Both the Pennsylvania House of Representatives and the Senate of Pennsylvania passed a state spending plan for fiscal year (FY) 2005/06 early this morning. As this Alert goes to print Governor Edward G. Rendell, who is currently in Washington, DC, is expected to sign the budget later this morning. The state budget is seven days past the June 30 constitutional deadline for budget completion.
The
Budget and MH/MR/D&A
It appears on various line items that the mental health (MH) and mental retardation
(MR) program service lines received a 2% cost-of-living adjustment (COLA),
with language specific to direct care worker initiatives. At this time there
does not appear to be a 2% COLA for drug and alcohol (D&A) programs. Throughout
budget discussions the Department of Health (which oversees the Bureau of
Drug and Alcohol Programs) has continued to assure PCPA and the provider community
that the proposed $3 million reduction in its D&A line item would be "absorbed
administratively" and not impact D&A services.
Unfortunately, while it is projected that approximately one-third of the proposed Medicaid reductions have been restored, behavioral health cuts remain (including partial hospitalization and outpatient clinic services). Again, this disparately affects PCPA members in the northeastern portion of the state. PCPA will continue to advocate on behalf of providers with the administration relative to this issue.
Additional
Budget Notes
Legislators, the executive branch of government (including the governor and
cabinet-level officials), and judges will receive substantial pay increases
as a result of a salary restructuring mechanism. For example, most legislators
will recognize a 16% increase as a result of the restructured salary while
the governor’s salary will increase over $20,000 annually.
More
News to Follow
PCPA will apprise members as more information about the details of the budget
becomes clear. Subsequent department briefings, whether through meetings or
written documentation, are anticipated to provide further clarification.
