mass transit (to be paid for with the oil company gross profits
tax) is funding to expand the pwd program to all 65 eligible counties.
Department of Community and Economic Development
* The home modification program is level funded at $3 million.
Department of Health
* The following programs are level funded: AIDS; Services for Children
with Special Needs (Ventilator and Spina Bifida); Newborn Hearing
Screening; Adult Cystic Fibrosis; and Renal Dialysis.
* The following programs would be reduced: Sickle Cell; Epilepsy
Support; and Tourette Syndrome.
* Drug and Alcohol Programs would receive a small increase. Funds
are included for a 3% cola.
To view a copy of the power point presented on 'Pennsylvania Cares,"
go to http://www.governor.state.pa.us/governor/lib/governor/PA_Cares_ALL_2007_02_06.pdf
<http://www.governor.state.pa.us/governor/lib/governor/PA_Cares_ALL_2007_02_06.pdf>
To view the Governor?s budget book, or to read his public statements,
go to http://www.governor.state.pa.us/governor/cwp/view.asp?a=1101&q=451335
<http://www.governor.state.pa.us/governor/cwp/view.asp?a=1101&q=451335>
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Alerts, job postings, information and attachments sent out through
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ONLY and do not necessarily represent the position of the PIE or
the Pennsylvania Developmental Disabilities Council.
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