Transcript Slide 1

One Voice Pre-Legislative Forum
Maximizing Federal Funds:
The State Budget
September 27, 2006
Eva DeLuna Castro, Senior Budget Analyst
Center for Public Policy Priorities
[email protected]
www.cppp.org
Presentation Outline
• Brought to you by the federal government:
1) Information 2) Money
•
More details on how federal funds in the
state budget are serving Harris County;
how that could change in 2007 legislative
session
www.cppp.org
Texas and U.S. Poverty, 2004-05
Poverty rate
Total in poverty
Texas
U.S.
16.3%
12.7%
3.675 million
37.0 million
By ethnicity: In Texas, 23% of African-Americans; 26% of Hispanics;
7.5% of non-Hispanic Whites; and 12% of Asian-Americans live below
the poverty line ($9,800/year for one person; $16,600 for a family of 3)
By age group: 25% of children in Texas live below the poverty line;
13% of Texans ages 65 and over live in poverty. US averages: 19%
poverty for children; 10% for age 65 and over.
Source: U.S. Census Bureau, March Current Population Survey
www.cppp.org
ACS 2005: Growth Continues, But
Poverty Increases Even More
Millions of Harris County Residents
4.0
Poor
Above poverty line
3.0
2.0
3.010
3.071
2.995
2.929
2.971
3.002
0.430
0.448
0.513
0.544
0.529
0.653
2000
2001
2002
2003
2004
2005
1.0
0.0
Source: U.S. Census Bureau, 2005 American Community Survey
www.cppp.org
ACS 2005: Child Poverty Increase is
Especially Troubling
Poverty Rate in Harris County
30
Child poverty
Elderly Poverty (65+)
Overall Poverty
21
20
18
13
26
22
21
19
13
18
15
13
12
10
10
15
15
11
12
8
0
2000
2001
2002
2003
2004
Source: U.S. Census Bureau, 2005 American Community Survey
2005
www.cppp.org
Harris County Residents, 2005
3.6 million people total
AfricanAmerican,
Above Poverty
Line, 477,677 ,
13%
Poverty rates by
ethnicity:
Hispanic, Above
Poverty Line,
1,016,175 , 28%
18% overall
Hispanic: 26%
White/Other,
Below Poverty
Line, 128,412 ,
4%
White/Other
Above Poverty
Line, 1,489,710 ,
40%
Hispanic, Below
Poverty Line,
353,302 , 10%
AfricanAmerican: 26%
White/Other: 8%
Afr-Am, Below
Poverty Line,
169,116 , 5%
Source: U.S. Census Bureau, 2005 American Community Survey
www.cppp.org
Harris County Residents by Age
and Poverty, 2005
1,677,855
2,000,000
Above poverty line
1,500,000
In poverty
1,000,000
542,237
500,000
294,565
230,513
0
Poverty rates:
92,032
185,416
Under 5
5 to 17
28.5%
25.5%
311,689
18 to 54
15.7%
238,392
32,758
28,935
55 to 64
8.9%
Source: U.S. Census Bureau, 2005 American Community Survey
65 and over
12.1%
www.cppp.org
Harris County Adults by Education &
Poverty Status, 2005 (Age 25+)
600,000
Above poverty
Below poverty line
400,000
200,000
144,413
75,311
0
Less than HS
Poverty rates:
27.4%
51,685
HS Graduate Some College/
2 Yr Deg
14.0%
9.2%
Bachelor's
3.5%
Source: U.S. Census Bureau, 2005 American Community Survey
Grad./ Prof.
