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August 20, 2008 Impact of Budget Cuts The Senate and Assembly passed the updated budget and just left town (The Assembly finished last night and the Senate finished a few hours ago). The legislature decided to agree to the Governor’s proposal to cut local assistance across the board by 6%. Unfortunately, local assistance helps fund many community based mental health programs. This funding has been lifeblood for many individuals with psychiatric disabilities in the community. The actual impact of the cuts to mental health are not yet known. The cuts are not based on spending for the entire year but on money that has not yet been spent this year (so called ‘undispursed’ amounts). We hope to soon get clarification on exact budget impact. We will be advocating with the Executive and OMH to try to minimize any cuts. Untouched in the budget was the continued funding for the COLA and for clinic rate restructuring. New initiative in the budget were cut by half (they were already cut by half in the first round of cuts) so there is much less funding available then originally proposed in January. There was some good news in the framework of the budget cuts. Member items were only cut by 6%. There are several mental health member items that we were fearful would be dramatically cut including ones for individual mental health programs and for health care enhancements and veterans trainings. The legislature also did not take anti-depressants out of the carve out for mental health medications recognizing the importance of medication accessibility for mental health medications for all individuals in the public mental health system. The legislature also did not agree to the cuts to adult home advocacy. The people we work with at the Coalition for the Institutionalized and Aged Disabled (CIAD) who receive much of the advocacy funding have had a major impact in helping to empower adult home residents and reform the system. Strategy: There is great frustration that many of us have in regard to cuts to local assistance which funds many of the programs run by the MHA’s and other community organizations. A few months ago we absorbed a two percent cut and that had an immediate effect on services. Now an additional cut will be occurring shortly which will undoubtedly impact services. Frankly, we (and all of human services) seem to be cut more then other areas in the budget. We have good folks in government who try to help but the bottom line is that our folks are not a priority population for several reasons---A) We do not vote in large numbers with a solid voting block B) We do not have a great deal of money, C) We have to do a better job of building coalitions) We have to provide numbers to better make our case. Yesterday, I saw something I had not seen in years. Through the work of ADAPT and the Independent Living Centers, there was a rally inside the Capitol. I witnessed over two hundred people in wheel chairs protesting the cuts. After several hours of protest and increasing frustration, they made there way right outside the door to the Second Floor side of the Capitol where the Governor’s Office is located. Eventually, because of their activism, several of the folks were able to meet with the Governor. Our colleague Harvey Rosenthal was one of the folks who participated in the meeting with the Governor. Whether you agree or disagree with the tactics, you can’t argue that they were a very impressive coalition. They were able to meet with the Governor because they made noise but also because they worked together as a coalition in coordinating and sticking to their message. (I am unable to access the blog in yesterday’s Albany Times Union about the rally but it is at www.timesunion.com--well worth seeing) Voting Whenever long time advocate and MHANYS Vice-Chair Sylvia Lask speaks at an event, the first question she asks is if you are registered to vote? Surprisingly, there are many people who are not registered. We lose power when we don’t vote. We have to continue to mobilize voter through our Mental Health Voter Empowerment Project (for information on this check our web site at www.mhanys.org) We are also working to create public forums for legislatures in the Albany area to talk about mental health issues. Please contact us if you are interested in our help doing this in other areas of the state as well. Coalition Building Regarding coalition building, we have participated in successful coalitions on every thing from Timothy’s Law, Reinvestment, The SHU Bill, more funding for housing, geriatric mental health, adult home reform and many others. Think of how powerful we would be if we all worked together to pursue a common goal of creating a coalition that would work together to prevent future cuts to mental health funding. Given the tough budget year, there will be an expectation of more cuts. We have to work together to let policy makers know first hand that there should be no more expectation of cuts to the mental health community. As history has proven, when we work together, we have an incredible amount of power. Providing Numbers Our colleagues at ACL do a wonderful job of using numbers as a way to show the impact of cutting funding to housing programs. We should as a group do the same thing with community services. In lean times, there is nothing more eye opening to policy makers then showing how you can save money and still have great outcomes (which the community does on a daily basis). We need to quantify those numbers and present them to policy makers in a way that shows direct savings to taxpayers. In the coming weeks, we will be discussing how best to implement these strategies. Your feedback is greatly appreciated. Attached is a brief media statement we put together on the budget cuts, the Governor’s press release and some budget articles.
Press Release Date:
August 20, 2008 Mental Health Advocates Decry Funding Cuts The 6% cut to local assistance in the budget will adversely impact the mental health community. According to Glenn Liebman, CEO of the Mental Health Association in New York State, ‘The six percent cuts will make it increasingly more difficult for thousands of New Yorkers with mental illness to get the services they desperately need. People with psychiatric disabilities do recover and live productive lives in the community. The community based mental health system has been lifeblood for many individuals. Cutting these programs will only end up being more costly for New Yorkers as an increased number of people could well end up in emergency room and jails and prisons. In addition, as more and more people seek mental health services because of the weak economy, services should be enhanced and not cut. Cuts to the mental health system during bad economic times create a perfect storm that impacts thousands of New York’s most vulnerable individuals. As the Governor and the Legislature continue to talk about future cuts to the state budget, we urge them to put a moratorium on any future cuts to the mental health budget. The bleeding must stop.”
