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 ENDING LONG-TERM HOMELESSNESS

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In this Issue

 

 Impact of Shutdown

 

Attorney General Sues to Maintain Essential Services

  

Governor's Announcement

 

DHS' Response

 

MN Housing's Response

 

 Cuts Remain in Appropriation Bills

 

Federal Policy Update 

 

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June 15, 2011

Dear ,

 

In the absence of a state budget compromise between Governor Dayton and the Legislature, many people are anticipating a possible state government shutdown on July 1. The following offers a review of the latest news and what a state shutdown could mean for community agencies serving homeless individuals and/or families:

 

The BIG PICTURE:

 

  • The Minnesota Government will likely shut down on July 1.
  • Homeless services and grants will not be offered to community-based organizations during the shutdown (unless the Courts intervene). 
  • Hearth Connection remains committed to protecting services for participants and will strive to maintain our participants' housing stability despite a government shutdown.
  • The Long-Term Homeless Supportive Services Fund (LTHSSF) is still facing a 20 percent reduction in the Health and Human Services appropriation bill.
  • There will be a budget deal eventually, and there is still time to communicate to your State Senator and Representative that reductions in funding to the LTHSSF are short-sighted and place vulnerable Minnesotans at risk for continued homelessness. 

 

The Looming Government Shutdown and its Impact on Homeless Folks  impact

 

The Minnesota Legislature and Governor Dayton have failed to reach a budget compromise, and all signs point toward a significant government shutdown.  If a budget compromise cannot be reached before July 1, the state government will shut down.  The other disturbing news is that this shutdown appears to be a "hard" shutdown; the number of government services allowed to maintain operations and services appears to be more limited than in years past.

 

What does a government shutdown mean for homeless services?  That remains to be seen.  If homeless services (emergency shelter, transitional housing, permanent supportive housing and intensive case management services, or prevention efforts) are determined to be an essential or core function of the government by the Courts, then funding will continue through the summer months to maintain community-based programs.  If homeless services or programs are not defined as an essential function of state government, then contracted or grant payments will stop on July 1. 

 

Dried-up sources of funding will create great strain on already fragile and cash-strapped nonprofit organizations attempting to deliver services.  Many agencies may have to dip into limited reserve accounts, layoff staff, or temporarily suspend services.  There are too many moving and unsettled parts to the equation to make any dire predictions or rosy forecasts. 

 

The following is a quick review of what we know:

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Attorney General Sues to Maintain Funding for Essential State Services   

attorneygeneral 

Earlier this week, Minnesota Attorney General Lori Swanson filed a petition in Ramsey County Court asking for the legal authority to continue to fund essential state government services in the event of a shutdown. The Attorney General asked the Courts to grant authority to the executive branch to continue funding essential services until a final budget is negotiated. The petition also requested the appointment of a special master to help determine what services would be defined as "essential."

 

The petition cites the United States and Minnesota Constitution in arguing that prisons and sex offender treatment centers, veterans homes, homeland security and emergency management, and health care services for over 600,000 low-income households, should be allowed to continue.  Also, she argued for the continuation of public assistance programs that receive federal funding and aid.

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Governor's Announcement    governor

 

Governor Mark Dayton filed a response today to the petition of the Attorney General in Ramsey County District Court, related to a possible government shutdown and giving a list of recommended 'essential' government services.  Citing Article XI, Section 1 of the Minnesota Constitution which states: "No money shall be paid out of the treasury of this state except in pursuance of an appropriation by law," the Governor wrote that "my decisions were based entirely upon which functions of state government are so critical to the protection of the lives and safety of the people of Minnesota, or which would cause disorder or severe statewide economic impact, that they should be made exceptions to this clear prohibition."

 

The Governor has recommended that Minnesota Housing (Minnesota Housing Finance Agency) programs have a continuation of minimal support of housing assistance programs.  Additionally, the Governor has recommended that public assistance programs--including Medicaid, MFIP/DWP, General Assistance, & Minnesota Supplemental Aid and refugee cash assistance, Group Residential Housing, MinnesotaCare, Food Support, MN Food Assistance Program, and Adoption Assistance--be continued. 

 

The Governor has not made a recommendation for homeless service grants to be continued.

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Department of Human Services' Response to Possible Shutdown      DHS

 

The Minnesota Department of Human Services (DHS) which grants most of the homeless programs, including the Long-Term Homeless Supportive Services Fund, has given providers notice that payments for grants will stop on July 1 unless a budget deal is reached. The notice to providers stated, "we must advise all contractors, vendors and grantees that in the absence of legislatively authorized appropriations as of July 1, 2011, all work, activity, and performances under our contracts must be suspended as of that date, pending authorized appropriations, as will all payments required of this agency under those contracts."  There is no guarantee that even if a budget compromise is reached after July 1, the state will offer retroactive payments back to July 1.  Therefore, services rendered after July 1 may or may not be reimbursed in the next biennium budget.

