The Governor’s Budget for Fiscal Year 2011 (House 2 version)

January 28, 2010

The Arc of Massachusetts Second Report

Tough Economic Picture Continues to Hurt Disability Services

What will happen to individuals served and safety net?

$800 million was reduced in gross cuts from the state budget and a $40M cut is reflected in the DDS budget inclusive of annualizing the earlier 9C cuts this year.  The Governor and his team had to address a $2.7 Billion gap.  This gap was addressed by the cut noted, $1.4 Billion in Federal Revenue, $489 million in one time solutions and $200 million in new revenue (candy and soda tax exemption ended).  

In MassHealth, the PCA and Day habilitation programs have no reductions while the adult dental program is reduced with an exception for those served through DDS.  This is a problem for anyone that is not a consumer at DDS. There are no further cuts in Early Intervention (EI) services, but there are cuts in a number of MRC (Mass. Rehabilitation Commission) accounts.  EI will need $2M to address increasing census, and $8 Million in cost savings/sharing to not cut more infants and toddlers out of services.  

The Governor’s budget consolidates accounts again.  Our budget chart tracks the figures in the accounts. Like last year, in DDS, residential accounts are combined except for state institution while a community programs consolidation includes day/work, family support and transportation. This is true of other agencies as well.

The cuts at DDS are significant and they affect the following line-items: residential, day/work, family support and transportation.  In addition all savings from State Facilities ($9M) were taken out of DDS budget.  These $$ could have lessened community cuts. Residential cuts are in both private and state systems. Additionally, the administration at DDS is reduced. Residential cuts total $23M ($17.8 M in Comm. Resid. & $4.9M in state operated).  These are devastating for two reasons. 

There is not enough money for students Turning 22 this past year who will need full funding for 2011 (Turning 22 reflects those whose special education funding has ended and need adult services).  Also this will close the door to almost all who need emergency services, those Turning 22 in the coming year, and those leaving institutions.  In FY10 and FY11, more than 1,200 students have/will graduate and need T22 services, with more than 400 needing residential supports (all request some type of day/work and the remainder also need in-home support).  As a rule, 25-30% of those needing residential have no family involved. 

The cut in the Day/work account is $6.9M, which comes on top of significant FY2010 cuts (see chart). 50% of this amount is related to those Turning 22.  Family Support is reduced by $1.5M.  On top of $10M last year, the FS cut will especially hurt families depending on vouchers, respite and other resources.  This means that adults living at home with family members or semi-independently will lose services whether they are Turning 22 or are older.  In many of these cases the family is the main support and they have their jobs and other responsibilities.  The Day/Work or Family support plays a key part in the individual and family members’ daily routines.  Adding to these cuts is a $400,000 reduction in Transportation. 

Last but not least the DESE-DDS program which provides a way for families to avoid placing their child in residential school is once again slashed by DESE (Dept. of Elementary and Secondary Education).   This account once operated at $8M, but is now under $3M.   

Governor Patrick has given us a clear commitment that "restoring these funds are a priority during the budget process if revenue increases.”  This commitment is essential to us.  We need to reach out to our friends in the legislature to restore these cuts.  We want to remind readers that a sales tax question probably will be on the November ballot.  If passed, over $2 Billion will be lost in state revenue.  As we noted above the present cuts reflected addressing a $2.7 B gap. 

Additionally, Speaker DeLeo has stated that there will be no new taxes.  If the exemption remains for soda and candy, then $200M of the proposed fix for the budget gap will be gone.  We will work with the legislature and administration to restore our funds regardless of the differences in strategy that they may employ.   

At MRC, there are cuts in 4 accounts although Turning 22 was funded at the agency at $810,000.  We are especially concerned about employment (4120-3000) with loss of $535,000 and home care (Home maker) account, (4120-5000) where a $1.1M cut ($1.5M including 9C impact) will affect all 1400 recipients, many of whom cannot qualify for MassHealth.  

Our job 1 will be to convince our friends in the legislature that these (and potentially other not yet known in disability services) cuts are not sustainable.   We were potentially open to deeper cuts but the administration has decided to utilize FMAP increase.  We support them on this move.  We have heard from friends at the National Council of State Legislatures and some of our colleagues that additional FMAP funds will move ahead. 

Please see our budget chart below for more details.  Letters will be up today at our action center.  This report will be followed by an action alert.   To review government affairs reports and charts, go to arcmass.org and choose the main budget page or state house/policy.