Awak(e) Fw; FYI; Washington Watch / The Arc Part 1

[Guest guest]

Volume 2, Issue 2 – February 6, 2004

In This Issue:

* Bush Administration Releases FY 2005 Budget Request

* Federal Budget Deficit Estimate Increases Again

* State Medicaid Budget Overview: State Revenues are Rising, but Medicaid Cuts Continue

* CMS Restricts Access to Medicare Wheelchair Coverage

* New Research Shows Expanding Future for Accessible and Assistive Technology

* U.S. Supreme Court and the Department of Justice Ponder Disability Seating Arrangements

* Florida Court Moves to Protect the Rights of Voters with Disabilities

* Federal Election Assistance Commission Finally Opens its Doors

* Bush Administration Releases FY 2005 Budget Request

President Bush proposed to the U.S. Congress his Fiscal Year 2005 budget request on Monday, February 2nd. His proposal, if enacted, would bring about our nation's largest annual deficit ($521 billion) and would allow all Federal discretionary programs, with the exception of Defense and Homeland Security, to grow at only one half of one percent. The $2.4 trillion budget has angered both Republican conservatives (too much spending, deficit too high) and liberal Democrats (more tax cuts and skewered spending priorities). Seven of the fifteen Cabinet departments would suffer cutbacks from their FY 2004 discretionary spending, including the Departments of Health and Human Services and Transportation.

The Administration's budget request will challenge the Congressional Budget and Appropriations Committees to develop a FY 2005 Budget Resolution and Appropriations that will appease conservatives and liberals in an election year. Rumors abound that the Congress will not be able to agree on a Budget Resolution and that impasse would trigger a year long Continuing Resolution at FY 2004 levels.

The table on the next page compares FY 2004 funding levels with the FY 2005 Bush Administration budget request. The following is a brief analysis of key disability program spending by department as proposed by the Administration.

Department of Labor

To meet the demands of a competitive workforce in the 21st Century, the Administration proposes a budget cut of $2.7 billion for the Department of Labor (DOL) for FY 2005. The Administration requests $57.3 billion to fund DOL activities for FY 2005.

The Administration's budget request for employment and training activities totals approximately $6.36 billion, a very slight increase of about $6 million from FY 2004 appropriations of $6.35 billion. The bulk of this budget applies to adult and youth employment and training programs authorized by the Workforce Investment Act (WIA).

Adult Employment and Training Services

The Administration requests approximately $3.28 billion for adult training and employment services. This represents an increase of approximately $150 million from FY 2004 appropriations. The increase has been reached by cutting funding for some of the existing employment and training programs, and then providing funding for some new initiatives. The Administration proposes to consolidate certain employment and training programs authorized under WIA, and then cut the funding to the states for those employment and training services. The Administration proposes to cut the state grant by approximately $160 million -

$2.855 billion in FY 2004 to $2.696 billion in FY 2005.

The Administration also proposes to cut funding for technical assistance to states by approximately $1 million and funding for the Work Opportunity Tax Credit by almost $2 million. The Administration proposes to keep the Workforce Incentive Grants funded at the same level, approximately $19 million.

After cutting existing employment and training assistance to states, the Administration proposes two new initiatives: $250 million in competitive grants for businesses, community colleges, and workforce investment boards to form or build partnerships to train individuals in high-growth industries; and a $50 million demonstration project for competitive grants to states for personal reemployment accounts (PRAs). Although the details of these proposals remain to be seen, it does not appear that either of these new initiatives will have any significant impact on individuals with disabilities.

Youth Employment and Training Activities

On appearance, the Administration proposes to level fund the youth training programs at approximately $1 billion. The Administration, however, cuts the current youth grant formula by 25 percent, and then provides $250 million for new competitive grants called Youth Challenge Grants.

Similarly, the Administration proposes to take the current youth offenders program, funded by formula grants to states at approximately $50 million, and consolidate it into a new competitive grant, prisoner reentry program, funding this program at $90 million.

In total, the Administration requests more than $600 million in cuts to existing training programs to pay for new, untested initiatives that will likely have little impact on individuals with disabilities.

