Corbett 2013 budget_pica presentation

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Corbett 2013 budget_pica presentation

  1. 1. Impact of Governor Corbett’sBudget Proposal on Philadelphia Presentation to the PICA Board February 21, 2012 1
  2. 2. Agenda1. Overview of the Governor’s Proposed Budget2. Health and Human Services3. Education4. Public Library Services5. Aging Services6. HEMAP7. Probation and Parole Services8. Judiciary and Crime Prevention9. Public Utility Realty Tax (PURTA) distribution10. Conclusion 2
  3. 3. 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
  4. 4. 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
  5. 5. Estimated Impact on City Departments Department FY12 Funding Proposed FY13 Reduction Amount FundingDBH/IDS $165,003,002 $132,002,402 $33,000,600DHS $3,086,149 $2,468,919 $617,230Health $61,472,441 $54,951,755 $6,520,686MOCS $104,565 $83,652 $20,913OSH $3,228,874 $2,583,099 $645,775Parks and $696,364 $557,091 $139,273RecreationTOTAL CITY $233,591,395 $192,646,918 $40,944,477 Note: Further clarification with the State may change these numbers, but those changes are unlikely to be substantial 5
  6. 6. 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
  7. 7. 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
  8. 8. 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
  9. 9. 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
  10. 10. 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
  11. 11. 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
  12. 12. 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
  13. 13. 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 isproposing consolidating the BES, Pupil Transportation, Non-public and Charter School Pupil Transportation, and the SchoolEmployees’ Social Security appropriation into a single line item. 13
  14. 14. 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
  15. 15. 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
  16. 16. 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
  17. 17. 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 Pennsylvanias 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
  18. 18. 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
  19. 19. 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
  20. 20. 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
  21. 21. 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

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