As usual the FY19 Proposed Budget Summary leaked this morning. I outlined some of the topline issues. I am headed down to listen to the budget address and the department’s detailed presentations. If you have any specific line items not listened below, let me know and I can ask about them. More to follow later today or tomorrow. Thanks! Meg
Here is the FY19 summary of the Governor’s Proposed Budget.
FY19 Recommended Budget
The governor’s FY19 budget proposal includes a revenue estimate of $37.9 billion, a spending level of $37.6
billion GRF and an estimated budget surplus of $350 million. However; many of the governor’s proposed
savings measures would require legislative action or implementation of an employee contract in order to
actually achieve the savings.
Some highlights impacting people with disabilities:
- The governor’s recommended FY 19 budget for Developmental Disability Grants is $1.3 billion GRF.
This represents an increase of $33.2 million compared to the FY 18 appropriation. This is due to:
- $31.0 million increase for DSP staff to receive $0.50 pay increase
- About 700 placements for individuals off of the PUNS waitlist (normally 500 per year)
- Cost shifts to OSF
- DD Grants (The Autism Program, Life Span, Epilepsy, Best Buddies and others) funded with a 5-8% cut
- The governor’s recommended FY 19 budget for the Home Services Program is $327.1 million GRF,
which represents a decrease of $52.4 million compared to the FY 18 appropriation.
- The Administration did not use the $12.7 million appropriated for pay increases.
- OMB states that the decrease also represents a shift of funding to MCOs for providing these
Medicaid – The Governor’s FY 19 introduced budget recommendation for Medical Assistance includes $22.8 billion All Funds. This represents an increase of $1.0 billion All Funds from the FY 2018 enacted appropriation of $21.7 billion All Funds. However, HFS has requested a $494 million FY 18 supplemental and if enacted in
FY18 the increase would total $506.0 million.
Reductions to Medicaid
The introduced budget includes a 4% rate cut to providers, totaling $150.0 million. This rate cut actually
represents a 2% cut but will not be implemented for the first 6 months of FY 19. This rate cut will not affect
providers protected by federal guidelines, including drug reimbursement, FQHC and Medicare costs.
The introduced budget discontinues rate increases included in P.A. 100-23 (BIMP). Removing these rate
increases requires legislative action. This includes the following:
- Personal Needs Allowance (PNA) increase for patients at Specialized Mental Health Rehabilitation Facilities (SMHRFs) from $30 per month to $60 per month—totaling $4 million annually
- PNA increase for patients at Supportive Living Facilities (SLF) from $30 per month to $60 per month—totaling $4 million annually
The Governor also proposes lowering the income tax from 4.95% to 4.7%.
According to the document, in FY18, due to decreased revenues, the Governor implemented $156 million in budget reductions and $875 million in interfund borrowing to reduce the budget deficit to $590 million. The current backlog of unpaid bills in $8.8 billion. The Governor is asking for a $1.2 billion supplemental.
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