2005 Legislative Session:
Another Budget Deficit
by Anne
L. Henry
Minnesota Disability Law Center
The state budget
deficit for the next biennium worsened with the announcement that
the November Revenue Forecast shows a shortfall of $700 million,
$1.4 billion counting inflation, for the next biennium. The budget
deficit is much higher than the $300 million deficit projected
last February. Because the Governor has recently stated that Minnesota
has a “health care spending problem,” services
for persons with disabilities may be especially at risk.
The spotlight is definitely on the Department of Human Services
with a growth rate from this biennium to the next biennium of 19.9
percent. There are a number of areas where disability services are
expected to grow, including the number of people eligible for Medical
Assistance due to disability and increases in the disability home
and community waiver programs. In addition, health care costs are
going up for everyone across the nation, an average of 11.6 percent
last year.
The new state budget deficit is even more troubling when one considers
that painful cuts made during 2003 to close a $4.5 billion deficit
have yet to be remedied because the Legislature did not pass a supplemental
budget bill before adjournment last spring. Although both the House
and the Senate passed a variety of proposals to reduce the harsh
impact of the 2003 cuts such as co-payments, the $500 limit on dental
care for adults on Medical Assistance and the sharp increase in parent
fees, making progress on these matters during the 2005 Session is
made much more difficult by the increased budget deficit.
During the 2003
Session, the Legislature eliminated all new waiver slots for persons
with developmental disabilities using the MR/RC waiver and limited
caseload growth for those who would otherwise be in a nursing home
under the 65 years of age (CADI) to 95 new people a month and the
waiver for those with traumatic brain injury (TBI) to 150 per year.
The November 2004 forecast does project significant increases for
these programs because the caseload limits are not in effect for
the 2006-07 biennium. However, because increases are projected,
the waiver programs are particularly vulnerable to be targeted
for cuts in the Governor’s 2006-07 budget, which is
expected in late January. Every increase in health care spending
is at risk because of the Governor’s position of “no
new taxes” and his commitment to increase funding for education.
The money has to come from somewhere; the state constitution requires
a balanced budget.
Nonetheless,
disability groups are organizing to propose a comprehensive package
of changes to improve Minnesota’s policies and services
for persons with disabilities as Joel Ulland reported last month
on these pages. The issue of raising taxes is being discussed by
groups as divergent as the Chamber of Commerce, the Minnesota Medical
Association and the Minnesota Council of Nonprofits. Because of Minnesota’s
dire revenue picture, any increases in spending will undoubtedly
lead to discussions of increases in revenue: taxes.
Persons with disabilities can stay connected to action at the Legislature
by involvement with a disability advocacy group with an Action Alert
capacity such as the Consortium for Citizens with Disabilities, the
Arc of Minnesota, and National Alliance for the Mentally Ill-Minnesota,
Multiple Sclerosis and PACER. Information about these organizations
can be found at:
www.c-c-d.org;
www.arcminnesota.com; www.mn.nami.org; www.nationalmssociety.org;
www.pacer.org.
Because of the many cuts to health and human services needed by
persons with disabilities during the 2003 Session, failure to pass
a budget bill during 2004 and the daunting shortfall facing the 2005
Legislature, it is vitally important that persons with disabilities
using publicly-funded services in Minnesota personally meet their
state representative and state senator and keep in close contact
with them during the 2005 Session. Information about your legislators
and how to contact them can be found at www.leg.state.mn.us.
