April 28, 2003 Senate Budget Draft

Directors, NCSSA, NCACBSS,


Well, the Senate is cranking out a budget, just under the wire before the April figures come back. Estimates are that when those April numbers come in it could range from $100 million- $300 million in the hole! There are significant differences in the current Senate version and the House budget that passed. Once the Senate budget passes (scheduled for Wed), the House will reject the Senate version and the budget will go to conference. If the Senate is not willing to raise revenue (very unlikely they will!) they will have to make additional cuts along with the House when they go to conference to work out a budget compromise.


Please note that your calls and e-mails made a difference as the Senate budget clearly denotes that our concerns were heard.
However, keeping the deficit situation in mind, don't get too excited about the the Senate removing cuts that the House made as they will have to adjust the budget to the April figures. This Senate budget is the first draft - the budget bill was introduced today and will have a Second Reading tomorrow and Third on Wednesday where there is the opportunity for amendments (although unlikely). Listed below is an overview of the highlights of the changes from the House budget Bill which I have outlined in earlier legislative alerts.


Items Dropped from the House Budget by the Senate:
Dropped the 1 million cut to Adult Home Case Management


Dropped the 1.4 million cut to Adult Home Specialist Fund


Dropped the increase of 3 million to the State County Special Assistance Rate Adjustment


Dropped the 1.3 million cut to T.E.A.C.H


Dropped the 3.9 million cut to Child Care Subsidies


Dropped the $64,429 cut to the Child Fatality Task Force


Dropped the cut for Medicaid coverage for 19 and 20 year olds


Dropped the cut to State Transitional Medicaid


Dropped the cuts to Medicaid coverage for Pregnant Women and Children


Dropped the increase in cost for Medicaid co-payments for prescription drugs


Other Changes:
Senate reduced the cuts to Smart Start to 7.7 million


Senate increased the $30 million taken from the Medicaid Reserve fund recommended by the House to $37.5 million


Senate increased the funding to $13 million for NC Health Choice from the $7.7 recommended by the House.

This level of funding will expand the program to 105,000 children in FY 2004 and 110.000 in fy 2005.


The rate increase for foster/adoption reimbursement moved from $100 per each age group to $50 although the $3 million appropriation stayed the same. It turns out that when Rep. Barnhart sought out figures to determine the fiscal impact of a $100 dollar increase he was given the 3 million figure - they found later that the amount was incorrect and would only support a $50 dollar increase. (Don't know who gave him the estimate...)


Please be sure to write your Senator to thank him/her for the changes you requested. (Please do not e-mail or call) They need to know how much we appreciate their support of services to NC's vulnerable population.
I will be in touch with many Raleigh lobbyists while I am in Nags Head for the Annual Conference and will try to keep you up to date with what is going on. (Leaving Tuesday afternoon and returning Friday night)