Governor's Budget Recommendations: Bad News Gets Worse

From the Desk of Paula Price

MHAV Executive Director

Today Governor McDonnell announced his budget recommendations. For a full copy of his speech and specific recommendations go to http://www.governor.virginia.gov/News/viewRelease.cfm?id=47

As a result of the legislature’s rejection of former Governor Kaine’s tax increases the budget has an additional $2 billion dollar hole. Governor McDonnell’s proposal attempts to fill in that hole. His proposal restores some funds to public safety and K-12 and has no further cuts to higher education. However, there are significant cuts in health and human services as well as some other areas.

Now that the Governor has made his proposals they will go to the money committees in the House of Delegates and in the Senate. They will change the recommendations as they see fit and will probably make their report public by Sunday or Monday. Remember that the Governor’s proposals are just that. They will change. So hold on this could be a fast bumpy ride.

Some of the proposals are as follows:

•Reduction of 232 adult psychiatric inpatient beds with savings going to CSBs for crisis stabilization and day support for those who would have been served in state inpatient facilities.

•Consumer directed Medicaid services will be eliminated assumes 50% of people currently in program no longer need care and the other 50% will receive care from agencies.

•Lowers income requirement for long term care Medicaid eligibility.

•Freezes new enrollment into FAMIS

• Additional 10% cut in direct funding to CSBs totaling 15%

•Closure and sale of Commonwealth Center for Children and Adolescents with funds going to community based services, read CSBs.

•Elimination of funds for Healthy Families of Virginia

•Reduction of $1.8 million for Free Clinics

•Eliminate funds for local dental services (currently serves 24,066 people in 24 districts)

•Reduces funding for Virginia Health Care Foundation by 10, 15 and 40% over the next three years

•Eliminates funding for Child Advocacy Centers

There are many other areas of concern so I highly recommend you read the entire document. Health and Human Services starts on page 12 of the document. Block Grants could be at risk again but not to panic yet. I am told by the powers that be individual grants are not at risk.