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| Legislative Alert Senate Budget Fails to Address Needs of Consortium The Senate officially unveiled its budget on Tuesday, May 23, just two weeks into the session. SB 1741 modifies the Appropriation Act of 2005. The $18.8 billion spending plan uses the $2 billion surplus to fund education, state construction projects, mental health reform and pay raises for teachers and state employees. The plan also phases out two five year old temporary taxes – the quarter-penny sales tax and the individual income tax rate for the highest wage earners. The budget was approved by the Full Senate Appropriations Committee and the Senate will vote on the budget today, Wednesday, May 24 at 2:00pm. This will be the first of two floor votes required by the full Senate. The second vote is expected to take place Thursday morning. CHILD CARE SUBSIDIES The Senate budget did include $20 million for child care subsidies. This plan differs slightly from the Governor's proposal in that it provides funding to maintain existing caseload, implements 25% of the 2005 market rates for 3 to 5 state facilities, and removes approximately 1,7000 children from the waiting list. (The Governor's budget removed 2,900 kids from the waiting list and did not address market rates.) NO FUNDS FOR FOSTER CARE SERVICES – UNLICENSED FAMILY PLACEMENTS The Senate failed to address the need to Relieve County Disproportionate Share of Child Welfare Costs. The federal Budget Reconciliation Act added an additional $4.5 million in cuts to county child welfare. The law now requires that persons, who care for relative's children taken into DSS custody, must go through the licensing process to be deemed appropriate caretakers. DSS agencies who continue to place children with relatives, who are not willing to be licensed, will loose IV-E money that pays the social worker in the case. This adds up to over $4.5 million dollars in lost county child welfare funds! Counties continue to experience increasing costs to Child Welfare through unfunded mandates or cuts to funding for mandated services. These costs have increased every year placing a disproportionate burden of child welfare costs on counties. As recommended by the Governor, the Senate allocated $2,040,755 to provide funding to support the projected cost of additional foster care maintenance payments to be made to people caring for their relatives' children who choose to become licensed. Call members of the House HHS Committee and ask them to support HB 2240 , Funds for Foster Care Services , sponsored by Rep. Rick Glazier and Rep. Jean Farmer Butterfield. Let them know that funds are needed to assist county departments of social services that place children with relatives who are not licensed to provide foster care services. NO FUNDS FOR QUALITY IMPROVEMENT IN ADULT CARE HOMES In 2005, the General Assembly mandated that DHHS develop a Quality Improvement (QI) Program for Adult Care Homes (ACH). This law came about in response to a gradual, but significant, shift over the years in the oversight of ACH toward a focus on regulation and codes requirements and away from the quality of life for the residents. The program development has started but cannot be completed without additional contract services estimated at $160,000 . Four pilot counties will test out the Quality Improvement Program prior to its implementation in all 100 County Departments of Social Services. This will require one position in each county for a total cost of $260,000 . The testing of this program on a small scale is critical for its success in effectively going statewide. Call House HHS members and ask them to support forthcoming legislation that will be introduced by Rep. Thomas Wright to put the focus back on quality of life for vulnerable older adults! NO Medicaid Relief for Counties Senate Bill 1209 and Senate Bill 1228 were introduced as a way to cap the Medicaid cost at 05-06 levels and provide additional relief on a targeted basis from Medicare Part D Savings. Last week County Commissioners descended on Raleigh to push for this relief. The NC Association of County Commissioners are very disappointed at this omission and asks that county officials continue to contact their legislators about this important bill. Please ask House members to give House Bill 1968 a fair hearing in Appropriations and ask them to support this bill. The Senate Budget DID INCLUDE THE FOLLOWING ITEMS OF INTEREST: Public Awareness of Safe Surrender of Infants - $100,000 will pay for radio ads, billboards, print ad campaigns, posters, etc to inform the public of the Safe Surrender Act. Reserve for Utility and Fuel Costs - $1.271 million in additional funds will be placed in a reserve fund for emergency energy assistance. A distribution formula to counties will be developed by State DSS. Home and Community Care Block Grant - $3 million in funds to increase the HCCBG to reduce waiting list for services. Smart Start - $14 million for local Smart Start initiatives, including subsidized child care. Foster Care and Adoption Assistance Payments – pays for the increase in the foster care and adoption assistance payments as a result of increased growth - $10.2 million. Paternity Testing for Child Support Enforcement - $151,500 will maintain the existing funding level for paternity testing expenses. This is needed as the Federal Reconciliation Act reduces the federal financial participation from 90% to 66% for paternity testing in child support cases. Mental Health Reform - t he Senate sets aside $105 million in new spending to improve community crisis services for the mentally ill, add more local psychiatrists and expand treatment centers for alcohol abusers and the developmentally disabled. The state also would borrow money to build replacements for psychiatric hospitals in Goldsboro and Morganton. A portion of the state's excise tax on alcohol would be dedicated to a mental health trust fund. THE SENATE DID NOT INCLUDE THE FOLLOWING ITEMS IN THE BUDGET: Child and Family Support Teams - $720,804 has been allocated for 21 positions in the County DSS agencies to pay for social services care coordinators (Child and Family Team Facilitators). Not sure at this time which of the counties participating in the Gov's Child and Family Support Teams will be receiving the positions. Child Support Enforcement Call Center - $2 million in funds to replace the Voice Response Unit and upgrade the telephone system for the Child Support Enforcement Call Center.
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