Budget Update

This budget has been balanced through deep cuts to state programs. These include very important programs like hazardous waste disposal oversight, which would assure that toxic waste sites are cleaned safely and honestly.  Funding was cut for the Hinton State Laboratory, which is responsible for responding to public health emergencies and the identification and control of tuberculosis, botulism, mosquito-borne diseases, rabies, and other diseases.  Senator Donnelly filed amendments to increase funding to these two important programs, but they were ultimately rejected by the Senate.

The Senate budget worked to balance the two somewhat opposing tasks of cutting costs while maintaining essential services that our residents rely on. Some programs that serve our neediest citizens were restored or even saw a very slight increase, which the Senator supported.  

Many constituents contacted Senator Donnelly in support of the Senate version of the Municipal Health Care Proposal.  The bill, as amended by the Governor, provides protections for retirees and heavy users of health care services while giving cities and towns tools to slow their rising cost of health insurance.  The amendments put back important clarifications and protections that were included in the Senate language.

While there are protections in place and a greater share of the savings will go toward mitigating the increase in co-pays, deductibles, and other cost sharing options for subscribers, it is still a cost shift.  The Senate must do the hard work of reining in health care costs so health care is both accessible and affordable.  The Senate is committed to taking on this important issue, and Senator Donnelly hopes that you will share any thoughts you have on ways to reach this goal.

Protecting retirees and heavy users of health services as part of Municipal Healthcare Reform was one of Senator Donnelly’s major priorities; however there were a number of other areas in the budget that were of concern as well.  Senator Donnelly paid particular attention to the following:

•    SPED circuit breaker:  $213 million for special education circuit breaker funding, an increase of $80 million over FY11 funding levels.  The SPED circuit breaker provides funding to school districts that need assistance in paying for special education programs.  
•    Mental Health In-Patient Beds:  Full funding of $146.7 million for the state’s inpatient mental health beds, club houses and mental health community services.  The Governor and the House initially proposed cutting this fund by $18 million, which would have eliminated 160 in- patient treatment beds.  There was no alternative placement for patients that need these beds; the full funding of this account has prevented the displacement of patients.  
•    Early Intervention Program:  Full funding of $31 million for the Early Intervention program that addresses developmental delays in children up to the age of 3.  The Senate voted to fully fund this account, which reflects an increase of $8 million more than what the House and the Governor proposed.  
•    Elder Home Services:  $97.79 million to fund elder home care services, which provides elders with respite and other services, and allows them to stay in the comfort of their homes.  This funding also ensures that elders aren’t placed on waiting lists for services for extensive periods, and saves money by keeping them out of nursing homes.  
•    Adult Day Health Services:  $2.5 billion for Adult Day Health Services, which helps to meet the physical, social, and functional needs of elderly and adult disabled persons.  

Senator Donnelly also filed an amendment to the budget that would have increased funding to the Workforce Competitiveness Trust Fund, but the amendment was rejected.  This fund provides the primary source of funding for the “Middle Skills” [LINK THIS] bill that Senator Donnelly sponsored, which would promote and support activities and programs for people that seek jobs that require more than a high school diploma, but less than a 4-year college degree.  Senator Donnelly will continue to work with my colleagues to secure funding for the Workforce Competitiveness Trust Fund, as well as for hazardous waste disposal oversight and the Hinton State Laboratory.

The FY2012 budget ends the year with a stabilization fund balance that exceeds $800 million, an amount greater than the stabilization fund balance entering FY11.  The budget plan also marks the smallest year-to-year spending increase in the past decade, creating a spending plan based on transparency, accountability, and performance.

Legislators had to balance a budget without $1.5 billion in federal stimulus relief funding this year, and were faced with resolving the most difficult budget since the economy collapsed in 2008.  The Senate worked to preserve services for the neediest citizens in the Commonwealth, while targeting programs aimed to provide financial assistance to education initiatives, municipalities and families.

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