Legislative Session Focuses on Budget

March 29, 2012

The following is a preliminary synopsis of the 2012 Oregon Legislative session on issues of concern to social workers. A final report will be carried in the summer issue of The Nexus newsletter in mid June.

Budget: The Big Picture

• $340 million budget gap (revenue shortfall combined revenue forecasts since 2011 session and increases in caseloads)
• 2012 re-balance retains $118 ending fund balance (money to be used for future adjustments prior to 2013 session)

Budget: By Area

DHS: Temporary Assistance for Needy Families

• TANF Parents as Scholars clients can complete their education without losing cash assistance.
• Family Support and Connections program is maintained at full funding.
• Funding for refugee services is reduced by $450,000 (3.3%) overall.
• Families who meet the federal 60-month time limit out of state will not be eligible for TANF in Oregon.  The current “job quit” ineligibility period is extended from 60 to 120 days.
• Basic cash assistance payment levels and income eligibility criteria are unchanged.

DHS: Child Welfare

• Child welfare services maintained, including family preservation & reunification programs.
• Foster care, adoptions assistance and other provider reimbursement payments are unchanged.

DHS: Seniors and People with Disabilities

• Vocational Rehabilitation Services are continued without reduction.
• No reductions are made in OPI services. Medicaid adult day services and home-delivered meals programs are continued.
• $40 million General Fund is added to the Medicaid long-term care budget for SPD.
• Alternatives to Employment Services, Sheltered Employment, Supported Employment, the Family Support Program and Family-to-Family network for people with developmental disabilities and their families continue without reductions. 
• The plan also avoids further reductions to DD providers, and mitigates $6.9 million of reductions previously anticipated in the legislatively adopted budget.

Oregon Health Plan (Medicaid)

• Funding for the Oregon Health Plan (OHP) is maintained at current levels. 
• Services are maintained for dental benefits, mental health benefits, addiction services, and prescription drug benefits. 
• The prioritized list of services is maintained at its current level.

Healthy Kids Program

• A total of $16.8 million of the provider tax will be redirected to help ensure access to health care for children.  Of this total, $11 million will be used to preserve services for children by preventing program reductions in the OHP Plus program. 
• The remainder will be used in the Family Health Insurance Assistance Program (FHIAP) to prevent further program reductions

Addictions and Mental Health

• Four wards in the Oregon State Hospital will not be opened until the beginning of 2013-15, resulting in 1x savings of $19.6 million General Fund.
• Blue Mountain Recovery Center will remain open.
• Alcohol and Drug Treatment programs are continued without reductions.
• $5.7 million Other Funds from the Community Mental Health (Dammasch) Housing Trust Fund to support program services. This amount is equal to 1/2 of the current principal in the Fund. 
• The Other Funds will be used to continue to provide community services to children and adults with mental illness. With this funding, all community mental health services are maintained at current levels.

Health Care Reform: Transformation/CCOs/Exchange

• Transformation passes; 9 member metrics work group appointed by OHA.
• Supported bill/amendments to move the meter on psych/soc barriers to care w/in CCOs. Effort failed.
• Exchange bill passes; ORHIX (the “exchange” corp.) is established and moves forward.
• Next steps: monitor interim/regulatory process

Foreclosure Reform

• Oregon will implement a mandatory mediation program and put an end to the destructive dual track system.
• These changes address the most common problems homeowners encounter – getting a hold of decision-makers at their bank, and being told they’re on the path to save their home, only to find their bank has already started the foreclosure process.