From: VCDR <[log in to unmask]>

Date: November 20, 2008 5:22:24 PM EST

Subject: VCDR Alert: Next Round of Program Cuts to be Announced Dec. 1

To: VCDR Alert List
From: Deborah Lisi-Baker, VCDR President

Bleak Economic Forecast Leads to New Call for Program Cuts

As we expected, the economic forecast on Nov. 18 was very grim, with a $42 million loss for FY 2009 and potentially twice that for 2010. State agencies have been told to identify 6 percent cuts in their budgets. However, some state administrators say that the immediate cuts could be closer to 12 percent to make up for lost federal match funds and the timing of this reduction.

Agency of Human Services departments have been told to have their suggestions for how to meet these cuts into the Secretary's Office by Monday morning and that the Governor and his administrative staff will be reporting their revised budget on Dec. 1. I expect that both Joint Fiscal and the Health Access Oversight legislative committees will be among the legislative committees considering the impact of this new proposal.

The legislative Joint Fiscal Committee has promised that there will be pubic hearings to get broader input but there is a lot of pressure from the Administration to move before the legislative session. This raises major concerns because the Joint Fiscal Committee is not authorized to make substantive cuts that result in major policy change. In addition, the many outgoing legislators want to make sure that the outgoing legislative committees do not make decisions that should be made by the newly elected Legislature which convenes in January.

Many organizations are asking both the Administration and the Legislature to exercise caution in implementing this next round of cuts and to look for revenue solutions and other efficiencies that will lessen direct service cuts. Even with this approach, the impact of these cuts is likely to radically change Vermont's disability and senior programs and other services that Vermonters depend on.

At its Board of Governors meeting earlier this month, VCDR agreed to advocate for programs that benefit individuals with disabilities: including Medicaid health benefits, developmental services funds, mental health funding, home access funds, EPSDT, the Attendant Services Program, other respite and personal care programs, and funding for peer run programs. We will also be working with the Administration and Legislature for approaches that minimize the effect on essential direct services and rights protection programs.

Many VCDR member organizations and other concerned groups are asking that the decision on budget cuts be taken up by the full General Assembly and not be carried out by a committee of the Legislature. We are also asking for greater public deliberation and for leadership that considers the multiple impact of diverse budget cuts on vulnerable Vermonters. We will let you know as we get more information. Please check our Web site, call us at 223-6140, or e-mail us at [log in to unmask]

Also, share your concerns with your local legislators. Contact information can be found at:

http://www.leg.state.vt.us/legdir/legdir2.htm

Federal Stimulus Package Could Help Reduce State Shortfall

Many Vermonters are calling our Congressional Delegation to ask them NOT TO WAIT TILL JANUARY to take immediate action to change the current federal state match ratio for Medicaid programs. This morning Josh Slen, director of the Office of Vermont Health Access, said that a 4 percent increase in the federal payment for Medicaid could save the state as much as $24 million. This proposal is part of a proposed economic stimulus package now being considered by Congress. The improved match does not solve Vermont's revenue problem, but makes a significant improvement in what is otherwise a very frightening picture.

Your Calls Can Help - Call Now to Ask for Quick Passage of an Improved Medicaid Match Rate

If you want to help advocate for quick passage of the improved federal match rate, please call:
 
Senators Leahy  1-800-642-3193
Senator Sanders  1-800-339-9834
Representative Welch  1-888-605-7270
 
TODAY if possible or as soon as you can.
 
Tell them to vote for increasing the federal match money for Medicaid. This will help reduce service reductions in Vermont's Medicaid programs, including many of the disability and health care services Vermonters depend on.