House Budget Update

House Appropriation subcommittees voted on their budgets last week.  Refer to earlier posts for a summary of the proposals.  The full Appropriations committee will consider the budget this week, and the full House will likely vote next week.

Major changes to the HHS budget:

• The most recent version of the HHS budget is online here with the addition of the 3 amendments that are listed here.
• The special provision amending the Medicaid appeals process has been removed.  Only a short provision remains directing DHHS to review the appeals process for adverse Medicaid determinations for recipients to examine whether it conforms with, or exceeds, the requirements of federal law.  This is good news.
• Change in community service funds provision: The provision prohibiting state funded community services for all Medicaid recipients was removed. 
• Eliminated LME administration funding reduction ($10 mil first year, $20 mil second).  We are extremely disappointed that the committe chose to restore the administration funding and not the funding for services.  There is also a new special provision regarding the transition of Utilization Management (UM) of Community-based services to LMEs, directing DHHS to collaborate with LMEs to enhance their administrative capabilities to assume UM for community based MH/DD/SA services.
• The committee made several amendments related to increased savings estimates over their original numbers, including, additional savings from an increased rate of generic drugs, increased savings from the 1915 b/c behavioral health waiver from $3.2 mil to $10.5 mil, and increased CCNC savings from $80 mil to $90 mil in the first year.
• There was a slight decrease in provider rate adjustments, and the addition of CABHAs (Critical Access Behavioral Health Agencies) to the list of providers exempt from the provider rate reduction. 
• There was a smaller reduction to Independent Living (IL) in Vocational Rehabilitation – brought back to Gov’s proposal.
• Dropped Items: special adoption assistance vendor payments, child welfare education collaborative, prioritize senior funding, reduce HCCBG, reduce medical eye program by 12%
• There is a new special provision regarding Child and Family Teams.
• There is a new special provision regarding state-county special assistance in adult care homes.

Educations Appropriations Subcommittee

The subcommittee recommendation still includes cuts across the board for education funding. K-12 education is cut by approximately 8.8% compared to the 2011-2012 Continuation Budget. Community colleges are cut by approximately 10.1% compared to the 2011-2012 Continuation Budget. The UNC System is cut by approximately 15.5% compared to the 2011-2012 Continuation Budget. Of particular interest to Disability Rights NC is language codifying the move of North Carolina’s residential schools from the Department of Health and Human Services to the Department of Public Instruction. The subcommittee also adopted an amendment by Chairman Blackwell that would:

1) Eliminate the position of superintendent for the residential schools from the Department of Public Instruction, instead requiring that one of the directors of the residential schools be designated to serve as superintendent with a salary supplement of $20,000;

2) Allow for the creation of principal positions at each school but deny any additional funding for those positions;

3) Retain the pre-February 8, 2010 residential and instructional schedules, requiring that students be bused to school on Monday mornings instead of Sunday evenings, stay in place; and

4) Prohibit the Department of Public Instruction from closing the residential schools or consolidating their operations unless and until the General Assembly instructs the Department to do so.

Stay tuned for more updates as the budget proceeds.