Yesterday, Governor McDonnell formally released his proposal to balance the state budget - a proposal that further reduces spending and decimates the safety net. The proposal on the table would reduce state homeless funds* by an estimated 28 percent** in year one (fiscal year 2011 which begins July 1, 2010) and by an estimated 41 percent** in year two (fiscal year 2012.)

And it gets even worse... the budget is a litany of "reduce funds for..." and "eliminate programs for..."  Proposed cuts would reduce primary health care for the uninsured and medically underserved, reduce income eligibility for Medicaid, decrease funds for mental health and substance use disorder treatment, reduce funds to community action agencies, and eliminate grants for domestic violence assistance programs, among many other proposed reductions.

Housing stability for families relies on many different components, including employment, stable relationships, and proper health care.  Compromising just one of these components -- often through an unexpected, destabilizing event or series of events -- can erode a family's ability to maintain housing. The reduction in available safety net services means that families will not access services they need when they need them, and they will likely experience homelessness.  For example, funding for community service boards (CSBs) which deliver mental health, intellectual disability, and substance use disorder services across Virginia is slated for a ten percent reduction. CSBs are not able to meet demand with current funds. A reduction in funds for mental health and substance use disorder treatment means that even more people will be without these critical services and therefore at increased risk of homelessness.

Another alarming example is a reduction in funds for community action agencies.  In many communities across Virginia, community action agencies are centrally involved in delivering homeless assistance. In every community, community action agencies provide critical homeless prevention assistance and employment services.

The Governor also proposes closing 232 state mental health facility beds. We know that there are better alternatives than hospitalization but there has to be a place for these individuals to live. We encourage Governor McDonnell to closely review permanent supportive housing and SROs (single room occupancy units) as a cost effective model and alternative to hospitalization and institutionalization. In Tennessee, permanent supportive housing reduced hospitalizations by 90 percent.

Not all of the proposed budget cuts have been mentioned because there are too many to name. Click here for more information on the Governor's proposal.

What's Next on the Budget
On Sunday February 21, 2010, the "money committees"*** will make public their versions of the budget bill. The Senate and House of Delegates will each vote on the budget next week. We do not have much time. Let's not just complain about it; let's come up with a plan to do something about it.

Action Steps
There is no question that the programs upon which vulnerable Virginians rely will be cut. The budget deficit is just too large and the proposed cuts are too many to reasonably expect something different. So how do we make lemonade out of lemons and reduce the impact of the proposed cuts?

1) SEND VCEH YOUR DATA ON THE CONCRETE AND ECONOMIC IMPACT OF YOUR WORK. We must make it clear that investing in efforts to prevent and end homelessness is well worth it because these programs work and are ending homelessness one person and family at a time. Another important argument is that investing in efforts to prevent and end homelessness helps address other pressing social problems including the number of people in jail and the number of children in foster care.

• For example, STEP, Inc. located in Rocky Mount, VA, operates Virginia CARES which assists ex-offenders and their families in making a successful transition from prison to the community by providing job services, housing, life skills counseling and other services. The recidivism rate of STEP Virginia CARES clients is 8 percent compared to the state recidivism rate of 29 percent.  Providing housing and services to ex-offenders reduces their risk of recidivism and homelessness.

• Do you have a similar example? Can you provide data on how many of your clients have transitioned into permanent housing? 
  

                    If the answer is yes, email vceh@vceh.org with this 
                    information ASAP. 

                    If the answer is no but you would be willing to begin  
                    collecting this data, also email vceh@vceh.org and      
                    we'll provide information on how to track this
                    data.   Note: Tracking this data not only helps our
                    collective efforts to demonstrate the effectiveness of
                   homeless programs, it also helps your fundraising
                   efforts.

2) SEND A LETTER TO YOUR SENATOR AND DELEGATE describing the economic impact of your agency's and community's work to prevent and end homelessness.  Because job creation is the hot topic in Virginia these days, consider adding any information about how your program helps people obtain jobs and increase self-sufficiency.

3) LONG TERM -- VCEH initiatives are focused on increasing investment in strategies that work to prevent and end homelessness. We have one initiative to increase permanent supportive housing options for special needs populations; we have another to ensure housing options for child welfare involved families and youth. Both initiatives will result in improved outcomes and options for individuals and families experiencing homelessness; both will also reduce costs to public systems of care -- hospitals and jails and the child welfare system. Please email vceh@vceh.org for more information on how to get involved in these initiatives.

More on the Budget Process

Here is what has happened so far:
September 2009 - Governor Kaine released his 2010 Budget Reduction Plan which cut spending for state programs.

December 2009 - Governor Kaine unveiled his budget proposal for the next biennium (fiscal years 2011 and 2012.) Even though Governor Kaine's term was about to expire, his budget proposal becomes the budget bill which must be acted upon by the General Assembly.

January 13, 2010 - The General Assembly convened for the first day of its 60 day session. Throughout the session, legislators discuss how to balance the budget and whether or not to cut spending deeper than former Governor Kaine proposed.

February 17, 2010 - Governor McDonnell released proposals to balance the budget which further reduces spending and increases spending for his economic development and job creation priorities.

Footnotes:
*The term "homeless funds" refers to the Homeless Intervention Program, State Shelter Grant, and Child Services Coordinator Grant program.
** The final numbers may change based on the actions of the General Assembly and as more information becomes available.  These numbers are VCEH's informed estimates as the budget proposals are not always specific in terms of actual numbers.
*** The Senate Finance Committee and the House Appropriations Committee are the first bodies to make changes and vote on the state budget.