Comparison of FY 2004 Funding with FY 2005 Appropriations for Select Programs in the Departments of Labor, Health and Human Services, and Education

(in millions)

FY 2004*

Appropriations FY 2005

Admin. Request

Difference

Department of Labor

Adult & Youth Training

$4,124.8

$4,280.0

+ 155.2

Office of Disability Policy

$47.0

$47.6

+0.6

Work Incentives Grants

$19.8

19.9

+0.1

Department of Education

IDEA State Grant (Part

$10,068.1

$11,068.1

+$1,000.0

IDEA Preschool

$387.7

$387.7

$0.0

IDEA Early Intervention (Part C)

$444.4

$466.6

+$22.2

IDEA Parent Information Centers

$26.2

$26.2

$0.0

Vocational Rehabilitation State Grant

$2,584.2

$2,697.6

+$113.4

VR Supported Employment State Grant

$37.7

$0.0

-$37.7

Independent Living State Grant

$22.0

$22.0

$0.0

Independent Living Centers

$73.6

$73.6

$0.0

Assistive Technology

$25.9

$15.0

-$10.9

Dept. of Health and Human Services

Maternal and Child Health Block Grant

$730.0

$730.0

$0.0

Title XX Social Services Block Grant

$1,767.0

$1,769.0

+$2.0

CDC Center on Birth Defects and DD

$113.0

$113.0

$0.0

National Institute of Child Health and Human Development

$1,242.0

$1,281.0

+$39.0

Developmental Disabilities State Grant

$73.0

$73.0

$0.0

Protection and Advocacy Systems

$38.0

$39.0

+$1.0

University Centers for Excellence in DD

$27.0

$27.0

$0.0

Projects of National Significance (including Family Support)

$12.0

$12.0

$0.0

Child Care and Development Block Grant

$2,978.0

$2,090.0

+$12.0

Disabled Voter Service

$15.0

$15.0

$0.0

* All figures must be reduced by 0.59 percent due to the across-the-board cut.

Office of Disability Employment Policy (ODEP)

The Administration requests a total of $47.6 million for ODEP in FY 2005, an increase of $0.6 million from FY 2004. ODEP's mission is to provide leadership to increase employment opportunities for adults and youth with disabilities.

Department of Education

The Bush Administration budget request for the Department of Education totals $57.3 billion. This amount represents an increase of $1.7 billion, a 3 percent increase over the FY 2004 level. Two key programs, the Title I No Child Left Behind and the Individuals with Disabilities Education Act (IDEA) State Grant programs each receive an additional $1 billion. Several other programs receive smaller increases and a small number of new programs are established. Since the total increase is $1.7 billion, numerous other department programs are either abolished or cut.

IDEA

In addition to the IDEA State Grant increase of $1 billion (to $11.1 billion), the Administration is seeking a $22 million increase for the Part C Infants and Toddlers program. The Preschool Grant program is frozen at the FY 2004 level as are all of IDEA's National Activities programs except Technology and Media Services, which would be decreased by almost $7 million. The IDEA Research program is frozen and is slated to be transferred from the Office of Special Education Programs to the new Institute of Education Sciences.

The IDEA State Grant program increase would maintain the Administration's record of seeking a $1 billion a year increase. This represents a 75 percent increase in the program in the four years of the Bush Administration. The $1 billion request, however, falls more than 50 percent short of the $2.2 billion increase sought in last year's budget resolution and the House passed and Senate Health, Education, Labor and Pensions Committee reported bills to reauthorize IDEA. The new $1 billion increase, if enacted, equal about 20 percent (1/2 of the 40 percent promised) of the Federal contribution of the national average per pupil expenditure for students with disabilities. This amount would provide an average of $1,612 per child for the estimated 6.9 million special education students.

The Administration budget would also terminate the $6.9 million Higher Education Demonstration Projects to fund technical assistance and professional development for faculty and administrators in institutions of higher education to improve the quality of education for special education students. A $2 million program to serve migrant children with disabilities is also slated for termination.

Vocational Rehabilitation

The Administration's request for the Vocational Rehabilitation State Grant program is increased by $113.5 million (to $2.7 billion), an alleged 4.4 percent increase. However, $62.1 million of this increase results from the proposed elimination of the Supported Employment State Grant, Projects with Industry and Recreation programs. Funds for those programs are shifted to the Vocational Rehabilitation State Grant with no assurances that the shifted funds would be used for the same purposes. The Administration attempted this budget ploy last year but was rebuffed by Congressional appropriators who kept the funding in the three programs. Both pending bills to reauthorize the Rehabilitation Act also maintain the three programs. United Cerebral Palsy and The Arc are strongly opposed to the elimination of the Supported Employment and Projects with Industry programs. The remaining $51 million increase for the Vocational Rehabilitation State Grant program results from an automatic cost-of-living increase based on the Consumer Price Index.