3.6%
www.cppp.org
Educational Enrollment of Harris
County Residents, 2005 (Age 3+)
Totals: 897,900 in public, 121,100 in private, 2.4 million not enrolled
250,000
Private
Public
200,000
150,000
221,455
100,000
210,724
208,452
133,541
50,000
53,149
46,705
23,873
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/P
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nd
e
U
Source: U.S. Census Bureau, 2005 American Community Survey
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12
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www.cppp.org
Federal Spending in Harris
County, 2004
Texas
$142 b
$6,313 per
capita
32
Medicare/
Social Sec
Harris
County
$15.8 b
$4,388 per
capita
0%
25
Military &
Veterans
39
20%
13
Direct payments
to people/firms
7
40%
8
8
Medicaid
Hwys
7
12
3
60%
2
Other
Grants
10
10
Nonmilitary
Empl/Goods
24
80%
100%
Percent of federal spending
Source: U.S. Census Bureau, Consolidated Federal Funds Reports
www.cppp.org
State Govt. Spending in
Harris County, 2005
$0
$2
$4
$10
$8
$6
State only
$6.2 billion
K-12: $2.0 billion (state aid to local school districts; Teacher Retirement System)
Aging/Disability: $157 million FPS/DSHS/DARS: $86 million
HHSC: $753 million
Highways & Dept. of Public Safety: $617 million Higher Education: $808 million
Prisons (TDCJ): $559 million Workforce Commission: $55 million All Other: $1.2 b
K-12
Other HHS
Prisons
HHSC
Highways/DPS
Workforce
Aging/Disability
Higher Ed
Other
Source: Texas Comptroller of Public Accounts, County Expenditures
www.cppp.org
State Govt. Spending
of K-12 Federal Funds
$0
$2
$4
$8
$6
$10
State only
Federal funds added for No Child Left
Behind, Special Education, School
Lunch/Breakfast, Voc. Ed., and more:
With Federal
$478 million
K-12
Other HHS
Prisons
HHSC
Highways/DPS
Workforce
Aging/Disability
Higher Ed
Other
Source: Texas Comptroller of Public Accounts, County Expenditures
www.cppp.org
State Govt. Spending, HHSC
Federal Funds
$0
$2
$4
$8
$6
$10
State only
Federal funds added for
Medicaid, CHIP, TANF, Food
Stamps, and more:
With Federal
$1.2 billion
K-12
Other HHS
Prisons
HHSC
Highways/DPS
Workforce
Aging/Disability
Higher Ed
Other
Source: Texas Comptroller of Public Accounts, County Expenditures
www.cppp.org
State Govt. Spending, DADS
Federal Funds
$0
$2
$4
$10
$8
$6
State only
Federal funds added for
nursing home & community
long-term care and more:
With Federal
$235 million
K-12
Other HHS
Prisons
HHSC
Highways/DPS
Workforce
Aging/Disability
Higher Ed
Other
Source: Texas Comptroller of Public Accounts, County Expenditures
www.cppp.org
State Govt. Spending of Other
HHS Federal Funds
$0
$2
$4
$6
$8
$10
State only
Federal funds added for child
protection, foster care, public health,
mental health, ECI, and more:
With Federal
$110 million
K-12
Other HHS
Prisons
HHSC
Highways/DPS
Workforce
Aging/Disability
Higher Ed
Other
Source: Texas Comptroller of Public Accounts, County Expenditures
www.cppp.org
State Govt. Spending of
Federal Highway Funds
$0
$2
$4
$6
$8
$10
State only
Federal funds added for
highways, transit and more:
With Federal
$628 million
K-12
Other HHS
Prisons
HHSC
Highways/DPS
Workforce
Aging/Disability
Higher Ed
Other
Source: Texas Comptroller of Public Accounts, County Expenditures
www.cppp.org
Higher Ed: Minimal Federal
Funds in State Budget
$0
$2
$4
$8
$6
$10
State only
With Federal
K-12
Other HHS
Prisons
HHSC
Highways/DPS
Workforce
Aging/Disability
Higher Ed
Other
Source: Texas Comptroller of Public Accounts, County Expenditures
www.cppp.org
Prison System Doesn’t Add
Much in Federal Funds Either
$0
$2
$4
$8
$6
$10
State only
With Federal
K-12
Other HHS
Prisons
HHSC
Highways/DPS
Workforce
Aging/Disability
Higher Ed
Other
Source: Texas Comptroller of Public Accounts, County Expenditures
www.cppp.org
Workforce System Almost
Entirely Federally Funded
$0
$2
$4
$10
$8
$6
Federal funds
added for
workforce, child
care, & more:
State only
$403 million
With Federal
K-12
Other HHS
Prisons
HHSC
Highways/DPS
Workforce
Aging/Disability
Higher Ed
Other
Source: Texas Comptroller of Public Accounts, County Expenditures
www.cppp.org
Other State Govt. Spending of
Federal Funds, 2005
$0
$2
$4
$8
$6
$10
Federal funds added for child
support enforcement,
housing/comm dev, envir.
