Dear ,

Greetings! Here are a few updates on policy and politics related to ending homelessness in Minnesota: 

Legislature and Governor Begin to Frame Numbers -- Budget Dialogue Will Impact Efforts to End Homelessness 

The next two weeks will help to offer details of the Republican Majority's budget priorities for the next two years.  Legislative leaders are advising others to 'buckle in' as Legislative Committees begin hard work to present their budget bills by the March 25^th deadline.  In less than two weeks, Republican Chairs of Committees will have to present proposed budgets that will be compared to the Governor's proposed budget.  Since the looming $5 billion deficit is the focus of both the Governor and Legislature, a lot is riding on how each branch of the state government is addressing state spending.

GOP Budget Plans

House and Senate Republicans outlined plans for a two-year biennial budget that would include deep cuts in some areas and slight increases in others.  This past week, both House and Senate Majority leaders released budget targets which give 'benchmarks' to Committee Chairs.  Unlike the Governor who seeks to balance the state budget through both revenue (tax) increases and cuts to state spending, the Legislative Majority proposes to balance the state budget entirely through government reforms and cuts.

In releasing the budget targets for FY2012-2013, Senate Majority Leader Amy Koch noted that the targets not only were crafted to help the government live within its means without raising taxes, but also identified priorities of "protecting core government functions." Among the core functions noted by Senator Koch were "Public Safety and Education."  Hearth Connection was disappointed not to hear "health and human services for vulnerable Minnesotans" in the quick list of vital functions.

Budget Specifics

House Majority leaders released the following budget targets, as compared to current spending: 

· $14.16 billion for K-12 education (+18.7 percent);
· $10.71 billion for health and human services (+5 percent);
· $2.66 billion for tax aids and credits (-12 percent);
· $2.51 billion for higher education (-15.1 percent);
· $1.17 billion for debt service (+36.7 percent);
· $1.03 billion for public safety (-8.7 percent);
· $726.8 million for judiciary (-1.1 percent);
· $586.7 million for state government (-33.9 percent);
· $228.1 million for environment, energy and natural resources (-26.9 percent);
· $120.2 million for transportation (-28.1 percent);
· $81.6 million for economic development (-58.3 percent); and
· $76.8 million for agriculture (-11.4 percent).

Compared to the current biennium, $34 billion would amount to a 4.2 percent increase in spending. Under current law, however, the state is projected to spend $39.02 billion in the next biennium, which would make the budget targets a 13.3 percent decrease from the state's February Economic Forecast.

According to the Session Daily, "House Minority Leader Paul Thissen (DFL-Mpls) called the Republicans' plan a continuation of the 'failed plans' of former Gov. Tim Pawlenty. 'It appears that the property-tax-raising, job-killing budgets of the past will be the budget of our future if the Republicans have their way.' Thissen said."

Funding for Housing and Human Services

The largest area of difference between the Governor's proposed budget and the House/Senate budget targets is in Health and Human Services Finance.  Health and Human Services (which includes all the homeless service programs) is shaping up to be the hottest area of disagreement.  However, much of the debate focuses on Medicaid Reform.  The Governor has already signed an Executive Order allowing Minnesota to 'early adopt' the federal reform initiatives under the federal Patient Protection and Affordable Health Care Act.  Meanwhile, Republicans are seeking a dismantling of the federal law and pursuing waivers from federal mandates to enact reform to Medicaid. Several Republican Representatives in Minnesota have proposed a bill to prevent state funding and enactment of the new health care law.

The Minnesota Housing Finance Agency's rental assistance funding is also significantly threatened by Legislative budget targets that propose nearly a 50% reduction to the Jobs and Economic Development Committee (which has jurisdiction over Minnesota Housing).  Just to give perspective, however, most of the Jobs and Economic Development Committee revenues include federal funding, special revenue, and other miscellaneous (non-state) funding.  Although the reduction of 50% reduction in State General Funding looks large, it only represents about 10% in the total Committee budget.  (So it's only a 50% reduction to about 10% of the total Committee budget that supports programs.)  However, homeless advocates are still concerned that declining earnings to Minnesota Housing (the State Agency with oversight of affordable housing and rental assistance) will result in a significant decrease in the availability of rental assistance to supportive housing and transitional housing projects in the next biennium. 

The bottom line:  Our ability to stay 'on track' with plans to end homelessness through the development of new supportive housing projects are stymied by decreasing resources for supportive services and rental assistance - just as our continuing national recession ratchets up demand.

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Weighing in on the Debate - Share Your Opinion

"Better to light a candle than to curse the darkness." Chinese Proverb

Never be shy to call or write your Representative or Senator about those issues important to you in the State Budget, and don't feel like you are bothersome for having called or written before.  Please call (651) 296-2146 or (800) 657-3550 to get connected with your Representative, and (651) 296-0504 or (888) 234-1112 for your Senator.  Here are some suggested points that you may wish to highlight:

• A core function of government is to protect the most vulnerable in our state.  Services for homeless families, veterans, adults with disabilities, and youth should be prioritized and held harmless from proposed budget cuts.
• Health and Human Services reform should look to invest limited public resources in programs and interventions that help to end homelessness.
• Our national recession has significantly increased homelessness in Minnesota - now is the time to increase support for homeless persons.
• The Long-Term Homeless Supportive Services Fund (LTHSSF) should be maintained at its FY2010-2011 levels of $12.8 million. 
• The central part of our state (Willmar, Moorhead, and St. Cloud) receive no state funding to help provide supportive services to Minnesotans experiencing long histories of homelessness. The Long-Term Homeless Supportive Services Fund should be incrementally expanded to serve these regions of the state.

