House budget proposal: Health and Human Services cuts

Proposed cuts to the six major areas of state government were released tonight. I'm posting my notes as I look through them.

Posted Updated

Laura Leslie

Proposed cuts to the six major areas of state government were released tonight. I'm posting my notes as I look through them.

The House's Health and Human Services budget was a lot less complete than other proposals when it was released today. All we got was numbers – the policy framework we need to hang them on won’t come out till Wednesday afternoon.

Still, some of those numbers are interesting.

  • Overall, the proposed House cut to HHS would be about 10% - far higher than the 4% Governor Perdue proposed in February. Some of the spending cuts would be realized by swapping out state dollars for federal block grants. Others, including $80 million less for Community Care, would be “realized as savings” through programs that haven’t been fully implemented yet.
  • Smart Start - 20% cut. More at Four would be moved under the Division of Child Development along with Smart Start, after having been cut by $30M. Parents will be asked to contribute a co-pay – how much, we don’t know yet. 2654 slots will be cut, leaving 29,000 for low-income children statewide.

Central Management and Support - 16.5% cut

  • 250 positions cut
  • NC Care line (HHS information and referral) eliminated
  • Cut non-profit-funding by $5M (remaining state funding is about $70M)
  • Community Health Grants state funds cut 23%
  • Eliminate state funds for Migrant Fee for Service program

Aging and Adult Services - 14.0% cut

  • Eliminate all funding for volunteer development
  • Cut state funding for Senior Centers by 47%

Division of Public Health - 3.0% cut 

  • 10% administrative reduction for the Office of Minority Health
  • Merging of the Office of Healthy Carolinians and Health Education

Division of Medical Assistance (Medicaid) – 10.1% cut

  • Reimbursement rates would decrease by 2% for all providers except physicians
  • No inflationary increases
  • The Medicaid “rebase” – the re-assessment of the program’s cost as it grows – would be $104M for 2012-13, less than half the governor’s estimated $252 million
  • Modify pharmacy and other Medicaid services

Division of Mental Health, Developmental Disabilities and Substance Abuse – 9.4% cut

  • Vocational Rehab Services – 11.8% cut
  • Reduce Basic Support by 10%

NC Health Choice – 10.1% cut

  • Most of the money would come out of Care Coordination, a $4.5M cut


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