[NYAPRS Enews] NYAPRS NYS Budget Report: No COLA, No Cuts to Safety Net

[Harvey Rosenthal]

cid:image001.jpg at 01C95F73.A15A0980              STATE BUDGET REPORT

 

To:         NYAPRS Members and Friends                     December 16,
2008

From:     Harvey Rosenthal          Matt Canuteson      

 

Re:         First Look at Proposed NYS 2008-9 State Budget: 

No COLA, No Cuts to the Mental Health Safety Net;

              Deferral of Housing Hike, Slowdown in Housing Development;


              Closure, Consolidation, Reconfiguration of State
Facilities; 

              Cuts to Continuing Day Treatment

              Increases for Peer, Children's and PROS Services

              $6 Million to Improve Employment Services for NYers w
Disabilities

 

Following is a first analysis (quoted materials are taken directly from
official state budget documents). 

 

No Community COLA, No Cuts to the Mental Health Safety Net

The Cost of Living Adjustment previously committed to OMH community
providers will be deferred for the next 5 quarters (1% cut from the 3.2%
for the last quarter of this fiscal year at $9 million) and all of next
year's ($56.5 million). 

At the same time, there are NO additional cuts to the grant funded
community mental health support services that received two previous cuts
earlier this year, a great win for NYAPRS and our colleagues in the
mental health advocacy community.

According to the budget, "a COLA is still planned for 2010-11 and
2011-12, and the Budget recommends extending the COLA for a third year
in 2012-13."

 

No State Workforce COLA

"Implement Salary Deferral. Defer 5 days of salary payments in 2009-10
until an employee leaves state service or the fiscal crisis is declared
to be ended (whichever comes first). At such time, employees will be
entitled to a lump sum payment based upon the rate of basic annual
salary then in effect. In no event will the lump sum payment be less
than the amount of salary originally withheld. A 5-day salary deferral
was previously implemented during the 1990-91 fiscal crisis. (2009-10
Savings: $121 million; 2010-11 savings: $0) 

Eliminate Scheduled 2009-10 Salary Increases. Eliminate salary increases
scheduled for 2009-10. These increases were negotiated during better
fiscal times. Even after this action, over the four-year life of their
contract most workers would still receive a salary increase of 10
percent (3 percent in 2007-08, 3 percent in 2008-09, 4 percent in
2010-11). (2009-10 Savings: $180 million; 2010-11 Savings: $180
million)." 

 

Deferral of Housing Hike, Slowdown in Housing Development

OMH will be directed to "freeze the Community Residential Pipeline by
halting new planned construction while maintaining the State's
commitment to New York/New York III bed development ($6 million
savings).

Also, OMH will be deferring the previously committed 8% base increase
for community residences to future years. 

 

Closure, Consolidation, Reconfiguration of State Facilities

"OMH will close a total of 450 adult inpatient beds (11 percent of
capacity), shifting the staffing resources associated with 150 beds to
less costly and more appropriate community programs, and converting 300
adult inpatient beds to a less staffing intensive outpatient residential
level of care, called the "Transitional Placement Program" which would
provide supports to transition individuals to community care, saving an
estimated $6.1 million in 2009-10 and reducing FTEs by 153. 

Additionally, aggressive controls on hiring and non-personal service
costs will save another $10.1 million

 

Sex Offender Management Treatment Program Reconfiguration

"OMH will reduce staffing levels from its current staffing model (2.0:1
staffing ratio) to standards used in civil confinement programs in other
states (1.5:1), reducing costs from $225,000 per bed annually to
$175,000 (22 percent reduction). The recommendation also lowers costs by
allowing respondents to remain in DOCS custody during the pendency of
court proceedings; and permits video-teleconferencing of certain
judicial hearings to reduce transportation and staffing costs. Combined,
these efforts will generate $11.7 million of savings in 2009-10 and
reduce FTEs by 179."

 

Cuts to Continuing Day Treatment

A total of $6 million in savings from CDT will be reallocated to provide
more appropriate community service and support alternatives. 

 

Increases for Peer, Children's and PROS Services

Peer Services Enhancement. OMH will establish a peer support center to
promote and improve access to peer-run organizations. $700,000

PROS Enhancement. Annualize $1.3 Million Add to PROS to pay for
employment and other non-Medicaid reimbursable components. 

Implement the Comprehensive Children's Plan. Move forward with the
implementation of a Comprehensive Children's Plan. Working with eight
child-serving state agencies, the plan is designed to improve access to
services and support best practices models of successful collaboration
and service delivery. The Office of Mental Health component of the plan
includes: expanding youth involvement in service delivery; enhancing
parent education; improving the identification and treatment of
emotional disturbances in children; and increasing the integration of
service systems. (2009-10 Cost: $1.7 million; 2010-11 Cost: $3.0
million.)

