Impact of the New York State Budget on Rural Communities
1. Impact of the New
York State Budget on
Rural Communities
New York State Association
for Rural Health
2018 Annual Conference
Greek Peak Resort
Cortland, New York
Casey Harrison, Certified
Nurse Midwife, Doctor of
Nursing Practice
4. Objectives
Participants will be able to identify, and understand the
purpose of, key New York State health-related funding
streams within selected rural communities.
Participants will be able to understand and identify the
discrete categories of direct, indirect and multiplied
economic impact of outside funding by looking at selected
health and social entities.
Participants will be able to identify and discuss the
economic impact of cuts in funding on rural infrastructure
and communities, through review of data collected by
analytical software applied to New York State 2016-2017
fiscal year to 2017-2018 fiscal year budget reductions.
5. Background
In 2017, NYSARH administered a
member survey regarding the impact of
NYS DOH funding cuts
Key findings included:
• The most common funding cut experienced by
respondents was at or about 20% of total
expected allocation from NYS DOH
• More than 1/3 of respondents who experienced
cuts stated that the cuts resulted in a reduction in
workforce
• Nearly 70% of respondents who experienced cuts
stated that the cuts resulted in a reduction in
community outreach and engagement
6. Background
Nearly half of respondents indicated that the funding cuts
significantly compromised the ability to recruit and retain
healthcare professionals in their communities
Nearly 1/3 of respondents who experienced cuts stated that the
cuts resulted in a significant decrease in the ability to leverage
other funding
All respondents who experienced cuts stated that the cuts resulted
in a reduction in programming, particularly program areas related
to outreach, education and health promotion
65% of respondents who experienced cuts stated that the cuts
resulted in a reduction in worker training, professional
development, and/or continuing education
7. Background
Survey findings were presented and
discussed at the Rural Health Network
Meeting during the NYSARH 2017 Annual
Conference one year ago
Discussion surrounded the fact that each
and every year is a struggle to remain
whole in the NYS DOH budget, let alone
get reinstated to previous levels
As a collective of RHNs and other public
health-related programs, this has been,
and continues to be, the most serious
problem to address
8. Problem Statement
• Approximately 31 public health-related
programs, which rely on NYS DOH funding
to survive and serve rural communities,
have experienced funding cuts and remain
under further funding cuts on an annual
basis.
Ancillary Statement – Efforts to influence
lawmakers and NYS DOH to not make
funding cuts to these programs – and to
reinstate funding that has already been cut –
have been only marginally effective
9. Advance the New
York State Prevention
Agenda, Women’s
Agenda, Delivery
System Reform
Incentive Payment
Program (DSRIP), and
Health Across All
Policies and Ages
31 NYS Public
Health Programs
Cuts &
Consolidation
Reduction in
Programs and Rural
Economy
Increase in Social
Determinants of
Health
Compromise of NYS
Agenda Priorities
10. Approach
• Inform and educate decision-makers that NYS
DOH funding to 31 public health programs has
a direct and significant impact not just on the
health of people in rural communities, but on
the economic health of those communities –
and that fact increases the devastating effects
of social determinants of health which makes
for a sicker population
• Credible evidence must provided decision-
makers regarding the multiplied economic
impact of funding cuts on rural communities
11. RuralPrep Microgrant
• Community based approach with small “seed grant” funding to generate
locally implemented projects in underserved communities, resulting in big
impacts
• RuralPrep provides multiple $4000 awards to students in health professions
aiming to provide research that is collaborative and community engaged
• Application included a Project title, background, research question,
methods, expected products, timeline, and mentor
• This funding was used to purchase a 1 yr subscription to IMPLAN software
12. Research
Question
The question this investigation seeks to
answer is: What is the economic impact
of state-based rural health funding cuts in
rural regions; where impact is
operationally defined by a standardized
multiplier formula, rural regions defined
as counties and legislative districts, and
state-based rural health funding cuts
defined by reductions in funding from
one year to the next in discrete rural
funding areas.
