Reid and Rockefeller Introduce Senate Bill to Extend FMAP--Push Next Week to Avert More Job Losses Without FMAP Extension

Senate Majority Leader Reid (D-NV) and Senator Rockefeller (D-WV) introduced legislation Thursday to extend by six-months the temporary federal funding for FMAP in last year's Recovery Act (ARRA). With states expected aggregate budget shortfall at $180 billion and only $40 billion covered by ARRA's FMAP through 2010, the $140 billion expected shortfall would cost a job loss of 900,000 jobs nationally.

ANCOR sent a letter to all Senators Tuesday urging immediate extension of ARRA FMAP funding. In a meeting with Rockefeller's staff last night, ANCOR was told that the bill (yet to have a bill number) has 33 Democratic sponsors. ANCOR asked if the legislation mirrors the House provision included in its job bill passed in December. Senate Finance staff confirmed that it was the same except for adding a provision regarding county pass-throughs. Rockefeller staffer has confirmed that she will be a part of ANCOR's free audio conference on FMAP on Thursday, February 11th.

Senate staff from multiple offices expressed the urgency of immediately including an FMAP extension to avert deeper budget cuts that states are now planning in their 2011 budgets. The temporary extension would be through June 2011. The intention is to include the legislation immediately in the first jobs bill that the Senate is expected to take up next week. Both the National Governors Association and National Conference (NGA) on State Legislatures (NCSL) sent bipartisan letters this week to Congress urging immediate extension of ARRA FMAP funding. ANCOR will have an alert out early next week pending fact sheet being developed by Senate staffers today. Read more!

President Obama Includes FMAP Extension in Budget

President Barack Obama's FY 2011 Budget endorses and includes a $28 billion six month extension of Enhanced Medicaid (FMAP). Without this provision, states would have been expected to make dramatic budget cuts this session to make up for the sudden loss of federal revenue that had previously sustained earlier recession budgets.

The FMAP extension had earlier been passed twice (most recently in December 2009) by the U.S. House of Representatives, but was stalled in the Senate with the aftermath of the demise of the current Health Care Reform bill.
Read more!

President Submits FY 2011 Budget Proposal with FMAP Extension, No Medicaid Cuts, and Freeze on Domestic Programs

President Obama submitted a $3.8 trillion budget request to Congress on Monday, while taking in $2.6 trillion in revenues in FY 2011.The budget submission kicks off the annual appropriations' processes in the House and Senate. The budget request includes for the first time federal spending on the wars in Iraq and Afghanistan as well as federal spending to cover the adjusted minimum tax. The administration's proposal includes $25.5 billion for a six month extension to the Recovery Act's federal FMAP funding to help cash-strapped states with their Medicaid budgets. No cuts to Medicaid are included in his budget.

The president will request $561 million in the 2011 budget, an 80 percent increase in discretionary funds to support identification of prevention, and enforcement of Medicaid and Medicare programs. The budget includes cuts in some discretionary spending as well as elimination or consolidation of some federal programs (e.g. VR programs, HUD programs) beginning in FY 2011. The proposal includes about $100 billion worth of policies intended to help create more jobs this year. ANCOR will provide a detailed analysis on its website and in WICs Live early next week.
Read more!

Bipartisan Policy Center Launches Debt Reduction Task Force

Co-chairs of the Bipartisan Policy Center, former Senate Budget Chairman Pete Domenici (R-NM) and Former Office of Management and Budget and Congressional Budget Office Director Alice Rivlin announced Monday that they will lead a task force to develop a comprehensive, balanced and politically-viable budget plan for expedited consideration by the Administration and Congress.

The task force believes that the U.S. cannot simply rely upon economic growth to solve the federal fiscal imbalance and it plans to examine a broad range of spending and revenue options—with all options on the table. This effort is separate from failed Senate efforts this week to establish through statute a commission to make recommendations to Congress or President Obama’s plan to establish a commission via executive order. A listing is available of the Center’s Deb Reduction Task Force , as well as video and other activities on the Center’s website.
Read more!

