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February 8, 2008
BUDGET TALKS STALL AGAIN --- HUMAN SERVICES WORKFORCE BILL INTRODUCED - SB1357
It is being reported that the budget talks stalled this past week. But reports and rumors abound that the Appropriations Chairs will break from their leadership and try to push through budget bills next week despite their leadership's reluctance. Most observers think that there is little support for draconian lump sum across the board deep cuts. Those types of cuts would be devastating to many agencies. SEE THE LIST THE PROPOSED CUTS AT THE BOTTOM OF THIS EMAIL.
The message remains the same.
THERE ARE REASONABLE SOLUTIONS TO THE BUDGET DEFICITS
- Reasonable options include: Bonding for school construction financing, use of the raining day, 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.
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PAFCO LEGISLATIVE PRESENCE
Come and join the PAFCO Weekly Legislative Presence
NASW-AZ SOCIAL WORKERS DAY
AT THE LEGISLATURE
February 12 at 8:30am
Come and hold your legislators accountable!
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Human Services Workforce Study Bill Introduced
This bill is supported by PAFCO and allied groups like the Arizona Council for Human Services Providers, NASW, AARP, Arizona Child care Assoication and other community groups.
The Arizona Council and PAFCO worked to get it introduced.
- Senate Bill 1357 would establish the Human Services Workforce Study Committee. Comprised of 13 people, from the legislature and various types of human services groups, appointed by the Governor, this committee would:
- Evaluate AZ's human services workforce and the wages and other incentives necessary to develop and sustain it.
- Prepare and submit a report with recommendations to the Legislature by 12.31.08.
- WHY STUDY HUMAN SERVICES WORKFORCE ISSUES?
- Private sector providers of health and human services, both profit and nonprofit, are experiencing serious work force development issues as direct care worker wages significantly lag behind prevailing marketplace wages.
- The quality of care in child care, child welfare, elder care and many other services is severely compromised with high turnover rates and direct care worker shortages.
- Arizona's public policy is to provide essential human and health services through the private sector of non-profits and for profit agencies. This can only happen with a quality human services workforce.
- Recent appropriations in human services have hardly kept pace with general inflation, much less extremely rising costs in transportation and health care.
- Private human service agencies that deliver publicly funded services pay an average of 25% less than a state agency for a comparable position.
- Some positions within the human services industry have turnover rates of 200%.
SUPPORT SB 1357!
NEW BUDGET RESOURCES FROM Children's Action Alliance
Budget
Children's Action Alliance this week released an easy-to-read budget summary that highlights how proposed budget cuts would impact critical programs for kids. Visit http://www.azchildren.org/display.asp?pageId=85&parentId=47 to review and/or download this new resource.
Taxes
Are taxes in Arizona high or low compared to other states? Find out yourself with CAA's new fact sheet about where Arizona ranks on taxes. Visit http://www.azchildren.org/display.asp?pageId=85&parentId=47 to view and/or download our fact sheet. You may find some surprises!
HIGHLIGHTS AND IMPACTS OF BUDGET CUTS (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.

