BUDGET COMPLETED ON SCHEDULE
Legislative budget writers faced yet another of the most difficult budget years in NC history. While cuts have been deep and pervasive, legislative leaders are to be commended for working hard to maintain critical services at the community level. Without such services, the state would be more likely to see increases in the prison population and in state hospitals. The budget process seemed less chaotic than last year - possibly because legislators have experience with the most severe recession in their careers. While their budgeting job wasn't pleasant, they managed to get it done on schedule and were able to preserve critical programs.
The much-discussed $500 million dollars in federal medicaid funding did NOT come through by the time the budget was passed. Since at least 20 states are counting on those funds, we remain optimistic that the funds will be available. If they are not, though, an additional 1% across the board cut will go into place. Cuts will also be taken from the disaster relief fund, unclaimed lottery prizes, general fund balance, savings reserve, and reduced retirement contributions.
Three criminal justice programs - Prison Education, Sentencing Services and Bridges (a youth firefighting program) that underwent continuation reviews were maintained. As we've reported before, three of five continuation reviews were criminal justice programs. We're glad to see that no new continuation reviews were assigned for 2011. Legislators appear to have decided that the regular review process is sufficient. We heartily agree!
Total cuts within agencies have been achieved by a combination of flexible management reserves, vacant positions, operating and equipment reductions, cuts of pass through programs and targeted program cuts. Cuts in Justice and Public Safety agencies ranged from 2.8% to 3.6% with the exception of the Department of Juvenile Justice which was cut by less than 1%.
The ink wasn't dry on the budget page before budget leaders started warning budget watchers that 2010 was bad, but 2011 is going to be even worse. That's because at least half of the $3 billion dollar gap was plugged with stimulus dollars this year and those funds will not be available next year. Still, we recommend a sigh of relief that things weren't worse and congratulations to hard-working legislators before beginning to worry about 2011-12.
FINAL BUDGET DECISIONS
COMMUNITY-BASED PROGRAMS
Cross Area Service Fund - This fund provides treatment dollars for programs that provide services across county lines. It appears to be intact, although it could be subject to cuts made by the Governor as the year progresses.
Drug Treatment Court - No reductions have been made to the Drug Treatment Courts and none are anticipated unless they are made as part of the management flexibility reduction described above or as part of a mandatory 1% reduction.
Criminal Justice Partnership Program - $1.1 million was taken from the CJPP discretionary fund in the final budget. These funds were added back into the budget at the House subcommittee level and then voted out again. This cut is a one time cut and does not affect the recurrning funds distributed to the counties.
Re-Entry - The final budget includes an excellent provision which will allow Corrections to improve Re-Entry efforts. The Department will conduct a pilot program contracting with a community-based residential facility for a "2 year reentry program for elected inmates." Eligible inmates must be "low-risk and eligible for minimum custody."
Sentencing Services - Sentencing Services has been restored with a 5% cut, bringing the total cut for 2010-2011 to 20%. This program helps the state save money by using evidence-based practices to provide the Court with appropriate community placements instead of prison when appropriate options can be identified.
Womens' Programs - We are delighted to report that the legislature has restored Women at Risk, Summit House, Harriet's House and Our Children's Place with a 5% cut. These important programs were initially cut in the Governor's budget. Unfortunately, they will continue to struggle since some of them were already cut by 25% cut last year, bringing the current cut to 30%.
FEES
While fees are certainly a necessary part of the Court system, we have concerns about the extent to which a wide variety of fees have been raised on probationers and parolees. Fee increases include:
Criminal Case Court Costs - $95.50 - $100.50 - (5%)
Failure to Appear - $25.00 - $50.00 - (50%)
Civil Actions - Superior Court - $93.00 - $125.00 - (26%)
Civil - District Court - $73.00 - $80.00 (9%)
Resumption of Maiden or Former Name - $10.00
Attorney Appt. Fee - $50.00 - $60.00 (16%)
Probation Supervision - $30.00 - $40.00 (25%)
Post-release and Parole Supervision - $30.00 - $40.00 (25%)
Community Service Fee - $225 - $250 (10%)
JUSTICE
Medicaid Fraud Criminal Investigation Team - There have been instances of medicaid fraud and the conferees added $600,000 to the investigation team in the Department of Justice.
Felony Arrestee DNA - the conferees included $221,000 to obtain a DNA sample on certain felony arrestees.
JUVENILES
The Youth Detention Center Reductions - Since populations are down 70% since 1999 and down 365 from last year, Youth Detention Centers were originally slated for a $2.5 mil reduction. That reduction has now been rolled into a $2.7 management flexibility reserve which will allow the Department to take the cuts wherever it sees fit (not just in YDCs) as the year progresses.
BRIDGES - This forest fire fighting program designed around juvenile offenders was in a continuation review status and fortunately, it has been fully restored.
Juvenile Assessment Center - The juvenile assessment center in Fayetteville will be continued. This is a highly regarded program that can server as a model for other communities as the state moves towards raising the juvenile age to 18.
Samarkind Youth Detention Center - The legislature restored the Samarkand Center at $3.5 mil.
Woodson Wilderness Camp - a Western wilderness camp was continued. It got bumped around in the budget as the JPS subcommittee voted to remove it and then the full House appropriations committee voted to restore it.