13. Project
Background
Rural Americans face unique challenges when it
comes to addressing the needs of local and
regional public health infrastructure, as they are
generally older and sicker than their urban
counterparts
There are higher rates of poverty to include
children living in poverty, disparities in healthcare
equity and access, lower education rates and
secondary schooling, greater risks for on-the-job
injuries, and higher rates of uninsured
Access to quality health services was identified by
Rural Healthy People 2020, Healthy People’s
companion document, as the single most
important rural health priority for the decade
14. Background
Continued
The health and social sector provides a
foundation for the health and well-being of rural
communities. Rural residents are more likely to
derive their income from the healthcare industry
both directly and indirectly, and health and
wellness of rural communities lies heavily on the
Health and Social sector
As such, cuts to the primary source(s) of funding
to rural health programs/services increase the
negative impact of the social determinants of
health and are devastating to the health of the
rural residents, and the communities within
which they live and work.
16. Methods
Results will be segregated by county and State legislative
districts and analyzed using the IMPLAN system to
identify the economic multipliers related to the funding
cuts and the resulting economic impact to the
county/legislative district utilizing the input-output model
for analysis which will calculate direct, indirect, and
induced effects of the funding loss within the rural
communities.
Collaboration with Area Health Education Centers
and Rural Health Networks to determine the
exact amount of state funding cuts made to each
of these entities between the 2016-2017 New
York state fiscal year and the 2017-2018 New York
State fiscal year.
17. Focus Areas
Senate District 45
• Clinton
• Essex
• Franklin
• St. Lawrence
• Washington
Senate District 51
• Cayuga
• Chenango
• Delaware
• Herkimer
• Ostego
• Schoharie
18. Definitions • Direct Effects
• Funding cuts
• Indirect Effects
• Business to
business activity
i.e. suppliers,
daycare,
catering
• Induced effects
• Home sales and
rent, gas,
groceries
• Employment
• Full or part time
• Labor Income
• Employee wage
and benefits
• Value Added
• Output minus
input
• Output
• Total production
23. District 51 Value Added
Direct
Effect
Indirect
Effect
Induced
Effect
Total Effect Multipliers
-72,652.20 -12,944.50 -49,379.70 -134,976 1.86
District 45 Value Added
Direct
Effect
Indirect
Effect
Induced
Effect
Total Effect Multipliers
-85,084.90 -15,113.50 -54,663.50 -154,862 1.82
24. District 51 Labor Income
Direct
Effect
Indirect
Effect
Induced
Effect
Total Effect Multipliers
-164,893 -6,388.19 -23,599.20 -194,880 1.18
District 45 Labor Income
Direct
Effect
Indirect
Effect
Induced
Effect
Total Effect Multipliers
-169,877 -8,385.52 -27,759.70 -206,022 1.21
26. Top 5 Sectors Impacted
District 51
• Owner-occupied dwellings
• Real estate
• Hospitals
• Monetary authorities and depos...
• Insurance carriers
• Wholesale trade
• Restaurants
• Wired telecommunications
• Office of Physicians
• Retail
District 45
• Owner occupied dwellings
• Real estates
• Hospitals
• Monetary authorities and depos
• Wholesale trade
• Restaurants
• Other local government enterprises
• Office of physicians
• Retail
• Financial institutions
27. Status
Preliminary results show detrimental impact on
rural communities from funding loss in just a piece
of the healthcare sector as a whole
When we lose funding everyone is impacted in the
community
IMPLAN is a successful method for analyzing the
detrimental impact loss of funding in the health
sector has on the rural infrastructure.
The numbers used today are part of a small discrete
cohort of these big cuts. Utilizing IMPLAN to reflect
ALL of the cuts would only amplify these results
28. What Next?
• More precision in data per senate district
• Expert use of IMPLAN software and analysis on
a larger scale
• Passing the torch – it is up to you to carry this
on. Detailed numbers and analysis can make a
dramatic real time case for detrimental impact
on rural infrastructure with funding loss to
health and social sector
• Stakeholder involvement – result dissemination
For anyone who was not at my first session I just wanted to take a moment to introduce myself. I am Casey Harrison. I am a certified nurse midwife and Dr of nursing practice. I am a recent graduate form Stony Brook university in Long island. I am from the border of Allegany and Steuben county, and I did my training at a facility in Cattaraugus county. Here is a picture of my wonderful not so little family right before we hiked a mountain in NH. EXCLAIMER** I do not recommend hiking 3,500 foot mountains with 5 children! But we did make it to the top. I was raised in the rural foothills of NY state. . Growing up in rural NY, and training as a midwife there, it is beautiful. The sense of family, of community, of comfort, is unlike anywhere else. I have recently moved to VA to join a lovely practice in Fredericksburg, and have intentions of advocating for rural health in VA as well.
