Current Budget Status:

FMAP funding update:  On Thursday (August 5), the US Senate took up the final vote on HR 1586 , the vehicle for the extension of necessary FMAP funding. There were two Republican amendments voted on that would have extended tax cuts for individuals and small businesses that are set to expire in December. Those two amendment, if they had passed, would have sent the bill with the FMAP extension back to the Senate Finance committee.  Both of these amendment failed. The final vote on HR 1586 was 61 yes and 39 no. The bill has now officially passed the Senate. The bill includes $26.1 billion in extension stimulus funding and $16.1 billion in FMAP funding.

The Technical Corrections bill — S1202 (this bill makes any technical corrections, clarifications, or modifications to the appropriations bill ) was passed by the state legislature the week of July 5 . The complete text of the bill is HERE.

Highlights include:

• FMAP (Federal Medical Assistance Percentage) provisions: If the $500 million FMAP money is not authorized by Congress, the North Carolina legislature has outlined specific budget adjustments to address this loss of funding. You can find the list of provisions on page 2-3.

• Independent Assessment Requirement: The language for Independent Assessment requirement was changed in the technical corrections bill.  You can view the new language on page 8-9.

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The budget was passed and signed into law by Governor Perdue on June 30.  You can view the complete text of the budget HERE.  You can view the money report HERE.

Budget  Text Highlights:

• FMAP (Federal Medical Assistance Percentage) Provision- Extraordinary measures to address the potential loss of federal funds: Page 6, line 4
• DHHS, Division of Mental Health expansion- $40 million: Page 2, line 44
• Part X, DHHS Appropriations section begins here: Page 50, line 43
• $29 million for local inpatient beds. LMEs (local management entity) will manage these inpatient beds. Page 50, line 39.  Specific information about LME management/control of inpatient beds is on page 50, lines 48-59.
• Capitated 1915 (B)/(C) Waivers: Page 67, line 8-32
• Medicaid Fraud Prevention: Page 67, line 51
• Medicaid Personal Care Services (Community Support, Mental Health Residential Care, Reduction of Medicaid Rates): Page 77-81,
• Implement independent assessment on mental health services: Page 82, line 20-48
• Allocation of Federal Block Grants- Division of MH, DD, SA: Page 85, line 22; DHHS Admin – MH, DD, SA: Page 86, line 16; SA Prevention and Treatment Block Grant – $250,000: Page 95, line 6

Money Report Highlights:

• DHHS appropriations are covered in section G, beginning page 36
• Local in-patient bed capacity: $9 million expansion, recurring. (Page 36, item 9)
• Community Service Funds: $40 million expansion, non-recurring. (Page 36, item 11)
• Expansion of Capitated Behavioral Health Pilot Program: $1, 560,600 reduction/savings, recurring. (Page 43, item 57)
• Independent Assessment of Mental Health Services: $7,730,207 reduction/savings, recurring. (Page 44, item 60)

Previous 2010 Budget Process Information:

The Senate has passed its version of the budget on May 20.  The House passed its version of the budget on June 4.  You can view the text of the House budget HERE. The budget is now in conference committee to combine both the senate and house versions.  The General Assembly plans to have a completed budget for Governor Perdue by July 1.

For more information and up-to-date news, visit www.ncleg.net.

Governor Perdue’s Budget:

• You can download Governor Perdue’s complete budget HERE.  The MH,DD, SA division budget adjustments begin on page 111.
• Governor Perdue’s overall Budget Priorities are: Jobs and Economic Recovery; Career and College– Ready, Set, Go;  Setting Government Straight (specifically cracking down on Medicaid fraud);  Healthy and Safe Communities
• Governor Perdue’s Budget Priorities for Health and Human Services are: Controlling Medicaid Cost;  Attacking Fraud, Waste, and Abuse; Providing Services to Vulnerable Populations; Mental Health Services

Senate Budget:

The Senate passed its version of the budget on Thursday, May 20. You can download the senate budget bill HERE.

The Senate Money Report for Health and Human Services is HERE.

House Budget:

The House passed its version of the budget on June 4.  You can view the full text of the House budget HERE.

For specific information on the Health and Human Services portion of the budget you can visit the House Appropriations Subcommittee on Health and Human Services website HERE.

The Health and Human Services subcommittee money report is HERE.

You can watch video from the House Appropriations Committee public hearing HERE.

Opportunities for Action:

Contact your legislators about the Budget

You can watch video from the House Appropriations Committee public hearing HERE.

News Coverage about 2010 Budget Process:

State budget offers ammo for all (7.1.10)

Gov. Perdue signs $19 billion budget (6.30.10)

NC House gives final budget OK; negotiations ahead (6.4.10)

House spending plan heads to full budget panel (6.3.10)

House budget plan uses more lottery money (6.2.10)