protection, & more:
State only
$6.2 billion
$188 million
With Federal
$9.5 billion
K-12
Other HHS
Prisons
HHSC
Highways/DPS
Workforce
Aging/Disability
Higher Ed
Other
Source: Texas Comptroller of Public Accounts, County Expenditures
www.cppp.org
Recap: State and Federal Funding of State
Govt. Services in Harris County, 2005
State
Funds
Federal
estimate
K-12, Teacher Retirement
$2.0 billion
$478 million
HHSC (Medicaid, CHIP, TANF, Food Stamps)
$753 million
$1.2 billion
Aging & Disability
$157 million
$235 million
Other HHS (FPS, DARS, State Health Svcs)
$86 million
$110 million
Highways/State troopers
$617 million
$628 million
Higher Education
$808 million
$16 million
Prisons (TDCJ)
$559 million
$5 million
Workforce Commission
$55 million
$403 million
All Other
$1.3 billion
$188 million
TOTAL
$6.2 billion
$3.3 billion
Source: Texas Comptroller of Public Accounts, County Expenditures
www.cppp.org
Boosting Harris County’s Share
of State Spending
In 2005, Harris County accounted for 14% of state
spending, but it is home to 16% of the state’s residents
How to improve that statistic:
 Work with Harris County delegation to see that state formulas
to distribute federal funds (county allocations, rates, regional
distributions) don’t put local service providers at a
disadvantage
 Make sure that eligible residents are being served by
Medicaid, Food Stamps, other major programs
 Understand what budget cuts (10% reduction proposals for
2008-09) will cost in lost federal funds and the services they
provide
www.cppp.org
Recent Changes, Food Stamp
Enrollment in Harris County
360,000
Total: 311,275
19,556
Total: 301,880
65 and over
18 to 64
5 to 17
Under 5
20,615
240,000
105,197
120,000
118,000
114,647
68,522
64,153
Sept. 2005
Aug. 2006
102,465
0
Source: Texas Health and Human Services Commission
www.cppp.org
Harris County Residents by Age
and Poverty, 2005
1,677,855
2,000,000
Above poverty line
1,500,000
In poverty
1,000,000
542,237
500,000
294,565
230,513
0
Poverty rates:
92,032
185,416
Under 5
5 to 17
28.5%
25.5%
311,689
18 to 54
15.7%
238,392
32,758
28,935
55 to 64
8.9%
Source: U.S. Census Bureau, 2005 American Community Survey
65 and over
12.1%
www.cppp.org
Recent Changes, TANF
Enrollment in Harris County
30,000
5,376
Adults
Children
20,000
10,000
3,601
21,864
15,696
0
Sept. 2005
Source: Texas Health and Human Services Commission
Jul. 2006
www.cppp.org
Texas Child Medicaid and CHIP
Enrollment
2.16
2.15
2.2
2.0
Millions of children
(Jan. 2002-August 2006)
2.06
1.8
2.03
On Medicaid or CHIP
1.6
1.45
1.34
1.42
1.31
1.4
1.2
Uninsured
1.0
Jan- May- Sep- Jan- May- Sep- Jan- May- Sep- Jan- May- Sep- Jan- May02
02
02
03
03
03
04
04
04
05
05
05
06
06
Sources: Enrollment from Texas Health and Human Services Commission;
Uninsured from Census Bureau March Current Population Survey.
www.cppp.org
Harris County Medicaid & CHIP
Enrollment
(August 2005-August 2006)
Almost 382,000 children covered in
Nov-Dec 2005
Below 356,000 in June 2006;
back up to 361,200 by August
CHIP and Child Medicaid
Adult Medicaid
About 129,000 in January 2006
Aug-05
Sep-05
Oct-05
Nov-05
Dec-05
About 118,600 in June 2006;
by August, back up to 119,500
Jan-06
Feb-06
Mar-06
Apr-06
Source: Texas Health and Human Services Commission.
