February 1, 2008

New Budget Scenarios -- There are reasonable options?  Have you contacted your legislators yet?  Let them know not to make cuts to health and human services.

Apparently both the public process, that is the Joint Appropriations hearings on the 2008 and 2009 budgets AND the basement leadership meetings on the budget are not making much progress resolving the state budget situation. 

So as of today, the emerging budget scenario looks something like this:

• House and Senate Appropriations bills will be introduced based on a combination of Chairman's recommendations and JLBC recommendations containing severe cuts.
• These bills will be heard and passed with amendments in respective chambers appropriations committees --- timeframe over next couple of weeks.
• These bills will not move on to the floor in either chamber for any votes.
• House and Senate leadership from both parties will get down to serious negotiations behind closed doors considering more reasonable approaches and solutions.
• Stay tuned --- over the next couple of weeks this scenario could play out or change.  But we all must remain calm; the bills passed by the Appropriations committees will not be the final word or the final action at all.
• Yes, the state is experiencing some very serious revenue issues for both 2008 and 2009.  But some of this is created by the accumulation of tax cuts for last 10-12 years, which has effectively eliminated up to $2 billion dollars of annual revenue without protecting the state from an economic downturn.
• Draconian cuts are not necessary. Tough decisions must be made, but we must not balance the budget on the backs of children and other vulnerable persons.  Critical programs for vulnerable persons must be protected. 

THERE ARE REASONABLE SOLUTIONS TO THE BUDGET DEFICITS

Reasonable options include: bonding for school construction financing, use of the rainy day fund, rollover of school operations funding, careful fund sweeps, and careful cuts avoiding slash and burn across the board cuts which can devastate programs and put children and families at risk. 

Reasonable people will not panic or balance the budget on the backs of the most vulnerable.   All other options will be exercised first.

See the updated list below of proposed cuts and take action.  Send a letter and take action and call you legislators. 

Remember legislators who support health and human services need calls and support too. 

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PAFCO LEGISLATIVE PRESENCE

Come and join the PAFCO Weekly Legislative Presence

February 5 at 10:00am

Come and hold your legislators accountable!

YOUR CITIZEN ACTION REALLY MAKES A DIFFERENCE.

 WRITE THAT LETTER AND MAKE THAT CALL.

Send a letter to the following decision maker(s):

Your Representative (if you live in Arizona)

Your State Senator (if you live in Arizona)

Children's Action Alliance has provided this easy to use letter process to communicate with your legislators this week. 

Please take a few moments NOW to send a message to your Arizona legislators and help to protect Arizona's children from severe and lasting cuts to critical programs!

Be sure to let your legislators know that school bonding is viable good solution. 

Call your senator and representatives and urge them to protect health and human services!

The message is clear

I am constituent from your district

Don't cut health and human services.  Put people, children and families first.

Exercise rational options like bonding, rainy day fund and reasonable cuts that don't hurt people.

Be sure to thank your legislators and also ask how they intend to vote on health and human services. 

Will they protect the most vulnerable from harm?

How Do I Find Or Contact My Legislators?

• If you know your legislators, click here.
• If you do not know your legislators:
• Click here to find the legislative district you live in by entering your address and digit zip code located at the top right corner:
• Return to the ALIS Homepage and click the MEMBERS link.

HIGHLIGHTS AND IMPACTS OF BUDGET CUTS OPTIONS (Updated January 28, 2008)

AHCCCS

• Reduce KidsCare Children Income Eligibility - reduces eligibility for KidsCare from 200% of the federal poverty level to 175%. It would eliminate coverage for 19,235 children. $3.3 million in federal funds would also be lost.
• Reverse Eligibility Increase for SOBRA Pregnant Women - Lowers the income eligibility for SOBRA women from 150% of the federal poverty level to 133%. Approximately 677 pregnant women would lose eligibility. ($600,000)
• Eliminate HPV Vaccine Funding - Eliminates the increased funding to provide human papilomavirus (HPV) to AHCCCS members 21-26 years old. The vaccine protects against 4 strains of HPV, considered to cause 70% of cervical cancer cases.  ($2,869,100)
• HealthCare Group Subsidy. - Reduces $8 million FY 08 appropriation to compensate plans for extraordinary FY 07 losses. Thousands with no other options for health care could lose health care. 
• Lump Sum funding reductions would result in elimination of 314 positions; lengthen eligibility processes, reducing quality control oversight and administrative capacity and loss of federal funds.  AHCCCS caseloads are growing because of the economic downturn. 
• Eliminate Dual Eligible Part D Copay Subsidy for an estimated 99,827 dual eligible members on AHCCCS. Copay subsidy has been for acute & long-term care members.
• Defer Replacement of AHCCCS Claims Computer System - New funds were appropriated in FY 08 to start replacing the claims system.

