Day care for medically fragile children, health care for disabled adults and programs letting the elderly live at home rather than in a nursing facility are among the services that could be chopped under contingency plans by state health officials if looming budget cuts become reality next year.
Louisiana Department of Health officials have drawn up a proposal for cutting the agency’s spending of state funds by $105 million in anticipation of a projected $340 million state budget shortfall next fiscal year.
They are considering eliminating funding for several programs and services that offer care to those with disabilities and the elderly, Secretary Michael Harrington and Undersecretary Drew Maranto last week told lawmakers on the House Appropriations committee, which plays a major role in driving the state’s budget process.
Proposed cuts would eliminate millions in funding for the Adult Day Health Care Waiver program, which pays for daytime care for disabled people, along with the Long Term Services & Supports program, which pays for long-term care for those with disabilities and chronic illness, and the Program of All Inclusive Care for the Elderly, which provides nursing-facility-level care for elderly in their home.
They also proposed rolling back recent pay increases for nursing home and other care workers.
“Cutting these services and pay for workers would have an impact of making it more likely that people would be receiving care in institutions,” said Tory Rocca, Director of Public Policy and Community Engagement at Disability Rights Louisiana, which advocates for policies that help those with disabilities remain in their homes and communities.
And, Rocca said in an interview Wednesday, pay cuts could exacerbate the worker shortage of those who serve people with developmental or adult-onset disabilities.
“Even now with the pay levels where they are, people who work in cafes and fast food restaurants often get paid more than care workers,” he said.
If it cuts $105 million in state funds, the health department would lose out on a total of $332 million, which includes federal funds and other grants pulled in by state spending, Maranto said.
For the current fiscal year, 91% of department’s $19.9 billion budget goes toward Medicaid, which provides low-income people health benefits, Harrington said. About 70% of health department funding comes from the federal government, with just $3.2 billion coming state general funds.
Lawmakers on the House budget committee were shocked by the potential impact of the cuts.
“These are people that depend on us for their life,” said Rep. Larry Bagley, R-Stonewall. “I’m appalled by this list.”
He added: “The newer members, they have no idea what it’s like to have a room full of mad, angry parents here and telling their stories about how their child is probably gonna die within a year if they don’t get help.”
“I’m all for efficiencies. This represents devastation,” said Rep. Jason Hughes, D-New Orleans, who is vice chair of the budget committee. “The people that are primarily impacted are children and seniors.”
But some said that alarm over the health department’s plan was premature.
“This is the first meeting. Don’t panic,” said Rep. Tony Bacala, R-Prairieville.
Bacala noted it is the very outset of a months-long budget process, which formally begins toward the end of this year and concludes in June.
He pressed health department officials to find other ways to accommodate cuts, like reviewing projected costs for advertising and drug rebates.
He also urged lawmakers to find alternatives that are “less painful to the little guy who maybe has a special needs child, but who doesn’t have the political clout of some of the bigger organizations.”
House Appropriations Committee Chair Rep. Jack McFarland, R-Jonesboro, acknowledged budget cuts “can have a real-world impact on people’s lives,” and he said the health department’s plan illustrates “the complexity of addressing a budget shortfall.”
The health department’s discussion with the House Appropriations committee was the first of several informal presentations by state agencies about how they plan to accommodate potential budget cuts.
Lawmakers are bracing for a “fiscal cliff” for the 2025-2026 fiscal year due in part to the expiration in June of a temporary 0.45% sales tax and a 2% sales tax on business utilities.
Previous estimates put next year’s projected shortfall at more than $500 million. But an updated projection from the Office of Budget and Planning in August, which didn’t include $247 million for one-time teacher stipends, put it at $340 million.
In January, Gov. Jeff Landry issued an executive order — called “Actions to Mitigate the State’s Impending Fiscal Cliff” — requiring every department to evaluate its contracts, staffing, programs and spending and determine where reductions or eliminations can be made.
The order also requires departments to submit those savings plans with their formal budget requests, which are due in November.
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Publish date : 2024-09-05 00:01:00
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