May-06
Jun-06
Jul-06
Aug-06
www.cppp.org
Governor’s Budget Instructions
for 2008-09
10% Cut in General Revenue and GR-Dedicated funds: except for Medicaid
and foster care CASELOAD (but not COST) increases, most budget
proposals for state services must reflect a 10% reduction in state funding,
even if this means that state won’t meet minimum match or maintenance of
effort (MOE) requirements
Why is this being done? (especially after 5%-cut-instructions in 2005, and
12.5%-cut in 2003)
a) It’s a “useful planning exercise”
b) It’ll create confusion about exceptional items needed to keep things from
getting worse (restoration), exceptional items that are “current services”
(need more money to do the same thing, because it costs more), and
exceptional items that would be an actual improvement or expansion
c) If 10% cuts can actually be implemented, some General Revenue will
become available to pay for supplemental spending needs for the current
year (fiscal 2007) and/or for newly enacted school property tax cuts
Source: Health and Human Services Commission, LAR 2008-09.
www.cppp.org
Digging a Hole
In billion $
2008-09
2010-11
Total
HB 3 (business tax)
6.8
7.7
14.5
HB 4 (used cars)
0.1
0.1
0.2
HB 5 (cigarettes)
TOTAL REVENUE
Cost of HB 1
Gap between HB 1 and
HB 3,4,5
1.4
1.3
2.7
8.3
9.1
17.4
-18.8
-20.2
-39.0
-$10.5 b
-$11.1 b
-$21.6 b
www.cppp.org
State “Own Source” Spending/Revenue
$113 billion
$120
Other: $8.1
$94 billion
Eco. Dev.: $9.2
$100
Prisons: $8.7
Other: $7.0
$80
Eco. Dev.: $9.2
HHS: $22.8
Prisons: $8.3
$60
HHS: $19.2
$40
Higher Ed: $17.7
$20
$116 billion
Higher Ed: $19.4
K-12: $47.7
K-12: $32.5
$2006-07
Revenue for 2008-09
Needs, 2008-09
“Own Source” = not counting federal funds. “Needs” does not include more than $3 billion
in GR funding requested for improvements or restorations.
www.cppp.org
HHSC Budget Request
for 2008-09
10% Instructions: would require $72 million cut in General Revenue spending,
plus the loss of $106 million in federal funds and layoffs of 550 state employees
Base increase: $711 million more in General Revenue, mostly for caseload
growth in Medicaid, would draw down another $611 million in federal funds
Exceptional items:
•$1.8 billion in GR to deal with Medicaid and CHIP cost increases—what state
pays for medical services/drugs—would draw down $2.8 billion in federal funds;
$237 million GR and $370 million federal would restore rates to 2003 levels
•$255 million in GR for HHS waiting lists, mostly for community care, would
draw down $282 million in federal funds
•Restoring CHIP perinatal coverage would save $20 million in GR and draw
down $157 million more in federal dollars, vs. covering these infants in Medicaid
Source: Health and Human Services Commission, LAR 2008-09.
www.cppp.org
Aging & Disabilities Budget for 2008-09
10% Instructions: would require $112 million cut in General Revenue
spending, plus the loss of $130 million in federal funds and layoffs of 298 state
employees. Client impacts: Community Based Alternatives Waiver (CBA): 2,261 fewer
served; Home and Community Based Services (HCS): 1,119 fewer served; Community
Living Assistance (CLASS): 316 fewer served; Deaf Blind Multiple Disabilities (-14);
Medically Dependent Children (-213); Consolidated Waiver Program (-18); Texas Home
Living Waiver (-198); Non-Medicaid Services (-131); Mental Retardation Community
Services (-799); In Home and Family Support (-391); MR In-Home Services (-275)
Base increase: $71 million more in General Revenue, mostly for caseload
growth in Medicaid, would draw down another $148 million in federal funds
Exceptional items:
$84 million in GR would draw down $129 million in federal funds to maintain
caseloads for waiver programs; $8 million in GR and $12 million federal would
fund Promoting Independence to get 240 ICF-MR clients and 120 children
leaving foster care into the HCS Waiver program
Source: Dept. of Aging and Disabilities Services, LAR 2008-09.
www.cppp.org
Family & Protective Services
Budget for 2008-09
10% Instructions: $40 million cut in General Revenue spending, all of which
would be made to prevention services. Client impacts: STAR would serve 3,262
fewer youth every month; Community Youth Development (CYD) clientele would be cut by
1,447; Texas Families would reach 1,842 fewer families; and other at-risk prevention
services would reach 1,497 fewer children.
