Senate Budget presented 5/24/2011

Here we go- first the house, now the Senate with their promised budget coming in 16.8 less than the House plan.  How does this one affect mental health services?

1. Community Service Funds reduction of $30 M both years of the biennium, recurring - this exceeds the $20M nonrecurring recommended cut by the House
2. Local Management Entity Cuts (LME) $7.2M recurring cut, both years of the biennium
3. Nonprofit reduction of $20M both years of the biennium, (recurring) double what the House budget recommends at $5 M for both years, recurring
4. Modify Generic Prescription rates - this time we do better with a lesser cut on the Senate budget side (l5M year one, $24M year two, recurring compared with House $l8M year one, $29M year two)
5. Savings through cuts by Community Care NC (CCNC) - $83M first year, recurring, $90M second year, recurring, compared to House budget which includes $90M cut both years
6. Modify Optional and Mandatory Medicaid Services - $l6M year one recurring, $22M year two recurring (same as House)
7. Modify and eliminate Optional Services - year one nothing; year two $51 M proposed cut to reduce or eliminate various optional services to "right size" Medicaid  (House does not have this cut)
8. Adjust provider rates ($71M recurring cuts both years compared to $46M in house budget)
9. Senate version has removed the mental health prior authorization prior exemption (House maintains this excellent exemption - this is a major advocacy issue for us)

What does this mean?  Provider rates have been increased to 3% over the house version of 2%; one provider I spoke to yesterday said that last year their agency sustained cuts totaling 9% - how much longer can providers stay in business in this environment?

Cutting optional Medicaid services opens the door to so many threats- will it be the pharmacy option?  Cutting psychosocial rehabilitation?  Or perhaps ACTT teams?

 Need more details?  Click here for the link to the Senate budget  which compares the amounts to the House Budget (HB 200) 

Click here for more detailed descriptions of the line items

Advocacy Action:

The proposal went to appropriations base budget this morning, so you must act quickly!!

1. Oppose cuts to Community Service Funding.  Tell your story about how services have helped you or your family member
2. Oppose cuts to Optional Medicaid services (like ACTT, PSR, day treatment, outpatient)
3. Ask that the exemption to prior authorization for mental health drugs be included in the Senate budget special provisions.  This means there are fewer hoops to jump through in getting the medicines necessary for recovery.  Research shows that any barriers to getting medications results in deterioration - like jail, emergency room, etc.
4. Tell your legislator that this amount of cutting of rates for providers cannot be borne.  They have been subjected to cuts year after year
5. Suggest that they solve their money problems by simply continuing the one cent sales tax put in place two years ago that would generate over $lB for the budget in North Carolina

What happens next?

The Senate and the House need to agree on one budget- so generally a group of conferees are appointed to work out the differences.  We'll have to see if they meet their stated goal of adjournment by the fourth of July.  That rarely happens.  We may be in a situation where we need a resolution to continue government if they can't agree on a budget by the end of the state fiscal year- June 30.

Please make personal calls to your legislators emphasizing any of the five points above. Or send them an email.  Use the link at the top left of Heard in the Halls to go straight into the General Assembly web site.  Or send an email!  Let me know what you hear from them. 

The Senate Budget is 16.8M less than the House Budget, which is 1.4 Billion less than the Governor's Budget.  The House budget is now HB200. 

Stay Tuned.  Your Advocacy is so important.  Stay informed and talk with your legislators.