State of NewYork | Executive Chamber For
Immediate Release: August 20, 2008
Over
$400 million in Current Year Savings Will Guard Against Further
Declines in Revenue; Governor David A. Paterson today announced an agreement with the Legislature to enact an over $1 billion, two-year savings plan that does not include any tax or fee increases and reduces spending in the current year so that growth is held to the rate of inflation. These actions will achieve savings of over $400 million in 2008-09 and over $600 million in 2009-10, guard against further declines in revenue during the current fiscal year, and reduce next year’s state budget deficit from $6.4 billion to $5.4 billion. “Too often in the past, our State's failure to respond quickly to fiscal crises has only made our budget problems worse and the solutions we’ve had to implement more painful,” said Governor Paterson. “Today, we are taking a different approach. Rather than simply hoping that our struggling economy improves, all sides worked together in the spirit of cooperation and took action to reduce spending. I want to thank my partners in the Legislature for working productively with me during this special session.” On July 30, Governor Paterson called for a special emergency economic session of the Legislature and asked the Assembly and the Senate to make additional spending reductions in the 2008-09 fiscal year. At the same time, he also administratively imposed a hard hiring freeze and cut current-year state agency spending by $630 million – on top of the $500 million (3.35 percent) agency spending reduction that he proposed in his first days as governor and implemented in the Enacted Budget. In total, since taking office, Governor Paterson has worked with the legislature to achieve 2008-09 savings of $1.5 billion (over $400 million in legislative actions, $1.1 billion in administrative reductions to state agencies). Governor Paterson continued: “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.” Senate Majority Leader Dean G. Skelos said: “The extraordinary session of the State Legislature – called by the Governor to address the fiscal challenges facing New York – has been a success because we have worked together to achieve significant savings in this year’s budget without raising taxes or negatively impacting vital services that New Yorkers rely on. I applaud the Governor for his leadership in focusing New Yorkers on this issue, and thank the Assembly for their partnership.” Assembly Speaker Sheldon Silver said: “In this important emergency legislative session, the Assembly collaborated with Governor Paterson and the Senate to take strong action to address New York’s current economic downturn. The Assembly’s priority was to make necessary cuts and diminish future deficits, while still preserving the quality of health care in New York. We look forward to partnering with Governor Paterson and the Senate to provide property tax relief for New Yorkers while meeting our education commitments and providing home heating assistance for those in most need this coming winter.” After today’s agreement, 2008-09 All Funds spending will now total $120.9 billion, an increase of 4.2 percent, which is equal to the projected inflation rate for that fiscal year. On July 30, when the Division of the Budget issued its last state financial plan update, 2008-09 All Funds spending was expected to total $121.3 billion. Major highlights of the savings plan include the following:
### Day
Of State Cuts Falls Short - Senate
Resumes Work To Close Gap Today; Assembly Was Set To Work All
Night Tuesday's marathon session resulted in broad agreements on across- the-board cuts to myriad programs ranging from homeless shelters and greenway protection to criminal justice, libraries and more. The state faces a $6.4 billion budget deficit next year, which the governor said could grow to $26.2 billion over the next three years due to a weakening economy and deep problems on Wall Street. Overall, lawmakers will end up cutting between $411 million and $412 million, said Assembly Majority Leader Ron Canestrari, D-Cohoes. Over the next two years, the cuts should amount to $1 billion… Since spring, Paterson has been warning that a sour economy and a sharp downturn on Wall Street -- a major generator of income tax revenue -- is pushing the state into the red. He's already started a hiring freeze at state agencies and instituted other cuts worth $630 million on his own. Then he put out a ``menu'' of $1 billion in possible cuts and urged lawmakers to find at least $600 million. Those reductions, because they were previously agreed upon in the budget, needed legislative approval. Paterson got lawmakers, who are all up for re-election, to go along in part by using a political good cop-bad cop approach. On the one hand, there is Paterson's personal bonhomie, and his willingness to talk with almost all comers. On Tuesday, Paterson met with a group of disabled advocates after they put on a raucous demonstration against the cuts and essentially blocked the entrance to the governor's chambers loudly chanting ``We want Paterson! We want Paterson!'' ``He was very gracious,'' said Harvey Rosenthal of the state Association of Psychiatric Rehabilitation Services. But Rosenthal added that Paterson flatly stated that ``he felt to compelled to across-the-board cuts.'' The bad cop part is a bit more subtle, and is based on polls that show voters clearly agree with Paterson's get-tough approach. ------------ State