MENTAL HEALTH/ SUBSTANCE ABUSE/ DEVELOMENTAL DISABILITIES
Service Dollars Restored - Legislators restored $40 million that was taken from services in the mental health budget last year. We applaud this important restoration of funds that will be used at the community level.
PROGRAMS FUNDED AS PASS THROUGHS
Pass through programs were reduced by an additional 5% on top of last year's reductions. In the Justice and Public Safety area, many of these are excellent community-based programs were already cut by up to 25% last year. Total cuts for the year will now range from 10% - 30% when the 2010 cuts are added. Several of the programs were completely eliminated in the Governor's budget and we are glad to see them funded. Unfortunately, some state agencies view pass-through programs as more expendable even when they provide excellent services.
Justice and Public Safety "pass through" programs with funding cuts include:
Dispute Settlement Centers - 5%
NC Bar - Civil Justice Funds - 5%
Center for Death Penalty Litigation - - 5%
Financial Protection Law Center - - 5%
Harriot's House - 5%
NC Leaf - 5%
NC Prisoner Legal Services - 5%
Our Children's Place - 5%
Project Challenge - 5%;
Summit House - 5%
Women at Risk - 5%
NC VAN, also a pass through, did not receive a 5% cut in 2010, but received a 25% cut last year.
DA's Association - No cut was made to the DA's Association in the final budget, although the Senate had recommended a $100,000 cut.
POSITIONS, OPERATING, EQUIPMENT - ALL AGENCIES
Since the biggest part of most agency expenditures are in personnel costs, most cuts come from vacant positions that have not been filled and from future vacancies (lapsed salaries) that will develop as the year progresses. Cuts made through "Management Flexibility Reserves" are generally made through future lapsed salaries and are a very large part of the overall budget cuts. They are itemized in other sections of this report. Smaller cuts have been made in operating and equipment costs. Cuts to current vacancies, operating and equipment are listed below:
Courts - $2.84 - cut 57 vacant positions; Administrative Office of the Courts also has a $6.7 million management flexibility reserve.
Indigent Defense - Legislators took a $5.8 million cut to the private assigned counsel fund. These are not vacant positions. Without additional funds, IDS is nearly certain to have unpaid bills at the end of the 2010-2011 fiscal year. The individual attorney appointment fee was raised from $50 to $60.
Justice - $501,000 - 7.5 vacant positions are cut.
Juvenile Justice - $1.158 mil - cut 31.5 vacant positions. Juvenile Justice also has a $2.7 mil management flexibility reserve.
Correction - Corrections will eliminate or consolidate $1 million in the following positions: 11 Division of Prison administrative positions, 4 in-prison out-patient treatment positions, and 2 Division of Community Corrections positions. Correction also has to identify $22 mil reductions in prisons which will come primarily in future lapsed salaries.
Crime Control and Public Safety - $442,000 - eliminates 7 vacant positions.
Operating and Equipment Reductions - Operating budgets have been reduced by a small percentage in all agencies. The Judicial Department's technology services program was reduced by $2.6 mil.
PRISONS/PROBATION
Adult Prison Population - The population, while still above capacity is significantly down from projected levels for June, 2010. Proposed decreases ranged from a $39.1 million (Senate) to a $24.4 mil (House). The final reduction will be $22 million. This is the biggest total reduction amount in the JPS subcommittee budget.
Central Prison Hospital and Mental Health Facility and Women's Prison - This item has been changed from an $11.1 million reserve to a $6.5% reserve. The opening date is still scheduled for October.
DOC will be ADDING 781 NEW positions to staff these hospitals.
Clothing - The reduction in the clothing budget for inmate and officer's uniforms has gone even deeper from $500,000 to $862,000.
Inmate Medical Costs - Corrections hopes to save $20.5 million by "capping fees paid as a percentage of billed chages." moving to a medicaid fee schedule. Medical costs are one of the biggest budget items within corrections and hospitals have been unwilling to tell Corrections how charges compare with the standard fees to other customers for similar services.
Our Children's Place - This program will be continued with a 5% cut. This is an innovative program designed to keep infants and babies with their mothers. Since children of prisoners are six times as likely to be incarcerated as adults, new approaches to these children are essential. We anticipate that Corrections will be working with this program to make sure that services can move ahead.
Prisoner Education - The prisoner education program was partially restored and has been cut from $32 million to $24 million. Services will no longer be available in jails or in federal facilities and no courses will be offered that are not related to job skills or basic skills.
Probation Pay Grade Increase - The final budget did not include the pay grade increase requested by the Governor. In a year in which NO state employees are receiving increases legislators were not inclined to single out one group for an increase.
Probation - Privatized Services - The final budget requires the Division of Community Corrections to develop a pilot plan for the "privatization of probation services." This highly questionable idea to allow fee-based supervision for low-risk offenders by private entities was roundly attacked in the House, but it remains in the budget.
Reduce Drug Testing Frequency - The final budget reduced drug testing frequency from 15% to 10%.
SHERIFFS
Sheriff's Association will be awarded $100,000 in "pass through" dollars to enable them to train law enforcement on booking procedures. We hope this will be targeted at all jail booking activities and not solely at undocumented immigrants, as originally proposed.
Victim's Compensation Fund - The final reduction in this item is $700,000 - half of the $1.3 mil recommended by both the Governor and the Senate to reflect actual expenditure levels.
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