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Open Your Eyes! Watch it Now!
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NYSACRA Calendar
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Greetings NYSACRA Members!
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| · LEGISLATURE PASSES $425 MILLION IN NEW BUDGET REDUCTIONS
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Late last night and early this morning the NYS Assembly and Senate passed significant cuts in the current enacted 2008-09 State Budget that also effect next year's budget as well. They passed a bill with about $425 million in across the board cuts including their own member items, with certain exceptions. Many of the cuts will actually slow the rate of growth in spending in various programs, rather than reduce spending, and are counted across the current and next fiscal years. By all accounts this was an unprecedented action by the Legislature and taken in the middle of an election cycle that showed how seriously the Legislature has taken the Governor's call for cuts. Typically, in years past, any such action would have been put off till after the November elections. Taken together with the Governor's $630 million he cut from State Operations recently through administrative action, this represents over $1 billion in current fiscal year reductions.
Legislators did apply a 6% cut to undisbursed funds as of August 15, 2008, across the board to most accounts, sparing certain areas. The Governor listed the exceptions as: school aid, welfare, Medicaid, child welfare, youth detention, the Aid & Incentives to Municipalities (AIM) program, aid to community colleges, aid to local governments for mandated programs, appropriations of under $500,000, and special education. The cuts enumerated in the OMRDD budget are:
| $1,126,000
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Family Support Services: Respite, After School Care, Individual Support Services, In Home Supports, Recreation, Counseling, Family Education, and Information and Referral Services
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| $176,000
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Workshop/Day Training - Direct Sheltered Workshop
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| $589,000
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Workshop/Day Training - Long Term Sheltered Employment (LTSE)
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| $473,000
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Workshop/Day Training - Chapter 620
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| $773,000
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Workshop/Day Training - Local/Unified
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| $169,000
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Workshop/Day Training - 100% Day Training
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| $24,000
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Misc. other: Statewide Epilepsy and Hepatitis B
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In addition they applied the 6% rule to Member Items enumerated in the budget, so for example a $50,000 grant now becomes a $47,000 grant, and so on.
In an OMRDD Provider Association meeting today, Jim Moran explained some of OMRDD's proposals for reductions. They include reducing the minor maintenance money available (DDSOs will work locally on what this means), however, providers can still seek rate adjustments for these issues. OMR is looking at other ways to provide savings, with ICFs taking the brunt of the cuts outlined. The proposed ICF reduction (around 3%) would not take effect until 4/1/09 (upstate) and 10/1/09 (downstate) allowing for a possible trend and advocacy with the legislature. Various other cash management strategies were mentioned and we will keep you posted about the specifics. Jim Moran reiterated that under the current fiscal picture these reductions are a "down payment" on what might be in store for us next year.
No action was taken on restoring the ability of not-for- profits to use IDA bonding, such as NYSACRA does through IAC. This measure is still being hamstrung with unions insisting on prevailing wage requirements and other measure that would make such borrowing astronomically unaffordable and eventually lead to even greater deficits as providers are forced to seek less attractive financing elsewhere. Governor Paterson said, "While today's agreement represents a positive step forward for fiscal responsibility in state government, the looming deficit we face next year will demand even more difficult choices. And given the significant, continued uncertainty within the economy, there are no guarantees that we can avoid additional current-year spending reductions if revenues plummet even further. I will continue to monitor our state's finances carefully and will seek additional action if necessary." NYSACRA will keep you posted as these cuts are further discussed and outlined for implementation.
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