One%20Voice%20Pre-Legislative%20Forum%20Maximizing%20Federal%20Funds:%20The%20State%20Budget%20September%2027,%202006

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One Voice Pre-Legislative ForumMaximizing
Federal Funds The State BudgetSeptember 27,
2006
Eva DeLuna Castro, Senior Budget AnalystCenter
for Public Policy Priorities deluna.castro_at_cppp.or
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Presentation Outline

• Brought to you by the federal government
• Information 2) Money
• More details on how federal funds in the state
  budget are serving Harris County how that could
  change in 2007 legislative session

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Texas and U.S. Poverty, 2004-05 Texas and U.S. Poverty, 2004-05 Texas and U.S. Poverty, 2004-05
Texas U.S.
Poverty rate 16.3 12.7
Total in poverty 3.675 million 37.0 million
By ethnicity In Texas, 23 of
African-Americans 26 of Hispanics 7.5 of
non-Hispanic Whites and 12 of Asian-Americans
live below the poverty line (9,800/year for one
person 16,600 for a family of 3) By age group
25 of children in Texas live below the poverty
line 13 of Texans ages 65 and over live in
poverty. US averages 19 poverty for children
10 for age 65 and over.
Source U.S. Census Bureau, March Current
Population Survey
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ACS 2005 Growth Continues, But Poverty Increases
Even More
Source U.S. Census Bureau, 2005 American
Community Survey
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ACS 2005 Child Poverty Increase is Especially
Troubling
Source U.S. Census Bureau, 2005 American
Community Survey
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Harris County Residents, 20053.6 million people
total
Poverty rates by ethnicity 18
overall Hispanic 26 African-American
26 White/Other 8
Source U.S. Census Bureau, 2005 American
Community Survey
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Harris County Residents by Age and Poverty, 2005
Poverty rates 28.5 25.5
15.7 8.9 12.1
Source U.S. Census Bureau, 2005 American
Community Survey
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Harris County Adults by Education Poverty
Status, 2005 (Age 25)
Poverty rates 27.4 14.0
9.2 3.5 3.6
Source U.S. Census Bureau, 2005 American
Community Survey
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Educational Enrollment of Harris County
Residents, 2005 (Age 3) Totals 897,900 in
public, 121,100 in private, 2.4 million not
enrolled
Source U.S. Census Bureau, 2005 American
Community Survey
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Federal Spending in Harris County, 2004
Texas 142 b 6,313 per capita Harris County 1
5.8 b 4,388 per capita
Source U.S. Census Bureau, Consolidated Federal
Funds Reports
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State Govt. Spending in Harris County, 2005
Source Texas Comptroller of Public Accounts,
County Expenditures
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State Govt. Spending of K-12 Federal Funds
Source Texas Comptroller of Public Accounts,
County Expenditures
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State Govt. Spending, HHSC Federal Funds
Source Texas Comptroller of Public Accounts,
County Expenditures
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State Govt. Spending, DADS Federal Funds
Source Texas Comptroller of Public Accounts,
County Expenditures
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State Govt. Spending of Other HHS Federal Funds
Source Texas Comptroller of Public Accounts,
County Expenditures
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State Govt. Spending of Federal Highway Funds
Source Texas Comptroller of Public Accounts,
County Expenditures
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Higher Ed Minimal Federal Funds in State Budget
Source Texas Comptroller of Public Accounts,
County Expenditures
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Prison System Doesnt Add Much in Federal Funds
Either
Source Texas Comptroller of Public Accounts,
County Expenditures
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Workforce System Almost Entirely Federally Funded
Source Texas Comptroller of Public Accounts,
County Expenditures
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Other State Govt. Spending of Federal Funds, 2005
Source Texas Comptroller of Public Accounts,
County Expenditures
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Recap State and Federal Funding of State Govt.
Services in Harris County, 2005
State Funds Federal estimate
K-12, Teacher Retirement 2.0 billion 478 million
HHSC (Medicaid, CHIP, TANF, Food Stamps) 753 million 1.2 billion
Aging Disability 157 million 235 million
Other HHS (FPS, DARS, State Health Svcs) 86 million 110 million
Highways/State troopers 617 million 628 million
Higher Education 808 million 16 million
Prisons (TDCJ) 559 million 5 million
Workforce Commission 55 million 403 million
All Other 1.3 billion 188 million
TOTAL 6.2 billion 3.3 billion
Source Texas Comptroller of Public Accounts,
County Expenditures
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Boosting Harris Countys Share of State Spending

