Projecting the Budget through a Crystal Ball
By Marie Allen, Executive Director, Southwestern CT Agency on Aging & Independent Living, SWCAA
Many of the Southwestern CT Agency on Aging grantees and aging network partners are asking how the proposed budget(s) will affect essential programs and services for older adults in our State and region. The following information is provided to offer context to the budget process while at the same time remind the reader that a proposal is just that, a proposed option. The Agency has no “inside track or knowledge” on the final budget decision. This article outlines some possible scenarios at both the State and Federal level and actions advocates may consider taking in an effort to protect essential programs including Meals on Wheels and Community Cafes.
Federal Budget Cuts
Here’s what we know. Over the past 20 years, when adjusted for inflation, federal funding has decreased by 18% while the senior population has grown by 34%.
We still do not have a budget for the current fiscal year that began on October 1, 2016(this is not an error). Since the election, the federal government has been operating under the terms of a “continuing resolution (CR)”. The CR keeps all programs and governmental services operating at the same level as the previous (FY2016) budget so that the government and its associated programs do not shut down while the administration has time to develop a budget proposal and the Congress has time to debate, revise and approve a final budget. Most years, this process is complete by February of the fiscal year that began the previous October. A new administration is always challenged with the timeline and particularly when there are a couple of issues (Affordable Care Act, National Security) dominating the new Administration’s time. We are hopeful that the April 28 deadline will bring an approved budget so that we can swiftly adjust for any major changes in funding before we get much further in the fiscal year. Keep in mind that every month we wait makes any potential cut more severe on the months remaining in the fiscal year.
The bigger threat may come next year if the Administration is successful in reducing and/or eliminating discretionary funds that would result in reductions toprograms for seniors and other vulnerable populations.
The Federal Facts
The Senate Appropriations Committee has proposed eliminating all funding for the Medicare State Health Insurance Assistance Program (SHIP). The House Committee level-funds these programs and makes investments in a number of Older Americans Act (OAA) programs. Congress isworking to finalize FY17 spending (the year that began on October 1, 2016) before the current Continuing Resolution (CR) expires on April 28. Any cuts to the current year will hit programs hard as we will only have a portion (five months or less) to initiate the cuts making for larger cuts over a shorter period. Our Congressional delegation is well aware of this fact and has promised to fight for level funding based on the 2016 federal fiscal year to avoid critical shortages in vital senior programs including Meals on Wheels. Since SWCAA always assumes level funding when forecasting the next year’s budget, level funding should have no effect on the awards that were authorized in July of 2016. These are the funds that our grantees are using to do their important work.
The State’s Piece of the Pie
Luckily for most senior programs funded in part by the State Department on Aging, the State’s portion of the funds represents “Maintenance of Effort”. Maintenance of Effort is the required match (similar to the match requirements grantees must comply with) that presents a shared fund mix for all of the Older Americans Act(OAA) programs. Since the availability of State funds are required in order for Connecticut to qualify and receive the OAA funds, these funds are typically held harmless in the State budget process. Funds that provide support for the CT Statewide Alzheimer’s Respite Program are outside of the Maintenance of Effort and are much more vulnerable through the State budget process. Also, Medicaid funding (a combination of State & Federal funds) can be decreased via budget limitations at either the State or Federal level. This can create waiting lists for important programs like the Connecticut Home Care Program and the Medicare Savings Program. Both have been reduced in the Governor’s budget proposal for State Fiscal Year 2018 (beginning July 1, 2017).
The Nutrition Funding Pie
Nutrition Funds in Connecticut are primarily made up from Federal Older Americans Act funds and State matching funds. You can see the various pieces of the pie in the graph. The Social Service Block Grant along with the Community Development Block Grant programs have been slated for reduction by the Federal Administration. SWCAA receives approximately $93,000 in Social Service Block Grants which could be jeopardized. There has been no discussion regarding cuts to the OAA Federal funds or the State’s Maintenance of Effort. Washington seems to recognize the fact that we are too far in the fiscal year to initiate major reductions in the Block Grant programs for this current 2017 fiscal year. We will need to stay vigilant for 2018. Also note that meals provided through Medicaid funding, the CT Home Care Program and other waivers, are not subject to the same funding formula. Currently, meals are a covered service under the Medicaid waiver program and could be effected if Medicaid is converted to a Block Program but that is not on the table this year.
Message to the State Leadership
Senators and Representatives must understand the effect of losing vital community grant programs and agree to continue the support of the State Department on Aging’s Maintenance of Effort funds. We must ask them to prioritize meal funds to prevent waiting lists in home delivered and community cafes. We must ask them to work with their local communities to look for new and innovative ways to support meal programs.Category Two of the Home Care Program must remain open to all who qualify. We all agree on the importance ofhome and community services for older adults, now we must fund the services! We must preserve the eligibility into the Medicare Savings Program. Although the eligibility criteria is less stringent than other States, elders in other States have considerably lower tax, housing and utilities expenses.
Use this website to find your State legislators
Message to the Congressional Leadership
Funds for Older Americans Act, Social Service & Community Development Block Grants and State Health Insurance Program (CHOICES) are cost-effective investments. Seniors must have the ability to remain healthy and economically secure in their own communities thereby reducing spending on more costly programs. Every $1 provided to the aging services network is leveraged by nearly $3 in non-federal support. Please review programs included in discretionary funding centers and carefully remove the programs listed above which have a proven track of reducing long term care costs and improving the quality of life for your senior constituents.
Southwestern CT Congressional Delegation
Richard Blumenthal
915 Lafayette Blvd., Rm 230, Bridgeport, CT, 06604
(860) 258-6940 (203) 330-0598
Christopher Murphy
120 Huyshope Avenue, Suite 401, Hartford, CT 06106
P: (860) 549-8463
Rosa DeLauro
59 Elm Street, New Haven, CT 06510
Phone: (203) 562-3718
Jim Himes
211 State Street, 2nd Floor
Bridgeport, CT 06604
Phone: (203)333-6600 or (866) 453-0028
1