Base increase: $674 million more in General Revenue, mostly to replace
“Rainy Day Fund” dollars used in 2006-07 for CPS reform and foster care
Exceptional items:
•$95 million in GR to continue CPS/APS reform and adjust for method of finance
changes (draws down $28 million in federal funds; 1,475 staff would be funded)
•$51 million in GR to keep CPS caseloads from getting worse (draws down $12
million federal; funds 550 caseworkers and other staff)
•$13 million GR to expand community-based prevention programs
Source: Dept. of Family and Protective Services, LAR 2008-09.
www.cppp.org
State Health Services Budget
for 2008-09
10% Instructions: would require $236 million cut in GR-related spending, plus
the loss of $59 million in federal funds and layoffs of 693 state employees.
Major cuts:
$45 million GR-Dedicated for WIC Nutrition/Farmers Markets;
$41 m GR + $38 m federal for adult mental health services (7,728 clients);
$8.5 million GR + $8 m federal for children’s MH services (842 clients);
$7.6 m GR + $7 m federal for NorthSTAR Behavioral Health waiver;
$4.6 m GR + $5 m federal for substance abuse.
GR cuts to Maternal & Child Health could endanger the whole federal grant ($35
million annually).
Exceptional items: Other than restoring the 10% GR cut, DSHS exceptional
items would not expand the use of federal funds, but would improve staffing for
various public health programs. 97 new positions would be funded for state
mental hospitals (to continue the capacity increase approved for 2006-07); 123
staff would provide preparedness/prevention/emergency response services to
the 188 counties that lack a public health authority.
Source: Dept. of State Health Services, LAR 2008-09.
www.cppp.org
Assistive & Rehabilitative Svcs.
Budget for 2008-09
10% Instructions: would require $13 million cut in General Revenue spending,
plus the loss of $45 million in federal funds and layoffs of 168 state employees.
Rehab/employment programs for blind/visually impaired and for deaf would be
cut; general vocational rehab program would serve 13,875 fewer clients.
Base increase: $9 million more in General Revenue (before 10% cut) would
draw down another $36 million in federal funds
Exceptional items:
$8 million in GR would draw down $33 million in federal funds, newly available
because of 3.5% annual increase in Vocational Rehabilitation Grant, and
prevent the creation of a waiting list. $3.70 in federal funds for every $1 in GR
Legislature could also approve staffing increase of 122 employees in fiscal
2008, plus another 40 employees in 2009, for SSI and SSDI determination
(100% federally funded)
Source: Dept. of Assistive & Rehabilitative Services, LAR 2008-09.
www.cppp.org
Federal Reauthorization Needed
HIV Care Formula Grant: authorization expired at end of fiscal 2005. Congress
could change formulas to favor Southern states. $73 million in fiscal 2006.
Special Programs for the Aging (Nutrition & Supportive Services): $55
million a year for DADS
Refugee and Entrant Assistance: no match required. Funds cash & medical
assistance, social services, some admin costs. $16 million in fiscal 2006.
Family Planning Services: $14 million annually to Dept. of State Health Svcs.
Family Caregiver Support: $8 million/yr for Texas for support svcs for family
caregivers and for grandparents/other older adults who care for relatives
Preventive Health Services: Sexually Transmitted Disease Control Grants:
$7 million a year for Dept. of State Health Services
Source: LBB, Top 100 Federal Funding Sources, April 2006.
www.cppp.org
More Information
Legislative Budget Board, Top 100 Federal Funding Sources and Federal
Funds Watch (newsletter):
http://www.lbb.state.tx.us/Federal_Funds/Federal_Funds.htm
Texas Office of State-Federal Relations, News from Washington and more:
http://www.osfr.state.tx.us/
Source: LBB, Top 100 Federal Funding Sources, April 2006.
www.cppp.org
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