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Program Reduces Crime Downtown  

City prosecutors, law enforcement, and human service agencies teamed up to try a new approach to reducing crime in downtown Minneapolis. In its first year, the group's emphasis on community intervention has reduced crime by 74% for a group of repeat offenders, many of whom are homeless.

The Downtown 100 program targeted the top 50 people who police frequently encounter or arrest for crimes like trespassing, panhandling, public intoxication, or loitering. Members meet often to monitor individuals' progress and discuss treatment that will best suit their recovery; a prosecutor and probation officer were also hired to work specifically with the group. Another part of the good news is that 50% of the participants in the program now have housing, and approximately one-third have accessed mental health or chemical dependency services.  

A variety of agencies are involved in the downtown initiative, including:  St. Stephen's Human Services, The Minneapolis Downtown Improvement District, Minneapolis Police Department, Minneapolis City Attorney's Office, Hennepin County Community Corrections, the Salvation Army, Hennepin County Attorney's office, and other community groups. Funding is provided by special tax revenue from the Minneapolis Downtown Improvement District. 

Both MPR and the Star Tribune picked up the story last week. A slideshow by the program's partnering agencies is also available for more details on the group's results.

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Minnesota Coalition for the Homeless Holds Successful Hill Day

On Tuesday, March 15 a few hundred people gathered at the State Capitol to advocate for programs serving people experiencing homelessness.  A morning educational session was attended by Rep. Diane Anderson, Rep. Jim Abeler, and Rep. Rena Moran.  Community members, advocates, and people experiencing homelessness brought their stories and requests to the Legislature.  Meetings were arranged with Representatives and Senators to ensure they received the message that critical services and housing support for persons experiencing homelessness should not be cut this Legislative session.  For information about the event, please visit the Coalition's website. 

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Pending State Bills

Throughout the Legislative session we wish to highlight bills that may help frame public debate on policy matters or that directly impact services and housing for people experiencing 

long-term homelessness. Here is a quick list of bills that grabbed our attention:    

HF846 (see also SF556, authored by Senators Lourey, Marty, and Nienow) seeks continued appropriations to the DHS Commissioner for the Emergency Shelter Programs and Transitional Housing Program. The bill has bipartisan support; authors include Representatives Diane Anderson, (chief author, R), Lanning (R), McDonald (R), Slawik (DFL), Hosch (DFL), Hayden (DFL), Clark (DFL), Liebling (DFL), Huntley (DFL), Gottwalt (R), and Laine (DFL).

Appropriations through HF846 would be broken into two parts: one amount for emergency services grants, and the second part for transitional housing programs. While the House and Senate file include a blank space for appropriations (leaving the final amount to be determined), homeless advocates are seeking to maintain current biennium funding levels for homeless programs (including $688,000 Emergency Shelter Programs and $5.86 million for Transitional Housing). The bill stipulates that no more than ten percent of the transitional housing appropriation may be used for "housing and services which extend beyond 24 months."

HF846 is currently scheduled to be discussed on March 15 by the Health and Human Services Finance Committee.   

SF765 is a bipartisan bill that would appropriate money to continue a demonstration project for high-risk adults. Authors of the bill include Rosen (R), Higgins (DFL), Tomassoni (DFL), Senjem (R), and Hall (R). The Department of Public Safety is responsible for distributing the funds for the demonstration project, which is in its third biennium.

The Network for Better Futures program assists adults with histories of mental illness, substance abuse, incarceration, or homelessness to secure employment and housing, and avoid inpatient programs or criminal recidivism. The bill currently has a blank amount for the one-time appropriation, but funding could be set around $2.9 million. SF765 was introduced and referred to the Judiciary and Public Safety Committee on March 14.

SF309 proposes ongoing funding for Faith in Action groups. This bill prescribes that DHS annually fund up to 30 Faith in Action volunteer groups at $20,000 each. The resources would support work with seniors, homebound individuals, or people with long-term illnesses or disabilities. Faith in Action volunteers come from a variety of faith backgrounds and help clients with transportation, maintaining their homes, respite care, and other services.

SF 309 was introduced and referred to the Health and Human Services Committee on February 14. The next meeting on this bill is scheduled for March 18 at 8:30AM, Room 15 at the Capitol.

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Federal Policy Update     

The United States House of Representatives and Senate will be on recess from March 21-27, 2011. This typically means that members of Congress will be in their Districts.  Now would be a great time to call or try to meet with your members of Congress (or their Legislative Staff) to talk about the need for increases in appropriations to support community-based organizations serving persons who are homeless.

Key Targets: 

• McKinney-Vento Homeless Assistance Grants within the Department of Housing and Urban Development (HUD);
• Housing and Services for Homeless Persons Demonstration vouchers;
• Runaway and Homeless Youth Act (RHYA) programs within the Department of Health and Human Services (HHS) - $165 million;
• McKinney-Vento Education for Homeless Children and Youth.

Efforts to implement reforms to the McKinney-Vento Homeless Assistance grants should be sufficient to:

• Expand investments in homelessness prevention and rapid re-housing solutions through the Emergency Solutions block grant program;
• Finish implementing the changes made by the HEARTH Act, which reauthorized these programs and increased prevention, assistance to families, rural programs, and effective administration;
• Avoid cuts for projects to get children and adults off the streets; and
• Cover the cost of renewing and expanding investments for permanent supportive housing and rapid re-housing-proven, cost efficient solutions to homelessness.  

 Source: National Alliance to End Homelessness