“BREATHTAKINGLY BAD NEWS”
In a briefing for NAMI NEW JERSEY and human services advocates,
Human Services Commissioner Kevin Ryan presented a preview
of the proposed state budget in advance of Governor Corzine’s
budget address on Tuesday, March 21. The Governor will also
recommend a restructuring of the Department of Human Services
(DHS) to begin on July 1.
The administration has decided to move forward with a new
Department of Children and Families by shifting the beleaguered
child welfare agency DYFS as well as the newly organized
Office of Children’s Services (OCS) from DHS. OCS includes
Children’s Behavioral Health, the Office of Prevention
and Community Partnerships, the Catastrophic Illness in
Children Relief Fund Program and the DHS Office of Education.
Commissioner Ryan will leave DHS to head up the new cabinet
level department. A search is currently underway to replace
him as the Commissioner of Human Services. A task force
will be named shortly to study additional realignments that
may include the Division of Family Development, the Juvenile
Justice Commission and whether Medicaid should be bifurcated
between Human Services and the Department of Health and
Senior Services. The task force will issue its recommendations
to the Governor by August first.
Commissioner Ryan then went on to the proposed state budget
that he described as “breathtakingly bad news”.
The Governor will be proposing larger cuts than revenue
enhancements (taxes, fees) in order to close a projected
$4 billion projected deficit. For the Department of Human
Services this will mean more than $255 million dollars in
proposed reductions or efficiencies. Of these the most problematic
for persons with a mental illness are the following:
• $2 co-pays per prescription per month for
non-dual eligible Medicaid recipients to a maximum of $10
a month.
• Prior authorization of “expensive anti-psychotic
medications”, $8.7 million.
• Co-pays for non-emergent emergency room use.
• Partial Care rate reduction for hospital based
PCP’s, $7.5 million.
• Redeploy coordinator positions in the state
hospitals to other places in DHS, $2.4 million.
• No cost of living adjustment (COLA) for community
providers struggling to maintain services while dealing
with escalating costs.
Commissioner Ryan stated that there will be no cuts to
the child welfare budget although some resources will be
directed from the state bureaucracy to community providers.
Her will likewise be no cuts in optional Medicaid services
as has been the case in a number of other states. The Commissioner
additionally expects an announcement on progress towards
New Jersey’s Olmstead commitment momentarily, as work
continues prior to the budget address.
NAMI NEW JERSEY will be closely following budget developments
in Trenton in order to effectively advocate for adequate
funding to meet the needs of persons with a serious mental
illness and their families. Grassroots advocacy by NAMI
members and our friends will be more crucial than ever in
what will be one of our most challenging budget seasons
in years.
