May 9, 2008

2009 Budget Process Heating Up - A Republican Leadership proposal may be made public early next week (May 12 or 13 or later) with proposed cuts to health and human services.  

The Legislature adjourned early on Wednesday until next week (May 12) so Republican leadership could meet with selected members to "do a budget."  But so far they are proceeding without any Democrats or the Governor in the room or participating in the negotiations or development. 

·         Insiders are saying it is an excruciatingly painful process with lots of differences in the room among the Republicans themselves. 

·         Reportedly, Republicans Leadership is preparing a budget to make it public on Monday or Tuesday for Democrats' reactions.  This budget will most likely propose cuts to health and human services and other programs, but there is little specific information available now.

·         JLBC staff is nosing around determining impact of cuts so they are once again discussing cuts to health and human services like child care. 

·         They appear to be using the Chairman's cuts original list as a template.  Go to February 15 PAFCO update at http://www.pafcoalition.org/-weekly-email-update-archive/  to get full list of potential cuts and impacts.  These types of cuts must be rejected. 

·         Some say House bi partisan negotiations will resume next week.  In any case, things are heating up seriously and moving in various directions, but predications are still for a long session.

·         Some rumors they are trying to do a budget without any Democrats to send to the Governor, but that is headed toward veto by most reports.    Most observers say a Republican-only budget is a non starter and will bring a veto from the Governor.

·         WE MUST BE PREPARED TO ACT TO STOP BUDGET CUTS! We need to immediately ramp up our advocacy efforts next week if these budget talks actually do take some public actions.

·         There are reasonable options --- see the updated chart of options below.

Our advocacy message to the Governor and Legislators:

·         Do NOT cut critical safety net health and human services for children and vulnerable adults when demand is growing.

·         Protect current services to current people being served and protect current capacity during this critical time of an economic downturn.

·         Don't lower eligibility limits in programs.  Working families need critical supports during an economic recession.

·         There are reasonable options for 2009 including bonding, rollovers, additional sweeps, the rainy day fund, and other revenue generators. (See updated chart below.)

·         Demand continues to increase. Some community agencies are experiencing increases of 40% to 60% in requests for essential services for the necessities of life.

·         Flat budgets will already be a cut as costs for transportation, health care, and food, and other services increase.

·         Finally, open the budget discussion with more transparency and meaningful public input.