 

Clinic Rate Hike, 4 Yr Delay of Social Work Licensing Requirements 

The budget includes roughly $5 million in previously committed mental
health clinic rate increases while deferring for 4 years guidelines
which would have restricted reimbursable clinic practice to LCWSs only.


 

3 Year Deferral of SHU Bill Provisions to 2014

"The Executive Budget recommends a 3 year delay in the implementation of
the Special Housing Units bill while an assessment of the
impacts/effectiveness of the recently added programs serving this
population, including enhanced counseling, special treatment beds, and a
new Residential Mental Health Unit, is conducted, saving $8.6 million in
2009-10 and reducing planned FTEs by 86; and $2.8 million of savings
from slower than expected spending for other forensic services."

OMH: Additionally, the budget would delay for 3 years significant
statutory investments beyond those mandated by a legal settlement with
Disability Advocates, Inc. (DAI) concerning mental health services in
prison ($11.4 million). The DAI settlement already requires additional
funding for special treatment beds, transitional intermediate care beds,
and a residential mental health unit (RMHU). The SHU law currently
requires construction of additional RMHU facilities, more training, and
additional assessments in more facilities. Postponing the effective date
of the SHU law would allow additional time to determine the
effectiveness of the programs and funding associated with the DAI
settlement before expansion of these new services. Postpones hiring 86
new staff. (2009-10 Savings: $23 million; 2010-11 Savings: $33 million)

DOCS: While nearly all of the provisions of this bill are proposed to be
delayed until July 1, 2014, the Department will remain in compliance
with a Private Settlement Agreement that DOCS and the Office of Mental
Health reached with Disability Advocates, Inc. in April 2007. Delaying
the effective date of the bill will allow for an evaluation of the
effectiveness of the new Residential Mental Health Unit, located on the
grounds of the Marcy Correctional Facility, as well the magnitude of any
additional capacity needs to fully implement this new program. It is
also recommended that the provisions be limited to facilities that house
inmates with the greatest mental health needs and the training
requirements for the Department's staff be amended.

CQC: The Commission will utilize 6 staff (instead of the 14 initially
authorized in 2008-09) to implement its responsibilities at a cost of
$0.5 million versus $1.0 million previously planned, and will issue
their findings in their annual agency report.

 

$6 Million to Improve Employment Services for NYers w Disabilities

An outgrowth of the Campaign for Employment of New Yorkers with
Psychiatric Disabilities led by NYAPRS, the budget includes reference to
the $6 million Medicaid Infrastructure Grant awarded to New York and
overseen by OMH in conjunction with other disability agencies. 

 

Medicaid: Cuts to Hospitals, Adult Home Resident $; Antidepressants
Added to Medicaid Preferred Drug Program

*         Once again, access restrictions to antidepressants via the
state's Medicaid Preferred Drug Program is proposed. 

*         The budget also includes major cuts to hospital reimbursements
rates that will certainly impact length of stays in the psychiatric
units of Article 28 hospitals for individuals with psychiatric
disabilities

*         Also, previously proposed reductions in QUIP and ENABLE
programs aiding adult home residents with psychiatric disabilities are
in this budget. 

 

SUMMARY 

 

In the wake of the worst financial crisis since the Great Depression, we
are gratified that no CSP cuts are proposed in this budget and that
increases for employment, peer services, PROS and children's services
are included.  

We owe a great debt of thanks to the Paterson Administration and to OMH
for responding to our often stated previous calls for protection for the
safety net, fairness in cuts and COLA reductions and for a budget
environment that favors community services over institutions. 

NYAPRS members need to be poised to defend this position, which could
erode if restorations are made to other areas of the budget (most
notably, education, health or the state workforce) which could send the
budget cutters back to our sphere.

The Mental Health Community is working together and will be identifying
our priorities over the next few weeks in anticipation of the return of
the Legislature in early January.

Nonetheless, the loss of a COLA will have a difficult impact on our
mental health and disability community, as will the ultimate impact of
Medicaid and other cuts in other areas. We will have to be vigilant in
monitoring all of these and urge our members to keep us fully informed
with details of the impact on the ground of the threats and challenges
that lay ahead. 

NYAPRS is committed to working with our colleague mental health and
disability advocates to focus our advocacy to work with the
Administration and, soon, the Legislature, to protect and promote our
respective shared positions. 

 

We will need an 'all hands on deck' level of attendance at this year's
NYAPRS Legislative Day this January 27th at the Egg in Albany to make
sure our interests are well seen, heard and appreciated. You can bet a
diversity of groups will be massing to Albany in the coming months and
we must be sure that our mental health and disability community takes
its appropriate place.

 

Stay tuned for more details!

              

 

 

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