• In 2005, Harris County accounted for 14 of state
  spending, but it is home to 16 of the states
  residents
• How to improve that statistic

• Work with Harris County delegation to see that
  state formulas to distribute federal funds
  (county allocations, rates, regional
  distributions) dont put local service providers
  at a disadvantage
• Make sure that eligible residents are being
  served by Medicaid, Food Stamps, other major
  programs
• Understand what budget cuts (10 reduction
  proposals for 2008-09) will cost in lost federal
  funds and the services they provide

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Recent Changes, Food Stamp Enrollment in Harris
County
Source Texas Health and Human Services Commission
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Harris County Residents by Age and Poverty, 2005
Poverty rates 28.5 25.5
15.7 8.9 12.1
Source U.S. Census Bureau, 2005 American
Community Survey
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Recent Changes, TANF Enrollment in Harris County
Source Texas Health and Human Services Commission
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Texas Child Medicaid and CHIP Enrollment (Jan.
2002-August 2006)
Sources Enrollment from Texas Health and Human
Services Commission Uninsured from Census Bureau
March Current Population Survey.
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Harris County Medicaid CHIP Enrollment (August
2005-August 2006)
Source Texas Health and Human Services
Commission.
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Governors Budget Instructions for 2008-09

• 10 Cut in General Revenue and GR-Dedicated
  funds except for Medicaid and foster care
  CASELOAD (but not COST) increases, most budget
  proposals for state services must reflect a 10
  reduction in state funding, even if this means
  that state wont meet minimum match or
  maintenance of effort (MOE) requirements
• Why is this being done? (especially after
  5-cut-instructions in 2005, and 12.5-cut in
  2003)
• Its a useful planning exercise
• Itll create confusion about exceptional items
  needed to keep things from getting worse
  (restoration), exceptional items that are
  current services (need more money to do the
  same thing, because it costs more), and
  exceptional items that would be an actual
  improvement or expansion
• If 10 cuts can actually be implemented, some
  General Revenue will become available to pay for
  supplemental spending needs for the current year
  (fiscal 2007) and/or for newly enacted school
  property tax cuts

Source Health and Human Services Commission, LAR
2008-09.
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Digging a Hole
In billion 2008-09 2010-11 Total

HB 3 (business tax) 6.8 7.7 14.5
HB 4 (used cars) 0.1 0.1 0.2
HB 5 (cigarettes) 1.4 1.3 2.7
TOTAL REVENUE 8.3 9.1 17.4

Cost of HB 1 -18.8 -20.2 -39.0

Gap between HB 1 and HB 3,4,5 -10.5 b -11.1 b -21.6 b
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State Own Source Spending/Revenue

Own Source not counting federal funds.
Needs does not include more than 3 billion in
GR funding requested for improvements or
restorations.
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HHSC Budget Request for 2008-09

• 10 Instructions would require 72 million cut
  in General Revenue spending, plus the loss of
  106 million in federal funds and layoffs of 550
  state employees
• Base increase 711 million more in General
  Revenue, mostly for caseload growth in Medicaid,
  would draw down another 611 million in federal
  funds
• Exceptional items
• 1.8 billion in GR to deal with Medicaid and CHIP
  cost increaseswhat state pays for medical
  services/drugswould draw down 2.8 billion in
  federal funds 237 million GR and 370 million
  federal would restore rates to 2003 levels
• 255 million in GR for HHS waiting lists, mostly
  for community care, would draw down 282 million
  in federal funds
• Restoring CHIP perinatal coverage would save 20
  million in GR and draw down 157 million more in
  federal dollars, vs. covering these infants in
  Medicaid

Source Health and Human Services Commission, LAR
2008-09.
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Aging Disabilities Budget for 2008-09
10 Instructions would require 112 million cut
in General Revenue spending, plus the loss of
130 million in federal funds and layoffs of 298
state employees. Client impacts Community Based
Alternatives Waiver (CBA) 2,261 fewer served
Home and Community Based Services (HCS) 1,119
fewer served Community Living Assistance
(CLASS) 316 fewer served Deaf Blind Multiple
Disabilities (-14) Medically Dependent Children
(-213) Consolidated Waiver Program (-18) Texas
Home Living Waiver (-198) Non-Medicaid Services
(-131) Mental Retardation Community Services
(-799) In Home and Family Support (-391) MR
In-Home Services (-275) Base increase 71
million more in General Revenue, mostly for
caseload growth in Medicaid, would draw down
another 148 million in federal
funds Exceptional items 84 million in GR would
draw down 129 million in federal funds to
maintain caseloads for waiver programs 8
million in GR and 12 million federal would fund
Promoting Independence to get 240 ICF-MR clients
and 120 children leaving foster care into the HCS
Waiver program
Source Dept. of Aging and Disabilities Services,
LAR 2008-09.
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Family Protective Services Budget for 2008-09

