State Budget Developments: A Legislative Update from Austin Presentation to St. Luke

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State Budget Developments A Legislative Update
from Austin Presentation to St. Lukes Episcopal
Health Charities Eva De Luna Castro, Analyst,
deluna.castro_at_cppp.org Janet Hutchison,
Development Specialist, hutchison_at_cppp.org
April 22, 2004
900 Lydia Street, Austin, Texas, 78702 (512)
320-0222
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Presentation Outline

• First, some CPPP information
• Update on Effect of State HHS Consolidation on
  State Agencies and on Providers
• Budget Impact by Program at State and Local Level

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CPPP Activities
Workforce Economic Development
State Budget Taxes
Income/ Support
Child Well-Being
Hunger Nutrition
Health Care
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Mark Your Calendars May 13-14

• Facts the Future
• The William P. Hobby Policy Conference
• Doubletree Hotel Austin, 6500 N. IH-35
• Featuring Addresses By Former Lt. Governor Bill
  Hobby, Texas Comptroller Carole Keeton Strayhorn,
  State Demographer Dr. Steve Murdock

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Where We Are in the State Budget Cycle
June to August Strategic Plans and Budget
Requests Due Budget Hearings Held
April to June Instructions for Agency Budget
Requests Issued
Even Years Two-Year Cycle Odd Years
Throughout the biennium quarterly performance
reports due
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State Budget, 2004-05 Biennium
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State Budget, Fiscal 2004
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Where the GR Is, by Agency
2004-2005 GR Budget Percent of All GR
Texas Education Agency 20.7 billion 35
Health and Human Services Commission 7.4 billion 13
Dept. of Criminal Justice 4.6 billion 8
Teacher Retirement System 3.9 billion 7
Department of Human Services 3.3 billion 6
State worker retirement and health insurance 2.6 billion 4
Mental Health and Mental Retardation 2.1 billion 4
Higher Education Coordinating Board 675 million 1.1
Family and Protective Services (formerly PRS) 483 million 0.8
University of Texas at Austin 483 million 0.8
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Major HHS Agencies and Programs Affected by

• House Bill 1 General Appropriations Act for
  2004-05 (charts later in this presentation show
  budgeted outcomes)
• House Bill 2292 Cut 1 billion in General
  Revenue out of Medicaid, CHIP, and other HHS
  programs reorganized HHS agencies
• Federal budget decisions 2005 has not yet been
  decided by Congress
• School Finance Session Governors proposal
  limits future uses of General Revenue for HHS
  other non-K-12 needs limits ability of local
  governments to make up for state cuts

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HHS Reorganization Update
February 1, 2004 Department of Family and
Protective Services is launched March 1
Department of Assistive and Rehabilitative
Services is launched September 1 Departments of
State Health Services and of Aging and Disability
Services will begin operating Other Eligibility
determination (for cash welfare, Food Stamps,
Medicaid) moves to Health and Human Services
Commission, along with Nutritional Services and
Family Violence programs. HHSC also responsible
for centralized administrative services, HHS
program policy, and interagency initiatives.
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Post-Consolidation Org. Chart
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Whats in the New Agencies?
Department of Family and Protective Services
Everything that was overseen by Protective and
Regulatory Services (child abuse and neglect
investigations, foster care and adoption
payments, at-risk prevention and intervention
programs, adult protective services, child care
licensing and regulation, MHMR investigations) Dep
artment of Assistive and Rehabilitative Services
everything that was at the Rehabilitation
Commission, Commission for the Blind, Commission
for the Deaf and Hard of Hearing, and Interagency
Council on Early Childhood Intervention Department
of State Health Services programs provided by
the Department of Health, the Commission on
Alcohol and Drug Abuse, and the Health Care
Information Council, and mental health community
services and state hospitals run by the Dept. of
Mental Health and Mental Retardation
(MHMR) Department of Aging and Disability
Services mental retardation and state schools
run by MHMR, community care and nursing home
services at the Department of Human Services, and
services of the Department of Aging
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What Does this Mean for Providers?

• Many contractors and vendors will now only have
  to deal with HHSC (because of consolidation of
  leasing/facilities management, legal services,
  human resources, purchasing, information
  resources management, financial management, and
  other admin. functions).
• Some providers may have to work with MORE
  agencies (for example, a provider helping people
  who have mental retardation AND mental illness
  now works with MHMR, but in the future may have
  to deal with DADS and DSHS).
• Consolidation of central administrative functions
  is supposed to result in 716 fewer employees by
  the end of fiscal 2005, saving the state almost
  46 million in General Revenue.
• Not a lot of information yet on what will happen
  to staffing at local offices outcome depends on
  decisions about call centers (eligibility
  determination).

