Action Alert:
As many of you are aware, Governor Rendell introduced a bare-bones budget
in March which was hastily passed by the legislature with no initial public
hearings.
Since passage of the budget, both the House and Senate
Appropriations Committees have held hearings. Senator Thompson, the Chair
of the Senate Appropriations Committee, publicly indicated that the budget
process is not over. Based on his public comment and the comments of other
leaders, we believe there is an opportunity to restore cuts to vital programs.
IT IS CRITICAL that your organization and your members
contact your respective legislators and urge them to restore cuts to mental
health and drug and alcohol services. Discussions on the budget are likely
to heighten during the month of May and any legislative activity is likely
to occur in June prior to the summer recess.
Attached are two letters: one more detailed letter to come
from the affiliates and one for families to send. Please urge your members
to write to their legislators and ask that the cuts be restored.
Background on Budget Process
In a highly unusual move, Governor Rendell broke his budget
into two presentations. During the first address on March 3, the Governor
announced that he was presenting a bare-bones budget that reflected what
he could do to balance the budget with existing revenues. For the most
part, the budget reflected a 10 percent across-the-board cut for all state
agencies, which he projected would produce $212 million in savings. Rendell
indicated the budget deficit was approximately $2.4 billion.
In an unprecedented move, the Republican-controlled House passed the budget
three days later on March 6 and the Senate on March 12. Both legislative
bodies bypassed normal protocol to hold hearings prior to passage. On
March 20, the Governor signed the budget, but line-item vetoed funding
for education. The Senate is holding hearings on the budget, but the House
has cancelled all hearings.
In his first budget address, Rendell indicated he expects Department of
Public Welfare (DPW) spending to grow more than 10 percent, with a possible
$900 million increase in medical assistance (MA). He said he would not
reduce the number of people who receive health care coverage through MA,
regardless of the deficit, that you “can’t balance the budget
on the backs of poorest and most vulnerable.” However, the budget
contained cuts that will have a negative impact on individuals who receive
assistance through DPW. Please contact the NAMI PA State Office for more
detailed information on DPW’s budget.
On March 25, Rendell presented budget number 2. In that
package, he proposed increasing the PIT from 2.8% to 3.75% to allow a
shift in education funding from the local level to the state level. He
also proposed increasing certain motor vehicle fines and increasing the
tax on beer and interstate cell phone calls, and allowing slots at race
tracks. There was no mention of increased spending for any programs other
than education and economic development.
The total reduction to mental health and drug and alcohol
services is over $103 million. Some budget items affecting MH and D&A
services:
- Eliminate non-hospital residential services for D&A
treatment under Act 152 (reduction of $18 million in state funds)
- $1.3 million increase for Community MH Services (will provide home
and community based services to 33 people currently residing in state
hospitals)
- Elimination of Behavioral Health Services Initiative
(BHSI) funding (reduction of $47.9 million in state funds) - This program
provides grants to counties for community MH and D&A treatment services
to low-income persons who are not eligible for MA. MH services are targeted
to persons who have serious mental illness with a history of involuntary
psychiatric commitment or who are receiving psychiatric services to
avert institutionalization.
- 5% reduction in Behavioral Health Rehabilitation
Services fees (reduction of $1.4 million in state funds)
- Delay HealthChoices expansion in the northeast zone
(savings of $184 million in state funds) and aggressive review of capitation
rates.
- Transfer of the General Assistance population from
managed care to fee-for service ($234 Million savings in state funds);
we were told that this was due to an accounting/cash flow issue
- $33 million in reductions for the Human Services
Development Fund (HSDF); this program provides flexible funding to counties
for programs; over $4 million goes to MH and D&A services; an estimated
940 social service agencies will be impacted
- No COLA for community mental health and mental retardation
services
- Implementation of eligibility changes proposed in prior year’s
budget, i.e. elimination of NMP spend-down; limit unpaid medical expenses
for MNO spend-down
For a sample DRAFT LETTER TO LEGISLATORS please read the
instructions below, then click here
for state representatives letter or here
for state senators letter...
After printing out the letter, please fill in the underlined
areas with the appropriate information. To find your legislator, just
enter your zip code in the form below:
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