Heard in the Halls is an email service of NAMI North Carolina to provide updates on state legislative and policy issues. Heard in the Halls is produced for community advocates at least monthly and more frequently during sessions of the General Assembly. To be added to the Heard in the Halls list send a message to heard@naminc.org with just "subscribe" (no quotes) in the subject. Because of the variety of e-mail servers, Heard in the Halls is sent in plain text and as a formatted attachment.

June 21, 2002

In just a few short days the Senate released its full budget and passed it, dealing with the state’s budget crisis through a combination of service cuts, diverting funds from the Highway Trust Fund, tobacco settlement funds and Hurricane Floyd relief fund, and increases in fees, tuition, and some taxes. The plan has been criticized for failing to deal with the underlying budget problem and using over $830 million in one-time revenue to pay for ongoing expenses thus creating a $1.6 billion budget hole for next year. Sen. Ellie Kinnaird, the only Democrat to vote against the plan stated, "Governing has been replaced by attack ads and pledges not to raise taxes, no matter the harm to our people. What about honoring our obligation to our citizens?" Absolutely right Senator Kinnaird!

For MH/DD/SA the plan roughly paralleled the Governor’s proposed budget but made changes in the amounts of some of the proposed cuts. The Senate budget also restores the Mental Health Trust Fund by providing $50 million to the fund.

Here is how the Senate budget impacts state funding for MH/DD/SA services:

Reductions will occur primarily in direct services.

Reduces the reimbursement rate for this service by 33% which will result in a reduction of services to adults and children through reduced caseloads and hours

This will result in the loss of 61 staff positions at the very time federal reviewers have raise concerns about the adequacy of staffing at the state hospitals.

Contracts with non-profit organizations and individuals to provide community services, training, and support.

The grand total of reductions in state dollars to the system is $68 million but the reductions to the CAP/MRDD Medicaid Waiver and to Mental Health Case Management result in the additional loss of federal funds totaling $61.8 million for a whopping total of $129.8 million in funding reductions to the MH/DD/SA system. These cuts will have a devastating effect on current services.

While the Senate restored funds to the MH Trust Fund, these non-recurring funds are targeted to starting new community services while at the same time the budget decimates current services…a type of robbing Peter to pay Paul routine that is unacceptable. Given the history of the Trust Fund, questions have to be raised about whether the fund would be protected or simply disappear when the next budget crisis appears.

In addition to the loss of area programs funds, reductions to MH Case Management are alarming. Case management is considered "best practice" for assisting individuals with multiple and complex service needs. It is the glue that holds the array of support services together to help people remain in the community instead of needing to be hospitalized. Including this cut in the budget runs counter to system reform efforts and to the intent of the Olmstead Supreme Court decision.

The budget now heads to the House where budget writers have serious concerns about the Senate budget plan and intend to make some changes. With a more closely divided membership the budget it is likely to have a more robust debate. We have an opportunity in the House to make changes in the budget to be more supportive of MH/DD/SA services.

Committee meetings in the House will probably start next week. It is critical that over the weekend and through next week you contact your Representative and House budget writers by phone or email with the following message:

• Don’t cut $30 million in current services provided through area programs

• Support MH Case management services

• Don’t reduce hospital staffing when staffing levels are currently not adequate to provide quality care

• Raise taxes to save services

It is important that you add your story and personal experiences to your message to help legislators understand the how cuts will impact people’s lives if they lose services.

Rep. Edd Nye
Eddn@ncleg.net
919-733-5477

Rep. Beverly Earle
Beverlye@ncleg.net
919-733-5747

Rep. Jim Black
Jimb@ncleg.net
919-733-3451

Rep. Leo Daughtry
Leod@ncleg.net
919-733-5868

Rep. Redwine
Davidr@ncleg.net
919-733-5829

Your Representative. If you don’t know your Representative or how to contact them go to http://capwiz.com/cdpmi/officials/state/?state=NC and at the bottom of the page enter your zip code+4