';
Tags Posts tagged with "budget"

budget

The House Appropriations Committee will meet for a budget hearing with the Department of Drug and Alcohol Programs (DDAP) at 10:00 am on Thursday, March 3. The budget hearing will be livestreamed.

For Fiscal Year 2022/23, the governor is budgeting a total of $317 million for DDAP, which is a 16 percent reduction over the current fiscal year’s budget of $379 million. The decrease is due to a $60 million reduction in federal State Opioid Response dollars.

Of the total amount budgeted from the General Fund for the upcoming fiscal year, $270 million is budgeted for grants and subsidies to drug and alcohol programs. Of those funds, 75 percent ($220 million) comes from federal grants, including:

  • SAMHSA’s Substance Abuse Prevention and Treatment Block Grant (SABG) ($80 million);
  • State Opioid Response (SOR) Grant ($118 million); and
  • Substance Abuse Special Projects Grants ($22 million).

The remaining $50 million earmarked for drug and alcohol programs in the General Fund come from the McKinsey opioid settlement ($5 million) and $45 million in state funding.

Other funds in DDAP’s budget include the Compulsive and Problem Gambling Treatment Fund ($13 million), the Medical Marijuana Program Fund ($6 million), and the State Stores Fund ($5 million).

DDAP’s budget also includes $23 million ($3 million of which is state money) earmarked for operation and administration of the department and its various grant programs. The federal grants allow for a percentage of the funds to be used for operations and administration. Operations and administration also includes the department’s complement, or staffing, and their salaries.

While most of the SABG and state funding earmarked for drug and alcohol programs are distributed through the Single County Authorities, SOR and other special grant projects are delivered typically through a grant process. Details of initiatives that these grants have funded can be found on DDAP’s Department Funding web page.

As the regulator of the state’s addiction treatment system, DDAP’s funding of drug and alcohol programs pales in comparison to the Department of Human Services’ budget for drug and alcohol services. The governor has budgeted $6 billion for behavioral health services for Medicaid capitation rates, $1.6 billion of which is earmarked for drug and alcohol.

More details of DDAP’s budget are available in DDAP’s Bluebook.

DDAP’s Senate Appropriations Hearing is set for 2:30 pm, Wednesday, March 16.

Photo by Markus Winkler from Pexels

Today in a meeting with RCPA, Deputy Secretary Ahrens confirmed that even though the Department of Human Services’ (DHS) budget Blue Book indicates that Prudent Pay would be reinstated in Fiscal Year 2022/23, a decision has been made to continue the suspension. We anticipate a formal notification will be forthcoming. While we are grateful for the suspension for an additional year, RCPA will continue working with the legislature for a permanent solution.

Capitolwire: Wolf Budget Proposal Spurs Debate on Mental Health Funding
By Robert Swift

HARRISBURG (Feb. 14) — A budget proposal by Gov. Tom Wolf is spurring a new debate about providing more state mental health services during this time of pandemic-related stress.

The governor proposes spending $36.6 million from the taxpayer-supported General Fund in Fiscal Year 2022-23 to restore much of a decade-old cut in state aid to county-run mental health programs.

He would also direct $75 million in federal American Rescue Plan funds for support payments to help keep and hire new employees for qualifying home and community service providers.

A 21-member Mental Health Safety Net Coalition sent a letter Monday to lawmakers asking them to consider the proposed $36.6 million increase as a starting point in budget negotiations.

“The governor’s proposed increase will help offset the loss in purchasing power due to a decade of level funding,” wrote the coalition that includes service providers, hospitals, treatment centers and professional groups. “This money is critical to help counties get back to the effective level of resources they had 10 years ago, but it does not even begin to address all the gaps in our mental health system or surging demand for mental health services as we enter the third year of the global pandemic.”

Not only has the pandemic increased demand for services, it has also led to significant health staff shortages and increases in suicides and opioid deaths, the coalition said.

Also the County Commissioners Association of Pennsylvania issued a statement Monday calling on lawmakers to support Wolf’s proposal. It would restore two-thirds of a 10 percent cut to the budget line item in 2012 if enacted.

“If the funding continues to be uneven with the growing demand, counties will continue to struggle to in meeting the needs of their residents,” said CCAP President and Bradford County Commissioner Daryl Miller.

A key feature of county mental health programs is they are available to the entire community regardless of income, said Brinda Penyak, CCAP deputy executive director.

CCAP made rebuilding a “crumbling” mental health system its top priority this year. For the past six decades, counties have carried the responsibility to provide and contract for a range of community-based mental health services, including crisis intervention, treatment, education and prevention.

“We would strongly support advance planning and (mental health funding) increases that are practical and sustainable to ensure increased system availability for the long term,” said Dr. Kathy Quick, executive director of the Pennsylvania Mental Health Consumer Association while voicing concern that the proposed funding hikes for this year can’t be sustained in the future.

The issue of pandemic-related mental health challenges facing the general population and students as well has been the subject of several legislative hearings during the past two years.

The Senate Agriculture and Rural Affairs Committee held a hearing last month focusing on mental health issues facing agricultural workers. Pennsylvania has received a $500,000 grant from the U.S. Department of Agriculture to provide more resources to support mental health programs in rural areas by linking to national hotline networks and providing education and training, said state Agriculture Secretary Russell Redding at that hearing.

Today, RCPA staff watched the Governor’s budget address and attended the Department of Human Services (DHS) 2022/23 Budget Overview webinar. After listening to the Governor and DHS, there were some positive takeaways for RCPA members. Specifically, the Governor is requesting:

  • $50 million, or a 44% increase to state supplemental programs for aged, blind, and individuals with disabilities, to increase the personal care home state supplement from $439.30 to $1,351.80 per month;
  • $75 million in federal funds to recruit and retain behavioral health providers;
  • $36.6 million to invest in critical county behavioral health services;
  • $15 million in federal funds to stabilize payments to substance use disorder treatment providers and assist with pandemic related expenses; and
  • $18.8 million to serve an additional 832 individuals with intellectual disabilities and autism currently waiting for services.

The Governor also proposed increasing the state’s minimum wage to $12 per hour effective July 1, 2022, including tipped workers, with 50 cent annual increases up to $15 per hour ($74.6 million direct revenue increase).

The above are some highlights from both the Governor’s budget request and the DHS presentation. While some of the Governor’s asks may seem beneficial to members, RCPA staff will be reviewing the more detailed spreadsheets we received from the Governor’s office. Once RCPA staff have had the opportunity to review and analyze these spreadsheets, members will receive a more detailed analysis of the Governor’s budget requests. RCPA plans to have the analysis done as soon as possible, so members can get a clearer picture. If you have any questions, please contact Jack Phillips.