Transcript Impact of Governor Corbett’s Budget Proposal on Philadelphia Presentation to the PICA Board February 21, 2012

Impact of Governor Corbett’s
Budget Proposal on Philadelphia
Presentation to the PICA Board
February 21, 2012
1
Agenda
1. Overview of the Governor’s Proposed Budget
2. Health and Human Services
3. Education
4. Public Library Services
5. Aging Services
6. HEMAP
7. Probation and Parole Services
8. Judiciary and Crime Prevention
9. Public Utility Realty Tax (PURTA) distribution
10. Conclusion
2
Overview
• Governor Corbett proposed a $27.138 billion General Fund
budget, which included deep spending cuts and no
increases in broad based taxes
• As proposed, the Governor’s budget would have a number
of negative impacts on the city, including increasing the
number of persons with mental health issues living on the
street, and jeopardizing over $24 million of federal funds
for HIV/AIDS programs
• Departments are still analyzing the specific impact of each
reduction, and over the following few months, will
determine how to try to ensure the continuity of the critical
services with these potential reductions
3
Health and Human Services
• The Governor’s proposed budget creates the Human Services
Development Block Grant. This combines the Human Services
Development Fund, Homeless Assistance, Mental Health
Services, MA-Outpatient, Behavioral Health Services,
Intellectual Disabilities-Community Base Program, and County
Child Welfare.
• This plan reduces total funding to Philadelphia by 20%, a loss
of $34 million.
• Cuts in Health bring the total reduction to $41 million.
4
Estimated Impact on City Departments
Department
DBH/IDS
FY12 Funding
Proposed FY13
Funding
Reduction Amount
$165,003,002
$132,002,402
$33,000,600
$3,086,149
$2,468,919
$617,230
Health
$61,472,441
$54,951,755
$6,520,686
MOCS
$104,565
$83,652
$20,913
$3,228,874
$2,583,099
$645,775
$696,364
$557,091
$139,273
$233,591,395
$192,646,918
$40,944,477
DHS
OSH
Parks and
Recreation
TOTAL CITY
Note: Further clarification with the State may change these numbers, but those
changes are unlikely to be substantial
5
Behavioral Health and Intellectual
disAbility Services
• With a $33 million reduction in Behavioral
Health funding, the Department anticipates
an increase in homeless and criminal justice
populations, especially those with addictions,
an increase in people living on the streets,
increased institutionalization for those with
behavioral health issues, increased costs for
DHS, and increased demand for emergency
shelter.
6
Behavioral Health and Intellectual
disAbility Services
• Specific cuts include:
– Elimination of over 400 community residential beds
– Loss of outpatient services for more than 4,000 uninsured
individuals
– Elimination of case management services to over 400
individuals with chronic severe mental illness and
substance abuse issues
– Reduced homeless outreach services
– Reduced citywide mobile emergency services
– Elimination of detoxification, residential rehab/inpatient
and outpatient treatment to over 1,400 uninsured
individuals with addiction issues
– Reduction in support services for over 3,000 individuals
with intellectual disabilities at home who have limited or
no services
7
DHS
• Specific cuts include:
– Reduction in funds for family services
– Reduction in legal services for women victimized
by domestic violence
• With the reduction in behavioral health
services and increased demand at shelters,
the Department anticipates an increase in
child welfare cases
8
Supportive Housing
• With a 16% reduction in case management
services for emergency and transitional housing,
the Department anticipates increased lengths of
shelter stays impacting the ability to get
homeless individuals off the street
• The Department is also concerned about the
number of families that may be turned away at
intake, potentially resulting in families living on
the street
• Moreover, with GA cuts and the reduction in
behavioral health services, the Department
anticipates increased shelter demand for singles
9
Health
• The Health Department reductions affect a wide-range of
services, including:
– Reductions to the Nursing Home, which will result in increased
City supplement or closed beds
– Loss of hospice beds for individuals with AIDS
– Reduction in HIV testing, case management, and home food
services for people with HIV/AIDS. This cut places over $24
million of federal funds in jeopardy due to inability to meet
requirements.
– Reduction in Ambulatory Health Services MA revenue,
impacting health center capacity
– Reduction in lead abatement
– Reduction in TB clinic staff and services
– Reduction in Maternal and Child Health services (including
families with children of special needs and prenatal care for the
uninsured)
– Reduction in language access services
10
Education Funding
• The Governor’s proposed budget reduces
education funding for a second consecutive year.