Many of Rehabilitation Act's discretionary programs (e.g. Independent Living, Client Assistance, Training) and the National Institute on Disability and Rehabilitation Research are frozen at last year's levels. The Section 303 Demonstration and Training Program was cut by $5.5 million (23 percent). The Protection and Advocacy of Individual Rights (PAIR) increased by almost $ 3 million but that amount would only offset the funding lost by eliminating the Protection and Advocacy monies available under the Assistive Technology Act.

Assistive Technology

The Administration's budget request would eliminate the Title I Tech Act State Grant program, currently funded at $25.9 million. This move would de-fund the State Grant program, the Technical Assistance program and the Protection and Advocacy activities would be shifted to the PAIR program in the Rehabilitation Act. The Title III Alternative Financing program, which offers low interest loans for technology devices for individuals with disabilities, would be funded at $15 million, raising the number of states participating in Title III to 45. The Arc and United Cerebral Palsy are strongly opposed to the elimination of the Title I program. While they support the Title III loan program increase, it is recognized the numerous individuals with disabilities who have limited or no income will not likely benefit from a loan program. The Congress rejected the Administration's proposal to eliminate the Title I program in the FY 2004 appropriations. Advocates will press for a similar result this year.

Employment

President Bush touted his Jobs for the 21st Century proposal in his State of the Union Address. The Department of Education would implement several components of this new initiative, totaling $333 million. Most of the funding is slated for a Striving Readers program ($100 million) to improve reading skills of teenage students who are reading below grade level and a Secondary Education Mathematics program ($120 million) to ensure a supply of highly qualified high school math teachers. It is unclear if and how students with disabilities would qualify for these new initiatives. Their eligibility is not mentioned in the budget proposal.

Department of Heath and Human Services

The Bush Administration budget request for HHS would add $15.2 billion in spending, a 2.7 percent increase. All of the increased spending would be for the entitlement programs (Medicare, Medicaid). HHS discretionary spending would actually be cut by $1.1 billion (1.6 percent).

Medicaid

The Department of Health and Human Services budget proposal for FY 2005 does not include the specific Administration proposal for flexible state allotments included in last year's budget proposal. However, the budget proposal clearly indicates support for working with Congress to create such allotments. Advocates in the disability community and elsewhere had criticized the allotments proposal last year as essentially a block grant by another name which would be disastrous for people with disabilities and others who must rely on the Medicaid program.

The HHS budget proposal for FY 2005 states:

The past year has witnessed increasing dialogue on the subject of Medicaid and SCHIP modernization. States have continued to express concerns about the complexity of administering the Medicaid program. Federal regulation of the Medicaid program is an increasing burden on the ability of the States to address the unique needs of their low-income uninsured residents. The Secretary is encouraged by the current discussion and will look for new and innovative ways to address these concerns in the coming months. Building on the foundation of last year's Medicaid and SCHIP modernization proposal, the Secretary will work with Congress to pass an option for States to receive Medicaid and SCHIP funds in the form of flexible allotments. This strategy will provide States with the greatest potential for innovation and stability of funding. (emphasis added)

Secretary Tommy underscored his commitment to the allotments proposal at the HHS press conference publicly releasing the budget, including his intention to work closely with Governors.

As UCP, The Arc, and other advocates have noted, any proposal to impose "caps" or "allotments" in the Medicaid program will have a devastating impact on people with disabilities and their families. Reforms of this nature would eliminate the critical entitlement to Medicaid benefits and services. Access to basic health care, home and community based services, physical, occupational, and speech therapies, durable medical equipment and other services – all of which are fundamental to maintaining the health, safety and independence of millions of people with disabilities -

will be at risk.

The budget proposal includes a number of New Freedom and other legislative initiatives from previous years as well as some new initiatives. The initiatives include:

* New Freedom Initiatives that were not enacted last year, including respite care for caregivers of adults with disabilities and children with severe disabilities and home and community based services for children currently residing in psychiatric residential treatment facilities ($13 million in FY 2005/$256 million over 5 years); and a demonstration to address shortages of community direct care workers ($2.9 million in FY 2005);