Officials Working On $500 Million In Budget Cuts; Tax Cap Dead State officials today were closing in on a deal to erase up to $500 million in state spending this year, providing a cushion for the government's worsening fiscal condition. The tentative deal calls for about $1 billion in reductions in the rate of the budget's growth this year and next, officials say…. A document provided by a state official in early evening showed the sides, so far, agreeing on $411 million in cuts. Dead for now, though, is any move to provide relief to rising property taxes. Paterson and Senate Republicans wanted a cap on the growth in annual property tax levies. Assembly Democrats want relief for only lower-income and some middle income residents. The stalemate produced no agreement. The governor, who had asked lawmakers to return for a special session Tuesday to reduce state spending by $600 million, signaled a new method to reach the cuts he wants. "If they gave me $600 million next year and $400 million this year, I'd be happy, because it's the same money. It reduces the same debt. If I got that jump on the 2009-2010 deficit, that translates in the end to almost 33 percent (of the looming deficit). It puts us in pretty good shape," he said. A copy of a list of the cuts, obtained by The Buffalo News, include 6 percent across-the-board reductions for several programs provided on the local level, often by not-for-profit agencies. Virtually every area takes a hit, from less money for anti-trafficking efforts and money for witness protection programs to less money for transit agencies, such as the Niagara Frontier Transportation Authority. The cuts will hit local groups that provide suicide prevention and other mental health services, school lunch programs, library aid, money for public television and radio stations, economic development funds to help spur the upstate economy, homeless prevention efforts, programs designed to keep elderly people in their homes instead of nursing homes, tobacco control initiatives, and programs for homeless veterans. Held harmless were cuts to operating aid of public schools, which Paterson last week said he was not putting on the cut table, a move heartily embraced by the election-bound Legislature. The deficit now stands at $630 million; he is closing that through a variety of state agency cuts and a hiring freeze. The additional $600 million he wanted lawmakers to trim is needed, he said, to provide a cushion against what he believes will be a worsening deficit before the fiscal year ends next March 31…. The Capitol's halls were packed with lobbyists and groups seeking to save their programs from cuts. A loud group of demonstrators protesting planned cuts to disability programs temporarily blocked access to the governor's suite, a move which bolstered State Police presence around the building. Representatives of the group were later ushered in to meet with administration officials; it was not immediately clear if Paterson attended the meeting…. --------- Paterson,
Legislative Leaders agree to $500M cuts ALBANY - Gov. David A. Paterson and legislative leaders reached agreement last night on about $500 million in cuts to this year's budget with less pain to hospitals, local governments and social services than originally prescribed by the governor. Details of the deficit-reduction plan, which doesn't include a tax hike, were trickling out last night. But lawmakers said new programs, legislative grants and money for colleges had been cut, hit by a 6 percent across-the-board trim that spared few areas except direct aid to schools. The reductions, estimated to shave $1 billion off next year's budget, included controversial limits on the growth of Medicaid payments to hospitals, nursing homes and home health care. "It's done ... [and] health care came out much better than what the governor had proposed," said state Sen. Thomas Libous (R-Binghamton), referring to Paterson's proposed $506 million in Medicaid trims. Assemb. Ron Canestrari (D-Albany), the majority leader, agreed, saying efforts to spread belt-tightening among groups reliant on state assistance had worked. "They will feel it, but hopefully they can adjust." The Assembly adopted the bills 2:30 a.m., while the Senate will vote on them later today. Lawmakers'
willingness to cut the $122-billion budget they adopted April
9 was seen as a victory for Paterson, who became governor on March
17 after Eliot Spitzer resigned. The last time that the legislature
reopened a budget was 1990, and taxes and college tuition were
raised then.
Paterson ordered yesterday's special session after seeing revenue plummet because of the recession. He projected a $6.4-billion deficit for 2009-10. "I'm asking [lawmakers] to do something that's unprecedented: go into an existing budget and cut it without using taxes, and cut it to some proportion higher than it has been," he said. Senate
Majority Leader Dean Skelos added, "What we are potentially
doing today will translate into a billion [dollars] or more off
next year's deficit. That's a significant start. I believe this
is historic."
However, the Rockville Centre Republican and Democrat Paterson rejected a property tax relief bill adopted earlier by the Assembly, 118-24. The measure would tie tax bills to the homeowner's ability to pay through a "circuit breaker." Households with incomes of $250,000 or less would receive an income tax credit paid for by hiking the tax on millionaires' income. Skelos said, "We're not going to do it." And Paterson added, "We have to have a [tax] cap so that we can create efficiencies ... in the school districts." His proposed 4 percent cap on yearly increases in school taxes, adopted by the Senate, was criticized on the Assembly floor. Assemb. Patricia Eddington (WF-Medford) said the cap only would slow tax growth. "Our constituents who are property-taxed out of their minds, they need immediate relief."
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