VCDR Alert
PUBLIC HEARING
Joint Public Hearing on Fiscal Year 2013 state budget on Vermont Interactive Television House and Senate Committees on Appropriations
Monday, February 13, 2012, 4:00 - 6:30 p.m. – The House and Senate Committees on Appropriations will hold a joint public hearing on Vermont Interactive Television (V.I.T.) to give Vermonters throughout the state an opportunity to express their views about the state budget for fiscal year 2013. All 14 V.I.T. sites will be available for the hearing: Bennington, Brattleboro, Castleton, Johnson, Lyndonville, Middlebury, Montpelier, Newport, Randolph Center, Rutland, Springfield, St. Albans, White River Junction and Williston. V.I.T.'s web site has an up-to-date location listing, including driving directions, addresses and telephone numbers, http://www.vitlink.org/
For the first time, the budget hearing will be VIEWABLE via the Internet if your computer has flash-based streaming capabilities. Go to www.vtlink.org/streamingmedia/vtcvitopen.php
Some mobile devices may require additional software.
The Governor’s budget proposal can be viewed at the Department of
Finance’s website: http://finance.vermont.gov/state_budget/rec
For information about the format of this event or to submit written testimony, call the House Appropriations Committee office at 802/828-5767 or email tutton@leg.state.vt.us Requests for interpreters should be made to the office by 12:00 noon on Monday, January 30, 2012.
The Governor gave his Budget Address on January 12, 2012. The budget GAP is less than it has been in previous years ($52 million). Although the FY 2013 budget proposal has been characterized as avoiding “further reductions in programs”, this will be the 5th year of budgets that are based on the revenues available with no new taxes (revenues) proposed, while trying to “balance” the increased needs.
From the Vermont Digger article of January 12th:
“The proposal, which will be vetted by lawmakers, appears to sidestep further reductions to state programs, and for the first time since 2009, the state is reinstating 30 classified jobs.
Shumlin told lawmakers on Thursday that his budget makes the “necessary choices to match our spending with Vermonters’ ability to pay.”
“Last year, we made tough choices to close a $176 million gap,” Shumlin said. “Today, I present a budget that closes a $51 million shortfall without raising broad-based taxes on hardworking Vermonters who continue to struggle to make ends meet.”
http://vtdigger.org/2012/01/12/shumlin-proposes-tight-budget-no-new-income-gas-or-sales-taxes/
Here are some links to the Administration’s Finance and Management pages that has some of the Proposed 2013 Budget Documents. http://finance.vermont.gov/state_budget/rec
Agency secretaries and department commissioners will begin to testify this week in House Appropriation on the individual Budgets with additional financial details and narratives (language) with specific program funding and reasoning. VCDR will publish those as they become available
Agency of Human Services Spreadsheets:
House and Senate Appropriations Chairs Are asking the administration to address these questions in their presenting of the Governor’s proposed 2013 budget, looking ahead to present their budgets by FY 2015 in a “Results-Based Program format. http://www.leg.state.vt.us/JFO/appropriations/fy_2013/FY13%20Budget%20Presentation%20Letter%20from%20Approps%20Chairs.pdf
BUDGET
Agency of Human Services Budget Testimony in House Appropriations and House Human Services
Here are some links and attached documents from the agency of Human Services FY 2013 proposed budget. The Secretary of Human Services, Doug Racine, has testified in House Appropriations and House Human Services. There is a link to his written testimony and there are some excerpts from that testimony below that gives a good summary of Reductions and Increases proposed.
AHS Commissioners and department heads have testified in House Appropriations and Human Services as well and links to their individual department are here along with some selected highlights.
The entire FY 2013 proposed budgets and documents can be found on the Joint Fiscal Office website and on the Finances and Management webpage and on the Individual department websites.
Also attached is a letter from the Appropriation Chairs to the Secretary of Administration and the Agency & Department heads on how they want they budgets to be presented, questions they are asking and indicating that this 2013 budget is the first year of the transition to the new "Results Based Budgeting" they are moving towards by 2015.
Agency Department Individual Budget documents:
http://www.leg.state.vt.us/jfo/budget_fy2013_agencies.aspx
Finance and Management: http://finance.vermont.gov/state_budget/rec
Excerpts from Secretary Racine’s Overview Testimony in House Appropriations:
AHS is the largest agency in state government with a gross budget of over $2 Billion and 3,379 employees proposed for FY’13.
The Agency is heavily dependent on Federal Funds. Federal funds compose over 53% of AHS programs when adjusted for the Global Commitment Funding that flows twice through the AHS appropriations. Excluding Corrections, Federal funds are 57% with General Funds covering only 23%. The Department of Corrections utilizes 23% of all AHS General Funds.
The AHS 2013 Governor’s Budget request reflects the priorities to provide support for the state’s safety net programs and the people who depend on them. AHS’s 2013 budget request is 6.0% higher than our 2012 appropriated budget in total and 5.9% in General Fund.