DEPARTMENT OF HEALTH SERVICES

• Reduce Community Health Centers Funding - These funds provide grants to 19 community health centers to provide primary health care services to uninsured persons below 200% of the Federal Poverty Level. This option would eliminate funding for 33,000 visits.  ($4,500,000)
• Reverse Health Care Licensure Staffing Increase - Returns the Health Care Licensure funding to the FY 06 levels.  Eliminates 11 positions in the Child Care Division which already has backlog of approximately 344 facilities where the license expired prior to a renewal survey being conducted.  Could result in harm to children and reduction in options for families trying to maintain work.  ($1,395,900)
• High Risk Perinatal Services Funding. Reduces nurse visits to 4,000 babies at high risk from 4/year to 2 or less per year.  Program covers transportation for critically ill newborns & pregnant women, pays for care of the ill newborns & training of MDs for screening of developmental programs.  Returns program to '06 funding level.
• Eliminates the funds added in FY 07 to provide specialized anti-meth curriculum. The contract for this program was awarded to the Boys and Girls Clubs.  ($500,000) 
• HPV Vaccine Increase - New funds were added in FY 08 to provide human papilomavirus (HPV) vaccines to young women who are not eligible for AHCCCS. The vaccine protects against 4 strains of HPV, considered to cause 70% of cervical cancer cases.
• Senior Food Program reduces funding to individuals >60 at or below 130% FPL.  The 2 programs serve 14,000 seniors a month with state funds adding 1,000 food baskets/month.  Seniors; Market provides $30 coupon which will be reduced by about 5,000 with reduction. 

DEPARTMENT OF ECONOMIC SECURITY

• Eliminate the General Assistance Program entirely cutting services to 1,300 people with disabilities.  This transition program is critical to these individuals and could result in more homelessness and other public agency dependencies.
• Reversing last year's increase in monthly independent living stipend given to 320 foster children aging out of the foster care system to help them succeed in school and in life.
• Reverse Joint Substance Abuse Increase eliminating substance abuse treatment for 1800 parents, guardians, or custodians whose substance abuse is a barrier to preserving the family. Eliminating these funds would result in more CPS intervention and the potential for children in these families being removed to foster care.  ($2,000,000)
• Reduce Healthy Families Funding - This program provides services to children less than 5 years of age and their families and is designed to prevent child abuse or neglect and promote child development and wellness. In the past, unutilized Healthy Families Funds have been used to reduce the Children Services shortfall. If these funds are removed, it will increase the supplemental request for Children Services.
• Eliminate LTC Dental Services serving an estimated 19,500 clients. Program expanded in '07.  ($1,000,000)
• Eliminate Life Span Respite Care funding eliminating services to 100 families. ($500,000)
• Reduce Childcare Eligibility to 145% FPL - Eliminates serves to 3,200 children who were receiving $260/month subsidy. ($4,931,800)
• Rollback Visually Impaired Services Increase - Would provide technology assistance,
• Adaptive aids & devices, home modifications & independent living skills training. Reduced would result in 1,500 fewer clients served, 1,700 fewer eye exams & 1,200 fewer glasses. ($500,000)
• Other rollbacks on the list include recent Elder Care funding; domestic violence funding and homeless support services funding, all critical services. 
• Lump Sum Reductions would significantly impact child welfare and family services resulting:  5,000 children lose child care & a waiting list would be established, 3,000 families lose in-home child welfare services, 800 people with developmental disabilities will be put on waiting list, & 900 lose substance abuse services.  Staff reductions include:  140 fewer CPS case managers and other staff, 670 fewer staff at eligibility functions, 10% reduction in APS case managers, & 80 staff in child support.  There will be a lose in federal funds & significantly longer waits to get eligibility completed.
• Eliminate Summer Youth Employment and Training are no longer available used last summer.  ($1,250,000)
• Eliminate DES IT Eligibility Project - Eliminates funding to replace DES's three case management/eligibility systems with a single, integrated system. Replacing these 30-year old systems would improve worker productivity and accuracy and is estimated to save $10 million GF per year for 30 years when completed. ($1,300,000)

Department of Housing

HOUSING TRUST FUND - Eliminate all HTF (sweep $55 million) related programs for approximately the next year and a half. The proposal would also cripple the Arizona Housing Finance Authority, which has been highly successful in assisting rural first time homebuyers and result in the significant reduction or elimination of these types of services: 

• Mortgage foreclosure & eviction prevention assistance will stop a time of critical need.
• homeownership and rental housing development/rehabilitation
• homeless and domestic violence shelter development  (6000 families lose services)
• down payment and closing cost assistance for first time homebuyers (500 families don't get houses)
• fair-housing education
• Matching monies for federal housing programs administered by the state.
• 3,600 jobs are lost with $91 million in wages lost and $18 million in state revenues.