President’s FY 2011 Budget to Include Freeze on Non-Security Discretionary Funds for Three Years

In conversations with Administration officials on Tuesday, ANCOR learned that the proposed freeze to be included in the President’s proposed FY 2011 budget submitted to Congress on February 1st will not affect mandatory programs (entitlements) such as Social Security, Medicaid, and Medicare. The proposal would not place a freeze on defense, homeland security, Veteran’s Affairs, or international/global funding. The proposed budget will seek to save $250 billion over 10 years to help address the $8 trillion deficit that this Administration said it inherited.

The freeze or cuts will not be equally borne across federal discretionary programs—some programs may get an increase, while others will be frozen or cut, and some eliminated. Officials stated that questions regarding specific programs would have to await the submission of the budget on Monday. As ANCOR members will recall, discretionary programs equal only 15 percent of the federal budget, with 85 percent spent on entitlement programs, interest on the national debt, and defense-related spending. Read more!

Senate Rejects Proposed Congressional Commission on Defict Reduction, President Obama Will Create Commission Through Executive Order

In a 53-46 vote Tuesday on Senate Budget Chairman Conrad's (D-ND) and Ranking Member Judd Gregg's (R-NH) bipartisan amendment to a bill to increase the debt ceiling to $14.3 trillion (H J Res 45), the Senate rejected creation of a congressional debt commission that would establish a fast-track process for placing the panel's future recommendations on the floor for an up-or-down vote. Some opposed the amendment because they thought it removed authority from Congress to do its job and make individual policy decisions regarding deficit-reduction. Democratic opponents feared it as a pathway to cuting Medicare and Medicaid, while Republican opponents feared it could be a way to enact tax increases. President Obama will issue an executive order to create a commission as the administration pivots its agenda to emphasize deficits and the economy. However, the creation of such a panel through executive ordert will lack the authority for fast-track consideration by Congress and only produce recommendations. Read more!

Conferees Agree to Omnibus Spending Bill

Democrats started to wrap up the FY 2010 appropriations process Tuesday night, assembling a package of six spending bills that the House could adopt as early as this week. A House-Senate conference committee agreed to the $446.8 billion discretionary omnibus, which includes all of the remaining spending bills except Defense. That bill is being held in reserve as a vehicle for other end-of-session Democratic priorities, including aid for the unemployed and other expiring policies. The package includes the Commerce-Justice-Science (HR 2847), Financial Services (HR 3170), Labor-HHS-Education (HR 3293), Military Construction-VA (HR 3082), State-Foreign Operations (HR 3081) and Transportation-HUD (HR 3288) funding bills.

Democrats are working against a December18 deadline, when a “continuing resolution” that is currently temporarily funding the government runs out. Another short-term continuing resolution may be required to finish and give the administration time to review the voluminous legislation. It was not the way Democrats had hoped to wrap up the appropriations process — they planned to avoid the type of eleventh-hour omnibus bills that have been common in previous years, but the process slowed down, particularly in the Senate, with a calendar crowded by health reform legislation.

The package reflects the priorities of the Obama administration and congressional Democrats on a host of domestic and international issues.

ANCOR may be interested to know:

--The Transportation-HUD measure includes $67.9 billion in discretionary funds, a $13.4 billion increase over the fiscal 2009 level, when economic stimulus funds (PL 111-5) are excluded. Overall, the bill would provide $122.1 billion.

--Labor-HHS-Education would be funded at $163.5 billion, an $8.5 billion increase over fiscal 2009, excluding stimulus funds.

Information on line items on programs of ANCOR member interest to follow.


Read more!