That said, the 5.9% increase in GF is primarily related to following changes:
• Replace lost federal funds $20.5M (FMAP change Title XIX $19.4M; Title IV-E and Other $1.1M)
• Replace declining tobacco settlement funds $6.0M
• Replace FY 2012 one-time funds $32.1M
• Use one-time funds in FY 2013 build -$20.0M
Absent the above changes the AHS 2013 GF budget would have decreased by -1.2%
Expenditure Reductions
• AHS Central Office
_ Vermont Legal Aid Grant (AHS CO) 100K gross - $35K GF (4% of AHS total funding)
• Department for Children and Families
_ Post-Secondary Education grants – Champlain and CCV (eliminated 50% in FY11) $150K
_ Treat SSI income comparable to SSA Income for TANF families -$927K
_ Not replace loss of Federal funding to UVM - $40K
• Disabilities, Aging and Independent Living
_ Not pay for some DS services while recipient is hospitalized -825K gross
_ Nursing home utilization not reinvested -2.8M Gross
_ Case Management services for some Choices For Care recipients -780K gross
• DVHA
_ Managing High Risk pregnancies, substance abuse services more intently
_ Pharmacy – limit 1st fills, other process changes
_ Clinical Utilization Review Board and Utilization Review increased scrutiny/review
_ Transportation changes to comply with CMS expectations
_ Restructured reimbursement rate for multiple ultrasounds
_ Medicaid Insurance Companies cross check
_ DVHA – restructure co-pays to comply with CMS regulations pertaining to maximum out of pocket @ 5%
_ Expand Vermont Chronic Care Initiatives
_ Concurrent Reviews on inpatient stays with providers
• Expenditure Increases
• Positions -_ 4 above -- BAA for DVHA for VCCI expansion
_ 1 housing grants coordinator with DOC
_ VSH staff reductions as new services come on line.
_ DOC continue to convert long term temps to classified (16)
• DOC continue investments in transitional housing
• Funded consensus caseload for Health Care Medicaid Eligibility Groups
• Funded current provider capacity for Methadone $636k gross
• Positions and increases for several new Federal Grants moving through AA-1 and several that have been approved
• Hospital Rates $3.7M gross
• Nursing Home Rates $3.4M gross
• STARS $1.6M GF
• DCF child development caseload increase $496K GF
• Foster Care USDA inflationary increase $76K GF
Other Items of Note
• Information Technology challenges
• Reduced the level, not eliminate, the use of one time funds used to build base budget
• Adjusted VDH funding to reflect increased federal earnings
• DMH / VSH – major changes that will be discussed during the session.
• No increases/inflation for almost all providers (exceptions: nursing homes, foster care, child care
– STARS)
Secretary Racine’s Testimony:
http://humanservices.vermont.gov/2013-budget/2013-budget-talking-pts-for-doug-r-hac
AHS Spreadsheet Aps & Downs Overview Secretary's Office:
http://humanservices.vermont.gov/2013-budget/ahs-sfy-13-ups-and-downs
The Central office of the secretary proposes a $100,000 cut to Vermont Legal Aid services to the poor and low income. ($35,000 GF)
VLA has been trying to cope with 30% increase in requests for help, while being level-funded by AHS, and provide a modest increase in funding.
The proposed cut is an 8% decrease in the overall grant amount; but it represents a 17% cut in state support for general legal services to poor, elderly and disabled Vermonters.
Because VLA’s state grant requires them to first represent those involved in involuntary medication and commitment proceedings, and those clients with developmental disabilities facing annual review proceedings, all of the proposed cut will come from the general legal services VLA provides to low-income Vermonters.
Department of Aging and Independent Living
DAIL: http://dail.vermont.gov/dail-publications/dail-budget-testimony
The Ups and Downs and explanations of the Budget are on pages 7-10
Change in reimbursement policy to hospital stays for people in in DS HCBS (Home and Community Based). This would be a reduction by stopping payments for services while a person is being hospitalized.
The estimate for savings is about $825,000 dollars if all services were curtailed, but they are proposing to continue payments to the home provider service coordinator. This would result in a reduction of $475,000. half.
Two cuts proposed to case management in the Choices for Care:
Elimination of external case management in enhanced residential care homes and shifting case management reimbursement from an hourly rate to a case rate cap of $110. This reduction could total over $800,000 in funding for vulnerable adults and family caregivers.
Department of Children and Families
DCF:
http://dcf.vermont.gov/sites/dcf/files/pdf/reports/DCF%20SFY13.pdf
http://dcf.vermont.gov/sites/dcf/files/pdf/reports/BDS%20NARRATIVE%20SSFY13.pdf
The department is proposing that beginning in July they would treat SSI and SSDI Reach Up (RU) recipients the same and count their income when determining their RU grant. Currently they determine RU benefits we do not include SSI income but do count SSDI income.
This policy would apply only to new enrollees and would be a reduction in grants totaling $927,000. A number of people testified to this in House Human Services. See a letter (attached) from Vermont Legal aid on this cut
Department of Vermont Health Access
DVHA:
http://dvha.vermont.gov/budget-legislative/dvha-budget-sfy-2013-02-06-12.pdf
The DVHA budget is 83 pages long. Page 81gives you the totals of what was spent in FY 2012 in different program areas and what the Governor is proposing for FY 2013. It appears that there are caseload increases in most areas, but not all.
There is a delay proposed in the implementation of the Medicaid Autism
(10 million)
Health Department
VDH:
http://healthvermont.gov/admin/legislature/documents/FY13_proposed_budget_vdh.pdf
Department of Mental Health
DMV:
http://mentalhealth.vermont.gov/sites/dmh/files/report/DMH_FY_13_FINAL_Budget_Narrative.pdf
Mental Health and the State Hospital has been the subject of a separate bill. The House of Representatives, passed the Governor’s mental health plan in the form of H.630 an act relating to reforming Vermont’s mental health system with a large majority.
The bill is reflective of the Governor’s proposed plan. H.630 calls for a 25 bed facility when the Governor’s plan calls for a 16-bed state owned and operated facility in central Vermont that could be expanded to 25 beds.
There could be a risk to Medicaid funding in a 25 bed facility due to the IMD exclusion, which would increase operating costs by approximately $9 million per year. The House Appropriations Committee and the Administration have both discussed the potential that $9 million could come out of the community mental health system.
Department of Corrections
DOC: http://www.doc.state.vt.us/about/reports/department-of-corrections-budget-documents/sfy-2013-governor2019s-budget
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