• 10 Instructions 40 million cut in General
  Revenue spending, all of which would be made to
  prevention services. Client impacts STAR would
  serve 3,262 fewer youth every month Community
  Youth Development (CYD) clientele would be cut by
  1,447 Texas Families would reach 1,842 fewer
  families and other at-risk prevention services
  would reach 1,497 fewer children.
• Base increase 674 million more in General
  Revenue, mostly to replace Rainy Day Fund
  dollars used in 2006-07 for CPS reform and foster
  care
• Exceptional items
• 95 million in GR to continue CPS/APS reform and
  adjust for method of finance changes (draws down
  28 million in federal funds 1,475 staff would
  be funded)
• 51 million in GR to keep CPS caseloads from
  getting worse (draws down 12 million federal
  funds 550 caseworkers and other staff)
• 13 million GR to expand community-based
  prevention programs

Source Dept. of Family and Protective Services,
LAR 2008-09.
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State Health Services Budget for 2008-09
10 Instructions would require 236 million cut
in GR-related spending, plus the loss of 59
million in federal funds and layoffs of 693 state
employees. Major cuts 45 million
GR-Dedicated for WIC Nutrition/Farmers Markets
41 m GR 38 m federal for adult mental health
services (7,728 clients) 8.5 million GR 8 m
federal for childrens MH services (842 clients)
7.6 m GR 7 m federal for NorthSTAR
Behavioral Health waiver 4.6 m GR 5 m
federal for substance abuse. GR cuts to Maternal
Child Health could endanger the whole federal
grant (35 million annually). Exceptional items
Other than restoring the 10 GR cut, DSHS
exceptional items would not expand the use of
federal funds, but would improve staffing for
various public health programs. 97 new positions
would be funded for state mental hospitals (to
continue the capacity increase approved for
2006-07) 123 staff would provide
preparedness/prevention/emergency response
services to the 188 counties that lack a public
health authority.
Source Dept. of State Health Services, LAR
2008-09.
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Assistive Rehabilitative Svcs. Budget for
2008-09
10 Instructions would require 13 million cut
in General Revenue spending, plus the loss of 45
million in federal funds and layoffs of 168 state
employees. Rehab/employment programs for
blind/visually impaired and for deaf would be
cut general vocational rehab program would serve
13,875 fewer clients. Base increase 9 million
more in General Revenue (before 10 cut) would
draw down another 36 million in federal
funds Exceptional items 8 million in GR would
draw down 33 million in federal funds, newly
available because of 3.5 annual increase in
Vocational Rehabilitation Grant, and prevent the
creation of a waiting list. 3.70 in federal
funds for every 1 in GR Legislature could also
approve staffing increase of 122 employees in
fiscal 2008, plus another 40 employees in 2009,
for SSI and SSDI determination (100 federally
funded)
Source Dept. of Assistive Rehabilitative
Services, LAR 2008-09.
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Federal Reauthorization Needed
HIV Care Formula Grant authorization expired at
end of fiscal 2005. Congress could change
formulas to favor Southern states. 73 million in
fiscal 2006. Special Programs for the Aging
(Nutrition Supportive Services) 55 million a
year for DADS Refugee and Entrant Assistance no
match required. Funds cash medical assistance,
social services, some admin costs. 16 million in
fiscal 2006. Family Planning Services 14
million annually to Dept. of State Health
Svcs. Family Caregiver Support 8 million/yr
for Texas for support svcs for family caregivers
and for grandparents/other older adults who care
for relatives Preventive Health Services
Sexually Transmitted Disease Control Grants 7
million a year for Dept. of State Health Services
Source LBB, Top 100 Federal Funding Sources,
April 2006.
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More Information
Legislative Budget Board, Top 100 Federal Funding
Sources and Federal Funds Watch (newsletter)
http//www.lbb.state.tx.us/Federal_Funds/Federal_
Funds.htm Texas Office of State-Federal
Relations, News from Washington and
more http//www.osfr.state.tx.us/
Source LBB, Top 100 Federal Funding Sources,
April 2006.
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