March 10, 2002
Inside ■ ACT Seminar— p. 2 ■ Supreme Court — p. 3
MR Awareness — Page 3
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“To be a revolutionary you have to be a human being. You have to care about people who have no power.”
■ Simple Answers — p. 5
—Jane Fonda Non-profit Org. U.S. Postage PAID Mpls. MN Permit No. 4766
Volume 13, Number 3
SOURCES
RESOURCES
March 10, 2002
NEWS FROM THE STATE CAPITOL STATE BUDGET DEFICIT GROWS WORSE by Anne L. Henry
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n Monday, February 25, 2002, we learned that the state budget deficit of $1.95 billion had grown to $2.3 billion. In addition, the structural deficit for the next biennium, 2004/2005, had increased by $677 million since the November 2001 forecast.
NAMI-MN Celebrates 25th Anniversary
The Legislature and the governor have proposed different solutions to this very serious budget deficit. Minnesota is required by the state constitution to have a balanced budget. Therefore, deficit spending is not allowed and, if the Legislature fails to act, the governor must cut spending himself.
by Karen Trudell and Sue Abderholden
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wenty-five years ago, a small group of people— who met largely around each other’s kitchen tables—tried to convince the legislature to fund a state pilot project for community mental health treatment. This “kitchen table coalition” was propelled to action because there were no community services to support their family members when they were discharged from a state hospital. This group later became the National Alliance for the Mentally Ill in Minnesota (NAMI-MN). NAMI-MN is unique in the mental health community because of the strong involvement of both persons with mental illness (biological brain disorders) and their family members. Over the past 25 years, NAMI-MN has provided education programs, recovery programs, support groups, anti-stigma
campaigns, and—of course— continued to advocate for programs that help people with mental illness live in the community. And NAMIMN is clearly gearing up for the next 25 years. It has hired a new executive director, Sue Abderholden; a new program director, Shelley White; and has increased its board to 25 members. Past Progress and Future Concerns NAMI-MN has stayed true to its roots by working to effect positive changes in the mental health system. Early issues addressed by the grassroots organization included the lack of: transitional services for individuals leaving state hospitals, crisis services, and community-based services. Last year, NAMI members worked with the Mental Health Legislative Network to pass the
Mental Health Act of 2001. This ambitious law will overhaul the existing mental health system and appropriates nearly 33 million in funding for the next two years. Much is left to be done. Mental health services are poorly funded and there are long waiting lists. NAMIMN believes people should receive services when they need them, where they need them, and for as long as they need them. The issues of homelessness, insurance discrimination, affordable supportive housing, employment, and supporting families in their role as caregivers remain high on the list for future action. In addition, NAMI-MN is also concerned about the service system for children and those who reside in the corrections system. NAMI-MN - cont. on p. 6
The governor’s veto of the House and Senate budget deal was overridden by the House and Senate at the end of February. Thus, a significant portion of the budget deficit for the current biennium was taken care of by using all revenues, and by cutting state agencies and programs. However, there is still a budget gap of $439 million facing the Legislature. Since the first budget deal used all of the reserves and significantly cut state government, it appears that the two options remaining are to further cut programs— including programs affecting persons with disabilities— and to raise taxes. Redistricting will change some legislators’ districts and this is an election year, so raising taxes will be very difficult. However, unless a lot of unused funds can be found, it seems unlikely that the Legislature can protect essential programs and services for per-
sons with disabilities without raising taxes to cover the deficit for this biennium and next. Minnesota is experiencing a recession with significant job loss, which translates into less income taxes and less spending, which means less sales tax. The decline in tax collections due to the recession combined with tax cuts passed less than a year ago point to the fact that the deficit is almost entirely due to taking in less revenue, not spending more than had been projected on state services. The permanent tax cuts enacted last session reduced tax revenue by $759 million for the current biennium. This and other tax cuts and rebates, enacted not even a year ago, now seem unaffordable in the face of Minnesota’s significant budget deficit. Therefore, it makes sense for legislators and the governor to consider proposals to raise taxes. The governor has proposed raising taxes to produce $397 million for the current biennium. The tax increases proposed by the governor include a 5-cent gas tax increase, which would then be indexed for inflation starting in 2003; an increase in the cigarette tax by 29 cents a pack; an expansion of the sales tax for services (legal services, motor vehicle repairs, interstate phone service) and some goods (newspapers and magazines, institutional meals); and miscellaneous other tax increases. At press time, both the Senate DFL and governor support
tax increases to close the budget gap. Cuts in the recently passed House Senate Budget Bill affecting Health and Human Services include: a delay in new persons with developmental disabilities getting waiver funding (a cut of $4.2 million per year); a reduction in Intermediate Care Facilities/Mental Retardation funding ($2.5 million per year); cuts in State Operated Services (Residential Treatment Centers) funding ($8 million per year), requiring counties to pay 20% of the cost of nursing homes for those under 65 who stay longer than 90 days ($3 million per year); a reduction in Community Social Services Act grants ($4.7 million per year); and a reduction in Children’s Mental Health Collaboratives ($2.2 million per year). Many important programs were not cut in this first budget bill including Prescription Drug Program eligibility for persons with disabilities (which begins July 1, 2002), Medical Assistance for Employed Persons with Disabilities, and many state grant programs. Because the deficit has grown larger, more cuts are likely unless more unused money is found or taxes are raised to cover the budget gap. It is likely that programs and services for persons with disabilities will be considered for further cuts as the Legislature moves to balance the budget. Stay tuned. ■ Anne L. Henry is an attorney with the Minnesota Disability Law Center.