 

Furthermore, despite the Governor's recommendations for continued services, DHS has announced that public assistance benefits to Minnesotans including MFIP and some food assistance programs will be suspended on July 1.  The written notice from DHS states, "If you receive Food Support, Minnesota Food Assistance Program, Minnesota Family Investment Program, General Assistance, Minnesota Supplemental Aid, Refugee Cash Assistance, Group Residential Housing, Diversionary Work Program or Work Benefit benefits, your benefits may be suspended during a government shutdown."

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Minnesota Housing's Response to Possible Shutdown

MNhousing 

Representatives of Minnesota Housing, which administers the Minnesota Housing Trust Fund and rental assistance programs, have told providers to plan for "business as usual" and there is not an immediate need to notify landlords of a gap in rental assistance. 

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State Appropriation Bills Still Present Cuts to LTHSSF and Mental Health Services       cuts2services

 

The Long-Term Homeless Supportive Services Fund remains one of only two state-funded homeless programs facing budget cuts this year.  The FY2010-2011 amount to the LTHSSF was $12.8 million ($9.8 base funding and $3 million in one-time funding). The Legislature improved the Governor's request for $9.8 million by funding the LTHSSF for FY2012-2013 at $10.5 million ($9.8 million in base funding plus $700,000 in TANF Reserve funds). However, this represents a nearly 20 percent reduction in funding to a critical and effective intervention.

 

Additionally, due to the fact that over 70 percent of our participants have a mental health disability, Hearth Connection is concerned about funding for mental health services.  The budget bills contain over $20 million in cuts to the mental health system and significant changes to Medical Assistance and MinnesotaCare, which will create barriers to accessing treatment for people with mental illnesses. Below is a quick list of some of the more significant cuts in current budget bills:

  • Reduces culturally specific services grants by $300,000 (50%)
  • Reduces adult mental health crisis grants by $750,000 (50%)
  • Reduces grants for adult psychiatric hospital contract beds by $1.33 million (25%)
  • Reduces children's mental health screening grants by $3.81 million (50%)
  • Reduces children's mental health evidence-based practices grant by $750,000 (50%)
  • Reduces culturally competency provider mental health grants by $300,000 (50%)
  • Reduces the Children and Community Services (CCSA) grant by $22 million.

Hearth Connection and our allies remain committed to advocating for full restoration of funding in any budget compromise reached.  We believe that the Legislature and Governor could make changes to secure full restoration of funding even in the last days of negotiations.     

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Federal Policy Update  Federal   

 

2012 Appropriations

 

The U.S. House of Representatives continues to work on FY 2012 appropriation bills.  According to the National Alliance to End Homelessness, the House is expected to pass the Veterans Affairs appropriations bill, which includes $939 million for programs for homeless veterans over two years. This spending level is equal to the amount requested by the President.

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HUD Homeless Report Now Available

 

HUD released its Annual Homeless Assessment Report (AHAR) to Congress this week.  The report finds that the number of people experiencing homelessness in the United States has stayed flat from 2009 to 2010. Overall homelessness increased by one percent, rising to 649,917 according to annual point-in-time counts. This is interesting to note, since many had predicted a significant increase in homelessness as a result of the recession. 

 

Some advocates speculate that the quick infusion of Homelessness Prevention and Rapid Rehousing program (HPRP) dollars may have diverted some households from experiencing homelessness.  Additionally, the National Alliance to End Homelessness noted, "The number of chronically homeless individuals declined by one percent; the steady and continual decline of chronic homelessness reflects the success of local and federal efforts to implement best practices to serve chronically homeless people."  Click here for the full report.

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Congressional Briefing on Youth Homelessness  

 

This Friday, June 17, a congressional briefing entitled "Voices of Youth: A Discussion of Homelessness and the Power of Education," will be hosted by Senators Patty Murray (D-WA) and Lisa Murkowski (R-AK). Formerly homeless, unaccompanied youth who are currently enrolled in college will discuss their experiences with homelessness and their success in obtaining high school diplomas.  Minnesota Senators should be invited to attend by constituents. 

 

 

   

As more information on the possible state shutdown becomes available, we will keep you informed of any progress in future newsletters. Hearth Connection's Regional Managers may also offer specific information to our netstate capitolwork of providers.

 

 

Thank you for your interest and involvement in policy issues that affect all Minnesotans and especially the homeless and vulnerable populations being served. 

Sincerely,



Richard Hooks Wayman
Executive Director, Hearth Connection