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January 21, 2008
Dueling Budgets --- Appropriations Chairs proposes cuts, Governor maintains critical services --- proposes solutions to budget deficits.
The Governor and Appropriations Chairs have released dueling budgets. They take very different approaches to solving the 2008 and 2009 state budget deficits. The apparent view of the Chairs is of a dire crisis where government must be slashed to make government small, even smaller than necessary.
The Governor's view is Arizona remains strong. This is a time of adjustments and transition not panic, where Arizona must maintain its investments while bridging this downturn to a new day. We cannot lose ground, especially for our most vulnerable populations who needs public services many times more critically during economic downturns.
The Appropriation Chairs' budgets make draconian cuts to health and human services and other parts of government critical services like education and universities. Their cuts undo many investments made in recent years and cut health and human services when they are needed most during a downturn in the economy. PAFCO STRONGLY OPPOSES THESE AND OTHER PROPOSED CUTS TO HEALTH AND HUMAN SERVICES. We do not have to destroy people's lives when viable reasonable options are available.
The Governor's approach maintains critical services while balancing the budget using a variety of bridging strategies including making careful thoughtful cuts. The Governor also proposes using the raining day funding for both 2008 and 2009, and school construction bonding for 2008 and 2009. The Governor also proposes some new revenue generators like 100 new highway radar stations to promote public safety but also generate new revenue. In 2009, the Governor also uses the K-12 rollover (making part of June payments in July) to help make the transition.
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PAFCO LEGISLATIVE PRESENCE
Come and join the PAFCO Weekly Legislative Presence
January 22 at 9:30am
Meet outside the Ice Cream Parlor in Old Capital Building
Leadership will be provided by AARP - Arizona
Come and hold your legislators accountable!
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Plan also to attend the Joint Appropriations Hearings on
Thursday January 24 at 9am
On AHCCCS and Department of Economic Security
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!
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 POTENTIAL BUDGET CUTS (January 21, 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 300 positions; lengthen eligibility, 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 mated 99,827 dual eligible members on AHCCCS. Copay subsidy has been for acute & long-term care members.
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)
- Reverse High Risk Perinatal Services Funding - Reduces funding to the FY 06 level of home visits to families whose newborns are at risk of having developmental problems, provides physician training on the use of a screening tool to detect developmental problems, provides transportation to critically ill newborns and pregnant women, and provides funding for hospitals and doctors to care for critically ill newborns.
- 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.
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)
- Lump Sum Reductions resulting in cutting hundreds of CPS workers and in home services preventing more expensive foster care,
- 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.
- 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)
- Defer Replacement of AHCCCS Claims Computer System - New funds were appropriated in FY 08 to start replacing the claims system.
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
- homeownership and rental housing development/rehabilitation (including gap financing for many LIHTC properties)
- homeless and domestic violence shelter development
- down payment and closing cost assistance for first time homebuyers
- fair-housing education
- Matching monies for federal housing programs administered by the state.