• The proposed budget creates the Student
Accountability Block Grant, which combines the
Basic Education Subsidy (BES), Pupil
Transportation, Non-public and Charter School
Pupil Transportation, and the School Employees’
Social Security appropriation into a single line
item.
11
School District of Philadelphia
• The Philadelphia School District’s Basic Subsidy is level
funded for FY13 at $968.1 million, with slight funding
increases for the remaining three lines in the block grant.
• The Governor’s proposed budget eliminates funding for PA
Accountability Grants (ABG), which eliminates $21.6 million
in funding for the District and negates the modest increase.
• The biggest spending increase in the Commonwealth’s
Education budget is for pension payments, and individual
districts will be expected to match these payments. With
costs rising for pensions (and other growth), the School
District will face significant fiscal challenges in FY13. The
estimated gap is over $260 million for FY13.
12
Change in BES and ABG funding by County
(FY11 Actual vs. FY13 Proposed)
0%
-5%
-10%
-15%
-20%
-25%
This chart captures the Basic Education Subsidy (BES) and Accountability Block Grant (ABG) only. In FY13, the Governor is
proposing consolidating the BES, Pupil Transportation, Non-public and Charter School Pupil Transportation, and the School
Employees’ Social Security appropriation into a single line item.
13
Higher Education
• The proposed budget reduces funding for
Temple University by 30% (from $139.92
million to $97.942 million)
• State aid to the Community College of
Philadelphia is reduced by 5% (from $33.45
million to $32.2 million)
• Impact on tuition and local jobs is yet to be
determined, but will be negative
14
Public Library Services
• The proposed budget slightly reduces Public
Library subsidies
• The Free Library of Philadelphia will receive
approximately $6.3 million in subsidies, down
from $7.4 million in FY10.
15
Aging Services
• The Pennsylvania Lottery generates revenue for
aging services
• In Philadelphia, these funds are allocated to the
Philadelphia Corporation for Aging.
• Services include nutrition, employment,
transportation domestic care, personal
protection, long-term care assessment, and both
basic and intensive in-home services
• The FY13 proposed budget provides a slight
decrease in funding (from $46.3 million to $46.16
million)
16
Homeowners Emergency Mortgage
Assistance Program
•
The Governor’s proposed budget provides no new support for the Homeowners Emergency
Mortgage Assistance Program (HEMAP). The program ended in July 2011.
•
This nationally acclaimed program offered loans to homeowners who fell behind in monthly
payments due to unemployment or family medical emergencies. The New York Federal Reserve
Bank praised HEMAP as a potential solution to the national foreclosure crisis. The banking industry
has also supported HEMAP, as it allows banks to forego acquisition of many foreclosed properties
that they do not want.
•
Pennsylvania foreclosure filings have jumped significantly in the past year, and with no direct aid,
more homeowners may lose their homes.
•
According to a recent report by the Reinvestment Fund, HEMAP loans saved more than 42,700
families from foreclosure in Pennsylvania. According to the report, "Were it not for HEMAP, not
only would Pennsylvania's annual foreclosure rates have been higher, but our rank among states
would have been several positions higher”. Most of these loans have been repaid and the state has
actually received more funds in return from HEMAP loans than has been appropriated over the
years. Over 85% of these families have used the HEMAP loans to successfully regain their feet and
keep their homes long term.
•
Last year, in Philadelphia, 269 HEMAP loans were closed totaling $2.7 million, therefore saving 269
families from losing their homes. Since 2002, 2,534 homes have been saved in Philadelphia through
HEMAP.
17
Probation and Parole Services
• The proposed budget slightly decreases funding
for the Commonwealth’s “Improvement of Adult
Probation Services”
• Philadelphia uses these dollars to hire State
Probation and Parole Officers, which are
historically difficult to attract and retain in the
city.
18
Judiciary and Crime Prevention
• No reductions are proposed for the Court
system in Philadelphia
• However, cuts are proposed for the State
Witness Relocation program (which impacts
the amount that Philadelphians may be able
to receive) as well as the Joint Local-State
Firearm Task Force (impacting the DA’s office)
19
PURTA
• The PURTA (Public Utility Realty Tax) is
distributed to municipalities and school
districts across the Commonwealth
• Under present estimates of the revenues,
Philadelphia should see a slight increase
compared with the prior year (from $3.85
million to $3.92 million)
20
Conclusion
• As proposed, the Governor’s budget reduces
funding for critical programs across the city
• City agencies are studying the impact of these
potential reductions, and will focus on
mitigating the most severe cuts to the degree
possible with fewer overall funds
21