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Medicaid Acute Care after HB 2292 and other
State Budget Cuts
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Medicaid Caseloads, by Client Category
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Long-Term Care Clientele
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Community Care, by Program
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HB 2292 Policy Changes Also Cut CHIP
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CHIP Enrollment Down 25 Statewide
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Public Health Programs at TDH
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More TDH Programs (moving to HHSC)
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More Public Health Program Cuts
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More Responsibilities for Locals, Less
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Community MH Services for Adults, Children
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Services for Texans with Mental Retardation
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Services for Neglected/Abused Children
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Services for Neglected/Abused Elderly
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Child Care Less Help for Working Poor
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Cash Assistance Will be Even Scarcer
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Nutrition Programs Will Grow, But Theres Still a
Large Unmet Need
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Even Before Cuts, Texas was Low-Spending
50-State Ranking 11th 47th 31st
34th 13th 15th 35th 41st 21st 36th 41st 38th
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Budget Impact Stories Needed!

• CPPPs web site (at http//www.cppp.org/stories.ht
  ml) is collecting information about the impact of
  state budget cuts and policy changes made during
  the 78th Legislature.
• We are interested in hearing about the impact
  of budget decisions at all levels, from
  individuals to businesses/organizations to units
  of government. Social service agencies advocacy
  organizations schools and teachers hospitals
  and clinics agency caseworkers Medicaid, CHIP,
  TANF, or Food Stamps recipients city or county
  government officials non-profit leaders and
  anyone else who was affected are all encouraged
  to participate.
• If you have a personal story or a report to
  share about how 2004-05 state budget decisions
  have changed your life, your work, your
  organization, or your community, please use the
  online form.

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HHS Budget Updates

• Early April 2004 HHSC reports higher-than-budgete
  d costs in Medicaid and CHIP (vendor drugs)
  shortfall of 582 million?
• Comptroller urging restorations to CHIP. Unused
  funds 583 million (April 13th estimate)
• Leadership so far has been reluctant to undo HHS
  and other budget cuts, arguing that unspent funds
  may be needed for Medicaid or other shortfalls
  that develop before January 2005

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Governors Goals for Special Session on K-12
Finance

• Eliminate Robin Hood system that redistributes
  local property tax revenue and benefits 88 of
  Texas school children
• Lower school property taxes and limit the ability
  of other local governments (counties, cities,
  hospitals, special districts) to raise property
  taxes in the future
• Make some small changes to state/local funding
  for K-12 (cigarette tax increase, new tax on
  adult entertainment, revenue from video slot
  machines, business school property taxes
  considered state rather than local revenue,
  etc.), but nothing that will significantly
  increase what Texas spends on K-12 or any other
  public service

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Contacting State Officials
Governor Rick Perry (www.governor.state.tx.us)
Citizen's Opinion Hotline [phone] Fax
[phone] Office of the Governor, P.O. Box
12428, Austin, Texas 78711-2428 Lieutenant
Governor David Dewhurst (P.O. Box 12068, Austin,
TX 78711) Speaker of the House Tom Craddick (P.
O. Box 2910, Austin, TX 78768) Your Own
Legislators Representative (P. O. Box 2910,
Austin, TX 78768) and Senator (P.O. Box 12068,
Austin, TX 78711) Other Members of the
LBB Senator Steve Ogden Representative
Talmadge Heflin Senator Robert Duncan
Representative Brian McCall Senator John
Whitmire Representative Fred Hill Senator
Judith Zaffirini Representative Vilma
Luna Health and Human Service Chairs of Budget
Committees Senator Jane Nelson, HHS Workgroup
Chair, Senate Finance Committee Representative
John Davis, HHS Subcommittee Chair, House
Appropriations Committee (see www.capitol.state.tx
.us for more contact info and Who Represents
Me? search engine)
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More Reorganization and State Budget-Related
Information

• www.hhsc.state.tx.us/Consolidation/Consl_home.html
  (Health and Human Services Commission webpage on
  HHS Transformation)
• www.lbb.state.tx.us (Fiscal Size Up 2004-05
  Texas Budget Source Federal Funds Watch
  appropriations act)
• www.cppp.org (William P. Hobby Conference, May
  13-14 Policy Page subscriptions, policy briefs,
  presentations, and other reports)