ADDP NEW BANNER 2011
Budget Details Show DDS Shortfall

BAKER BID TO SLOW BUDGET GROWTH RIDES ON $750 MIL IN MASSHEALTH SAVINGS

State House News logo  

By Matt Murphy 

 

MARCH 4, 2015.....Gov. Charlie Baker will file a $38.1 billion budget proposal on Wednesday that recommends increased spending on local aid, higher education and transportation while also squeezing more than $750 million in savings from MassHealth to close a $1.8 billion gap between projected revenues and expenses.

 

Baker, in his first annual state budget, says he inherited a yawning shortfall in the available sources of revenue needed to continue funding state government at level service.   

 

The governor's budget proposes to limit growth in spending in fiscal 2016 to $1.1 billion, or 3 percent, and reduce by half the reliance on one-time revenue sources without taking a nickel from the state's rainy-day fund, raises taxes or increasing fees.

 

MassHealth, one of the largest spending drivers in the state budget, will grow by $950 million, a 5.6 percent increase in the nearly $14 billion Medicaid program that provides health coverage to 1.7 million low- and moderate-income residents.

 

Projected growth at MassHealth had been anticipated to reach 16 percent in fiscal 2016, but Baker administration officials have budgeted a total of $761 million in net savings to the state, including $400 million from trimming the rolls at MassHealth after going through a redetermination process for 1.2 million subscribers.

 

Though the Republican governor has not proposed to change eligibility criteria, budget officials said chiropractic benefits would no longer be coverage, while adult dental coverage and coverage of autism services for 10,000 children would be extended.

 

The Baker administration also plans to direct all capital gains taxes into the general fund in fiscal 2016, withholding as much as $300 million that would otherwise have been earmarked for the stabilization account that currently holds $1.2 billion.

 

 

 
Baker House One Short on Maintenance Funding
 
Governor Charlie Baker and his executive team released their FY 16 Budget recommendations today carefully working to limit budget cutting hardships caused by an overall $1.8 billion structural shortfall.

DDS budgets generally received small overall increases but a few specific budgets fell short by not including full funding for ongoing costs of prior year's services (often referred to as maintenance costs).

Areas protected from large deficiencies included Community Residential Programs, Line Item 5920-2000, funded to mostly fully support the existing Chapter 257 Adult Long Term Residential (ALTR) rate rolled out last year on April 1, 2014.  The department is looking at a shift in service delivery including enhanced use of Shared Living to cover a $4 million difference between provider projections and the state's projections.

Key areas that will require additional funding, which ADDP and The Arc of Massachusetts will be seeking include:
  • adding 9.7 million to Line Item 5920-2025 to address a shortfall cutting Day Hab Supplemental Wrap Services, which allow Day Hab participants who need assistance with eating and toileting to have one on one supports.
  • Adding $15 million to Line Item 5920-3000 to address a shortfall in existing Respite & Family Supports, restoring prior year 9C reductions and addressing existing needs.
  • adding $6 million to Line Item 5920-2026 allowing the full annualization and second year implementation of the Employment Blueprint allowing people with disabilities to get community jobs or move into community based supported programs.

Overall  considering the Governor and Secretaries of Health and Human Service and Administration and Finance had to address a left over $1.8 million hole in the budget; today's budget news could have spelled much greater challenges for our community.

 

ADDP, The Arc and others will be meeting soon with House Leadership urging the above budget adjustments.