FY 2010 Appropriations Likely to Take Center Stage on House and Senate Floors in July

With three months remaining in FY 2009, Congress has yet to pass all twelve FY 2010 appropriations before the October 1st start of the fiscal year. The House has passed four of its bills, the Senate none. The House is scheduled to vote on four more this week while the Senate hopes to complete action on two. The House Appropriations Labor-HHS-Education Subcommittee approved by voice vote today a FY 2010 spending bill that would provide $160.7 billion in discretionary spending, about $5 billion more than the 2009 enacted level and $52 million below what the president requested. Housing and Urban Development has not yet been considered. Labor-HHS-Education and T-HUD are tentatively scheduled for action on the House floor before the summer recess. Read more!

Secretary Solis Proposes $104.5 Billion for FY 2010 Department of Labor Budget

In a webcast today, Secretary of Labor Hilda Solis proposed a $104.5 billion FY 2010 budget, with the majority used for unemployment insurance benefits. The total includes $13.3 billion in discretionary funding, but does not include $38.3 billion in Recovery Act funding.

Highlights include:

• $3.6 billion to fund the Workforce Investment Act
• $37 million for the Office of Disability Employment Policy
• $65 million for “National Programs,” which includes Supported Employment
  

Read more!

HHS Presents $879 Billion Budget for FY 2010

President Obama proposed today to “hold flat” budgets for agencies under the Department of Health and Human Services in FY 2010, as the department has already received billions of additional dollars in Recovery Act money. Obama is requesting $879 billion for HHS, including $78.4 billion in discretionary spending. The discretionary amount would be slightly less than the $78.5 billion the department received in FY 2009. The Recovery Act provided HHS with $44.3 billion in funds, including $22.4 billion in discretionary funds. Discretionary funds do not include funding of the entitlement portion of Medicaid because individuals receive the benefit because they meet eligibility requirements set by past legislation. HHS Secretary Kathleen Sebelius announced during the Department’s budget briefing that the FY 2010 budget calls for HHS to receive $311 million to combat Medicaid and Medicare fraud to augment existing mandatory resources, such as the Medicaid Integrity Program. She stated that every additional dollar spent by HHS in fighting fraud will yield $1.55 in savings.

Other Highlights,State Grants and Demonstrations Include:

• $75 million for the Medicaid Integrity Program
• $584 million in HHS-wide emergency preparedness funding, including $276 million for pandemic flu preparedness
• $40 million for Home and Community Services Alternatives to Psychiatric Residential Treatment Facilities for Children
• $474 million for Money Follows the Person Demonstration
• $68 million for Ticket to Work Grant Programs (extending Medicaid benefits to individuals with disabilities obtaining work using the Ticket to Work program)
• $10 billion for the SCHIP program
• $3.2 billion for the Low Income Home Energy Assistance Program (LIHEAP), a decrease of $1.9 billion from FY 2009. The budget also proposes creating a new mandatory account that would increase funding for LIHEAP in response to spikes in energy prices, at a cost of $450 million
  

Read more!

President Obama Releases FY 2010 Budget Proposal

Today President Obama formally released the administration’s FY 2010 budget proposal. Administration officials may make further changes to the budget to respond to changing economic conditions. The roughly $3.7 trillion plan contains the details the House and Senate Appropriations committees need to put together their annual spending bills. White House Budget Director Peter R. Orszag said there would be “some modest” changes in economic assumptions, mostly technical, and projected deficits as a result of changes in the economy since the administration released its budget outline in February.

ANCOR staff attending several budget briefings that outlined proposed funding for the Departments of HHS and HUD. See WICs Live articles for more details on the FY 2010 proposed budgets of those federal agencies and the Departments of Labor and Education and the Social Security Administration. Read more!