Top here are the NYS DOH priorities, programs and initiatives
There are 31 funded either directly or indirectly as part of the mission to achieve the DOH agenda
The results of the cuts worsen the SDOH therefore compromise the objectives set out by the DOH.
For this project we chose to look at the rural counties located within two primarily rural senate districts within NY state. District 45 and 51. the counties were considered rural if they were defined so by the U.S. Census Bureau as being mostly/all rural.
The results for this project were based on two discrete area’s that lost NYS DOH funding. For the purposes of IMPLAN these area’s are part of a “sector”. The sectors are determined by their NAICS codes. The North American Industry Classification System (NAICS) is the standard used by Federal statistical agencies in classifying business establishments for the purpose of collecting, analyzing, and publishing statistical data related to the U.S. business economy.
The NAICS codes used to for our example were
624190 Other Individual and Family Services
611699 All Other Miscellaneous Schools and Instruction
NAICS codes are self reported, and I just want to make it clear, that the two codes I have selected to represent a “general picture” of the effects of funding cuts on our social and healthcare system are not by any means all inclusive, but they were selected with care and consideration of the discrete area’s we are focusing on.
Direct: The actual dollar amounts of funding cuts. Applying these initial changes to the multipliers in an IMPLAN model will then display how the region will respond, economically to these initial changes.
Indirect: The impact of local industries buying goods and services from other local industries.
Induced: attributed to households spending earnings
Employment: A job can be either full-time or part-time.
Labor Income: All forms of employment income, including Employee Compensation (wages and benefits) and Proprietor Income.
Value Added: The difference between an industry's or an establishment's total output and the cost of its intermediate inputs. It equals gross output (sales or receipts and other operating income, plus inventory change) minus intermediate inputs (consumption of goods and services purchased from other industries or imported).
Output Output represents the value of industry production.
Direct effect – the direct impact of the sector being cut – whether it is loss of jobs, depletion of resources, programs being cut, normal purchases not being made
Indirect – the ripple of that to the suppliers, food services, gas, paper production plants, gravel products, …
Inducted – local retail and services not being purchased by persons effected from the cuts in the direct sector as well at the suppliers that are affected
I noted earlier from the survey that NYSARH sent out The most common funding cut experienced by respondents was at or about 20% of total expected allocation from NYS DOH. These preliminary results were obtained using direct reported amounts of funding cuts to the two sectors representing RHNs and AHECs in rural NY within the aggregate senate districts.
What this chart depicts is the impact summary of those cuts that were reported. I just want everyone to understand, this is but a small piece of the pie, as we were only able to focus on a limited area and limited sectors for this session. The 2017-2018 funding cut was much a much larger amount in total.
Here you wills the definitions labeled that we just defined
The direct effect output is the number we are working with to determine all other losses. The 237,545 is the direct amount of cuts in this district associated with the 20% loss in funding to the two sectors we focused on.
The multipliers are the bases of how the O-O analysis works. IMPLAN estimates potential impact of economic changes. The multipler is basically the rate of change. It describes how for a given change in a particular industry a resultant change will occur in the overall local economy. Multipliers are determined by dividing the total effect by the direct effect.
Here we have both districts total output impact based on the direct loss of funding
The output multiplier describes the total economy output lost (or gained in a positive example) as a result of one dollar lost in the target industry. So for district 51, for every dollar lost to RHN and AHECs, 47 cents of activity is lost in the local economy. For district 45 for every dollar lost, 50 cents of activity is lost in the local economy
So you will see ** describe $$ loss
The value added multiplier describes the total dollars of value added in the economy as a result of one dollar of value added in the target industries. So for every dollar that the defined sectors have lost related to funding cuts, after satisfiying all of their expenditures or needs, 86 cents of value added is lost in the local economy for district 51, and 82 cents in district 45
Labor income multipliers show the dollars lost to labor income in the economy based on one dollar lost in target industries. For every dollar lost to income in District 51, 18 cents is lost in other income in the local economy, and 21 cents is lost in income in the local economy in district 45
Employment multipliers show total jobs lost based on 1 job in the selected industry. So based on our funding cuts, Disrict 51 lost approximately 4.45 jobs directly. With a multiplier of 1.20, that means for every 1 job, .20 of a job was lost, so the loss of 4 jobs actually created a loss of 5 jobs total within the community.
The same can be seen for district 45, for every 5 jobs lost directly related to the industry cuts, 1 extra job is taken from the community.