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15% — What a Difference a Day Makes! | DDadvocates.com

What a Difference a Day Makes!

Today I have been contacted by Cindy Dingell concerning the impact of the Governor’s Executive Order for 2009  Budget Year Reductions. The D-WC CMH Agency has been advised that statewide CMH Budgets (read payments) for the 4th quarter of the budget year have been reduced 12.5% for all counties except for Wayne County which has been reduced 15%.

The Gross Adjustment to be absorbed from July1 through the end of September state-wide is $10.0million; in Wayne County it is $4.4 million; on the state-wide average it would have been $3.5. On a percentage basis Wayne receives 34.6% of statewide revenue, but received 45% of the cut. Either way the County is being shorted nearly $1.0 million versus the formula used for other counties.

Any Adjustment is Unthinkable!

Let’s put it in perspective.

  • My recollection is that the initial CLS cuts ran about $8.0 million. These cuts resulted in major draining of Provider reserves, cuts in every client based spending category to bare bones, deferment and upheaval through the entire system and were the genesis of DDAdvocates as citizens throughout the county realized that funding was at a breaking point.
  • On March 1 Gateway Community Health cut its residential providers 10%…presumably with the same impact as for CLS providers.
  • On May 6th, responding to concerns from citizens, the House Appropriations Committee requested the State to perform a full review to determine adequacy of funding through each level of the process
  • On May 14th Synergy announced that without major new funds it would be forced to pass on a $7.8 million shortfall versus a total budget of $44.0 million. The shortfall would in many cases be passed on to the same residential and vocational providers impacted by the CLS cuts! Those who are already at the breaking point!!
  • Now the Executive Order will result in yet another 15% cut across all spending lines. Given that by contract over 90% of residential and similarly vocational provider costs are fixed -salary, rent, utilities, transportation etc. and  that it is already documented that these providers have nothing more to give, it is mathematically impossible to accomplish what the State is mandating.

We’ve said all along that there is nothing about the life of a person with developmental disabilities that suggests it will be less costly to provide supports over time. Who are the people making these decisions??

What to Do??

Contact the Governor and your Wayne County Representatives and Senators over the week end and tell them NO 15%

  • they are already aware what dire condition Wayne CMH is in
  • for the most part they have been supportive of fiscal and administrative process reviews to help make the county as efficient as possible-but this requires time
  • the planned cuts make no sense in any county
  • the planned Mental Health cuts will bankrupt the process in Wayne County putting untold numbers of clients at risk.

Thought for the Day:

It is morally wrong to make cuts to these programs without having first determined where the savings are coming from.

Closing:

I apologize for racing through this but I will be out of town till Monday and wanted to get the word out earlier than later. For one thing your energy on this issue will only help prove our ability to work with CMH toward the common painful goal of improving the entire process top to bottom.

Please get off to a running start and tap all of those folks you’ve been in touch with on the other issues.

God Bless.

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