Administration Releases FY 2010 Budget Proposal with Section 8 Voucher Increases and Funding for National Housing Trust Fund

The President’s $43.7 billion proposed Housing and Urban Development (HUD) budget for FY 2010 is an 7.4 percent increase from the FY 2009 funding.
Notable line item expenditures include:

• Section 811—Disabled Housing—$250 million proposed for FY 2010, including $114 million to finance the construction and initial rental assistance for new housing.
• Section 202—Supportive Housing for the Elderly--$765 million proposed for FY 2010, the same amount enacted in the FY 2009 Omnibus Appropriations Act.
• Section 8—Housing Vouchers—$8.1 billion proposed for FY 2010, a $1 billion increase from FY 2009 funding levels;
• Community Development Block Grant (formula grants)—$XXX billion proposed for FY 2010, a $XXX billion increase from FY 2009 funding levels;
• HOME Investment Partnerships Program— $1.825 billion proposed for FY 2010, the same amount enacted in the FY 2009 Omnibus Appropriations Act.
• National Low Income Housing Trust Fund--$1 billion, the first year funding after its creation in last year’s housing bill (PL 110-289).
  

Read more!

Congress Passes Budget Blueprint Including Instructions on Health Care Reform Legislation

On April 29, the House voted 233-193 and the Senate voted 53-43 to pass a $3.4 trillion 2010 budget resolution. No republicans in either chamber voted for the non-binding budget resolution. Included in the budget blueprint are reconciliation instructions which will allow Congress to pass a health care reform bill with just 51 votes in the Senate rather than the 60 voted usually needed to move legislation through the chamber. Republican leaders have spoken out against these fast-track rules saying they will allow democrats to force through legislation. Democratic leaders have pledged to move forward in a bipartisan manner and hope to pass health care reform using regular procedures before the fast-track rules go into effect October 15. Read more!

Providers in Idaho Sue State Over Budget Cuts

On April 3, 16 providers of supports and services to individuals with disabilities filed a lawsuit against the state of Idaho stating that budget cuts could force 900 people with disabilities to lose residential services. The groups have asked the Judge to grant a temporary order preventing the state from enacting cuts set to begin on May 1. If the state is allowed to continue with the cuts it announced in March, providers will be forced to go out of business because of inadequate reimbursement rates, the plaintiffs say, resulting in more individuals with disabilities being moved to institutional settings. The suit alleges that the cuts are in violation of federal laws that require reimbursement rates to be high enough to ensure that all Medicaid recipients in a state have equal access to community-based programs. Read more!

Florida Residents Fight Cuts to Disability Services

Advocacy groups are protesting budget cuts in 2007 and 2008 which are affecting individuals who receive supports and services in Florida. Read more!

California Legislature Asks Disability Community to Help Make Budget Cuts

California’s legislature is asking state agencies and disability groups to help identify potential budget cuts or face another round of rate cuts for group homes and work programs. Providers of supports and services to individuals with disabilities already fighting to stay in business struggled to find ways to identify the $100 million in budget cuts requested by the legislature. Hundred of suggestions which have been gathered through public forums will be considered by the state legislature in the coming weeks. Read more!

Maine to Run Out of Medicaid Funding in Early May

Maine’s Medicaid program is in dire need of stimulus funds to avoid disruptions in services. The state’s Department of Health and Human Services is reporting that the Medicaid program will run out of money May 8th unless it receives federal stimulus funding. The Governor reports that Maine will use the $334 million in enhanced FMAP allocated to the state in the recovery package to close existing funding deficits and to address rising demand over the next two years due to the poor economy. Thanks to Bonnie-Jean Brooks of OHI for this update. Read more!

South Carolina Attorney General Contends that State Legislature Cannot Bypass Governor to Accept Recovery Funds

The battle for control of recovery dollars will move to the courts if Governor Sanford and the legislature cannot reach a deal. The attorney general's opinion is a blow to legislators who sought control of federal recovery funds that Sanford is rejecting.
Read more!

Massachusetts Governor Pledges $21 Million in Enhanced Medicaid FMAP to Partially Restore Cuts to Disability Services

Disability advocates remain concerned about an $8 million cut to employment programs for people with significant disabilities and will continue to push for full or increased restoration of disability services funding. Thanks to Gary Blumenthal of ADDP for this update.
Read more!

Iowa Counties Feel the Squeeze as Wait List for Disability Services Grows in Tough Economy

Thanks to Rod Braun of Christian Opportunity Center for this article.
Read more!